Management report, Savannah Technical College, Savannah, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2001

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MANAGEMENT REPORT

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SAVANNAH TECHNICAL COLLEGE

SAVANNAH, GEORGIA

AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 2001 R EC El V tJ

SAVANNAH TECHNICAL COLLEGE MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGETFUND

1

SCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES

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

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

RussELL W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta. Georgia 30334-8400
October 26, 2001

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 C. B. Rathburn, President Savannah 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 general purpose financial statements ofthe State of Georgia presented in the State ofGeorgia 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, 2001, we have performed certain audit procedures at Savannah Technical College. Accordingly, the financial statements and compliance activities of Savannah 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 Savannah Technical College as ofand for the year ended June 30, 2001. 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 College and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp

State Auditor

SECTION I SELECTED FINANCIAL INFORMATION

SAVANNAH TECHNICAL COLLEGE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"A"

FUND BALANCE - JULY 1, 2000 Reserved Surplus
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit "811 Exhibit "C"
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 2000 Adjustments to Prior Year's Accounts Receivable Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30, 2001
SUMMARY OF FUND BALANCE Reserved Inventories Live Work Projects Prior Year Local Funds
Surplus
- 1-

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

$

582,224.45

5 039.51 $

69.54

$

587,263.96 $

69.54

$

7,801.87 $

1,727.11

474,100.10

0.00

$

481 901.97 $

1 727.11

$

5,039.51 $

2,758.17

528,580.30

$

536,377.98 $

69.54 69.54

$

532,787.95 $ ===1==7=2=7=.1=1

$

51,164.63

280.00

476,507.60

$

527,952.23

4,835.72 $ _ _ _1:..z.;7:..:2:.:..7~.1..:...1

$

532,787.95 $===1==7=2=7=.1.1...

SAVANNAH TECHNICAL COLLEGE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 2001

EXHIBIT "B"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 7,265,587.00 $ 7,265,587.00 $ 1,325,098.85 1,045,883.29 4,6251860.26 31387,275.83
$ 13,216,546.11 $ 11,698,746.12 $

0.00 -279,215.56 -1,238,584.43
-1,517,799.99

0.00

528,580.30

528,580.30

$ 13,216,546.11 $ 12,227,326.42 $ _ _-_9_89_.,,2;;;..1..;.9...6....9.....

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Capital Outlay

$ 9,104,679.27 $ 8,699,036.02 $

3,969,534.84 2,911,858.30

142,332.00

142,332.00

405,643.25 1,057,676.54
0.00

$ 13,216,546.11 $ 11,753,226.32 $ _ _1,_,4.;..;63_.,,3_1;..;.9;;..;..7,_9

Excess of Funds Available over Expenditures

$ 4741100.10 $ ===-=-4_74..i,,1_0_0_.1_0

SAVANNAH TECHNICAL COLLEGE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 2001

EXHIBIT"C"

FUNDS AVAILABLE REVENUES
State Appropriations Other Revenues Retained
EXPENDITURES Equipment-Technical Institutes
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 420,827.00 $ 420,827.00 $

0.00

1,060,845.00 1,060,845.00

0.00

$ 1,4a1,6n.oo $ 1,4a1,6n.oo $ _ _ _ _....;;o.;.;;.o~o

$ 1,4a1,6n.oo $ 1,4a1,6?2.oo $ _ _ _ _....;;o.;.;;.o~o

$

o.oo $ =====o...o..o...

-3-

SAVANNAH TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2001

EXHIBIT"D"

Totals per Annual Supplement
Accruals June 30, 2000 June 30, 2001

SALARIES

TRAVEL

$ 7,145,040.84 $ 118,408.93

-109,558.72 63,337.26

$ 7,098,819.38 $ 118,408.93

-4-

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

SAVANNAH TECHNICAL COLLEGE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

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

Partially Resolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

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 College 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 of Audits and our Georgia Department of Technical and Adult Education to give us this resolution. As of this date, Savannah Technical College has not received an invoice for these funds.

ALLOWABLE COSTS/COST 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

The Georgia Department of Technical and Adult Education (DTAE) issued us a letter stating that no further action was required by Savannah Technical College. The letter dated January 11, 2000, from the Assistant Commissioner of DTAE Administrative Services has been provided to our auditors. As requested by our auditors, DTAE sent a letter dated March 17, 2000, to the U.S. Department ofEducation (USDOE) concerning final resolution of this finding. No response has been received from USDOE.