Sandersville Technical College, Sandersville, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2008

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
I
SANDERSVILLE TECHNICAL COLLEGE SANDERSVILLE, GEORGIA
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
Russell W. Hinton State Auditor

SANDERSVILLE TECHNICAL COLLEGE - TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES

EXHIBITS

A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT

I

B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING

SOURCE COMPARED TO BUDGET

2

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
December 18, 2008

Members of the State Board Technical and Adult Education Members of the Local Board of Directors
and Honorable Lloyd Horadan, President Sandersville Technical College
Independent Accountant's Report on Applying Agreed-Upon Procedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the College and the Administrative Central Office (Oversight Unit) ofthe Department ofTechnical and Adult Education, solely to assist you in assessing the accuracy ofthe annual financial statement information reported to the Administrative Central Office by the College for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report and Statement ofProgram Revenues and Expenditures by Funding Source Compared to Budget, which is attached as Exhibits A and B, respectively. Sandersville Technical College's management is responsible for the financial information reported to the Administrative Central Office of the Department of Technical and Adult Education. This agreedupon procedures engagement was conducted in accordance with attestation standards established by the American Institute ofCertified Public Accountants. The sufficiency ofthese procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger.
Accounts Receivable was not properly reported on the annual financial statement worksheets. A variance of $2,986.68 was noted between the subsidiary listing and the amount reported on the annual financial statements worksheets.

Student Receivables in the amount of $5,374.75 were not supported by valid financial aid commitments. The College had issued promissory notes for students in lieu of payment for their tuition and fees.
2. Obtain the College's GAAP basis worksheets for Statement ofNet Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the College's accounting records.
We did not note any exceptions as a result of our procedures.
3. Obtain the College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported.
The Accounts Receivable note disclosure information was not properly reported. Student tuition and fees were overstated by $2,986.68.
The Capital Assets note disclosure information was not properly reported. Construction in Progress additions were understated by $4,500.00.
The Long-Term Liabilities note disclosure was not properly reported. Additions for compensated absences were understated by $4,536.44, and deletions for compensated absences were understated by $4,536.45.
4. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's annual financial statement worksheets.
The year end GAAP entry related to GSFIC gifts was not made correctly. GSFIC gift revenues of $4,500.00 were recorded as Gifts in the SRECNA instead of Capital Grants and Gifts-State as required for correct presentation. In addition, this activity was recorded as Other Non-Operating expenses in the SRECNA when it should have been reported as Construction in Progress in the Statement of Net Assets.
5. Confirm that State Appropriation revenues, receivables and remittances ofprior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements.
We did not note any exceptions as a result of our procedures.

6. Obtain listing ofwrite-offrequests for accounts receivable less than $3,000.00 for fiscal year 2008. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements.
The College wrote off accounts receivable of $15,380.65. These write-offs were approved by the State Accounting Office. However, the College could not provide documentation of due diligence performed associated with these uncollectible accounts receivables in violation of O.C.G.A 50-16-18.
7. Verify that the listing ofsalaries, travel, and professional services reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the College's financial statements.
We did not note any exceptions as a result of our procedures.
8. Review the year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis Report (Exhibit A) and Statement ofProgram Revenues and Expenditures by Funding Source Compared to Budget (Exhibit B). Confirm that budget information presented in these statements supports activity reported in the College's accounting records and determine if any budget overexpenditures exist.
We did not note any exceptions as a result of our procedures.
9. Obtain documentation for Budget basis reserves reported by the College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.
We did not note any exceptions as a result of our procedures.
10. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records.
We did not note any exceptions as a result of our procedures.
11. Review the Schedule of Expenditures of Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records.
The College's Schedule of Expenditures of Federal Awards information did not agree with the Federal expenditure activity reflected on the College's accounting records. The College removed canceled encumbrances twice from total expenditures and reported that amount on the Schedule of Expenditures of Federal Awards in error. The Schedule ofExpenditures ofFederal Awards was corrected.

12. Review capital asset records to ensure that (1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management.
Capitalization thresholds for capital assets were not properly followed. Equipment and building items were included on the capital assets listing even though they did not meet capitalization thresholds as included in the State of Georgia Capital Assets Guide.
13. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner.
Reconciling items included on the bank reconciliation for the payroll account were not addressed by management in a timely and appropriate manner. Two checks written in prior fiscal years were shown as reconciling items, and interest for twelve months on the payroll account was shown as reconciling items.
These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective ofwhich is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~~-~~ Russell W. Hinton, CPA, CGFM State Auditor
RWH:as

EXHIBITS

SANDERSVILLE TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30, 2008

EXHIBIT"A"

REVENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance
Total Funds Available
EXPENDITURES
Adult Literacy Quick Start and Customized Services Technical Education
Total Expenditures
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved Unreserved
ADJUSTMENTS
Prior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned
to Georgia Department of Technical and Adult Education Year Ended June 30, 2007
Refunds to Granters Federal Financial Assistance Returned to Georgia Department of Technical and Adult Education Year Ended June 30, 2007 Other Other
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30
SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance Live Works Projects Technology Fees Uncollectible Accounts Receivable Inventories
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 4,549,546.00 $ 4,549,546.00 $

945,532.24

819,843.90

1,974,200.00

1,742,290.16

$ 7,469,278.24 $ 7,111,680.06 $

0.00 -125,688.34 -231,909.84
-357,598.18

0.00

26,253.69

$ 7,469,278.24 $ 7,137,933.75 $

26,253.69 -331 344.49

$

655,587.50 $ 646,649.53 $

266,792.56

219,707.25

6,546,898.18

6,233,225.41

$ 7,469,278.24 $ 7,099,582.19 $

$

0.00 $

38,351.56 $

8,937.97 47,085.31 313672.77
369,696.05
38,351.56

137,831.49 4,144.60

3,273.95 -1,977.73
-4,144.60

-7,091.31 -797.97
-3,935.68 -26,253.69
$ 139,400.62

$

1,690.62

27,588.13

1,961.62

1,995.14

94,3g3.15

$ 127,628.66

11 771.96

$ 139,400.62

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SANDERSVILLE TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET
YEAR ENDED JUNE 30, 2008

Adult Literacy State Appropriation State General Funds Federal Funds Other Funds
Total Adutt Literacy

Original &?ero(mation

Final Budget

Current Year Revenues

Funds Available Coml!!!red to Budget

Prior Year Camt:-Over

Tolel Funds Available

Variance Positive
(N!!Sativel

$

419,839.00 $

419,839.00 $

419,839.00 $

191,116.00

194,748.50

194,721.66

20 000.00

41 000.00

32,333.00

$

630 955.00 $

655,587.50 $

646,893.66 $

0.00 $ 0.00 0.00
0.00 $

419,839.00 $ 194,721.66
32,333.00
846893.66 $

0.00 -26.84 -8 667.00
-8 693.84

Quick Start and Customized Services

Federal Funds

s

Other Funds

Total Quick Start and Customized Services $

60,578.56 $ 15 000.00
75 578.56 $

226,792.56 $ 40000.00
266 792.56 $

187,751.49 $ 31649.94
219401.43 $

0.00 $ 305.82
305.82 $

187,751.49 $ 31955.76
219,707.25 $

-39,041.07 -8044.24
-47 085.31

Technical Education State Appropriation State General Funds Federal Funds Other Funds
Total Technical Education

$

3,872,640.36 $

4,129,707.00 $

4,129,707.00 $

439,209.74

523,991.18

437,370.75

1 671 500.00

1893200.00

1678307.22

$

5 983 350.10 $

6.546 898.18 $

6 245 384.97 $

0.00 $ 0.00 25 947.87
25 947.87 $

4,129,707.00 $ 437,370.75
1704255.09
6 271 332.84 $

0.00 -86,620.43 -188944.91
-275 565.34

Grand Totals -All Programs

$

6,689,883.66 $

7 469 278.24 $

7,111,680.06 $

26 253.69 $

7137 933.75 $

-331344.49

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EXHIBIT"B"

Exeenditures Comeared to Budget

Variance

Positive

Actual

(Negative)

Actual Funds Available
Over/(Under) Expenditures

Prior Period Adjustments

Other Adjustments

Program Fund
Balances

Transfers

Pr2Sram Fund Balances

Reserve

Surplus

Total Fund Balance

$

419,789.87 $

49.13 $

194,721.66

26.84

32138.00

8,862.00

$

646,649.53 $

8,937.97 $

49.13 $ 0.00
195.00
244.13 $

0.27 $ 150.00
0.00
150.27 $

0.00 0.00 0.00
0.00 $

49.40 $ 150.00 195.00
394.40 $

0.00 $ 0.00 0.00
0.00 $

0.00 $ 150.00
0.00
150.00 $

49.40 $ 0.00
195.00
244.40 $

49.40 150.00 195.00
394.40

$

187,751.49 $ 39,041.07 $

31 955.76

8 044.24

$

219 707.25 $ 47 085.31 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

$ 4,118,996.44 $ 10,710.56 $

437,184.08

86,807.10

1677044.89

216155.11

$ 6,233,225.41 $ 313,672.77 $

10,710.56 $ 186.67
27 210.20
38 107.43 $

0.00 $ 1,145.95
0.00
1145.95 $

0.00 $ 208.00 3156.55

10,710.56 $ 1,540.62
30 366.75

3 364.55

42 617.93 $

0.00 $ 0.00 0.00
0.00 $

0.00 $ 10,710.56 $

1,540.62

0.00

29 549.75

817.00

31 090.37 $ 11 527.56 $

10,710.56 1,540.62
30 366.75
42 617.93

$ 7,099,582.19 $ 369,696.05 $

38,351.56 $ 1,296.22 $ 3 364.55 $ 43,012.33 $

0.00 $ 31,240.37 $ 11,771.96 $ 43,012.33

Unexpendable Reserves Uncollectible Accounts Receivable Inventories

1,995.14 94 393.15
$ 139400.62

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