STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
I 
OGEECHEE TECHNICAL COLLEGE STATESBORO, GEORGIA 
REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2005 
Russell W. Hinton State Auditor 
 
 OGEECHEE TECHNICAL COLLEGE - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION 
 
REQUIRED SUPPLEMENTARY INFORMATION 
 
MANAGEMENT'S DISCUSSION AND ANALYSIS 
 
BASIC FINANCIAL STATEMENTS 
 
EXHIBITS 
 
A STATEMENT OF NET ASSETS 
 
3 
 
B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS 
 
4 
 
C STATEMENT OF CASH FLOWS 
 
5 
 
D NOTES TO THE FINANCIAL STATEMENTS 
 
6 
 
SUPPLEMENTARY INFORMATION 
 
SCHEDULES 
 
1 SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES 
 
COMPARED TO BUDGET- (NON-GAAP BASIS) 
 
BUDGET FUND 
 
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION 
 
21 
 
2 RECONCILIATION OF SALARIES AND TRAVEL 
 
22 
 
3 RECONCILIATION OF PER DIEM AND FEES 
 
23 
 
SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 Russell W. Hinton 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 
September 20, 2005 
 
Honorable Sonny Perdue, 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 Gene Waters, President Ogeechee Technical College 
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION 
Ladies and Gentlemen: 
We have audited the accompanying basic financial statements (Exhibits A through D) ofOgeechee Technical College, an organizational unit of the State of Georgia, as of and for the year ended June 30, 2005. These financial statements are the responsibility of the Technical College's management. Our responsibility is to express an opinion on these financial statements based on our audit. 
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
As discussed in Note 1, the financial statements of Ogeechee Technical College are intended to present the financial position and changes in financial position and cash flows ofonly that portion of the business-type activities ofthe State ofGeorgia that is attributable to the transactions ofOgeechee Technical College. They do not purport to, and do not, present fairly the financial position and changes in financial position and cash flows ofthe State of Georgia, in conformity with accounting principles generally accepted in the United States of America. 
 
05ARL-2TC 
 
 In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Ogeechee Technical College as of June 30, 2005, and its changes in financial position and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. 
Management's Discussion and Analysis is not a required part ofthe basic financial statements but is supplementary information required by accounting principles generally accepted in the United States ofAmerica. We have applied certain limited procedures, which consisted principally ofinquiries of management regarding the methods of measurement and presentation of this supplementary information. However, we did not audit this information and express no opinion on it. 
Our audit was conducted for the purpose of forming an opinion on the basic financial statements of Ogeechee Technical College taken as a whole. The accompanying supplementary information (Schedules 1 through 3) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 
Respectfully submitted, 
 
RWH:gp 05ARL-2TC 
 
l<l.~ 
Ru ell W. Hinton State Auditor 
 
 REQUIRED SUPPLEMENTARY INFORMATION 
 
 Ogeechee Technical College Management's Discussion and Analysis 
The following is management's discussion and analysis of Ogeechee Technical College's financial performance for the fiscal year ending June 30, 2005 with comparative data from fiscal year ending June 30, 2004. This discussion and analysis has been prepared by and is the responsibility of management. 
Overview ofthe Financial Statements and Financial Analysis 
This annual report consists of a series of financial statements prepared in accordance with the rules and regulations established by the Governmental Accounting Standards Board. 
There are three financial statements presented: the Statement of Net Assets; the Statement of Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. The Statement of Net Assets used in conjunction with the Statement of Revenues, Expenses and Changes in Net Assets contains information concerning the College's finances and activities as a whole and assists with providing an answer to the question "Is the College as a whole better or worse off as a result of the year's activities?" These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting method used by corporations and other private sector companies. All revenues and assets are recognized when the service is provided and expenses and liabilities are recognized when others provide the goods or service, regardless of when cash is exchanged. 
The Statement of Cash Flows is a valuable tool when evaluating the ability of the College to meet financial obligations as they mature. This statement presents information related to cash inflows and outflows summarized by operating, noncapital financing, capital and related financing and investing activities. 
This discussion and analysis of the College's financial statements provides an overview of its financial activities for the year. 
Statement ofNet Assets 
The purpose of the Statement of Net Assets is to present to the users of the financial statements a fiscal snapshot of the Technical College at a specific point in time. The statement presents the assets, liabilities and net assets of the College as of the end of the fiscal year. Assets and liabilities are reported as current and noncurrent and the difference between assets and liabilities is reported as net assets. Over a period of time the increases and decreases reflected in the Statement of Net Assets, when considered with other nonfinancial facts such as enrollment levels and the condition of the facilities, can provide a measure to aid in determining whether the Technical College's financial position is improving or deteriorating. 
Net assets are divided into three major categories. The first category, invested in capital assets, net of debt, provides information concerning the College's equity in property, plant and equipment owned by the College. The second category is restricted net assets, which is 
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 expendable. Expendable restricted net assets are available for expenditure by the College but must be spent for purposes as determined by donors and/or external entities that have placed time or purpose restrictions on the use of the assets. The final category is unrestricted net assets, which are available for expenditure by the College for any lawful purpose deemed necessary to operate the College. 
 
Statement of Net Assets (thousands of dollars) 
 
June 30, 2005 
 
June 30, 2004 
 
Assets Current Assets Capital Assets, Net 
 
$ 
 
1,360 
 
16,195 
 
$ 
 
1,567 
 
16 407 
 
Total Assets 
 
$_----=-1-'-'1,=.ass~s 
 
$_----=-1-'-'7.a. . .,97'- C.4 
 
Liabilities Current Liabilities Noncurrent Liabilities 
 
$ 
 
475 
 
$ 
 
557 
 
158 
 
154 
 
Total Liabilities 
 
$_ _---=63;;..:;..3 
 
$_ _ _71_1 
 
Net Assets Invested in Capital Assets, Net of Debt Restricted Expendable Unrestricted 
 
$ 
 
16,195 
 
1 726 
 
$ 
 
16,407 
 
856 
 
Total Net Assets 
 
$===1==-6~,9=2~2 
 
$==1-7.2"""6"""3 
 
The total assets of the College decreased by approximately $419,000 from the prior year. This can be partly attributed to a decrease of approximately $207,000 in current assets. This decrease in assets follows the institutional philosophy to use available resources to acquire and improve all areas of the College to better serve the instruction and public service missions of the College. 
 
Total liabilities for the fiscal year decreased by approximately $78,000. The primary reason for the decrease was in current liabilities, predominately from the approximate decrease of $28,000 in salaries payable. The combination of the decrease in total assets of approximately $419,000 and the decrease in total liabilities of approximately $78,000 yields a decrease in total net assets of approximately $341,000. The decrease in total net assets is primarily in the category of invested in capital assets, net of debt which decreased approximately $212,000. 
 
Statement ofRevenues, Expenses and Changes in Net Assets 
 
The purpose of the Statement of Revenues, Expenses and Changes in Net Assets is to present the revenues received by the College, both operating and nonoperating, and the expenses incurred by the College, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the College during the fiscal year. Changes in total net assets as presented on the Statement of Net Assets are based on the information presented in the Statement of Revenues, Expenses and Changes in Net Assets. 
 
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 Operating revenues are received for providing goods and/or services to various customers and constituencies of the College. Operating expenses are those expenses paid to acquire or produce the goods and/or services provided in return for the operating revenues, and to carry out the mission of the College. Therefore, nonoperating revenue is received when no goods or services are provided in exchange for the revenue. With the issuance of Statement No. 35, new guidelines were established by the Governmental Accounting Standards Board (GASB), which changed the classifications of state appropriations and gifts from operating to nonoperating revenue. This change may result in an operating deficit that is offset by a nonoperating surplus. 
 
Statement of Revenues, Expenses and Changes in Net Assets (Thousands of dollars) 
 
June 30, 2005 
 
June 30, 2004 
 
Operating Revenues Operating Expenses 
 
$ 
 
5,185 
 
14 071 
 
$ 
 
3,473 
 
11,427 
 
Operating Gain/Loss 
 
$ 
 
-8,886 
 
$ 
 
-7,954 
 
Nonoperating Revenues and Expenses 
 
8 148 
 
8 754 
 
Income (Loss) Before Other Revenues, Expenses, Gains or Losses 
 
$ 
 
-738 
 
$ 
 
800 
 
Other Revenues, Expenses, Gains or Losses 
 
397 
 
7 321 
 
Increase (Decrease) in Net Assets 
 
$ 
 
-341 
 
$ 
 
8,121 
 
Net Assets at Beginning of Year 
 
$ 
 
17,263 
 
$ 
 
9 142 
 
Net Assets at End of Year 
 
$ 
 
16.922 
 
$ 
 
17.263 
 
The Statement of Revenues, Expenses and Changes in Net Assets reflects a negative year with an decrease in the net assets at the end of the year. Some highlights of the information presented on the Statement of Revenues, Expenses and Changes in Net Assets are as follows: 
 
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 Revenue By Source (thousands of dollars) For The Years Ended June 30, 2005 and June 30, 2004 
 
June 30, 2005 
 
June 30, 2004 
 
Operating Revenue Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Other 
 
$ 
 
2,841 
 
1,791 
 
$ 
 
1,169 
 
1,730 
 
547 
 
563 
 
6 
 
11 
 
Total Operating Revenue 
 
$ 
 
5,185 
 
$ 
 
3 473 
 
Nonoperating Revenue State Appropriations Grants and Contracts N onoperating Gifts Investment Income Other 
 
$ 
 
7,206 
 
941 624 
2 
 
$ 
 
7,786 
 
991 824 
2 -5 
 
Total Nonoperating Revenue 
 
$ 
 
8 773 
 
$ 
 
9,598 
 
Capital Grants and Gifts State 
 
$ 
 
397 
 
$ 
 
7,321 
 
Total Revenues 
 
$ 
 
14,355 
 
$ 20,392 
 
Expenses (thousands of dollars) For The Years Ended June 30, 2005 and June 30, 2004 
 
June 30, 2005 
 
June 30, 2004 
 
Operating Expenses Instruction 
 
$ 
 
14,071 
 
$ 
 
11,427 
 
Nonoperating Expenses Interest Expense (Capital Assets) Other 
 
20 
 
625 
 
824 
 
Total Expenses 
 
$ 
 
14,696 
 
$ 
 
12,271 
 
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 The sources of operating revenue for the College are tuition and fees, grants and contracts, auxiliary services, and educational activities. The increase in operating revenue of approximately $1,712,000 is directly related to increases in Tuition and Fees for fiscal year 2005. 
 
Utilities increased by $122,355 during the past year. The increase was generated by the addition of a new building located on the main campus. 
 
Personal Services expenses decreased by $249,237. This decrease reflects privatization of the janitorial services for the College. 
 
Depreciation expense increased by $227,887 and is due to the completion of the new building and the purchases of the associated equipment. 
 
Under nonoperating revenues (expenses) state appropriations decreased by approximately $580,000. This decrease is directly related to the state imposed 3% budget reduction for fiscal year 2005. 
 
Statement ofCash Flows 
 
The purpose of the Statement of Cash Flows is to provide relevant information concerning the cash receipts and payments of the College during the year. It also provides information concerning the College's ability to generate future cash flows and to meet its obligations as they come due. The statement is divided into five sections. The first section reports on the operating cash flows and shows the net cash used by the operating activities of the College. The second section reflects cash flows from noncapital financing activities. The third section deals with cash flows from capital and related financing activities, which reflects the cash used for the acquisition and construction of capital related items. The fourth section reflects the cash flows from investing activities and shows the purchases, proceeds, and interest received from investing activities. The final section reconciles the net cash used to the operating income or loss reflected on the Statement of Revenues, Expenses and Changes in Net Assets. 
 
Statement of Cash Flows (thousands of dollars) 
 
June 30, 2005 
 
June 30, 2004 
 
Cash Provided (Used) By: 
 
Operating Activities 
 
$ 
 
-8,172 
 
Noncapital Financing Activities 
 
8,016 
 
Capital and Related Financing Activities 
 
-169 
 
Investing Activities 
 
2 
 
$ 
 
-7,330 
 
8,789 
 
-547 
 
2 
 
Net Change in Cash Cash, Beginning of Year 
 
$ 
 
-323 
 
$ 
 
914 
 
1,142 
 
228 
 
Cash, End of Year 
 
$=====8"=1==9 
 
$====1='=,1==4==2 
 
-v- 
 
 Capital Assets The College had no significant capital asset additions for facilities in the fiscal year under review. However, a project was funded by the Georgia State Financing and Investment Commission (GSFIC) at a cost of $397,376.73 for equipment and improvements. Projected funding by the GSFIC for fiscal year 2006 will be approximately the same. Long-Term Debt Ogeechee Technical College had a total Long-Term Debt of $402,712.07 of which $244,669.38 was reflected as a current liability at June 30, 2005. For additional information on Long-Term Debt see Notes 1 and 7 in the Notes to the Financial Statements. Economic Outlook The College is unaware of any currently known fact, decision, or condition that is expected to have a significant effect on the financial position or change how the College operates for the next fiscal year. As in prior years, the College's overall financial position is strong. As a result, the College anticipates the next fiscal year will be much like the last and the College will maintain a close watch over resources to maintain the ability to react to unknown internal and external issues. 
Dr. Gene Waters, President Ogeechee Technical College 
- Vl - 
 
 BASIC FINANCIAL STATEMENTS - 1- 
 
 OGEECHEE TECHNICAL COLLEGE STATEMENT OF NET ASSETS JUNE 30. 2005 
ASSETS 
Current Assets Cash and Cash Equivalents Accounts Receivable, Net State Appropriations Federal Financial Assistance Other Inventories 
Total Current Assets 
Noncurrent Assets Capital Assets, Net 
Total Assets 
LIABILITIES 
Current Liabilities Salaries Payable Accounts Payable Deferred Revenue Funds Held for Others Compensated Absences 
Total Current Liabilities 
Noncurrent Liabilities Compensated Absences 
Total Liabilities 
NET ASSETS 
Invested in Capital Assets, Net of Related Debt Restricted 
Expendable Unrestricted 
Total Net Assets 
 
EXHIBIT"A" 
 
$ 
 
819,641.01 
 
19,178.52 62,989.17 169,202.34 289,202.69 
 
$ 1,360,213.73 
 
16,194,978.23 $ 17,555,191.96 
 
$ 
 
23,033.80 
 
47,751.13 
 
32,616.09 
 
127,115.89 
 
244,669.38 
 
$ 
 
475,186.29 
 
158,042.69 
 
$ 
 
633,228.98 
 
$ 16,194,978.23 
27.19 726,957.56 
 
$ 16,921,962.98 
 
The notes to the financial statements are an integral part of this statement. -3- 
 
 OGEECHEE TECHNICAL COLLEGE STATEMENT OF REVENUES. EXPENSES AND CHANGES IN NET ASSETS 
YEAR ENDED JUNE 30. 2005 
 
EXHIBIT"B" 
 
OPERATING REVENUES 
Student Tuition and Fees Less: Scholarship Allowances 
Grants and Contracts Federal 
Sales and Services Other Operating Revenues 
Total Operating Revenues 
OPERATING EXPENSES 
Salaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation 
Total Operating Expenses 
Operating Income (Loss) 
NONOPERATING REVENUES (EXPENSES) 
State Appropriations Grants and Contracts 
Federal State Local Gifts Interest and Other Investment Income Other Nonoperating Expenses 
Net Nonoperating Revenues 
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses 
Capital Grants and Gifts State 
Increase (Decrease) in Net Assets 
Net Assets - Beginning of Year 
Net Assets - End of Year 
 
$ 2,937,621.92 
-96,648.53 
1,791,331.39 546,306.38 6 125.42 
$ 5,184,736.58 
 
$ 7,043,566.24 
1,443,737.67 73,049.89 
1,578,420.47 543,351.86 
2,612,081.87 777,030.21 
$ 14,071,238.21 
$ -8,886,501.63 
 
$ 7,206,129.06 
910,760.04 15,980.12 14,186.10 
623,820.36 2,083.21 
-625,098.26 
$ 8,147,860.63 
$ -738,641.00 
 
$ 
 
397,376.73 
 
$ -341,264.27 
 
$ 17,263,227.25 
 
$ 16,921,962.98 
 
The notes to the financial statements are an integral part of this statement. -4 - 
 
 OGEECHEE TECHNICAL COLLEGE STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30. 2005 
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments) 
Net Cash Provided (Used) by Operating Activities 
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts 
Net Cash Flows Provided (Used) by Noncapital Financing Activities 
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received Purchases of Capital Assets 
Net Cash Provided (Used) by Capital and Related Financing Activities 
CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments 
Net Increase (Decrease) in Cash 
Cash and Cash Equivalents - Beginning of Year 
Cash and Cash Equivalents - End of Year 
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: 
Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash 
Provided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Receivables, Net Inventories Salaries Payable Accounts Payable Deferred Revenue Compensated Absences 
Net Cash Provided (Used) by Operating Activities 
NONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts 
The notes to the financial statements are an integral part of this statement. 
-5- 
 
EXHIBIT "C" 
 
$ 2,865,747.12 
1,729,174.77 536,888.39 
-4,646,057.26 -7,084,512.75 -1,578,420.47 
4,865.42 
$ -8,172,314.78 
 
$ 7,187,176.46 -12,482.65 
1,012,867.32 -171,482.28 
$ 8,016,078.85 
 
$ 
 
96,762.00 
 
-265,655.10 
 
$ -168,893.10 
 
$ _ _ _2~,0_8_3._2_1 $ -323,045.82 
1,142,686.83 
 
$ 
 
819641.01 
 
$ -8,886,501.63 
777,030.21 -57,577.88 29,607.60 -28,549.98 
-3,443.57 9,517.00 -12,396.53 
$ -8,172,314.78 
$ -300,614.73 
 
 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY Ogeechee Technical College is one of thirty-four (34) State supported member colleges of postsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Ogeechee Technical College as a separate reporting entity. 
The Technical College's Local Board of Directors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board ofTechnical 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 appropriations to be received by Ogeechee Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Ogeechee Technical College is considered an organizational unit of the Georgia Department of Technical and Adult Education for financial reporting purposes because of the significance ofits legal, operational, and financial relationships as defined in Section 2100 ofthe Governmental Accounting Standards Board (GASB) Codification ofGovernmental Accounting and Financial Reporting Standards. 
Legally separate, tax exempt organizations whose activities primarily support member colleges of postsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education (an organizational unit ofthe State of Georgia), are considered potential component units of the State. See Note 13 for additional information. 
FINANCIAL STATEMENT PRESENTATION In June 1999, the GASB issued Statement No. 34, Basic Financial Statements and Management Discussion andAnalysisfor State and Local Governments. This was followed in November 1999 by GASB Statement No. 35, Basic Financial Statements and Management's Discussion and Analysis for Public Colleges and Universities. The State ofGeorgia implemented GASB No. 34 as ofand for the year ended June 30, 2002. As an organizational unit of the State of Georgia, the Technical College also adopted GASB Statements No. 34 and No. 35 as amended by GASB Statements No. 37 and No. 38. The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the Technical College's assets, liabilities, net assets, revenues, expenses, changes in net assets, cash flows, and replaces the fund group perspective previously required. 
GAAP requires that the reporting of summer school revenues and expenses be split between fiscal years rather than in one fiscal year. Due to lack ofmateriality, the Technical Colleges ofthe Georgia Department ofTechnical and Adult Education will continue to report summer revenues and expenses in the year in which the predominate activity takes place. 
 
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 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING For financial reporting purposes, the Technical College is considered a special-purpose government engaged only in business-type activities. Accordingly, the Technical College's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-college transactions have been eliminated. 
The Technical College has the option to apply all Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The Technical College has elected to not apply FASB pronouncements issued after the applicable date. 
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include petty cash, demand deposits and time deposits in authorized financial institutions. 
ACCOUNTS RECEIVABLE Accounts receivable consist oftuition and fee charges to students, allotments 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. Accounts receivable are recorded net of estimated uncollectible amounts. 
INVENTORIES Resale inventories are valued at cost using the consumption method. 
CAPITAL ASSETS Capital assets are recorded at cost at date of acquisition, or fair market value at the date of capital contribution. The Technical College capitalizes all land and land improvements. For equipment, the Technical College's capitalization policy includes all items with a unit cost of$5,000.00 or more, and an estimated useful life of greater than one year. Buildings and Building Improvements, Improvements Other Than Buildings and Library Collections that exceed $100,000.00 or significantly increase the value or extend the useful life of the asset are capitalized. For infrastructure, the Technical College's capitalization threshold is $1,000,000.00. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives ofthe assets, generally 10 to 40 years for buildings, 15 to 25 years for infrastructure, 15 years for improvements other than buildings, 10 years for library books, and 3 to 10 years for equipment. 
To fully portray capital assets acquired by the Technical Colleges of the Georgia Department of Technical and Adult Education, it is necessary to look at the activities ofthe Georgia State Financing and Investment Commission (GSFIC) - an organization that is external to both the Technical College and the Georgia Department ofTechnical and Adult Education. The GSFIC issues bonds for and on 
-7- 
 
 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
CAPITAL ASSETS behalf of the State of Georgia, pursuant to powers granted to it in the Constitution of the State of Georgia and the Act creating the GSFIC. The bonds are issued for the purpose of acquiring capital assets and this debt constitutes direct and general obligations ofthe State of Georgia, to the payment of which the full faith, credit and taxing power of the State are pledged. 
For major construction projects, GSFIC records construction in progress on its books throughout the construction period and at project completion transfers the entire project costs to Ogeechee Technical College to be recorded as an asset on the Technical College's books. For the year ended June 30, 2005, GSFIC did not transfer any capital additions to Ogeechee Technical College. 
DEFERRED REVENUES Deferred revenues include amounts received for tuition and fees and other activities prior to the end of the fiscal year but related to the subsequent accounting period. Deferred revenues also include amounts received from grant and contract sponsors that have not yet been earned. 
COMPENSATED ABSENCES Employee vacation pay is accrued for financial statement purposes when vested. The liability and expense incurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets, and as a component of compensation and benefit expense in the Statement of Revenues, Expenses and Changes in Net Assets. Ogeechee Technical College had an accrued liability for compensated absences in the amount of $415,108.60 as of July 1, 2004. For fiscal year 2005, $390,570.55 was earned in compensated absences and employees were paid $402,967.08, for a net decrease of$12,396.53. The ending balance as ofJune 30, 2005 in accrued liability for compensated absences was $402,712.07. 
NONCURRENT LIABILITIES Noncurrent liabilities include liabilities that will not be paid within the next fiscal year. 
NET ASSETS The Technical College's net assets are classified as follows: 
Invested in capital assets, net ofrelated debt: This amount represents the Technical College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net ofrelated debt. (The term "debt obligations" as used in this definition does not include debt of the GSFIC as discussed above.) 
Restricted net assets - expendable: Restricted expendable net assets are for unexpended grant funds of $27.19 due to grantor agencies. 
 
-8- 
 
 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
NET ASSETS Unrestricted net assets: Unrestricted net assets represent available resources derived from student tuition and fees, state appropriations, and sales and services of educational departments. These resources will be used for transactions relating to the educational and general operations of the Technical College, and may be used at the discretion of the governing board to meet subsequent fiscal year expenses for those purposes, except for unexpended state appropriations (surplus) of $1,538.82. Unexpended state appropriations must be refunded to the Department of Technical and Adult Education for remittance to the Office of Treasury and Fiscal Services. 
When an expense is incurred that can be paid using either restricted or unrestricted resources, the Technical College's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources. 
INCOME TAXES Ogeechee Technical College, as a political subdivision of the State of Georgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended. 
CLASSIFICATION OF REVENUES The Technical College has classified its revenues as either operating or nonoperating revenues in the Statement of Revenues, Expenses and Changes in Net Assets according to the following criteria: 
Operating revenues: Operating revenues include activities that have the characteristics ofexchange transactions, such as (1) student tuition and fees, net of scholarship allowances, (2) certain Federal, state and local grants and contracts, and (3) sales and services. 
Nonoperating revenues: Nonoperating revenues include activities that have the characteristics of nonexchange transactions, such as gifts and contributions, and other revenue sources that are defined as nonoperating revenues by GASB No. 9, Reporting Cash Flows ofProprietary andNonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting, and GASB No. 34, such as state appropriations and investment income. 
SCHOLARSHIP ALLOWANCES Student tuition and fee revenues, and certain other revenues from students, are reported at gross with a contra revenue account of scholarship allowances in the Statement of Revenues, Expenses and Changes in Net Assets. Scholarship allowances are the difference between the stated charge for goods and services provided by the Technical College, and the amount that is paid by students and/or third parties making payments on the students' behalf. Certain governmental grants, such as Pell grants, and other Federal, state or nongovernmental programs, are recorded as either operating or nonoperating revenues in the Technical College's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the Technical College has recorded contra revenue for scholarship allowances. 
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 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 2: DEPOSITS 
DEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the Technical College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Technical College) 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 of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: 
1. Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia. 
2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. 
3. Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the 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 of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest, or 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 ofaccounts 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 allows agencies of the State of Georgia (and thus Ogeechee Technical College), the option of exempting demand deposits from the collateral requirements. 
At June 30, 2005, Ogeechee Technical College's bank balance was $1,354,853.90. Ofthis balance $1,254,853.90 was collateralized with securities held by the institution's trust department or agent in the Technical College's name. 
NOTE 3: ACCOUNTS RECEIVABLE 
Accounts receivable at June 30, 2005, consists of the following: 
 
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 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 3: ACCOUNTS RECEIVABLE 
 
State Appropriations Student Tuition and Fees Federal Funds GSFIC Other 
 
$ 19,178.52 44,216.08 62,989.17 31,363.88 106,240.57 
 
$ 263,988.22 
 
Less: Allowance for Doubtful Accounts 
 
12,618.19 
 
Net Accounts Receivable 
 
$ 2512370.03 
 
NOTE 4: INVENTORIES 
 
Inventories at June 30, 2005, consists of the following: 
 
Bookstore 
 
$ 289202.69 
 
NOTE 5: CAPITAL ASSETS 
 
Following are the changes in capital assets for the year ended June 30, 2005: 
 
Balance July 1, 2004 
 
Additions 
 
Reductions 
 
Balance June 30, 2005 
 
Capital Assets, Not Being Depreciated: 
 
Land and Land Improvements 
 
$ 386,960.00 $ 
 
0.00 $ 
 
0.00 $ 386,960.00 
 
Capital Assets, Being Depreciated: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections 
 
$ 17,901,521.52 637,380.00 $ 
3,135,256.27 224,798.03 
 
101,764.00 432,633.83 $ 
31,872.00 
 
$ 17,901,521.52 739,144.00 
10,223.20 3,557,666.90 256,670.03 
 
$ 21,898,955.82 $ 566,269.83 $ 10,223.20 $ 22,455,002.45 
 
Less: Accumulated Depreciation: Buildings and Building Improvements $ Improvements Other Than Buildings Equipment Library Collections 
 
2,761,804.85 $ 526,880.75 
2,507,106.57 83,107.14 
 
417,814.74 50,907.95 
285,559.49 $ 22,748.03 
 
$ 8,945.30 
 
3,179,619.59 577,788.70 
2,783,720.76 105,855.17 
 
$ 5,878,899.31 $ 777,030.21 $ 
 
8,945.30 $ 6,646,984.22 
 
Total Capital Assets, Being Depreciated, 
 
Net 
 
$ 16,020,056.51 $ -210, 760.38 $ 
 
I 277.90 $ 15,808,018.23 
 
Capital Assets, Net 
 
$ 16,4Q7,Ql6 51 $ -2 IQ :Z6Q 38 $ 
 
1,277 2Q $ I6, 124,278 23 
 
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 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 6: DEFERRED REVENUE 
 
Deferred revenue at June 30, 2005, consists of the following: 
 
Prepaid Tuition and Fees Federal Grants and Contracts 
 
$ 31,597.00 1,019.09 
 
Totals 
 
$ 32,616.09 
 
NOTE 7: LONG-TERM LIABILITIES 
 
Long-Term liability activity for the year ended June 30, 2005, was as follows: 
 
Other Liabilities Compensated Absences 
 
Balance July 1, 2004 
 
Additions 
 
Reductions 
 
Balance June 30, 2005 
 
Current Portion 
 
$ 415 108.60 $ 390 570 55 $ 402 967 08 $ 402 712 07 $ 244 669 38 
 
NOTE 8: NET ASSETS 
 
Changes in Net Asset activity for the year ended June 30, 2005 was as follows: 
 
Invested in Capital Assets Net of Related Debt 
Restricted - Expendable Net Assets 
Unrestricted Net Assets 
Total Net Assets 
 
Balance July 1, 2004 
 
Additions 
 
Reductions 
 
Balance June 30, 2005 
 
$16,407,016.51 $ -210,760.38 $ 
 
1,277.90 $ 16,194,978.23 
 
175.13 
 
2,702,091.43 
 
2,702,239.37 
 
27.19 
 
856,035.61 11,273,415.54 11,402,493.59 
 
726,957.56 
 
$ 17 263 227 25 $ 13 764 746 59 $ 14 106 010.86 $ 16 921 962.98 
 
NOTE 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
Plan Description Ogeechee Technical College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the TRS offices or from the Georgia Department of Audits and Accounts. 
 
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 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
Funding Policy Employees ofOgeechee Technical College who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. Ogeechee Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2005, the employer contribution rate was 9.24% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2005 2004 2003 
 
100% 100% 100% 
 
$ 535,546.04 $ 531,165.82 $ 479,298.92 
 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
 
Plan Description Ogeechee Technical College participates in the Employees' Retirement System ofGeorgia (ERS), a single-employer defined benefit pension plan established by the General Assembly ofGeorgia for the purpose of providing retirement allowances for employees of the State of Georgia. 
 
The benefit structure of ERS is defined by State statute and 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 1, 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. 
 
Under both the old plan and new plan, 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. 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 25 years of service regardless of age. 
 
Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest twenty-four consecutive calendar months of salary, the number ofyears 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 ofthe member's monthly pension at reduced rates to a 
 
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 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 9: RETIREMENT PLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Plan Description designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. 
In addition, the ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion ofERS. The purpose ofSRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. 
The ERS issues a financial report each fiscal year which may be obtained through ERS. 
Funding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The Technical College's payroll for the year ended June 30, 2005, for employees covered by ERS was $168,005.00. The Technical College's total payroll for all employees was $7,043,566.24. 
Under the old plan, member contributions consist of 7.16% of annual compensation. Of these member contributions, the employee pays the first 1.5% and the Technical College pays the remainder on behalf ofthe employee. Under the new plan, member contributions consist solely of 1.5% of annual compensation paid by employee. The Technical College also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2005, the ERS employer contribution rate for the Technical College amounted to 10.41% of covered payroll and included the amounts contributed on behalf of the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. 
Total contributions to the plan made during fiscal year 2005 amounted to $20,016.86, of which $17,489.58 was made by the Technical College and $2,527.28 was made by employees. These contributions met the requirements of the plan. 
Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2005, financial report which may be obtained through ERS. 
 
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 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 9: RETIREMENT PLANS 
GEORGIA DEFINED CONTRIBUTION PLAN 
Plan Description Ogeechee Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and parttime and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. 
Benefits A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. Ifa member has less than $3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. 
The Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. 
Contributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Technical College's payroll for the year ended June 30, 2005, for employees covered by GDCP was $593,966.92. The Technical College's total payroll for all employees was $7,043,566.24. 
Total contributions made by employees during fiscal year 2005 amounted to $44,547.79 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. 
NOTE 10: RISK MANAGEMENT 
Public Entity Risk Pool The Department of Community Health administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia, units of county governments, and local education agencies located with the State ofGeorgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units ofgovernment participating in the plan, and appropriations made by the General Assembly of Georgia. The Department ofCommunity Health has contracted with Blue Cross Blue Shield ofGeorgia to process 
 
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 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 10: RISK MANAGEMENT 
Public Entity Risk Pool medical claims and Express Scripts, Incorporated to process prescription drug claims in accordance with the State Employees' Health Benefit Plan as established by the Department of Community Health. 
Other Risk Management The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia ofmaking and carrying out decisions that will minimize the adverse effects ofaccidental 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 processes 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 of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Technical College, 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 various state organizations by DOAS to provide claims servicing and claims payment. 
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 expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although Ogeechee Technical College expects such amounts, if any, to be immaterial to its overall financial position. 
Litigation, claims and assessments filed against Ogeechee Technical College (an organizational unit ofthe Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. 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, 2005. 
NOTE 12: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS 
The Technical College's operating expenses shown at the natural classification on the "Statement of Revenues, Expenses and Changes in Net Assets" are all classified as Instruction at the functional classification. 
 
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 OGEECHEE TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 2005 
 
EXHIBIT "D" 
 
NOTE 13: AFFILIATED ORGANIZATIONS 
In accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, an amendment of GASB Statement No. 14, The Reporting Entity, which became effective for the year ended June 30, 2004, Ogeechee Technical College Foundation has been determined to be a legally separate, tax exempt organization whose activities primarily support Ogeechee Technical College, a member college ofpostsecondary education in Georgia whose units comprise the Department of Technical and Adult Education (an organizational urlit of the State of Georgia). The State Accounting Office has determined Component Units ofthe State ofGeorgia, as required by GASB Statement No. 39, should be assessed in relation to their significance to the State of Georgia. Accordingly, Ogeechee Technical College has not included financial activity for Ogeechee Technical College Foundation in these financial statements. 
 
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 SUPPLEMENTARY INFORMATION - 19 - 
 
 OGEECHEE TECHNICAL COLLEGE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET - (NON-GMP BASIS) BUDGET FUND 
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 2005 
 
SCHEDULE "1" 
 
FUNDS AVAILABLE REVENUES 
State Appropriation Federal Revenues Other Revenues Retained 
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance 
 
BUDGET 
 
ACTUAL (1) 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 7,206,405.00 $ 7,206,392.87 $ 
 
1,110,596.12 
 
1,007,777.57 
 
3,560,074.54 
 
3,528,878.11 
 
$ 11,877,075.66 $ 11,743,048.55 $ 
 
-12.13 -102,818.55 
-31 196.43 
-134,027.11 
 
0.00 
 
27,233.29 
 
27,233.29 
 
$ 11,877,075.66 $ 11,770,281.84 $ 
 
-106,793.82 
 
EXPENDITURES 
Personal Services - Institutions Operating Expenses - Institutions Adult Literacy Grants 
 
$ 8,140,670.12 $ 8,091,336.59 $ 
 
3,209,071.21 
 
3,175,463.34 
 
527,334.33 
 
474,423.72 
 
49,333.53 33,607.87 52 910.61 
 
$ 11,877,075.66 $ 11,741,223.65 $ _ ___;,1-=.35:.!.,8-=.5:.:2:.:.0:..:..1 
 
Excess of Funds Available over Expenditures 
 
$ 
 
29,058.19 $ ======2=9..,0.=5=8.=19= 
 
(1) Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. 
 
- 21 - 
 
 OGEECHEE TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL 
YEAR ENDED JUNE 30, 2005 
 
SCHEDULE "2" 
 
Totals per Annual Supplement 
Accruals June 30, 2004 June 30, 2005 
Compensated Absences June 30, 2004 June 30, 2005 
Encumbrances June 30, 2004 
Agency Funds 
 
SALARIES 
 
TRAVEL 
 
$ 7,060,769.49 $ 
 
77,444.34 
 
-51,583.78 23,033.80 
 
-385,609.47 396,956.20 
 
500.00 -4,894.45 
 
$ 7,043,566.24 $ ==7=3=,0=4=9.=89= 
 
- 22- 
 
 OGEECHEE TECHNICAL COLLEGE RECONCILIATION OF PER DIEM AND FEES 
YEAR ENDED JUNE 30, 2005 
 
SCHEDULE "3" 
 
Totals per Annual Supplement 
Adjustments Agency Funds 
 
FEE AMOUNT 
 
EXPENSE AMOUNT 
 
$ 
 
75,579.36 $ 
 
0.00 $ 
 
TOTAL 75,579.36 
 
-2,168.24 
 
-2,168.24 
 
$ 
 
73,411.12 $ 
 
0.00 $ =====73=,4=1=1.=12= 
 
- 23- 
 
 SECTION II FINDINGS AND QUESTIONED COSTS 
 
 OGEECHEE TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2005 
 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures Finding Control Number: FS-844-05-01 
 
Condition: 
 
The accounting procedures of the Technical College were insufficient to provide for adequate controls over (1) Revenues/Receivables/Receipts and (2) Expenditures/Liabilities/Disbursements. 
 
Criteria: 
 
NCGA Statement 1, paragraph 1, which prescribes that an accounting system (1) present fairly and fully disclose its financial position including its financial operation of its funds and account groups in accordance with generally accepted accounting principles and (2) demonstrate compliance with finance related legal and contractual provisions. Administrative requirements contained in the Accounting Procedures Manual for the State of Georgia and Pertinent sections of the Official Code of Georgia Annotated (O.C.G.A.). 
 
Questioned Cost: NIA 
 
Information: 
 
We noted the following weaknesses/deficiencies relating to various control categories: 
 
1) Revenues/Receivables/Receipts 
 
Cash receipting and deposit preparation functions were not separated from the record keeping and cash custody functions. Also, a test of twenty days receipts revealed that six daily receipts were not deposited in a timely manner. 
 
2) Expenditures/Liabilities/Disbursements 
 
The check writing function was not separated from the record keeping function. 
 
Cause: 
 
The Technical College failed to segregate key accounting functions or establish compensating controls. In addition, the Technical College failed to ensure that receipts were properly documented and deposited in a timely manner. 
 
- 1- 
 
 OGEECHEE TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2005 
 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
REVENUESIRECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures Finding Control Number: FS-844-05-01 
 
Effect: 
 
Without satisfactory accounting controls and procedures in place, the Technical College could place itself in a position where potential misappropriation ofassets could occur. In addition, the lack ofcontrols could impact the reporting of its financial position and results of operations. 
 
Recommendation: 
 
The Technical College should review the accounting procedures in place and design and implement procedures relative to the above control categories to strengthen the internal controls over the accounting functions. 
 
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
No matters were reported. 
 
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