Savannah Technical College, Savannah, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2009

SAVANNAH TECHNICAL COLLEGE
SAVANNAH, GEORGIA
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREEDUPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30, 2009
Georgia D epartment of Audits and Accounts 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

I

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
November 9, 2009

Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Kathy Love, 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 System Office (Oversight Unit) of the Technical College System of Georgia, solely to assist you in assessing the accuracy of the annual financial statement information reported to the System 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 System Office of the Technical College System of Georgia. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these 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.
I. 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 Equipment being understated by $28,959.67. Adjustments were made to correct this error.

Numerous items on the Statement of Revenues, Expenses and Changes in Net Assets (SCRENA) were reported incorrectly on the financial statement information provided by the College. The deficiencies were noted as follows:

Financial Statement Category

Overstated/ (Understated)

Operating Revenue Sales and Services Supplies and Other Services Expenses Nonoperating Grants and Contracts Federal Nonoperating Grants and Contracts State Nonoperating Revenue Gifts Other Nonoperating Revenue Other Nonoperating Expense

$

972.50

$ -2,956.43

$ 102,883.75

$ -423,590. 13

$ 423,590.13

$ -103,856.25

$ 2,956.43

The deficiencies noted related to the SCRENA were corrected by the College and resubmitted to the Technical College System of Georgia.

3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows.

We did not note any exceptions as a result of our procedures.

4. 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.

We did not note any exceptions as a result of our procedures.

5. 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.
6. 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.
~
7. Obtain listing ofwrite-offrequests for accounts receivable less than $3,000.00 for fiscal year 2009. 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.
8. 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.
We did not note any exceptions as a result of our procedures.
9. 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.
10. 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 reserve for Federal Financial Assistance was understated by $8,469.43. An adjustment was made to correct this error.

11. 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.
12. 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.
We did not note any exceptions as a result of our procedures.
13. Review capital asset records to ensure that (I) 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. Capital Asset Equipment did not agree between the subsidiary modules and the fixed assets ledger by $188,988.64. Accumulated Depreciation Equipment did not agree between the subsidiary modules and the fixed assets ledger by $6,409.00.
14. 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.
We did not note any exceptions as a result of our procedures.
These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which 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,
?~ w.cf:)~
Russell W. Hinton, CPA, CGFM State Auditor
RWH:as

EXHIBITS

SAVANNAH TECHNICAL COLLEGE SUMMARY BUDGET COMPARISION AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30, 2009

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 Payable/Expenditures Prior Year Receivables/Revenue Unreserved Fund Balance (Surplus) Returned
to Technical College System of Georgia Year Ended June 30, 2008
Refunds to Granters Federal Financial Assistance Returned to Technical College System of Georgia Year Ended June 30, 2008 Georgia Department of Early Care and Learning
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30
SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance Continuing Education Live Work Projects Prior Year Local Funds Sales and Services Technology Fees Inventories
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 10,498,341.00 $ 10,498,341.00 $

3,796,898.79

2,879,587.03

1419081183.71

1313831303.55

$ 29,203,423.50 $ 26,761,231.58 $

0.00 -917,311.76 -115241880.16
-2,442, 191.92

0.00

6141828.00

$ 2912031423.50 $ 271376,059.58 $

6141828.00 -11827,363.92

$ 1,255,747.67 $ 1,191,580.48 $

373,686.17

265,190.81

27,5731989.66

2513301964.40

$ 29,2031423.50 $ 26, 7871735.69 $

$

588,323.89

64,167.19 108,495.36 2,243,025.26
21415 687.81

767,729.02 31,755.69

71,896.75 -50,976.96
-31,755.69

-6,076.53 -344.83
-6141828.00

$

7551723.34

$

8,469.43

57,230.23

34,099.83

265,000.00

198,904.07

26,349.11

1521408.24

$

742,460.91

13 262.43

SAVANNAH TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET
YEAR ENDED JUNE 30, 2009

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)

781,749.00 411,816.00 200,000.00

675,787.00 $ 324,271.00 255,689.67

$ 1,393,565.00 $ 1,255,747.67

675,787.00 293,962.15 192 381.95
1,162,131.10

0.00 0.00 0.00
0.00 $

675,787.00 293,962.15 192 381.95
1,162,131.10

0.00 -30,308.85 -63,307.72
-93,616.57

Economic Development Other Funds

430,000.00 $

373,686.17 $

217,439.30 $

0.00 $

217,439.30 $ ===1=56=,2=4=6=.8=7

Technical Education State Appropriation State General Funds Federal Funds American Recovery and Reinvestment Act of 2009 Federal Stabilization Funds other Federal Funds other Funds
Total Technical Education

12,293,599.00 $ 9,822,554.00 $

9,822,554.00 $

0.00 $ 9,822,554.00 $

0.00

0.00 2,268,703.52 11,486,653.39
26 048 955.91

110,120.00 3,362,507.79 14,278,807.87
27 573,989.66

110, 120,00 2,475,504.88 12,973,482.30
25 381 661.18 $

0.00 0.00 614 828.00

110,120.00 2,475,504.88 13 586 310.30

614,828.00 $ 25 996,489.16 $

0,00 -887,002.91 -690 497,57
-1 577 500.48

Grand Totals -All Programs

$ 27,872,520.91 $ 29,203,423.50 $ 26,761,231.58 $

614,828.00 $ 27,376,059.58 $ -1,827,363.92

EXHIBIT "B"

Exeenditures Comeared to Bud9et

Variance

Positive

Actual

(Negative)

Actual Funds Available
Over/(Under) Expenditures

Prior Period Adjustments

Other Adjustments

Program Fund
Balances

Transfers

Pro!lram Fund Balances

Reserve

~

Total Fund Balance

675,787.00 285,492.72 230 300.76
1,191,580.48 $

0.00 $ 38,778.28 25 388.91
64,167.19

000 8,469.43 -37 918.81
-29,449.38 $

712.00 $ 2,318.79
000
3,030.79 $

0.00 -2,318 79
0.00

712.00 8,469.43 -37 918.81

000 0.00 38 317.81

2,318.79 $ -28,737.38 $ 38,317.81 $

000 8,469.43
0.00

712.00 $ 0.00
~

8,469.43 $ ~ $

112.00 8,469 43
399.00
9,580.43

265,190.81 $ 108,495.36 $

47,751.51 $ 5,675.90 $-====o...o..o.. $ 42,075.61 $ 42,075.61 $=====o;,;;.o=o $ ~ $===""0.""00...

9,820,581.12 $

1,972.88 $

1,972.88 $

9,621.50 $

0.00 $ 11,594.38 $

0.00 $

0.00 $ 11,594.38 $ 11,594.38

110,120.00 2,471,104.39 12,929,158.89
25 330 964.40

0.00 891,403.40 1 349,648.98
2 243 025.26

0.00 4,400.49 659 151.41
665 524,78

0.00 -790.70 3 382.30
12 213.10 $

000 3,609.79
0.00

000 0.00 662 533 71

-3 609.79 $ 674 128.09

0.00 0.00 -80,393.42
-80 393.42

000 0.00 581 583.24

0.00 0.00 ~

581 583.24 $ 12 151.43 $

000 0.00 582 140.29
593 734.67

26,787,735.69 $ 2,415,687.81 $

588,323 89 $ 20,919.79 $

-5,928 58 $ 603,315.10 $

0 00 $ 590,052 67 $ ~ $ 603,315.10

Unexpendable Reserves Inventories

152 408.24 755,723 34