Ogeechee Technical College, Statesboro, Georgia, management report for fiscal year ended June 30, 2010

OGEECHEE 1 TECHNICAL COLLEGE
STATESBORO, GEORGIA
MANAGEMENT REPORT
FOR FISCAL YEAR ENDED
JUNE30,2010
A Member College of the Technical College System of Georgia

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OGEECHEE TECHNICAL COLLEGE - TABLE OF CONTENTS -
SECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A STATEMENTOFNETASSETS-(GAAPBASIS) B STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS (GAAP BASIS) C STATEMENT OF CASH FLOWS - (GAAP BASIS) D SELECTED FINANCIAL NOTES SUPPLEMENTARY INFORMATION SCHEDULES 1 BALANCE SHEET - (STATUTORY BASIS) - BUDGET FUND 2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) BUDGET FUND 3 STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET (STATUTORY BASIS) BUDGET FUND 4 RECONCILIATION OF SALARIES AND TRAVEL
SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

SECTION I FINANCIAL

Russell W. Winton
STATE AUDITOR
(404) 6563174

DEPARTMENOTF AUDITSAND ACCOUNTS
270 Washington Street, S.W., Suite 1- 156
Atlanta, Georgia 30334-8400
November 8,2010

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 Dawn Cartee, President Ogeechee Technical College
Ladies and Gentlemen:
As part of our audit of the basic financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2010, we have performed certain audit procedures at Ogeechee Technical College. Accordingly, the financial statements and compliance activities of Ogeechee Technical College were examined t o the extent considered necessary in order to express an opinion as to the fair presentation of the financial 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 financial and compliance activities of Ogeechee Technical College as of and for the year ended June 30, 2010. Information contained in this report is a by-productof our audit of the basic financial statements of the State of Georgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1, is enumerated in the Table of Contents.
This report is intended solely for the information and use of management of Ogeechee Technical College, members of the Local Board of Directors, and the Southern Association of Colleges and Schools - Commission on Colleges and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

~ u s J e lWl . Hinton, CPA, CGFM State Auditor

SELECTED FINANCIAL INFORMATION

OGEECHEE TECHNICAL COLLEGE STATEMENT OF NET ASSETS - (GAAP BASIS)
JUNE 30,2010
ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable Federal Financial Assistance Other Inventories
Total Current Assets
Noncurrent Assets Capital Assets, Net
Total Assets
LIABILITIES
Current Liabilities Accounts Payable Salaries Payable Deferred Revenue Funds Held for Othen Compensated Absences
Total Current Liabilities
Noncurrent Liabilities Compensated Absences
Total Liabilities
NET ASSETS
Invested in Capital Assets Unrestricted
Total Net Assets

EXHIBIT "A"

OGEECHEE TECHNICAL COLLEGE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS)
YEAR ENDEDJUNE 30.2010
OPERATING REVENUES
Student Tuition and Fees Less: Scholarship Allowances
Grants and Contracts Federal
Rents and Royalties 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 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 Nongovernmental Loss on Disposalof Cap~taAl ssets
Total Other Revenues, Expenses, Gains, or Losses
Increase (Decrease) in Net Assets
Net Assets - Beginningof Year
Net Assets - End of Year

EXHIBIT "B"

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OGEECHEE TECHNICAL COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS)
YEAR ENDED JUNE 30,2010
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Paymentsto Suppliers Paymentsto Employees Paymentsfor 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 Disbursements
Net Cash Flows Provided (Used) by Noncapital FinancingActivities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchasesof Capital Assets
CASH FLOWS FROM INVESTING ACTIVITIES Earnings on Investments
Net Increase (Decrease) in Cash
- Cash and Cash Equivalents Beginningof 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 ReconcileOperating Incometo Net Cash
Provided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Accounts Receivable Inventories Salaries Payable Accounts Payable Deferred Revenue Compensated Absences
Net Cash Provided (Used) by Operating Activities
NONCASH ACTIVITY Gift of Capital Assets Reducing Proceedsof Capital Grants and Gifts
The notes to the financial statements are an integral part of this statement

UHIBIT "C"

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Ogeechee Technical College is one of twenty-seven (27) State supported member colleges of postsecondary education in Georgia which comprise the Technical College System of Georgia, 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 of the Department of Technical and Adult Education. Appropriation of State funds is made to the Technical College System of Georgia by the General Assembly of Georgia. The System Office of the Technical College System of Georgia 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 Technical College System of Georgia for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Re~ortingStandards.
N ET ASSETS The Technical College's net assets are classified as follows:
Invested in capital assets, net of related 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 of related debt.
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). Unexpended state appropriations must be refunded to the Technical College System of Georgia for remittance to the Office of Treasury and Fiscal Services. At June 30, 2010, there was no surplus balance to be refunded.
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.

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2010

EXHIBIT "D"

NOTE 2: DEPOSITS

DEPOSITS 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 of the 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 of the 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 MortgageAssociation, and the Federal National Mortgage Association.

6. Guarantee or insurance of accounts 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, 2010, the carrying value of deposits was $960,554.10 and the bank balance was $1,951,551.47. Of the Technical College's deposits, $1,701,551.47 were uninsured. Of these uninsured deposits, $1,701,551.47 were collateralized with securities held by the pledging financial institution's trust department or agency.
NOTE 3: ACCOUNTS RECEIVABLE

Accounts receivable at June 30, 2010, consists of the following:

Student Tuition and Fees Federal, State and Private Funds Georgia State Financingand Investment Commission Other

$ 48,114.87 60,638.78
242,425.23 7,840.49

Total Accounts Receivable

$ 359,019.37

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2010

EXHIBIT "D"

NOTE 4: CAPITAL ASSETS

Followingare the changes in capital assets for the year ended June 30,2010:

Beginning Balance July 1,2009

Additions

Reductions

Capital Assets, Not Being Depreciated: Land and Land lmprovernents Construction Work-In-Progress

Total Capital Assets, Not Being Depreciated

Capital Assets, Being Depreciated: Building and Building Improvements lmprovements Other Than Buildings Equipment Library Collections

Total Assets Being Depreciated

Less: Accumulated Depreciation: Building and Building lmprovements lmprovernents Other Than Buildings Equipment Library Collections

Total Accumulated Depreciation

Total Capital Assets, Being Depreciated. Net

Capital Assets, Net

Ending Balance June 30, 2010

NOTE 5: DEFERRED REVENUE Deferred revenue at June 30, 2010, consists of the following:
Prepaid Tuition and Fees Federal Grants and Contracts
Total Deferred Revenue

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBll "D"

NOTE 6: LONG-TERM LIABILITIES Long-Term liability activity for the year ended June 30, 2010 was as follows:

Beg~nning Balance July 1,2009

Additions

Reductions

Ending Balance June 30,2010

Other Liabilities

Current Portion

NOTE 7 : NET ASSETS Changes in Net Asset activity for the year ended June 30,2010 was as follows:

Balance July 1, 2009

Additions

Reductions

Invested in Capital Assets Net of Related Debt

Unrestricted Net Assets

Total Net Assets

Balance June 30, 2010

NOTE 8: LEASE OBLIGATIONS
OPERATING LEASES Ogeechee Technical College has entered into certain agreements to lease copiers and classroom space which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised.
Expenses for rental of copiers and classroom space under operating leases for the year ended June 30,2010, totaled $128,439.12.
SUMMARY OF LEASE OBLIGATIONS Future commitments for noncancellable operating leases having remaining terms in excess of one year as of June 30,2010, were as follows:

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2010

EXHIBIT "D"

NOTE 8: LEASE OBLIGATIONS SUMMARY OF LEASE OBLIGATIONS

Operating Leases

Year EndingJune 30: 2011 2012 2013

$ 87,944.16 87,944.16 7,575.36

Total Minimum Lease Payments $ 183,463.68

NOTE 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Descr@tion Ogeechee Technical College participates in the Teachers Retirement System of Georgia (TRS), a costsharing 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 Georgia Department of Audits and Accounts.
Funding Policy Employees of Ogeechee Technical College who are covered by TRS are required by State statute to contribute 5.25% of their gross earnings to TRS. Ogeechee Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2010, the employer contribution rate was 9.74% 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

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description Ogeechee Technical College participates in the Employees' Retirement System of Georgia (ERS), a single-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia.

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBIT "D"

NOTE 9: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description 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 of ERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415.
The benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects 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. Members hired on or after July 1,1982 but prior to January 1, 2009 are "new plan" members subject to the modified plan provisions. Effective January 1,2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the "old" or "new" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). ERS members hired prior to January 1,2009 also have the option to change their membership to the GSEPS plan.
Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 1 0 years of creditable service and attainment of age 6 0 or 3 0 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 2 5 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 2 4 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to members' benefits provided the members were hired prior to July 1,2010. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available 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 June30, 2010, for employees covered by ERS was $609,060.45. The Technical College's total payroll for all employees was $7,745,897.35.
Member contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, the Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The Technical College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Technical College contributions are not at any time refundable to the member or his/her beneficiary.

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2010

EXHIBIT "Dm

NOTE 9: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Policy Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2010, financial report, which may be obtained through ERS.
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 of providing retirement coverage for State employees who are temporary, seasonal, and part-time 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.
Benefil3 A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a 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 of making periodic payments. Upon the death of a 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-half percent (7.5%) of gross 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, 2010, for employees covered by GDCP was $603,159.47. The Technical College's total payroll for all employees was $7,745,897.35.
Total contributions made by employees during fiscal year 2010 amounted to $45,237.35 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2010

EXHIBIT "D"

NOTE 10: POSTEMPLOYMENT BENEFITS

The Technical College participates in the following State of Georgia postemployment benefit plans: the Georgia State Employees Postemployment Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices.

Retiree health benefits were previously funded through the Georgia Retiree Health Benefit Fund (GRHBF). In 2009, the General Assembly revisited the GRHBF and enacted legislation that, effective August 31, 2009, separated the GRHBF into two new funds: the Georgia School Personnel Postemployment Health Benefit Fund and the Georgia State Employees Postemployment Health Benefit Fund. The purpose of this change was to assure employers responsible for planning and funding future retiree health costs that their contributions will be dedicated to their respective retiree populations. Funds in the GRHBF were transferred to the Georgia State Employees Postemployment Health Benefit Fund or the Georgia School Personnel Postemployment Health Benefit Fund as described in the plan financial statements. The statute that created the GRHBF is repealed effective September 1,2010.

GEORGIA STATE EMPLOYEES POSTEMPLOYMENT HEALTH BENEFIT FUND The Georgia State Employees Postemployment Health Benefit Fund (State OPEB Fund) is a costsharing multiple-employer defined benefit postemployrnent healthcare plan that covers eligible former employees of State organizations and other entities authorized by law to contract with the Department of Community Health for inclusion in the plan. The State OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board).

The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage.

Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected "pay-as-you-go" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.

The combined active and retiree contribution rates established by the Board for employers participating in the State OPEB Fund were as follows for the fiscal year ended June 30, 2010:

July 2 0 0 9 August 2 0 0 9 - October 2 0 0 9 November 2009 -June 2 0 1 0

22.165% of covered payroll for August coverage 16.581% of covered payroll for September - November coverage 22.165% of covered payroll for December - July coverage

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2010

EXHIBIT "D"

NOTE 10: POSTEMPLOYMENT BENEFITS

GEORGIA STATE EMPLOYEES POSTEMPLOYMENT HEALTH BENEFIT FUND No additional contribution was required by the Board for fiscal year 2010 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation.

The following table summarizes the Technical College's combined active and retiree contributions to the health insurance plans for the years ending June 30,2010, June 30,2009 and June 30,2008:

Fiscal Year

Percentage Contributed

Required Contribution

STATE EMPLOYEES' ASSURANCE DEPARTMENT - OPEB State Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multiple-employer defined benefit postemployment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of Employees', Judicial (JRS), and Legislative (LRS) Retirement Systems, amended to exclude members of JRS and LRS hired on or after July 1,2009. Pursuant to Title 47 of the OCGA, the authority to establish and amend the benefit provisions of the plan is assigned to the Boards of Trustees of the Employees' and Judicial Retirement Systems.
Contributions by plan members are established by the Boards of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The Boards of Trustees of the Employees' and Judicial Retirement Systems establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% of earnable compensation. For the fiscal year ended June 30, 2010, contributions of ERS "old plan" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS "new plan" members and of members of the Judicial and Legislative Retirement Systems were 0.23% of earnable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30,2010, June 30,2009 and June 30,2008.
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 of the Technical College System of Georgia), 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 30,2010.

OGEECHEE TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBIT "D"

NOTE 12: AFFILIATED ORGANIZATIONS
The Ogeechee Tech Foundation, Inc., is a legally separate, tax exempt organization whose activities primarily support Ogeechee Technical College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Unit-s. Therefore, the f inancial statements of this affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Ogeechee Technical College.

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SUPPLEMENTARY INFORMATION

OGEECHEE TECHNICAL COLLEGE BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30,2010
ASSETS
Cash and Cash Equivalents Accounts Receivable
Federal Financial Assistance Other lnventories
Total Assets
LIABILITIESAND FUND EOUITY
Liabilities Salaries Payable Accounts Payable Encumbrance Payable Deferred Revenue
Total Liabilities
Fund Balances Reserved Live Work Projects Technology Fees lnventories Bookstore Tuition
Total Fund Balances
Total Liabilities and Fund Balances

SCHEDULE "1"

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetarystatutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
-18-

OGEECHEE TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS)
BUDGET FUND YEAR ENDEDJUNE 3 0 . 2 0 1 0

RNENUES State Appropriation State General Funds Federal Funds Other Funds Total Revenues
CARRY-OVER FROM PRIOR YEAR Transfer from Resewed Fund Balance Total Funds Available
EXPENDITURES Adult Literacy Economic Development Technical Education Total Expenditures Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
ADJUSTMENTS Prior Year Receivables/Revenues Prior Year ReSeNed Fund Balance Included in Funds Available
FUND BALANCEJ W E 30
SUMMARY OF FUND BALANCE Resewed L ~ v eWork Projects Technology Fees Inventories Bookstore Tuition
Total Fund Balance

BUDGET

ACTUAL

SCHEDULE" 2
VARIANCE -
FAVORABLE (UNFAVORABLE)

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, whch is a comprehenslve baas of accounting other than generally accepted accounting pr~nciples.

OGEECHEE TECHNICAL COLLEGE STATEMENTOF PROGRAM REVENUESAND EXPENDITURES BY FUNDING SOURCE COMPAREDTO BUDGEl
(STATUTORY EASIS) BUDGEl FUND MPlR ENDEDJUNE 30.2010

&dun Lneracy State Approorlatsn State General Funds Federal Funds Other Funds
Total Adun Lneracy

Original Appropr~at~on

Final Budget

current year Revenues

~unds~vaiiabCieompared to Budget

prior year Csrry-Over

Total Funds Available

Variance ~ositlve (Ne@Wel

Economlc Development Other Funds

TBCnnlC.91 EaUCaUon State Appropriation Sbte General Funds Federal Funds American Recovery and RelnvestmemAct 012009 Federal StabilizationFunds Mner Federal Funds Other Funds
Total Technical Education

Grand Totals -All Programs

S m t o r y Baslsnnanclalinformationwas preparedon a prescribedbasis 01accountingthat demonstratescornplianeewim budgetary statutes and regulationsof the State of Georgia, which is a comurehenslvebasls of accountingother than generalv acceptedaccounting urinciples.

ExpendituresComparedto Budget

Variance

Poswve

Actual

(Negative)

Actual Funds Available
Over/(Under) Expenditures

Prior Pertad

Other

- Adjustments - Adjustments

Program Fund
Balances

Transfers

Program Fund Balances

Reserve

Surplus

Total Fund Balance

Unexpendable Reserves lnventorles

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Totals per Annual Supplement
Accruals June 30,2010 June 30,2009
Compensated Absences June 30,2010 June 30,2009
Lag Salaries June 30,2010 June 30,2009
Agency Funds

OGEECHEE TECHNICAL COLLEGE RECONCILIATIONOF SALARIES AND TRAVEL
YEAR ENDED JUNE 30,2010

SCHEDULE 4

SALARIES

$

7,759,633.18 $

TRAVEL 73,350.94

SECTION II FINDINGS, QUESTIONEDCOSTS AND OTHER ITEMS

OGEECHEE TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS
YEAR ENDED JUNE 30,2010
FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported. OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) No matters were reported.