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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.