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

SAVANNAH TECHNICAL COLLEGE - TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES

EXHIBITS

A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT

1

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
January 20, 2009

Members of the State Board Technical and Adult Education Members of the Local Board of Directors
and Honorable Terry Elam, Interim President Savannah 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. Savannah 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.
We did not note any exceptions as a result of our procedures.

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.
Capital asset information was incorrectly reported on the Statement of Net Assets. The College made an error in recording capital asset activity when the GAAP entries were made. This error resulted in Buildings being understated by $22,500.00. Adjustments were made to correct the errors noted.
Revenue and expense activity was incorrectly reported on the SRECNA information. The College incorrectly classified Federal revenue for the Leveraging Educational Assistance Partnership (LEAP) Program in the amount of $13,303.00 as Other revenue. Additionally, errors in recording Federal Supplemental Educational Opportunity Grant (FSEOG) activity resulted in Federal revenue and expenses being understated by $9,502.47. Adjustments were made to correct the errors noted.
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 Cash note disclosure information was not properly reported. FDIC depository insurance for one bank account, in the amount of $10,682.48 was omitted from the note. An adjustment was made to correct the omission.
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.
As noted in item #2, the College made errors in their GAAP entries. Adjustments were made to correct these errors.
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.
We did not note any exceptions as a result of our procedures.
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.
Salaries reported to the Department ofAudits were not reconciled with amounts recorded in the financial statements. A variance of $361.44 was noted.
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.
The College's reserves for Bookstore and Sales and Services were understated by $6,928.28 and $2,447.54, respectively. An adjustment was made to correct these errors.
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 ofExpenditures ofFederal Awards information did not agree with the federal expenditure activity reflected on the College's accounting records. An unidentified variance of $1,479.00 was noted.

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.
The capital assets records were not appropriately reconciled to the asset management module. Accumulated Depreciation - Equipment did not agree between the subsidiary modules and the fixed assets ledger.
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.
Bank reconciliations for the Pell account were not reconciled or reviewed by management in a timely manner for five months during fiscal year 2008.
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,
~-~
ell W. Hinton, CPA, CGFM State Auditor
RWH:as

EXHIBITS

SAVANNAH 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 Economic Development Technical Education
Total Expenditures
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved Unreserved
ADJUSTMENTS
Prior Year Payables/Expenditures Prior Year Receivables/Revenue Unreserved Fund Balance (Surplus) Returned
to Board of Regents - University System Office Year Ended June 30, 2007
Refunds to Grantors Federal Financial Assistance Returned to Georgia Department of Technical and Adult Education Year Ended June 30, 2007 Other
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 13,186,660.00 $ 13,186,660.00 $

4,233,661.21

2,774,713.74

11,365,258.62

10,459,868.80

$ 28,785,579.83 $ 26,421,242.54 $

0.00 -1,458,947.47
-905,389.82
-2,364,337.29

0.00

382,829.53

$ 28,785,579.83 $ 26,804,072.07 $

382,829.53 -1,981,507.76

$ 1,411,703.10 $ 1,240,894.18 $

434,000.00

420,484.57

26,939,876.73

24,506,524.86

$ 28,785,579.83 $ 26,167,903.61 $

$

0.00 $

636,168.46 $

170,808.92 13,515.43
2,433,351.87
2,617,676.22
636.168.46

568,296.26 17,480.70

14,155.74 2,747.23
-17,480.70

-38,233.10 -820.35
-382,829.53

$

799,464.71

SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance Inventories Sales and Services Live Works Projects Prior Year Local Funds Technology Fees Continuing Education Bookstore
Total Reserved
Unreserved Surplus

$

492.78

152,408.24

73,095.08

26,892.36

300,000.00

18,882.95

17,769.64

178 187.77

$

767,729.02

31,755.69

Total Fund Balance

$ ==79=9=.4=84==71=

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SAVANNAH 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 Adult Literacy

Original Appropriation

Final Budget

Current Year Revenues

Funds Available Comeared to Budget

Prior Year Carry-Over

Total Funds Available

Variance Positive (Negative)

$

749,707.00

444,907.00

215 823.00

749,707.00 $ 446,996.10 215 000.00

749,707.00 301,474.26 212 041.36

$

1,410,437.00 $

1,411,703.10 $

1,263,222.62 $

0.00 $ 0.00 0.00
0.00 $

749,707.00 $ 301,474.26 212 041.36
1,263,222.62 $

0.00 -145,521.84
-2 958.64
-148,480.48

Economic Development Other Funds

$

0.00 $

434 000.00 $

422 723.91 $

0.00 $

422 723.91 $

-11 276.09

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

$

12,436,953.00 $

12,436,953.00

3,776,530.46

3,786,665.11

10 707 690.59

10 716 258.62

12,436,953.00 $ 2,473,239.48 9 825 103.53

$

26 921 174.05 $

26 939 876. 73 $

24,735,296.01 $

0.00 $ 0.00 382 829.53
382,829.53 $

12,436,953.00 2,473,239.48
10 207 933.06

0.00 -1,313,425.63
-508,325.56

25118125.54 $ -1 821 751.19

Grand Totals -All Programs

$

28,331,611.05 $

28,785,579.83 $

26,421,242.54 $

382,829.53 $

26,804,072.07 $ -1,981,507.76

-2-

EXHIBIT"B"

Exe!nditures Comeared to Budset Variance Positive

Actual

(Negative)

Actual Funds Available
Over/(Under) Expenditures

Prior Period Adjustments

Other Adjustments

Program Fund
Balances

Transfers

Prgsram Fund Balances

Reserve

Surplus

Total Fund Balance

$

725,767.57 $

303,563.36

211,563.25

$ 1,240,894.18 $

23,939.43 $ 143,432.74
3436.75
170,808.92 $

23,939.43 $ -2,089.10
478.11
22,328.44 $

0.00 $ 0.00 0.00
0.00 $

0.00 $ 0.00 0.00
0.00 $

23,939.43 $ -2,089.10
478.11
22,328.44 $

0.00 $ 0.00 0.00
0.00 $

0.00 $ 0.00 0.00
0.00 $

23,939.43 $ -2,089.10
478.11
22,328.44 $

23,939.43 -2,089.10
478.11
22,328.44

$

420484.57 $

13 515.43 $

2,239.34 $

0.00 $

0.00 $ 2 239.34 $

0.00 $

0.00 $ 2 239.34 $

2 239.34

$ 12,438,956.99 $

-2,003.99 $

2,475,234.39

1,311,430.72

9,592 333.48

1123 925.14

$ 24 506 524.86 $ 2 433 351.87 $

-2,003.99 $ -1,994.91 615,599.58
611,600.68 $

0.00 $ 0.00 16 902.97
16 902.97 $

0.00 $ -2,003.99 $

0.00

-1,994.91

-5,994.96

626 507.59

-5,994.96 $ 622 508.69 $

0.00 $ 0.00 0.00
0.00 $

0.00 $ 0.00 615,320.78
615 320.78 $

-2,003.99 $ -1,994.91 11186.81
7187.91 $

-2,003.99 -1,994.91 626 507.59
622 508.69

$ 26,167,903.61 $ 2,617,676.22 $

636,168.46 $ 16,902.97 $ -5,994.96 $ 647,076.47 $

0.00 $ 615,320.78 $ 31,755.69 $ 647,076.47

Unexpendable Reserves Inventories

152,408.24 $ 799.484.71

-3-