Southeastern Technical College, Vidalia, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010

VIDALIA, GEORGLA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
UPON PROCEDURES
FOR FISCAL YEAR ENDED
JUNE 30,2010
,Georgia Zbpmhhent of
dj$Kt&&Bnd Accounts
I I
Russell W.IElnton
I State Auditor

SOUTHEASTERN TECHNICAL COLLEGE
- TABLE OF CONTENTS -
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS
A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING
SOURCE COMPARED TO BUDGET

RUSSELLW. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMEONFTAUDITASND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
November 30,2010

Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Cathryn Mitchell, President Southeastern Technical College
Independent Accountant's Report on A~plyinPAgreed-U~onProcedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the Technical 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 Technical College for inclusion in the State of Georgia's Comprehensive Annual Financial ReporC(CAFR) and SingleAudit 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 of Program Revenues and Expenditures by Funding Source Compared to Budget which is attached as Exhibits A and 6, respectively. Southeastern 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.
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 Technical College's general ledger.
We did not note any exceptions as a result of our procedures.
2. Obtain the Technical College's GAAP basis worksheets for Statement of Net 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 Technical College's accounting records.

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 Technical College. The deficiencies were noted as follows:

Financial Statement CateRor~

(Understated)

Operating Revenue Sponsored Scholarships

$

Operating Revenue Sales and Services

$

Operating Expense Scholarships and Fellowships $

Operating Expense Supplies and Other Expenses $

Nonoperating Grants and Contracts Federal

$

Nonoperating Grants and Contracts State

$

Nonoperating Grants and Contracts Local

$

Nonoperating Revenue Gifts

$

Other Nonoperating Expense

$

Capital Grants and Gifts State

$

3. Obtain the Technical 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 Technical 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 Technical College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the Technical College's annual financial statement worksheets.

As noted in item #2,the Technical College made errors in their GAAP entries.

6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the Technical 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 of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2010. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the Technical College's financial statements.

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

8. Verify that the listing of salaries, 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 Technical College's financial statements.
Salaries reported t o the Department of Audits were not reconciled with amounts recorded in the financial statements. A variance of $66,825.23 was noted. Adjustments were made to correct this variance.
9. Review the year end Budgetary Statements including the Summaty Budget Comparison and Surplus Analysis ReporC (Exhibit A) and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget(Exhibit B). Confirm that budget information presented in these statements supports activity reported in the Technical College's accounting records, the legal level of budgetary control (funding source within program) was maintained, 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 Technical College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.
We did not note any exceptions as a result of our procedures.
11.Review the H.O.P.E. Scholarship Program reconciliation between the Technical 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 Technical 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 Technical College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the Technical College's accounting records.
We did not note any exceptions as a result of our procedures.
13. 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.
We did not note any exceptions as a result of our procedures.
14. Review bank reconciliations during the year under review to ensure that management is preparingthem 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 reportedto 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,

A

-

~ u s g e lWl . Hinton, CPA, CGFM State Auditor

EXHIBITS

SOUTHEASTERN TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDEDJUNE 30.2010

State Approprlatlon 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 Technlcal Educat~on
Total Expenditures
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved Unreserved
ADJUSTMENTS
Prior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned
to Technical College System of Georgla Year Ended June 30.2009
Refunds to Grantors Federal FinancialAssistance Returnedto Technlcal College System of Georgia Year Ended June 30,2009
Prior Year Reserved Fund Balance Included In Funds Available
FUND BALANCEJUNE3 0
SUMMARY OF FUND BALANCE
Reserved Federal FlnanclalAssistance Continuing Education Live Work Projects Prlor Year Local Funds Sales and Servlces Technology Fees Tuition Inventories
Tdai Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCE -
FAVORABLE (UNFAVORABLE)

M u l t Literacy state Appropnauon state General Funds Federal Funds Gther Funds
Total Adult Llteracy

SOUTHEASTERN TECHNICALCOLLEGE STATEMENT OF PROGPAM REVENUESAND MPENDITURESBY FUNDING SOURCECOMPAREDTOBUDGE1
YEAR ENDED JUNE 30.2010

Or#@nal Appmpr~auon

Flnal Budget

Current Year Revenues

Funds Avwlable Campared to Budget

Prior Year Carlymer

Total Funds Avavalable

Var~ance Poslbve (Negative]

Eoonomlo Davalopment Gther Funds

Technical Education State Appropriabon State General Funds Federal Funds Ameracan Recovery and Reinvestment k t of 2009 FederalStabll~zauonFunds Other Federal Funds Other Funds
Total Techn~caEl ducation
Grand Tomla - All Programs

$

9,416,94300 $

8.006.193 00 $

8,006,143 00 5

0.00 $ 8,006,19300 $

288.45100

886.570 00

886.570 00

0 00

610,7294 1

652.4364 1

630,528 13

0 00

4,140,942 00

4,561,843 W

4.493 050.78

603.371 07

---- $

14,466,06541 $ 14.107.0424 1 $ 14.016 34191 $

603.37107 $

886 570 00 630.528 13 5.096 42185
14.619.712.98 $

- $

15.790.137 4 1 $ 15.464.5274 1 $

15.312.76794 $

671.688 68 $ 15,984,456 62 $

0 00
0 00 -21,90828 534,578 85 512.67057
519.929 2 1

Expend~turesComparedto Budgel

Vansna,

bltlve

Actual

(Negabw)

Actual Funds Ava~lable
Ouer/(Under) Expenditures

~ r l oml rloc Adjusmenv,

Other Adlustments

Prcgram Fund
Balsncss

Transfen

Program Fun0 Balances

Reserve

Surplus

Total Fund
- Balance

UnexpendableReserves lnvsntorlss