STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS MANAGEMENT REPORT SANDERSVILLE TECHNICAL COLLEGE SANDERSVILLE, GEORGIA AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30# 2005 Russell W. Hinton State Auditor SANDERSVILLE TECHNICAL COLLEGE - TABLE OF CONTENTS - SECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A COMBINED BALANCE SHEET - (STATUTORY BASIS) "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION "B" LOTTERY FOR EDUCATION 3 B ANALYSIS OF CHANGES IN FUND BALANCE - (STATUTORY BASIS) "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION "B" LOTTERY FOR EDUCATION 4 C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET-(STATUTORY BASIS) "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION 5 D RECONCILIATION OF SALARIES AND TRAVEL 7 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 Flora Tydings, Interim President Sandersville Technical College Ladies and Gentlemen: As part ofour audit ofthe statutory basis financial statements ofthe State ofGeorgia presented in the State ofGeorgia Report ofthe State Auditor, the basic financial statements of the State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a State ofGeorgia Single Audit Report pursuant to the Single Audit Act Amendments, as ofand for the year ended June 30, 2005, we have performed certain audit procedures at Sandersville Technical College. Accordingly, the financial statements and compliance activities ofSandersville Technical College were examined to 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 Sandersville Technical College as ofand for the year ended June 30, 2005. Information contained in this report is a by-product of our engagement that is the representation of management, and accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided is enumerated in the Table of Contents. This report is intended solely for the information and use ofmanagement and members ofthe Local Board of Directors of Sandersville Technical College and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, Lt);~~ RWH:as State Auditor SELECTED FINANCIAL INFORMATION - 1- SANDERSVILLE TECHNICAL COLLEGE COMBINED BALANCE SHEET - (STATUTORY BASIS) JUNE 30, 2005 EXHIBIT"A" ASSETS Cash and Cash Equivalents Accounts Receivable Federal Financial Assistance Other Inventories Total Assets LIABILITIES AND FUND EQUITY Liabilities Accrued Payroll Accounts Payable Deferred Revenue Total Liabilities Fund Balances Reserved Federal Financial Assistance Inventories Uncollectible Accounts Unreserved Undesignated Surplus Regular Total Fund Equity Total Liabilities and Fund Equity "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION "B" LOTTERY FOR EDUCATION $ 216,824.89 $ 0.00 31,104.46 96,900.62 138,310.55 $ 483,140.52 $ 0.00 ====== $ 11,614.30 367,580.79 250.00 $ 379 445.09 $ 3,568.66 92,924.90 6,229.05 972.82 $ $ 103 695.43 $ 0.00 0.00 $ 483,140.52 $=======0=.0=0 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, which is a comprehensive basis of accounting other than generally accepted accounting principles. -3- SANDERSVILLE TECHNICAL COLLEGE ANALYSIS OF CHANGES IN FUND BALANCE - (STATUTORY BASIS) YEAR ENDED JUNE 30. 2005 EXHIBIT"B" FUND BALANCE - JULY 1. 2004 Reserved Surplus ADDITIONS Adjustments to Prior Year's Contracts and Accounts Payable Excess of Funds Available oyer Expenditures Exhibit "C" DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 2004 Refunds to Granters Federal Financial Assistance Georgia Department of Technical and Adult Education - Administrative Central Office FUND BALANCE - JUNE 30. 2005 "All DEPARTMENT OF TECHNICAL AND ADULT EDUCATION "B" LOTTERY FOR EDUCATION $ 122,835.40 648.44 $ $ 123,483.84 $ 63.04 63.04 $ 943.38 2 231.97 $ 3 175.35 $ 648.44 $ 63.04 22 315.32 $ 22,963.76 $ 63.04 $ 103,695.43 $======0=.0=0 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, which is a comprehensive basis of accounting other than generally accepted accounting principles. -4- SANDERSVILLE TECHNICAL COLLEGE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET- {STATUTORY BASIS} "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30. 2005 EXHIBIT"C" FUNDS AVAILABLE REVENUES State Appropriation Federal Revenues Other Revenues Retained EXPENDITURES Personal Services - Institutions Operating Expenses - Institutions Adult Literacy Grants Excess of Funds Available over Expenditures BUDGET ACTUAL VARIANCEFAVORABLE (UNFAVORABLE) $ 3,493,502.00 $ 3,493,502.00 $ 1,052,461.45 853,190.97 1,698,270.10 1,560,703.93 0.00 -199,270.48 -137,566.17 $ 6,244,233.55 $ 5,907,396.90 $ _ _ _--=-33:..:62..:,8=-=3-=-6:..::6-=-5 $ 4,483,714.00 $ 4,351,369.28 $ 1,191,352.45 1,033,901.37 569,167.10 519,894.28 132,344.72 157,451.08 49,272.82 $ 6,244,233.55 $ 5,905, 164.93 $ _ _---=..33:..:92..:,0=-=6-=-8=-=.6=-2 $ 2 231.97 $ ===~2~2~3~1~-9~7 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, which is a comprehensive basis of accounting other than generally accepted accounting principles. -5- SANDERSVILLE TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2005 EXHIBIT"D" Totals per Annual Supplement Accruals June 30, 2004 Compensated Absences June 30, 2004 June 30, 2005 Agency Funds Unidentified Variance Totals per GAAP Basis as reported in the Consolidated Annual Financial Report SALARIES TRAVEL $ 3,974,877.53 $ 53,751.22 -14,765.95 -268,594.43 281,641.23 -347.50 -226.80 $ 3,973,158.38 $ 53,176.92 -7 - SECTION II FINDINGS AND QUESTIONED COSTS SANDERSVILLE TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2005 FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.