Management report, Savannah Technical Institute, Savannah, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2000

SAVANNAH TECHNICAL INSTITIJTE MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

1

SCHEDULES OF FUNDS AVAILABLE AND EXPENDTIURES

COMPARED TO BUDGET

BUDGET FUND

B

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

2

C

"B" LOTTERY FOR EDUCATION

3

D RECONCILIATION OF SALARIES AND TRAVEL

4

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

USSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-S400
September 27,2000

Honorable Roy E. Barnes, 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 Coy Hodges, Interim President Savannah Technical Institute
Ladies and Gentlemen:
As part ofour audit ofthe statutory basis financial statements ofthe State ofGeorgia presented in the State o/Georgia Report o/the State Auditor, the general purpose financial statements ofthe State of
Georgia presented in the State 0/Georgia Comprehensive Annual Financial Report, and the issuance
of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2000, we have performed certain audit procedures at Savannah Technical Institute. Accordingly, the financial statements and compliance activities of Savannah Technical Institute 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 bythe Single Audit Act Amendments of 1996.
This Management Report contains information pertinent to the financial and compliance activities of Savannah Technical Institute as ofand for the year ended June 30,2000. 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 ofDirectors ofSavannah Technical Institute and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:jb

R ssell W. Hinton State Auditor

SECTION I SELECTED FINANCIAL INFORMATION

SAVANNAH TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "A"

FUND BALANCE - JULY 1, 1999
Reserved Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibit "B" Exhibit"C" Prior Years Checks Voided
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30,1999
Refunds to Grantor Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30, 2000

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"S" LOTTERY FOR
EDUCATION

$

577,187.06

25,010,77 $

0.00

$

602,197.83 $

0.00

$

6,887.23

524,813.22
$
5,016.40

$

536,716.85 $

69.54 69.54

$

25,010.77

418.58

526,221.37 $

0.00

$

551,650.72 $

0.00

$

587,263.96 $ ======6;,;;;,9;,;;.54~

SUMMARY OF FUND BALANCE Reserved Inventories Live Work Projects PriorVearLocalFunds
Surplus

$

53,644.15

8,580.30

520,000.00

$

582,224.45

5,039.51 $

--=6~9:.:::.54~

$

587,263.96 $ =======6=9';,;;;,5.4..

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SAVANNAH TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 2000

EXHIBIT "B"

FUNDS AVAILABLE REVENUES
State Appropriations Federal Revenues Other Revenues Re~ined
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$

6,763,504.00 $

6,763,504.00 $

1,121,076.00

840,589.01

3,249,259.00

2,882,110.03

$ 11,133,839.00 $ 10,486,203.04 $

0.00 -280,486.99 -367,148.97
-647,635.96

520,000.00

526,221.37

6,221.37

$ 11,653,839.00 $ 11,012,424.41 $

-...;;.64~1:..:.,4..:...;1:....;,4,;.;;.5:.:...9

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Capital Outlay Year 2000 Project Funding

$

8,612,324.00 $

8,000,353.59 $

3,012,215.00

2,457,957.60

10,000.00

10,000.00

19,300.00

19,300.00

611,970.41 554,257.40
0.00 0.00

$

11,653,839.00 $

10,487,611.19 $ _ _....:.;1,~1;:,;66::.::,2=2:.:.7.:..:.8:..:....1

Excess of Funds Available over Expenditures

$

524,813.22 $ ==~52~4,;,f!8;;;:1~3~.2~2

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SAVANNAH TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTIERY FOR EDUCATION YEAR ENDED JUNE 30. 2000

EXHIBIT"C"

FUNDS AVAILABLE REVENUES
State Appropriations

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

1,663,046.00 $

602,201.00 $

-1,060,845.00

EXPENDITURES Equipment-Technical Institutes

$

1,663,046.00 $

602,131.46 $ _ _.;.:,'1,;;;,.06;;.;;0~,9;..;1...;.4'...;.54~

Excess of Funds Available over Expenditures

$

69.54 $ =======6=9=.54==

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SAVANNAH TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2000

EXHIBIT "0"

Totals per Annual Supplement
Accruals June 30, 1999 June 30, 2000

SALARIES

. TRAVEL

$

6,370,982.96 $

90,114.04

-76,580.34 109,558.72

$

6,403,961.34 $

90,114.04

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SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SAVANNAH TECHNICAL INSTITUTE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-841-98-01 FS-841-99-01 FS-841-99-02

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

PRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-841-98-01 FA-841-98-02 FA-841-99-01 FA-841-99-02

Unresolved-See Corrective Action/Responses Unresolved-See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

ACTIVITIES ALLOWED AND UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Finding Control Number: FA-841-98-01

Savannah Technical Institute set up a payable for $21,277.55 to the U.S. Department of Education for this audit finding so that we could pay this amount to the Federal Government. This decision was derived after contacting the Supervisor for Federal Audit Requirements, Georgia Department ofAudits and our Georgia Department ofTechnical and Adult Education to give us this resolution. As of this date, Savannah Technical Institute has not received an invoice for these funds.

ALLOWABLE COSTS/COSTS PRINCIPLES Improper Overtime Payments Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $5,872.00 Finding Control Number: FA-84l-98-02

The Georgia Department of Technical and Adult Education (DTAE) issued us a letter stating that no further action was required by Savannah Technical Institute. The letter dated January 11, 2000 from the Assistant Commissioner of DTAE Administrative Services has been provided to our auditors.

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SAVANNAH TECHNICAL INSTITUTE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTIONIRESPONSES ALLQWABLE COSTS/COSTS PRINCIPLES Improper Overtime Payments Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $5,872.00 Finding Control Number: FA-841-98-02 AUDITORS RESPONSE The Georgia Department ofTechnical and Adult Education (DTAE) appeared to exceed its authority concerning the resolution ofthis finding dealing with excessive compensation paid to an instructor using Vocational Education funds. According to the details of the finding, an instructor received $5,872.00 in unallowable overtime and holiday compensation. DTAE issued a letter dated January 11, 2000, resolving this finding without requiring the Institute to provide any documentation substantiating the validity of the additional compensation paid. DTAE also failed to contact United States Department ofEducation (USDOE), the grantor agency, regarding resolution ofthis questioned cost. DTAE should contact USDOE, the grantor agency, in regard to the resolution of this finding.
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