Middle Georgia Technical College, Warner Robins, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2011

MIDDLE GEORGIA TECHNICAL COLLEGE
WARNER ROBINS, GEORGLA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
UPON PROCEDURES
FOR FISCAL YEAR ENDED
JUNE 30,2011

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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

1

B STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET

BY PROGRAM AND FUNDING SOURCE

2

C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENOTF AUDITSAND ACCOUNTS
270 Washington Street, S.W., Suite 1- 156
Atlanta, Georgia 30334-8400
October 19, 2011

Members of the State Board of the Technical College System of Georgia Members of the Local Board of Directors
and Honorable Ivan H. Allen, President Middle Georgia Technical College
lnde~endenAt ccountant's Report on A~DlvingAgreed-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 ComprehensiveAnnual Financial Report (CAFR ) and Single Audit Report; and to assist you in assessingthe accuracy of budget basis information provided in the Summary Budget Comparisonand SurplusAnaksis Report, Statement of Funds Available and Expnditures Compared to Budget By Program and Funding Source, and the Statement of Changes To Fund Balance By Program and Funding Sourcewhich are attached as Exhibits A, B and C, 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.
We did not note any exceptions as a result of our procedures.
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.
We did not note any exceptions as a result of our procedures.
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 2011. 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 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 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 Anaksk Report (Exhibit A), Statement of Funds Available and Expenditures Compared to Budget By Program and Funding 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 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 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 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 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 d s e lWl . Hinton, CPA, CGFM State Auditor

EXHIBITS

MIDDLE 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
ADJUSTMENTS AND PROGRAM TRANSFERS CARRY-OVER FROM PRIOR YEAR
Transfer from Resewed Fund Balance Total Funds Available
EXPENDITURFS Adult Literacy Economic Development Technical Education Total Expenditures Excess of Funds Available over Expenditures
FUND BALANCE JULY 1 Resewed
Pr~oYr ear Payables/Expenditures Prior Year Resewed Fund Balance Included In Funds Available FUND BALANCEJUNE 30
SUMMARY OF FUND BALANM Resewed Federal Financial Ass~stance Sales and Sewlces Live Work Projects Technology Fees Uncollectible Accounts Receivable Inventories Tu~tion
Total Fund Balance

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

MIDDLE GEORGIA TECHNICAL COLLEGE STATEMENTOF FUNDSAVAILABLE AND EXPENDITURESCOMPARED TO BUDGET BY PROGRAMAND FUNDING SOURCE
YEAR ENDED JUNE 3 0 , 2 0 1 1

Adult Literacy State Appropriation State General Funds Federal Funds Other Funds
Total Adult Llteracy
Economic Development Other Funds
Technical Education State Appropriation State General Funds Federal Funds Other Funds
Total Technical Education
Totals By Program

Orlginal Appropriation

Amended Appropriation

Final Budget

Current Year Revenues

Funds Available Compared to Budget

Prlor Year Carw-Over

Adjustments and Program Transfers

Total Funds Available

Variance Positive (Negative1

Expend~turesCompared to Budget

Actual

Variance P O S I ~ I(NVe~gative)

Excess (Deficiency) of Funds Available
Over/(Under) Ex~enditures

MIDDLE GEORGIA TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE
YEAR ENDEDJUNE 3 0 . 2 0 1 1

Adult 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
Prior Year Reserves Not Available for Expend~ture Inventor~es Uncollectible Accounts Receivable
Budget Unit Totals

Beg~nnlngFund Balance/(Deficit)
July 1

Fund Balance Carr~edOver from
Prior Period as Funds Available

Return of FiscalYear 2010
Surplus

Pr~oPr er~od Adjustments

Other Adjustments

Excess (Dehclency) of Funds Available
Over/(Under) Expenditures

Ending Fund Balance/(Deficit)
June 3 0

Analysis of Ending Fund Balance

Reserved

Surplus/(Defic~t)

Total

Summary of Ending Fund Balance Reserved
Federal Financial Assistance Sales and Services Live Work Projects Technology Fees UncollectibleAccounts Receivable Inventories Tuition
Total Ending Fund Balance - June 3 0