STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS I SWAINSBORO TECHNICAL COLLEGE SWAINSBORO, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Russell W. Hinton State Auditor SWAINSBORO TECHNICAL COLLEGE -TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS EXHIBITS A STATEMENT OF NET ASSETS 3 B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS 4 C STATEMENT OF CASH FLOWS 5 D NOTES TO THE FINANCIAL STATEMENTS 7 SUPPLEMENTARY INFORMATION SCHEDULES SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET - (NON-GAAP BASIS) BUDGET FUND "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION 23 2 RECONCILIATION OF SALARIES AND TRAVEL 24 3 RECONCILIATION OF PER DIEM AND FEES 25 SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL Russell W. Hinton STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 October 26, 2004 Honorable Sonny Perdue, 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 Glenn Deibert, President Swainsboro Technical College INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We have audited the accompanying basic financial statements of Swainsboro Technical College, an organizational unit ofthe State of Georgia, and its' aggregate discretely presented component unit as ofand for the year ended June 30, 2004, as listed in the table ofcontents. These financial statements are the responsibility of the Swainsboro Technical College's management. Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of Swainsboro Technical College's discretely presented component unit. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for Greater Swainsboro Technical College Foundation, Inc. is based on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provide a reasonable basis for our opinions. As discussed in Note 1, the financial statements of Swainsboro Technical College are intended to present the financial position and changes in financial position (including cash flows) of only that portion ofthe business-type activities ofthe State of Georgia that is attributable to the transactions of 04ARL-1TC Swainsboro Technical College. They do not purport to, and do not, present fairly the financial position and changes in financial position (including cash flows) of the State of Georgia, in conformity with accounting principles generally accepted in the United States of America. In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Swainsboro Technical College and of its aggregate discretely presented component unit as of June 30, 2004, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States ofAmerica. As discussed in Note 1, the College adopted the provisions of the Governmental Accounting Standards Board, Statement Number 39, Determining Whether Certain Organizations are Component Units during the year ended June 30, 2004. Management's Discussion and Analysis is not a required part ofthe basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We and the other auditors have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit this information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the College's basic financial statements. The accompanying supplementary information (Schedules 1 through 3) is presented for purposes of additional analysis and is not a required part ofthe basic financial statements. Such information has been subjected to the auditing procedures applied by us in the audit ofthe basic financial statements and, in our opinion, based on our audit, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Respectfully submitted, ~,.._.row~ Russell W. Hinton State Auditor RWH:gp 04ARL-1TC REQUIRED SUPPLEMENTARY INFORMATION Swainsboro Technical College Management's Discussion and Analysis The following is management's discussion and analysis of Swainsboro Technical College's financial performance for the fiscal year ending June 30, 2004 with comparative data from fiscal year ending June 30, 2003. This discussion has been prepared by and is the responsibility of management. Overview ofthe Financial Statements and Financial Analysis This annual report consists of a series of financial statements prepared in accordance with the rules and regulations established by the Governmental Accounting Standards Board. There are three financial statements presented: the Statement of Net Assets; the Statement of Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. The Statement of Net Assets used in conjunction with the Statement of Revenues, Expenses and Changes in Net Assets contains information concerning the College's finances and activities as a whole and assists with providing an answer to the question "Is the College as a whole better or worse off as a result of the year's activities?" These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting method used by corporations and other private sector companies. All revenues and assets are recognized when the service is provided and expenses and liabilities are recognized when others provide the goods or service, regardless of when cash is exchanged. The Statement of Cash Flows is a valuable tool when evaluating the ability of the College to meet financial obligations as they mature. This statement presents information related to cash inflows and outflows summarized by operating, noncapital financing, capital and related financing and investing activities. This discussion and analysis of the College's financial statements provides an overview of its financial activities for the year. Statement ofNet Assets The purpose of the Statement of Net Assets is to present to the users of the financial statements a fiscal snapshot of the Technical College at a specific point in time. The statement presents the assets, liabilities and net assets of the College as of the end of the fiscal year. Assets and liabilities are reported as current and noncurrent and the difference between assets and liabilities is reported as net assets. Over a period of time the increases and decreases reflected in the Statement of Net Assets, when considered with other nonfinancial facts such as enrollment levels and the condition of the facilities, can provide a measure to aid in determining whether the Technical College's financial position is improving or deteriorating. -i - Net assets are divided into three major categories. The first category, invested in capital assets, net of debt, provides information concerning the College's equity in property, plant and equipment owned by the College. The second category is restricted net assets. Expendable restricted net assets are available for expenditure by the College but must be spent for purposes as determined by donors and/or external entities that have placed time or purpose restrictions on the use of the assets. The final category is unrestricted net assets, which are available for expenditure by the College for any lawful purpose deemed necessary to operate the College. Statement of Net Assets (thousands of dollars) June 30, 2004 June 30, 2003 Assets Current Assets Capital Assets, Net $ 823 $ 559 6,822 3 462 Total Assets $_ _.c.,7-=-64'--"-5 $_ _ _4~02_1 Liabilities Current Liabilities Noncurrent Liabilities $ 480 $ 454 193 219 Total Liabilities $_ _~67~3 $_ _---=-c67-=-3 Net Assets Invested in Capital Assets, Net of Debt Restricted - Expendable Unrestricted $ 6,822 $ 3,462 8 3 142 -117 Total Net Assets $==="6=9="7==2 The total assets of the College increased by approximately $3,624,000 from the prior year. This can be mainly attributed to an increase of approximately $264,000 in current assets and a new building with a cost of approximately $3,327,000. This increase in assets follows the institutional philosophy to use available resources to acquire and improve all areas of the College to better serve the instruction and public service missions of the College. Total liabilities for the fiscal year remained approximately the same as the prior year. The primary reason for the decrease in noncurrent liabilities was attributable to the retirement of several employees with thirty (30) or more years service reducing the net amount of compensated absences by approximately $26,000. Current liabilities increased by approximately $26,000 primarily due to contracts for equipment and furniture to furnish a new technology center for which the College took over occupancy during fiscal year 2004. The increase in total assets of approximately $3,624,000 with the unchanging position of total liabilities yields an increase in total net assets of approximately $3,624,000. The increase in total net assets is primarily in the category of invested in capital assets, net of debt which increased approximately $3,360,000. - 11 - Statement ofRevenues, Expenses and Changes in Net Assets The purpose of the Statement of Revenues, Expenses and Changes in Net Assets is to present the revenues received by the College, both operating and nonoperating, and the expenses incurred by the College, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the College during the fiscal year. Changes in total net assets as presented on the Statement of Net Assets are based on the information presented in the Statement of Revenues, Expenses and Changes in Net Assets. Operating revenues are received for providing goods and/or services to various customers and constituencies of the College. Operating expenses are those expenses paid to acquire or produce the goods and/or services provided in return for the operating revenues, and to carry out the mission of the College. Therefore, nonoperating revenue is received when no goods or services are provided in exchange for the revenue. With the issuance of Statement No. 35, new guidelines were established by the Governmental Accounting Standards Board (GASB), which changed the classifications of state appropriations and gifts from operating to nonoperating revenue. This change may result in an operating deficit that is offset by a nonoperating surplus. Statement of Revenues, Expenses and Changes in Net Assets (Thousands of dollars) June 30, 2004 June 30, 2003 Operating Revenues Operating Expenses $ 1,708 $ 1,579 7 695 7 877 Operating Gain/Loss $ -5,987 $ -6,298 Nonoperating Revenues and Expenses 6,089 6 313 Income (Loss) Before Other Revenues, Expenses, Gains or Losses $ 102 $ 15 Other Revenues, Expenses, Gains or Losses 3,522 23 Increase (Decrease) in Net Assets $_ _~3,~62_4 $_ _ _~3~8 Net Assets at Beginning of Year $_ _~3_34_8 $_ _~3,~31_0 Net Assets at End of Year $====6="9='7==2 $====3='=3"='4==8 The Statement of Revenues, Expenses and Changes in Net Assets reflects a positive year with an increase in the net assets at the end of the year. Some highlights of the information presented on the Statement of Revenues, Expenses and Changes in Net Assets are as follows: - 111 - Revenue By Source (thousands of dollars) Operating Revenue Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Other Total Operating Revenue Nonoperating Revenue State Appropriations State and Federal Grants and Contracts Nonoperating Gifts Investment Income Other Total Nonoperating Revenue Capital Gifts and Grants State Capital Gifts Total Revenues June 30, 2004 $ 840 710 143 15 $ 1 708 $ 4,571 1,518 445 1 -1 $ 6,534 $ 3,522 $ 11 764 June 30, 2003 $ 774 658 147 $ 1 579 $ 4,481 1,688 193 1 -50 $ 6,313 $ 23 $ 7 915 Operating Expenses (thousands of dollars) June 30, 2004 June 30, 2003 Operating Expenses Instruction $ 7,695 $ 7,877 Nonoperating Expenses Other 445 Total Expenses $====8=1==4==0 $===="7="'=87==7 The sources of operating revenue for the College are tuition and fees, grants and contracts and educational activities. The increase in operating revenue of approximately $129,000 is directly related to an increase in enrollment for fiscal year 2004. Tuition and Fees increased by approximately $66,000. This is directly related to the increased enrollment of 2.6% from fiscal year 2003. Also, the tuition rate increased in fiscal year 2004. - lV - Personal Services expense decreased by approximately $196,000. This decrease is a direct result of several employees who retired in fiscal year 2004 and were replaced by employees hired at a considerably lower rate of pay. Under nonoperating revenues (expenses) state appropriations increased by approximately $90,000. While it appears that the College received additional new money from the state, given the mandatory cost increases of various expense categories, the College actually had a relatively flat funding year when all things are considered. Statement ofCash Flows The purpose of the Statement of Cash Flows is to provide relevant information concerning the cash receipts and payments of the College during the year. It also provides information concerning the College's ability to generate future cash flows and to meet its obligations as they come due. The statement is divided into five sections. The first section reports on the operating cash flows and shows the net cash used by the operating activities of the College. The second section reflects cash flows from noncapital financing activities. The third section deals with cash flows from capital and related financing activities, which reflects the cash used for the acquisition and construction of capital related items. The fourth section reflects the cash flows from investing activities and shows the purchases, proceeds, and interest received from investing activities. The final section reconciles the net cash used to the operating income or loss reflected on the Statement of Revenues, Expenses and Changes in Net Assets. Statement of Cash Flows (thousands of dollars) June 30, 2004 June 30, 2003 Cash Provided (Used) By: Operating Activities $ -5,667 Noncapital Financing Activities 5,914 Capital and Related Financing Activities -148 Investing Activities 1 $ -5,974 6,545 -125 1 Net Change in Cash Cash, Beginning of Year $ 100 $ 447 327 -120 Cash, End of Year $===4==2==7 $======3=2~7 Capital Assets The College had a significant capital asset addition for facilities in the fiscal year under review. Construction of the Technology Center building was completed and placed into service early in fiscal year 2004. This project was funded by the Georgia State Financing and Investment Commission (GSFIC) at a cost of approximately $3,327,000. Other capital asset additions funded by the GSFIC included approximately $195,000 for equipment. Projected funding by the GSFIC for fiscal year 2005 will be approximately the same. -v- Long-Term Debt Swainsboro Technical College had a total Long-Term debt of$383,765.55 of which $190,945.19 was reflected as a current liability at June 30, 2004. For additional information on Long-Term Debt see Notes 1 and 6 in the Notes to the Financial Statements. Component Units In compliance with GASB Statement No. 39, Swainsboro Technical College has included the financial statements and notes for all required component units for fiscal year 2004. The Greater Swainsboro Technical College Foundation, Inc. had investments of approximately $140,000 as of December 31, 2003. For additional information see Notes 1 and 12 in the Notes to the Financial Statements. Economic Outlook The College is unaware of any currently known fact, decision, or condition that is expected to have a significant effect on the financial position or change how the College operates for the next fiscal year. As in prior years, the College's overall financial position is strong. Enrollment has increased by 6% annually for the past 5 years and this trend is expected to continue into the next fiscal year. As a result, the College anticipates the next fiscal year will be much like the last and the College will maintain a close watch over resources to maintain the ability to react to unknown internal and external issues. Glenn Deibert, President Swainsboro Technical College - Vl - BASIC FINANCIAL STATEMENTS - 1- SWAINSBORO TECHNICAL COLLEGE STATEMENT OF NET ASSETS JUNE 30, 2004 EXHIBIT"A" ASSETS Current Assets Cash and Cash Equivalents Short-Term Investments Accounts Receivable, Net State Appropriations Federal Financial Assistance Other Prepaid Items Total Current Assets Noncurrent Assets Investments Capital Assets, Net Total Noncurrent Assets Total Assets LIABILITIES Current Liabilities Accounts Payable Salaries Payable Deferred Revenue Funds Held for Others Compensated Absences Total Current Liabilities Noncurrent Liabilities Compensated Absences Total Liabilities NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted - Expendable Unrestricted Total Net Assets PRIMARY GOVERNMENT COMPONENT UNIT GREATER SWAINSBORO TECHNICAL COLLEGE FOUNDATION. INC. $ 427,549.84 $ 1,469.89 88,698.71 294,165.06 10,757.40 $ 822,640.90 $ $ $ 6,821,943.65 $ 6,821,943.65 $ $ 7,644,584.55 $ 102,071.00 48,032.00 1,355.00 151,458.00 91,995.00 59 580.00 151,575.00 303,033.00 $ 71,095.25 $ 44,877.86 137,318.08 36,030.00 190,945.19 $ 480,266.38 $ 192,820.36 $ 673,086.74 $ 22,387.00 22,387.00 22,387.00 $ 6,821,943.65 $ 7,573.65 141 980.51 59,580.00 12,670.00 208,396.00 $ 6,971,497.81 $ ======2=8=0=,6=46==00= The notes to the financial statements are an integral part of this statement -3- SWAINSBORO TECHNICAL COLLEGE STATEMENT OF REVENUES EXPENSES AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30. 2004 EXHIBIT "B" OPERATING REVENUES Student Tuition and Fees Less: Scholarship Allowances Gifts and Contributions Grants and Contracts Federal Rents and Royalties Sales and Services Other Operating Revenues Total Operating Revenues OPERATING EXPENSES Salaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation Payments to or on the Behalf of Swainsboro Technical College Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES} State Appropriations Grants and Contracts Federal Gifts Interest and Other Investment Income Other Nonoperating Revenues Other Nonoperating Expenses Net Nonoperating Revenues Income (Loss) Before Other Revenues, Expenses, Gains, or Losses Capital Grants and Gifts State Increase (Decrease) in Net Assets Net Assets - Beginning of Year PRIMARY GOVERNMENT COMPONENT UNIT GREATER SWAINSBORO TECHNICAL COLLEGE FOUNDATION INC. $ 848,390.64 -8,208.23 $ 709,459.00 13,045.94 142,996.54 1 992.59 $ 1 707 676.48 $ 161,839.00 161 839.00 $ 4,264,757.81 982,193.42 82,117.53 676,250.77 273,626.22 1,106,494.69 $ 309,833.66 $ 7,695,274.10 $ $ -5,987,597.62 $ 15,333.00 17,140.00 134 138.00 166 611.00 -4 772.00 $ 4,570,997.10 1,517,964.96 444,449.00 745.62 $ -574.83 -444 449.00 $ 6,089,132.85 $ $ 101,535.23 $ 3,522,439.07 $ 3,623,974.30 $ 3,347,523.51 7,436.00 7 436.00 2,664.00 2,664.00 277 982.00 Net Assets - End of Year $ 6 971 497.81 $=====~28~0;;,i;6;;;;4;;;;6,;;;.0;;;;,,0 The notes to the financial statements are an integral part of this statement. -4- SWAINSBORO TECHNICAL COLLEGE STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2004 CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services Payments to Scholarships and Fellowships Payments to Suppliers Payments to Employees Other Receipts (Payments) Net Cash Provided (Used) by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other Than Capital Purposes Other Nonoperating Expenses Net Cash Flows Provided (Used) by Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of Capital Assets CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments Net Increase (Decrease) in Cash Cash and Cash Equivalents - Beginning of Year Cash and Cash Equivalents - End of Year RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Receivables, Net Prepaid Items Salaries Payable Accounts Payable Deferred Revenue Compensated Absences Net Cash Provided (Used) by Operating Activities NONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts The notes to the financial statements are an integral part of this statement. -5- EXHIBIT C 11 11 $ 839,768.08 706,042.46 142,996.54 -676,250.77 -2,405,891.92 -4,290,090.51 16 073.04 $ -5,667,353.08 $ 4,571,763.14 12,788.14 1,467,918.00 -138,193.09 $ 5,914,276.19 $ _ _-1_4--'-8-'--',0--'-8-'-9.-'-08-'- $ _ _ _--'7---'4--"'5.;..;:;.6=..2 $ 99,579.65 327,970.19 $ 427,549.84 $ -5,987,597.62 309,833.66 -131,579.54 -10,757.40 17,257.57 49,297.34 128,783.18 -42,590.27 $ -5,667,353.08 $ -3,522,439.07 SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY Swainsboro Technical College is one of thirty-three (33) State supported member colleges of postsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Swainsboro Technical College as a separate reporting entity. The Technical College's Local Board of Directors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department of Technical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State appropriations to be received by Swainsboro Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Swainsboro Technical College is considered an organizational unit of the Georgia Department of Technical and Adult Education for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 ofthe Governmental Accounting Standards Board (GASB) Codification ofGovernmental Accounting and Financial Reporting Standards. The Department of Technical and Adult Education (and thus Swainsboro Technical College) is required to implement the Governmental Accounting Standards Board (GASB) Statement No. 39 Determining Whether Certain Organizations are Component Units - an amendment of Statement No. 14, for fiscal year 2004. This statement requires the inclusion of the financial statements for foundations and affiliated organizations that qualify as component units of the Technical College. These statements (Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets) are reported discretely in the Technical College's financial statements. For fiscal year 2004, Swainsboro Technical College is reporting the activity for the Greater Swainsboro Technical College Foundation, Inc. See Note 12, for additional component unit disclosures. FINANCIAL STATEMENT PRESENTATION In June 1999, the GASB issued Statement No. 34, Basic Financial Statements and Management Discussion andAnalysisfor State and Local Governments. This was followed in November 1999 by GASB Statement No. 35, Basic Financial Statements and Management's Discussion and Analysis for Public Colleges and Universities. The State of Georgia implemented GASB No. 34 as ofand for the year ended June 30, 2002. As an organizational unit of the State of Georgia, the Technical College also adopted GASB Statements No. 34 and No. 35 as amended by GASB Statements No. 37 and No. 38. The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the Technical College's assets, liabilities, net assets, revenues, expenses, changes in net assets, cash flows, and replaces the fund group perspective previously required. -7- SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION GAAP requires that the reporting of summer school revenues and expenses be split between fiscal years rather than in one fiscal year. Due to lack ofmateriality, the Technical Colleges ofthe Georgia Department ofTechnical and Adult Education will continue to report summer revenues and expenses in the year in which the predominate activity takes place. BASIS OF ACCOUNTING For financial reporting purposes, the Technical College is considered a special-purpose government engaged only in business-type activities. Accordingly, the Technical College's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-college transactions have been eliminated. The Technical College has the option to apply all Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The Technical College has elected to not apply FASB pronouncements issued after the applicable date. CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include petty cash, demand deposits and time deposits in authorized financial institutions. SHORT-TERM INVESTMENTS Short-Term Investments consist of investments of 90 days - 13 months. This would include certificates ofdeposits or other time restricted investments with original maturities ofsix months or more when purchased. Funds are not readily available and there is a penalty for early withdrawal. INVESTMENTS The Technical College accounts for its investments at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reportingfor Certain Investments andfor External Investment Pools. Changes in unrealized gain (loss) on the carrying value of investments are reported as a component of investment income in the Statement of Revenues, Expenses and Changes in Net Assets. ACCOUNTS RECEIVABLE Accounts receivable consist of tuition and fee charges to students, allotments due from the Georgia Department ofTechnical and Adult Education - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. Accounts receivable are recorded net of estimated uncollectible amounts. -8- SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NONCURRENTINVESTMENTS Investments that are externally restricted and cannot be used to pay current liabilities are classified as noncurrent assets in the statements of net assets. CAPITAL ASSETS Capital assets are recorded at cost at date of acquisition, or fair market value at the date of capital contribution. The Technical College capitalizes all land and land improvements. For equipment, the Technical College's capitalization policy includes all items with a unit cost of$5,000.00 or more, and an estimated useful life of greater than one year. Buildings and Building Improvements, Improvements Other Than Buildings and Library Collections that exceed $100,000.00 or significantly increase the value or extend the useful life of the asset are capitalized. For infrastructure, the Technical College's capitalization threshold is $1,000,000.00. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives ofthe assets, generally 10 to 40 years for buildings, 15 to 25 years for infrastructure, 15 years for improvements other than buildings, 10 years for library books, and 3 to 10 years for equipment. To fully portray capital assets acquired by the Technical Colleges of the Georgia Department of Technical and Adult Education, it is necessary to look at the activities ofthe Georgia State Financing and Investment Commission (GSFIC)- an organization that is external to both the Technical College and the Georgia Department of Technical and Adult Education. The GSFIC issues bonds for and on behalf of the State of Georgia, pursuant to powers granted to it in the Constitution of the State of Georgia and the Act creating the GSFIC. The bonds are issued for the purpose of acquiring capital assets and this debt constitutes direct and general obligations ofthe State of Georgia, to the payment of which the full faith, credit and taxing power of the State are pledged. For major construction projects, GSFIC records construction in progress on its books throughout the construction period and at project completion transfers the entire project costs to Swainsboro Technical College to be recorded as an asset on the Technical College's books. For the year ended June 30, 2004, GSFIC transferred capital additions valued at $3,327,356.07 to Swainsboro Technical College. DEFERRED REVENUES Deferred revenues include amounts received for tuition and fees and other activities prior to the end of the fiscal year but related to the subsequent accounting period. Deferred revenues also include amounts received from grant and contract sponsors that have not yet been earned. COMPENSATED ABSENCES Employee vacation pay is accrued for financial statement purposes when vested. The liability and expense incurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets, and as a component of compensation and benefit expense in the Statement of Revenues, Expenses and Changes in Net Assets. Swainsboro Technical College had an accrued liability for -9- SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES COMPENSATED ABSENCES compensated absences in the amount of $426,355.82 as of July 1, 2003. For fiscal year 2004, $306,418.56 was earned in compensated absences and employees were paid $349,008.83, for a net decrease of $42,590.27. The ending balance as of June 30, 2004 in accrued liability for compensated absences was $383,765.55. NONCURRENT LIABILITIES Noncurrent liabilities include liabilities that will not be paid within the next fiscal year. NET ASSETS The Technical College's net assets are classified as follows: Invested in capital assets, net ofrelated debt: This amount represents the Technical College's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net ofrelated debt. (The term "debt obligations" as used in this definition does not include debt of the GSFIC as discussed above.) Restricted net assets - expendable: Restricted expendable net assets include resources in which the Technical College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties, except for unexpended grant funds of$7,573.65 due to grantor agencies. Unrestricted net assets: Unrestricted net assets represent available resources derived from student tuition and fees, state appropriations, and sales and services of educational departments. These resources will be used for transactions relating to the educational and general operations of the Technical College, and may be used at the discretion of the governing board to meet subsequent fiscal year expenses for those purposes, except for unexpended state appropriations (surplus) of $3,284.64. Unexpended state appropriations must be refunded to the Department of Technical and Adult Education for remittance to the Office of Treasury and Fiscal Services. When an expense is incurred that can be paid using either restricted or unrestricted resources, the Technical College's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources. INCOME TAXES Swainsboro Technical College, as a political subdivision of the State of Georgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended. CLASSIFICATION OF REVENUES The Technical College has classified its revenues as either operating or nonoperating revenues in the Statement of Revenues, Expenses and Changes in Net Assets according to the following criteria: - 10 - SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CLASSIFICATION OF REVENUES Operating revenues: Operating revenues include activities that have the characteristics ofexchange transactions, such as (1) student tuition and fees, net of scholarship allowances, (2) certain Federal, state and local grants and contracts, and (3) sales and services. Nonoperating revenues: Nonoperating revenues include activities that have the characteristics of nonexchange transactions, such as gifts and contributions, and other revenue sources that are defined as nonoperating revenues by GASB No. 9, Reporting Cash Flows ofProprietary andNonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting, and GASB No. 34, such as state appropriations and investment income. SCHOLARSHIP ALLOWANCES Student tuition and fee revenues, and certain other revenues from students, are reported at gross with a contra revenue account of scholarship allowances in the Statement of Revenues, Expenses and Changes in Net Assets. Scholarship allowances are the difference between the stated charge for goods and services provided by the Technical College, and the amount that is paid by students and/or third parties making payments on the students' behalf. Certain governmental grants, such as Pell grants, and other Federal, state or nongovernmental programs, are recorded as either operating or nonoperating revenues in the Technical College's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the Technical College has recorded contra revenue for scholarship allowances. NOTE 2: CASH AND CASH EQUIVALENTS AND OTHER DEPOSITS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to Swainsboro Technical College (and thus the State of Georgia) cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: 1. Bonds, bill, certificates ofindebtedness, notes, or other direct obligations ofthe United States or of the State of Georgia. 2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. 3. Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. 4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. - 11 - SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 2: CASH AND CASH EQUIVALENTS AND OTHER DEPOSITS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 6. Guarantee or insurance ofaccounts provided by the Federal Deposit Insurance Corporation. As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies, which allow agencies of the State of Georgia (and thus Swainsboro Technical College), the option of exempting demand deposits from the collateral requirements. CATEGORIZATION OF DEPOSITS Cash deposits are categorized by risk as follows: Category 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the entity or by its agent in the entity's name. Category 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the entity's name. Category 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the entity's name, and amounts uncollateralized. Swainsboro Technical College At June 30, 2004, the Technical College's cash deposits were as follows: Cash Deposits Carrying Amount Bank Balances Risk Categories 2 3 $ 427.249 84 $ 542 599 10 $ 109 669 83 $ 432 929 27 $===0-.0-==0 At June 30, 2004, Greater Swainsboro Technical College Foundation's cash deposits were as follows: Cash Deposits Carrying Amount Bank Balances Risk Categories 2 3 $ 242,098.00 $ 242 098 00 $ 242 098 00 $ o.oo $.=====o=o=o - 12 - SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 3: ACCOUNTS RECEIVABLE Accounts receivable at June 30, 2004, consists of the following: State Appropriation GSFIC Student Tuition and Fees Federal, State and Private Funds Other $ 1,469.89 138,193.09 187,130.97 88,698.71 16,471.36 $ 431,964.02 Less: Allowance for Doubtful Accounts 47,630.36 Net Accounts Receivable $ 384~333.66 NOTE 4: CAPITAL ASSETS Following are the changes in the Technical College's capital assets for the year ended June 30, 2004: Balance July 1, 2003 Additions Reductions Balance June 30, 2004 Capital Assets, Not Being Depreciated: Land and Land Improvements $ 211,641.00 $ 211,641.00 Capital Assets, Being Depreciated: Building and Building Improvements $ 3,619,311.00 $ 3,327,356.07 Improvements Other Than Buildings 734,840.00 Equipment 1,604,410.35 224,539.50 $ Library Collections 126,588.21 118,632.58 $ 56,052.80 6,946,667.07 734,840.00 1,772,897.05 245,220.79 $ 6,085,149.56 $ 3,670,528.15 $ 56,052.80 $ 9,699,624.91 Less: Accumulated Depreciation: Buildings and Building Improvements $ Improvements Other Than Buildings Equipment Library Collections 999,104.54 $ 363,337.55 1,431,307.55 41,216.93 156,300.01 48,989.33 80,022.25 $ 24,522.07 $ 55,477.97 I, 155,404.55 412,326.88 1,455,851.83 65,739.00 $ 2,834,966.57 $ 309,833.66 $ 55 477.97 $ 3,089,322.26 Total Capital Assets, Being Depreciated, Net $ 3,250,182.99 $ 3,360,694.49 $ 574.83 $ 6,610,302.65 Capital Assets, Net $ 3 461 823.99 $ 3,360,694 49 $ 574.83 $ 6,821,943 65 NOTE 5: DEFERRED REVENUE Deferred revenue at June 30, 2004, consists of the following: - 13 - SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 5: DEFERRED REVENUE Prepaid Tuition and Fees Other Deferred Revenue $ 130,765.18 6,552.90 Totals $ 137,318.08 NOTE 6: LONG-TERM LIABILITIES Long-Term liability activity for the year ended June 30, 2004, was as follows: Other Liabilities Compensated Absences Balance July 1, 2003 Additions Reductions Balance June 30, 2004 Current Portion $ 426,355.82 $ 306 418 56 $ 349.008 83 $ 383,765.55 $ 190 945.19 NOTE 7: NET ASSETS Changes in Net Asset activity for the year ended June 30, 2004 was as follows: Invested in Capital Assets Net of Related Debt Restricted - Expendable Unrestricted Net Assets Total Net Assets Balance July 1, 2003 Additions Reductions Balance June 30, 2004 $ 3,461,823.99 $ 3,360,694.49 $ 574.83 $ 6,821,943.65 3,120.70 2,227,423.96 2,222,971.01 7,573.65 -117,421.18 6,013,834.37 5,754,432.68 141,980.51 $ 3 341,523 51 $ 11 601 952.82 $ 7 911918 52 $ 6 911 497.81 NOTE 8: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Plan Description Swainsboro Technical College participates in the Teachers Retirement System ofGeorgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System ofGeorgia issues a separate stand alone financial audit report and a copy can be obtained from the TRS offices or from the Georgia Department of Audits and Accounts. Funding Policy Employees ofSwainsboro Technical College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. Swainsboro Technical College makes monthly - 14 - SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 8: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Funding Policy employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2004, the employer contribution rate was 9.24% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2004 2003 2002 100% 100% 100% $ 306,858.21 $ 319,371.19 $ 344,746.05 EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA Plan Description Swainsboro Technical College participates in the Employees' Retirement System ofGeorgia (ERS), a single-employer defined benefit pension plan established by the General Assembly ofGeorgia for the purpose of providing retirement allowances for employees of the State of Georgia. The benefit structure of ERS is defined by State statute and was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions. Under both the old plan and new plan, members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 25 years of service regardless of age. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest twenty-four consecutive calendar months of salary, the number ofyears of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution ofthe member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. - 15 - SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 8: RETIREMENT PLANS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA Plan Description In addition, the ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion ofERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. The ERS issues a financial report each fiscal year which may be obtained through ERS. Funding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivisions, who are not members ofother state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The Technical College's payroll for the year ended June 30, 2004, for employees covered by ERS was $473,466.58. The Technical College's total payroll for all employees was $4,264,757.81. Under the old plan, member contributions consist of 7.16% of annual compensation. Of these member contributions, the employee pays the first 1.5% and the Technical College pays the remainder on behalf of the employee. Under the new plan, member contributions consist solely of 1.5% of annual compensation paid by employee. The Technical College also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2004, the ERS employer contribution rate for the Technical College amounted to 10.41 % of covered payroll and included the amounts contributed on behalf of the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. Total contributions to the plan made during fiscal year 2004 amounted to $56,459.57, of which $49,354.34 was made by the Technical College and $7,105.23 was made by employees. These contributions met the requirements of the plan. Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2004, financial report which may be obtained through ERS. GEORGIA DEFINED CONTRIBUTION PLAN Plan Description Swainsboro Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for - 16 - SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT"D" NOTE 8: RETIREMENT PLANS GEORGIA DEFINED CONTRIBUTION PLAN Plan Description the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Benefits A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has less than$ 3,500.00 credited to his/her account, the Board ofTrustees has the option of requiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. The Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. Contributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Technical College's payroll for the year ended June 30, 2004, for employees covered by GDCP was $198,472.54. The Technical College's total payroll for all employees was $4,264,757.81. Total contributions made by employees during fiscal year 2004 amounted to $14,886.46 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. NOTE 9: RISK MANAGEMENT Public Entity Risk Pool The Department of Community Health administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia, units of county governments, and local education agencies located with the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units ofgovernment participating in the plan, and appropriations made by the General Assembly of Georgia. The Department ofCommunity Health has contracted with Blue Cross Blue Shield ofGeorgia to process medical claims and Express Scripts, Incorporated to process prescription drug claims in accordance with the State Employees' Health Benefit Plan as established by the Department of Community Health. - 17 - SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 9: RISK MANAGEMENT Other Risk Management The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia ofmaking and carrying out decisions that will minimize the adverse effects ofaccidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Technical College, as an organizational unit of the Georgia Department of Technical and Adult Education, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. NOTE 10: CONTINGENCIES Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although Swainsboro Technical College expects such amounts, if any, to be immaterial to its overall financial position. Litigation, claims and assessments filed against Swainsboro Technical College (an organizational unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2004. NOTE 11: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS The Technical College's operating expenses shown at the natural classification on the "Statement of Revenues, Expenses and Changes in Net Assets" are all classified as Instruction at the functional classification. NOTE 12: COMPONENT UNIT NOTES Greater Swainsboro Technical College Foundation, Inc. (foundation) is a legally separate, taxexempt component unit of Swainsboro Technical College (college). The foundation acts primarily as a fund-raising organization to supplement the resources that are available to the college in support of its programs. The 46 member board ofthe foundation is self-perpetuating and consists of graduates and friends of the college. Although the college does not control the timing or amount of receipts - 18 - SWAINSBORO TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2004 EXHIBIT "D" NOTE 12: COMPONENT UNIT NOTES from the foundation, the majority of resources or income thereon that the foundation holds and invests are restricted to the activities ofthe college by the donors. Because these restricted resources held by the foundation can only be used by, or for the benefit of, the college, the foundation is considered a component unit of the college and is discretely presented in the college's financial statements. The foundation is a private nonprofit organization that reports under FASB standards, including FASB Statement No. 117, Financial Reportingfor Not-for-Profit Organizations. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports have been reclassified to the GASB presentation for external financial reporting purposes. The foundation's fiscal year is January 1 through December 31. During the year ended June 30, 2004, the foundation distributed $134,138.00 to the college for both restricted and umestricted purposes. Complete financial statements for the foundation can be obtained from Greater Swainsboro Technical College Foundation, Inc. or from the foundation's website at www.swainsborotech.edu. - 19 - SUPPLEMENTARY INFORMATION - 21 - SWAINSBORO TECHNICAL COLLEGE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET - (NON-GAAP BASIS) BUDGET FUND "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30. 2004 SCHEDULE "1" FUNDS AVAILABLE REVENUES State Appropriation Federal Revenues Other Revenues Retained CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance BUDGET ACTUAL (1) VARIANCEFAVORABLE (UNFAVORABLE) $ 4,573,976.00 $ 4,573,211.53 $ 1,804,612.38 1,489,201.90 1,052,050.00 1,014,466.06 $ 7,430,638.38 $ 7,076,879.49 $ -764.47 -315,410.48 -37,583.94 -353,758.89 0.00 64,037.00 64 037.00 $ 7,140,916.49 $ _ ____;-2::.::8:..=9.e..7:,-=2...:.:1-=-=8-=-9 EXPENDITURES Personal Services - Institutions Operating Expenses - Institutions Adult Literacy Grants Job Training Partnership Act $ 4,585,533.25 $ 4,483,304.80 $ 1,655,824.87 1,572,889.33 1,022,576.26 927,102.49 166,704.00 88161.70 102,228.45 82,935.54 95,473.77 78,542.30 $ 7,430,638.38 $ 7,071,458.32 $ _ _ _3:..:5=-=9-'-1-,=-=8-'-'0.=-=0-=-6 Excess of Funds Available over Expenditures $ 69 458.17 $ ====69=!a,4=5=8=.1=7 (1) Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. - 23 - SWAINSBORO TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2004 SCHEDULE "2" Totals per Annual Supplement Accruals June 30, 2003 June 30, 2004 Compensated Absences June 30, 2003 June 30, 2004 Lag Salaries June 30, 2003 June 30, 2004 Agency Funds Unidentified Variance SALARIES TRAVEL $ 4,305,359.82 $ 84,543.61 -27,620.29 44,877.86 -416,453. 72 356,493.78 24,295.50 -22,235.14 40.00 -2,426.08 $ 4,264,757.81 $ =====8=2=1,=1=7=53= - 24- SWAINSBORO TECHNICAL COLLEGE RECONCILIATION OF PER DIEM AND FEES YEAR ENDED JUNE 30, 2004 SCHEDULE "3" Totals per Annual Supplement Adjustment Agency Funds FEE AMOUNT EXPENSE AMOUNT $ 20,824.74 $ 4,713.74 $ TOTAL 25,538.48 -120.00 -120.00 $ 20,704.74 $ 4,713.74 $ ===2=5.b,4=1=8.=48= - 25 - SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS SWAINSBORO TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.