Management report, Savannah Technical College, Savannah, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2002

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MANAGEMENT REPOR't.

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r~AVANNAH TECHNICAL.'~OLLEGE
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AN ORGANIZATIONAL UNrr OF THE STATE OF GEORGIA

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--YEAR ENDED JUNE 30, 2002

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RussellW. Hinton,

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State Auditor- ,_ ,

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SAVANNAH TECHNICAL COLLEGE MANAGEMENT REPORT -TABLE OF CONTENTS-

Page

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGETFUND

1

B SCHEDULEOFFUNDSAVAILABLEANDEXPENDTIURES

COMPARED TO BUDGET

BUDGET FUND

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

2

C RECONCILIATION OF SALARIES AND TRAVEL

3

D RECONCILIATION OF PER DIEM AND FEES

4

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

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W., Suite 2 I4 Atlanta, Georgia 30334-8400
September 18, 2002

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. Rathbum, President Savannah Technical College
Ladies ~d Gentlemen:
As part of our audit ofthe statutory basis financial statements ofthe State ofGeorgia presented in the State of Georgia Report of the State Audztor, the financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report, and the issuance of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as ofand for the year ended June 30, 2002, we have performed certain audit procedures at Savannah Technical College. Accordingly, the financial statements and compliance activities ofSavannah Technical College were examined to the extent considered necessary in order to express an opinion as to the fair presentation ofthe 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 TechnicaJ College as of and for the year ended June 30, 2002. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the information and use ofmanagement and members of the Local Board of Directors of Savannah Technical College and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully s u ~ i ~

RWH:gp

SECTION I SELECTED FINANCIAL INFORMATION

SAVANNAH TECHNICAL COLLEGE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 2002

EXHIBIT A 11 11

FUND BALANCE - JULY 1, 2001 Reserved Surplus
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit "B"
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Educabon - Adm1mstrat1ve Central Office Year Ended June 30, 2001 Adjustments to Pnor Year's Accounts Receivable Reserved Fund Balance earned Over from Pnor Year as Funds Available
FUND BALANCE - JUNE 30, 2002
SUMMARY OF FUND BALANCE Reserved Federal Fmanaal Assistance For Refund to Granter Agency Other Inventories Live Work ProJects PnorYearLocalFunds
Surplus
- 1-

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

$

527,952.23

4 835 72 $

1 727 11

$

532,787 95 $

172711

$

-2,022.27 $

6,960 57

495,938 57

$

493,916 30 $

6 960 57

$

4,835.72 $

1,727 11

-5311

476 787.60

$

481 570 21 $

1 727 11

$

545 134 04 $ ==-==6==96.0.=5=7

$

3540

54,522 29

7,711 97

476 507 60

$

538,777 26

6 356 78 $

6 960 57

$

545 134 04 $ ==.,,.;;,i6=96~0~5~7

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, 2002

EXHIBIT"B"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 7,408,020.00 $ 7,408,020.00 $

1,635,757.80

1, 170,520.36

4,733,603.79

4,214,106.76

$ 13,777,381.59 $ 12,792,647.12 $

0.00 -465,237 .44 -519,497.03
-984,734.47

0.00

476,787.60

476 787.60

$ 13,777,381.59 $ 13,269,434.72 $ _ _...;-5..;:_07.:..:.,9=-4-=6-=8_;_7

EXPENDITURES
Personal Serv1ces-lnst1tutions Operating Expenses-Institutions Capital Outlay

$ 9,184,30581 $ 8,971,880.11 $

4,475,846 78

3,684,387.04

117,229.00

117,229.00

212,425 70 791,459.74
0 00

$ 13,777,381.59 $ 12,773,496 15 $ _ __,:1,_00_3..,:..,8_8_5_4;..;..4

Excess of Funds Available over Expenditures

$ 495,938 57 $ ===4~9~5~,9;,,;;;3;;:,;8,;;;.57:::

-2 -

SAVANNAH TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2002

EXHIBIT "C"

Totals per Annual Supplement
Accruals June 30, 2001 June 30, 2002
Compensated Absences June 30, 2001 June 30, 2002
Adjustments Prior Year Accounts Payable

SALARIES

TRAVEL

$ 7,422,702.05 $ 84,238.41

-63,337.26 75,858.89

-607,294.55 600,975.14

-260 00

$ 7,428,904.27 $ 83,978.41

-3-

SAVANNAH TECHNICAL COLLEGE RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 2002

EXHIBIT"D"

Totals per Annual Supplement
Adjustments Encumbrances June 30, 2002 Prior Year Accounts Payable

FEE AMOUNT

EXPENSE AMOUNT

TOTAL

$ 318,825.31 $ 2,820.66 $ 321,645.97

-300.00 -360.00

-300.00 -360.00

$ 318,165.31 $ 2,820.66 $ 320,985.97

-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, 2002

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

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

Previously Reported Corrective Action Implemented Ptially Resolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

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-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 of Education (USDOE) concerning final resolution ofthis finding. No response has been received from USDOE. Our DTAE office notified USDOE again in March 2002, regarding this unresolved finding. As ofyet, no resolution has been made.