ISOUTHERN CRESCEFM TECHNICAL COLLEGE
1 GRIFFIN, GEORGIA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
UPON PROCEDURES FOR FISCAL YEAR ENDED
JUNE 30,2011
Georgia Department of Audits andAGCOMW- I
i

SOUTHERN CRESCENT TECHNICAL COLLEGE
- TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES
EXH IBlTS
A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
B STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND
FUNDING SOURCE

Page
1 2

RUSSELLW. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENOTF AUDITSAND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
December 21,2011

Members of the State Board of the Technical College System of Georgia Members of the Local Board of Directors
and Honorable Randall Peters, President Southern Crescent Technical College
Inde~endenAt ccountant's Report on A ~ ~ l v i nAPgreed-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; Statement of Funds Available and Expenditures Compared to Budget By Progmm and Funding Source, and the Statement of Changes To Fund Balance By Program and Funding Source which are attached as Exhibits A, B and C, respectively. Southern Crescent Technical College's management is responsible for the financial information reported to the System Office of the Technical College System of Georgia. This agreedupon 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 College's general ledger.
Upon review of supporting documentationfor selected balance sheet items reported on the annual financial statement worksheets, it was noted that the entity did not properly reconcile several balances to the College's general ledger. The following problems were noted:
A variance of $115,785.45 was noted between the bank reconciliations and the Cash balance reported on the annual financial statement worksheets. The subsidiary detailed listing provided to support the Accounts Payable balance of $412,163.64 reported on the annual financial statement worksheets had an unidentifiedvariance of $2,270.45. A variance of $301.00 was noted betweenthe supportingdocumentation for Prepaid Items and the amounts reported on the annual financial statement worksheets.

2. Obtain the 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 College's accounting records.
We did not note any exceptions as a result of our procedures.
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.
The Summary of Lease Obligations note disclosure information was not properly reported. The total rental expenses for the current fiscal year were understated by $2,661.67. Additionally, the minimum lease payment information for fiscal years 2012 through 2015 was understatedby a total of $14,447.12.
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.
The e n t i i recorded several year end GAAP basisjournal entries incorrectly. The year end entry to reclassify bond revenue was recorded as $1,410,670.00, while the amount should have been $264,740.21. This error was corrected. The entity failed to record the year end entry to reclassify noncapital bond expense, which should have been recorded as $803,067.46. This error was corrected. The year end entry to record noncurrent liabilities related to Compensated Absences was recorded as $597,967.71, while the amount should have been $598,593.56.
6. Confirm that State Appropriation revenues, receivables and remittances of prior 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 of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2011. 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 of salaries and travel 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.
Travel amounts reported to the Department of Audits were not reconciled with amounts recorded in the financial statements. A variance of $1,735.44, related to a misclassification between expenditure accounts on the SRECNA, was noted. Travel amounts reported to the Department of Audits were found to be correct and did not require adjustment.
9. Review the year end Budgetary Statements including the Summaw Budget Comparison and Surplus Analysis Report (Exhibit A), Statement of Funds A vailable and Expendtures Compared to Budget By Program and Funding Source (Exhibit B) and the Statement of Changes To Fund Balance By Program and Funding Source (Exhibit C). Confirm that budget information presented in these statements supports activity reported in the College's accounting records, the legal level of budgetary control (funding source within program) was maintained, and determine if any budget overexpendituresexist.
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 Compan'son and Surplus Analysis Rep& (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 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 Expendituresof 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 of Expendituresof Federal Awards information did not agree with the Federal expenditure activity reflected on the College's accounting records. The following corrections were made to the SEFA:
Adult Education disbursements were adjusted to $647,999.67. The entity originally reported $637,488.41. Career and Technical Education disbursements were adjusted to $1,037,052.36. The entity originally reported $800,393.35.
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 preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner.
Per review of the entity's bank reconciliations, it was noted that the entity is not addressing reconciling items in a timely and appropriate manner. The June 2011 bank reconciliation for the College's Operating account revealed reconciling items from May 2011, which were not recordedon the College's accountingrecords at year end and caused misstatementsin the Cash and Accounts Payable balances reflected on the entity's annual financial statement worksheets.
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 t o 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,
CPA, CGFM

EXHIBITS

SOUTHERN CRESCENT TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 3 0 , 2 0 1 1

REVENUES
State Appropr~at~on State General Funds
Federal Funds Other Funds
Total Revenues
ADJUSTMENTS AND PROGRAM TRANSFERS
CARRY-OVER FROM PRIOR YEARS
Transfers from Resewed Fund Balance
Total Funds Available
EXPENDIT-
Adult L~teracy Econom~cDevelopment Techn~calEducat~on
Total Expenditures
Excess of Funds Available over Exoenditures
FUND BAl ANCE JULY 1
Reserved
ADJUSTMENTS
Prlor Year Payables/Expenddures Prior Year Receivables/Revenues Prior Year Resewed Fund Balance Included in Funds Available
FUND BALANCE JUNE
SUMMARY OF FUND BALANCF
Reserved Federal F~nanciaAl ss~stance Live Work Projects Pr~oYr ear Local Funds Continuing Education Technology Fees Uncollect~bleAccounts Rece~vable Inventories Bookstore Tuttion
Total Reserved
Unrese~ed Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

SOUTHERN CRESCENT TECHNICAL COLLEGE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
YEAR ENDEDJUNE 30.2011

Adult Literacy State Appropriation State General Funds Federal Funds Other Funds
Total Adult Literacy
Economic Development Other Funds
Technical Education State Appropr~at~on State General Funds Federal Funds Other Funds
Total Technical Education
Total Operating Actlv~ty

Or~ginal Appropriation

Amended Appropriation

Final Budget

Current Year Revenues

Funds Available Compared to Budget

Pr~orYear

Adjustments and

Total

Carry-Over

Program Transfers Funds Available

Variance Posit~ve(Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

Excess IDefic~encv) of Funds Available
Over/(Under) Expenditures

SOUTHERN CRESCENT TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE
YEAR ENDEDJUNE 30.2011

M u l t Literacy State Appropr~ation State General Funds Federal Funds Other Funds
Total Adult Literacy
Economic Development Gther Funds
Technical Education State Appropriation State General Funds Federal Funds Other Funds
Total Technical Education
Total OperatingActivity
Pnor Year R ~ s ~ N ~ s Not Available for Expenditure Inventories Uncollect~bleAccounts Receivable

Bennning Fund Balance/(Def~cit)
July 1

Fund Balance Carried Over from
Prior Period as Funds Available

Return of Flscal Year 2010
Surplus

Pr~orPeriod Adjustments

Budget Unit Totals

Other Adjustments

Early Return Fiscal Year 2011
Surplus

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

End~ngFund Balance/(Deficit)
June 3 0

Analysis of Ending Fund Balance

Rese~ed

Surplus/(Deficlt)

Total

Summaly of EndingFund Balance Rese~ed
Federal FinancialAssistance Live Work Projects Prlor Year Local Funds Continuing Education Technology Fees Uncollectible Accounts Receivable lnventorles Bookstore Tultton Unreserved Surplus
Total EndingFund Balance -June 3 0

- $ 4.669.585.28 $

- 929.90 $ 4,670.515.18 =