Review report, state of Georgia, Thomas Technical Institute, Thomasville, Georgia, year ended June 30, 1994

GA A800
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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT
STATE OF GEORGIA
THOMAS TECHNICAL INSTITUTE
-
THOMASVILLE, GEORGIA
YEAR ENDED JUNE 30, 1994

THOMAS TECHNICAL INSTITIJTE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)

GOVERNMENTAL FUND TYPE

3

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGETFUND

4

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

8

E

"B"LOTTERYFOREDUCATION

9

F NOTES TO THE FINANCIAL STATEMENTS

10

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

22

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

23

I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

24

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

28

SCHEDULES

I CASH AND CASH EQUIVALENTS

29

2 SCHEDULE OF FEDERAL REVENUES

30

3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

31

THOMAS TECHNICAL INSTITUTE - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUD110R (404) 656-2174
TAX RATIO (404) 656-0494

,
GI
~.epurtm.ent .nf ~uhits
254 WASHINGTON STREET. S. W ROOM 214
~tlanhl, "eorgia 30334-8400
November 9, 1994

FINANCIAL AUDllS (404) 656-2180
PROGRAM AUDllS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe State Board ofTechnical and Adult Education Members ofthe Local Board ofDirectors
and HonorableCharles R. DeMott, Presid_ent Thomas Technical Institute
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through F) of Thomas Technical Institute as of and for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of Thomas Technical Institute.
A review consists principally of inquiries oflnstitute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1.
Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Exhibits G through J and

94ARL-4T

Schedules 1 through 3) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
t:Y~r~
Claude L. Vickers State Auditor
CLV:jy 94ARL-4T

FINANCIAL STATEMENTS - 1-

THOMAS TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS
JUNE 30 1 1994

EXHIBIT "A"

GOVERNMENTAL FIDUCIARY

FUND TYPE FUND TYPE

BUDGET

AGENCY

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only)
JUNE 30. 1994 JUNE 30. 1993

ASSETS

Cash and Cash Equivalents (See Schedule)

$ 6.B58.44 $ 12,355.18

$ 19,213.62 $ 66,330.67

Accounts Receivable State Funds Federal Financial Assistance Other

$ 103,357 .41 79,400.78 44,829.45

$ 103,357.41 $

203.30

79,400.78

73,052.01

44,829.45

7,617.71

$ 227 .587.64

$ 227,587.64$ 80,873.02

Inventories

$ 11,798.81

$ 11. 798.81 $ 23,318.67

Fixed Assets Equipment

SL 616,282.27

$ 1,616,282.27 $ 946 .289 .15

Amounts to be Provided for Pa)fflent of: Accrued Canpensated Absences Capital Lease Coomitments

$196,448.67 $ 196,448.67 $ 177,825.61

246.94

246.94

1,085.09

$ 196,695.61 $ 196,695.61 $ 178,910.70

Total Assets

$ 246 .244 .89 $ 12 .355.18 $1,616.282. 27 $ 196 .695 .61 $ 2.071. 577. 95 $ 1.295 I722 .21

LIABILITIES AND FUND EQUITY

Liabilities Accounts Payable Salaries Payable Deferred Revenue Tuition and Fees Funds Held for Others Canpensated Absences Capital Leases

$ 151,163.97 1,232.00 15,705.25 $ 12,355.18

$ $196,448.67
246.94

151,163.97 $ 1,232.00 15,705.25 12,355.18
196,448.67 246.94

Total Liabilities

$ 168,101.22 $ 12.355.18

$ 196.695.61 $ 377 .152. 01 $

Fund Equity

Investment in General Fixed Assets

Fund Balance

Reserved

Federal Financial Assistance

For Refund to Georgia

Department of Technical

and Adult Education -

Acininistrative Central

Office

$

For Other

Inventories

Matching Funds for Federal Grant

Prior Year Local Funds

Private Grants

Unreserved

Designated

Surplus

Regular

1,005.15 12,793.94 21,545.44 7,838.74 23,384.40 4,398.47 7,177.53

$1,616,282.27

$1,616,282.27$
1,005.15 12,793.94 21,545.44 7,838.74 23,384.40 4,398.47 7.177.53

Total Fund Equity

$ 78,143.67

Sl,616,282.27

$ 1.694.425.94 $

65,136.68 813.00
31,460.50 21,428.11 177,825.61 1,085.09 297,748.99 946,289.15
670.30 0.00
23,093.44 0.00
22,493.23 2,398.47 3,028.63 997.973.2~

Total Liabilities and Fund Equity

$ 246,244.89 $ 12,355.18 Sl,616.282.27 $196,695.61 $2,071,577.95$ 1,295,722.21

See Jndeoendent Accountant's Conilined Report on Review of Financial Statements and Supplanentary Infonnation. The notes to the financial statenents ere an integral part of this statement.
- 2-

THOMAS TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30 1 1994

EXHIBIT "B"

FUND BALANCE - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit "C"
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education Administrative Central Office Year Ended June 30, 1992 Year Ended June 30, 1993
Refunds to Grantor Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as Funds Available
Uncollectible Debts Written Off
FUND BALANCE - JUNE 30
----------------------
(To Exhibit "A")

BUDGET FUND YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 48,655.44 $ 47,930.94

3,028.63

28,480.07

------------- -------------

$ 51,684.07 $ 76,411.01
------------- -------------

$ 4,316.02 $ 3,160.18

,---5-0--,7-3-4--.2-1-

28,328.09
-------------

$ 55,050.23 $ 31,488.27
------------- -------------

$

0.00 $ 28,480.07

3,028.63

0.00

670.30

185.54

24,891.70

27,423.85

0.00

125.75

------------- -------------

$ 28,590.63 $ 56,215.21
------------- -------------

$ 78,143.67 $ 51,684.07 c a:

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an Integral part of this statement.
-3-

THOMAS TECHNICAL INSTITUTE STATEMENT OF FUNOS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 1

FUNDS AVAILABLE
REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Contracts Georgia Department of Education Lottery Program - Postsecondary Options Georgia Department of Human Resources PEACH Project Georgia Department of Technical and Adult Education - Administrative Central Office TCI Cablevision Education Project Georgia Institute of Technology Satellite Technology Program Donations Fees Application Graduation Parking Registration/Continuing Education Returned Checks Student Medical Testing Interest Earned Reimbursements From Various Sources Rents Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Prior Year Local Funds Prtvate Grants
Total Carry-Over from Prior Year

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 3,332,422.37 $ 2,586,655.56 $ 861,515.86$ 960,265.10

$

576.00 $

0.00

67,830.00

17,857.29

0.00

375.00

9,657.95 2,000.00

4,504.69 0.00

15,249.00 4,019.06 2,391.34 105,298.89
150.00 7,223.16 4,941.18
921.28

12,509.40 3,474.94 2,015.46 88,775.57
159.00 8,909.50 6,685.00 1,115.35

27,920.49 44,880.00 72,622.46 381,405.58
7,955.84

38,754.00 44,880.00 68,461.20 346,570.46
8,139.88

$ 755,042.23 $ 653,186.74

$ 4,948,980.46 $ 4,200,107.40

$ 22,493.23 $ 27,423.85

2,398.47

0.00

$ 24,891.70 $ 27,423.85

Total Funds Available

$4,973,872.16$ 4,227,531.25

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.

The notes to the financial statements are an integral part of this statement.

- 4-

THOMAS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 2

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F. l.C.A. Retirement
Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS
Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Duplicating and Rapid Copy Publications and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges Software Equipment
Equipment Purchases Real Estate Rentals Teleconununications Per Diem, Fees and Contracts
Per Diem and Fees Contracts

TOTALS YEAR ENDED JUNE 30 1 1994 JUNE 30, 1993

$ 2,654,962.13 $ 2,442,759.55

38,636.51 285,322.09 302,996.31
9,525.00 1,093.00 3,829.00

36,495.35 268,802.82 283,692.85
6,840.00 795.00
2,376.00

$ 3,296,364.04 $ 3,041,761.57

$ 12,647.12 $ 15,784.77

200,076.67 179,011.05

101,456.92

78,929.34

116,088.51 107,858.30

0.00

1,403.30

6,089.42'

5,908.00

147,474.82 259,465.78

10,536.46

2,746.64

20,004.47

35,158.21

43,921.06

29,385.08

289.00

16,186.00

111,098.81 1,056.00 902.78

111,029.76 1,056.00 898.82

1,619.00

1,368.15

47,443.97 1,025.00
33,581. so

4,700.88 750.00
27,618.75

62,589.54 18,428.80

29,839.62 4,828.30

$ 936,329.85 $ 913,926.75

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 5-

THOMAS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 3

EXPENDITURES
QUICK START PROGRAM
Personal Services Salaries and Wages Employer's Contribution for: F. I.C.A.
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.I .C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Ut 11 it ies Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Real Estate Rentals Per Diem, Fees and Contracts
Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employer's Contributions for: F.1.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

756.00 $

0.00

10.96

0.00

$

766.96 $_____0...,.0_0_

$ 263,092.50 $ 1B7,629.33

3,829.74 5,365.34 5,686.51
127.00 17.00 69.00

2,723.75 3,979.59 4,154.05
95.00 12.00 36.00

47,384.05 0.00
1,540.23 5,257.57 5,495.78 4,786.28

34,079.18 37.05 164.40
2,476.76 498.41
3,061.61

7,520.61 6,000.00

4,567.71 0.00

3,850.49

0.00

360,022.10 $ 243,514.84

$ 25,215.00 $

0.00

361.20

0.00

2,977.92

0.00

3,151.92

0.00

127.00

0.00

17.00

0.00

69.00

0.00

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Infonaation. The notes to the financial statements are an integral part of this statement.
- 6-

THOMAS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 4

EXPENDITURES JOB TRAINING PARTNERSHIP ACT
Other Costs Publications and Printing Other Operating Expenses
Travel
EQUIPMENT - STATE SCHOOLS Equipment Equipment Purchases Computer Charges Software
Total Expenditures Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30 1 1994 JUNE 30, 1993

$

325.60 $

0.00

159.00

0.00

923.36

0.00

$

33 327. 00 $_ _ _--::.0.:.,O,:.:;O 1

$ 283,056.00 $

0.00

13,272.00

0.00

$ 296,328.00 $

0.00

$ 4,923,137.95 $ 4,199,203.16

50,734.21

28,328.09

$ 4,9731872.16 $ 41227,531.25

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 7-

THOMAS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1994

EXHIBIT "D"

FUNDS AVAILABLE REVENUES
State Funds Federa1 Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 3,044,472.00 $ 3,036,094.37 $ -8,377 .63 957,690.00 861,515.86 -96,174.14.
1,002-,288.00 755,042.23 -247,245.77
------------- ------------- -------------
$5,004,450.00$ 4,652,652.46$ ~351,797.54

0.00

24,891.70

24,891.70

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Adult Literacy Grants Job Training Partnership Act

$5,004,450.00$ 4,677,544.16$ -326,905.84
ccc ------------- -------------

$3,363,095.00$ 3,296,364.04$

1,137,889.00 936,329.85

1,520.00

766.96

460,674.00 360,022.10

41,272.00

33,327.00

66,730.96 201,559.15
753. 04 100,651.90
7,945.00

$5,004,450.00$ 4,626,809.95$ 377,640.05
........ ------------- -------------

Excess of Funds Available over Expenditures

$..5.0..,7.3..4..21$..50,.7.3.4.2.1

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 8-

THOMAS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1994

EXHIBIT "E"

FUNDS AVAILABLE REVENUES
State Funds
EXPENDITURES Equipment - State Schools
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 296,328.00 $ 296,328.00$

0.00

============= -------------

$ 296,328.00$ 296,328.00$

0.00

============= -------------

$

0.00 $

0.00

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an Integral part of this statement.
- 9-

THOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Thomas Technical Institute is one of twenty-eight (28) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Thomas Technical Institute as a separate reporting entity.
The Institute's Local Board ofDirectors is composed ofseven (7) 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 ofTechnical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State funds to be received by Thomas Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Thomas Technical Institute is considered an organizational unit ofthe Georgia Department ofTechnical 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 Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING Thomas Technical Institute uses funds and account groups to report on its financial position and the results ofits operations determined in conformity with the accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set ofaccounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources.
Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1993-1994. This fund also includes operations from various institutional services provided to students, faculty, and/or staff which are funded by fees charged to participants that are directly related to, but not necessarily equal to, the cost of service. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.
FIDUCIARY FUND TYPE
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.

- 10 -

THOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATE"MENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
ACCOUNT GROUPS
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments, and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASURE"MENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e.,expenditures) in net current assets.
GOVERNMENTAL FUND TYPE BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e.,when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Revenues that are accrued include primarily State funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified accrual basis ofaccounting calls for expenditures, other than accrued interest ofgeneral long-term debt, to be recorded when the related fund liability is incurred.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generalJy accepted accounting principles, which provide for the recording ofencumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
- 11 -

TI-IOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEI\.1ENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
Prior period adjustments are reported as additions to and deductions from fund balance of the Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescnbed or pennitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
FIDUCIARY FUND TYPE AGENCY FUNDS
Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.
BUDGET The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriated funds and certain Federal funds for the various technical institutes throughout the State. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 1993-1994. The budget allocation and disbursement of these funds is made to the various technical institutes by the Administrative Central Office. In addition, the technical institutes receive certain Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions.
ACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Administrative Central Office of the Department of Technical and Adult Education, reimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available.
INVENTORIES Expendable supplies are recorded as expenditures at the time of purchase and are not reflected on the Combined Balance Sheet (Statutory Basis).
Inventories ofgoods for resale are recorded as assets at cost at the time ofpurchase. The Institute uses the first-in, first-out method in costing-out inventories based on sales.

- 12. -

TIIOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying financial statements:

FEDERAL FINANCIAL ASSISTANCE REFUND TO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE
Thomas Technical Institute receives Federal funds for the Adult Education Act and the Carl D. Perkins Vocational and Applied Technology Education Act through the Georgia Department of Technical and Adult Education - Administrative Central Office. As provided by the respective budget allocation to the Institute, these funds were required to be expended by June 30, 1994. At June 30, 1994, the following programs had unexpended Federal funds which should be refunded to the Administrative Central Office:

Adult Education Act Adult Education
Carl D. Perkins Vocational and Applied Technology Education Act Vocational Education - Basic Grants to States Vocational Education - Community Based Organizations

$

0.38

963.22 41.55

$ 1,005 15

OTHER The residual portion ofFederal financial assistance revenues not yet expended or encumbered. This amount is restricted for expenditure in future years. This accounting treatment differs from generally accepted accounting principles in that the unearned portion of Federal financial assistance should be reflected as Deferred Revenue.

INVENTORIES Reported inventories (resale), under the consumption method, are offset by a portion of State funds equal to the average quarterly inventories on hand for the fiscal year. This reservation of fund balance was established to provide working capital for managing a r~sonable level of inventories for resale.

MATCHING FUNDS FOR FEDERAL GRANT The unexpended balance of matching funds required by Federal grantor provisions under a U. S. Department ofHealth and Human Services grant for the PEACH Project.

- 13 -

THOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE
PRIOR YEAR LOCAL FUNDS Effective July 1, 1988, Thomas Technical Institute became a part of the Georgia Department ofTechnical and Adult Education. The Official Code of Georgia Annotated Section 20-4-23 provides the Institute may retain for future operations "...any unexpended nonstate funds that have been collected by, appropriated for, or otherwise earmarked for use by said postsecondary technical school operated by a local board of education or an area board...". These unexpended local funds are available for use in subsequent fiscal years.
PRIVATE GRANTS The unexpended balance ofprivate grants which is restricted for expenditure in future years for the specific purposes as designated by the grantors.
COMPENSATED ABSENCES Compensated absences represent obligations of the Institute relating to e_mployees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the Budget Fund for the current portion ofthis obligation as this amount will not be liquidated with expendable available financial resources. Funds are provided in the allotment of State funds each year to the Institute to cover the cost of annual leave paid to terminated employees.
The liability for compensated absences at year-end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
COMPARATIVE DATA Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Institute's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.
Certain reclassifications have been made to the comparative data in order to provide comparability with the current year classifications.

- 14 -

THOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXlllBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to 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 ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(I) Bonds, bills, notes, certificates ofindebtedness, or other direct obligations ofthe United States or of the State of Georgia.
(2) Bonds, bills, notes, certificates of indebtedness, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds of any public authority created by the laws of the 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.
(5) Bonds, bills, notes, certificates of indebtedness, 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 and 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 of accounts 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 (which include technical institutes) the option of exempting demand deposits from the collateral requirements.
COLLATERALIZATION OF DEPOSITS
For purposes of analysis of custodial credit risk, cash deposits consists of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:
Category I - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Institute or by its agent in the Institute's name.
Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Institute's name.
- 15 -

THOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEJ\.ffiNTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

COLLATERALIZATION OF DEPOSITS Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the Institute's name, and amounts uncollateralized.

Carrying Amount

Bank Balances

Risk Categories

2

3

Cash Deposits

s 18 978.62 s 413 825 02 s 123 414 s1 s_ _o_oo,.,.. s 220 480 51

NOTE 3: CAPITAL LEASES

Thomas Technical Institute acquires certain equipment through multi-year capital leases with varying terms and options. These agreements contain fiscal funding clauses in accordance with Official Code of Georgia Annotated Section 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available.
Ifrenewal of such agreements is reasonably assured, however, capital leases which require appropriation by
the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

At June 30, 1994, future minimum lease payments under capital leases are as follows:

Fiscal Year Ending June 30
1995 Less: Amount Representing Interest Present Value ofFuture Minimum Lease Payments

$

264.00

17.06

$_ _2...4....,6,,,,.,9.,.4

NOTE 4: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition ofmoveable personal property (Official Code of Georgia Annotated
Section 50-16-161), only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.

The following is a summary ofchanges ofequipment for the General Fixed Assets Account Group during the
fiscal year:

Balance July 1, 1993
Additions Deductions
Balance June 30, 1994

$ 946,289.15 669,993.12 000
S 1,616 282,27

- 16 -

THOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Term Debt for the year ended June 30, 1994, follows:

Balance July 1, 1993

Compensated Absences
$ 177,825.61

Capital Leases

Total

$ 1,085.09 $ 178,910.70

Additions Annual Leave Earned and Utilized (Net)
Salaries and W~es Salary-Related ringe Benefits (*) Deductions

15,527.23 3,095.83

Balance June 30, 1994

$ 122 4~8 6Z $

838. 15

15,527.23 3,095.83
838.15

2~6 2~ $ 122.~2s,21

(*) Includes salary-related fringe benefits applicable to compensated absences at July 1, 1993.

NOTE 6: DEFERRED COMPENSATION PLAN

The State of Georgia offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims ofthe State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board Merit System ofPersonnel Administration for the year ended June 30, 1994.

NOTE7: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA TEACHERS RETIREMENT SYSTEM OF GEORGIA Substantially all employees are members of the Employees' Retirement System of Georgia or the Teachers Retirement System ofGeorgia. The Employees' Retirement System of Georgia is a single-employer, defined benefit pension plan, while the Teachers Retirement System of Georgia is a cost-sharing multiple-employer public employee retirement system.

These Retirement Systems were established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. Both Retirement Systems are funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage ofannual compensation. Employer contributions are for a specified percentage of active member

- 17 -

THOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

TEACHERS RETIREMENT SYSTEM OF GEORGIA

payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Institute

contributed $4,604.88 to the Employees' Retirement System of Georgia and $289,060.47 to the Teachers

Retirement System of Georgia. Participation in either Retirement System is not segregated by employee

groups of individual governmental units and the Institute has no further liability under either Retirement

System other than future employer contributions as established for each fiscal year. Information relative to

each plan's description, funding status, and historical trends is presented in the financial reports of the

Employees' Retirement System of Georgia and the Teachers Retirement System of Georgia for the year ended

June 30, J994.



. GEORGIA DEFINED CONTRIBUTION PLAN The State ofGeorgia provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Retirement Systems referred to above through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% oftheir gross salary, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of 65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994.

NOTE 8: LEAVE POLICIES

Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length ofcontinuous State service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences
Employees earn one and one-quarter days of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.

NOTE 9: NONMONETARY TRANSACTIONS

The Administrative Central Office of the Georgia Department of Technical and Adult Education used lottery proceeds to purchase $273,188.97 of equipment for Thomas Technical Institute during the fiscal year ended June 30, 1994. Those items with an acquisition cost of $1,000.00 or greater will be reflected as received in

- 18 -

THOMAS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
ruNE 30, 1994

EXHIBIT "F"

NOTE 9: NONMONETARY TRANSACTIONS
the General Fixed Assets Account Group in the accompanying financial statements. However, revenues and expenditures for these lottery proceeds are not reflected in these financial statements.
The Georgia State Financing and Investment Commission (GSFIC), a unit of State government, is responsible for the issuance of state debt and for the investment and accounting for proceeds derived from the issuance of state debt. In addition, GSFICis authorized to acquire and construct projects for the benefit of units of State government or to contract with units of State government for the construction or acquisition of capital outlay projects. During the fiscal year ended June 30, 1994, the Georgia State Financing and Investment Commission paid $553,242.36 to various vendors for approved projects related to Thomas Technical Institute.
NOTE10: 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 expenditures which are disa1lowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Institute expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Thomas Technical Institute (as a unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. 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, 1994.
NOTE 11: BONDING INFORMATION
The President and all employees ofThomas Technical Institute are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No.1450-00-110723, on which the premium was paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures Thomas Technical Institute to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum of $100,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees of Thomas Technical Institute are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid to October I, 1994. Under this additional public employee dishonesty coverage, the policy insures the Institute to a maximum of$4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 19 -

20

SUPPLEMENTARY INFORMATION - 21 -

THOMAS TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30 1 1994

EXHIBIT "6"

ASSETS Cash and Cash Equivalents Accounts Receivable
State Funds Federal Financial Assistance Other
Inventories Total Assets

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$------9-,0--9-4-.6--0

$ 9,094.60
-------------

$ 14,029.41 $ 89,328.00 $ 103,357.41

79,400.78

79,400.78

-----4-4-,8--2-9-.4--5

-------------

44,829.45
-------------

$ 138,259.64 $ 89,328.00 $ 227,587.64
------------- ------------- -------------

$ 11,798.81
-------------

$ 11,798.81
-------------

$-=15=9=,=1=53=.05$=8=9=,3=28=.00$.248=,48=1.05

LIABILITIES AND FUND EQUITY Liabilities
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue
Tuition and Fees Total Liabilities
Fund Equity Fund Balance Reserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education - Administrative Central Office For Other Inventories Hatching Funds for Federal Grant Prior Year Local Funds Private Grants Unreserved Designated Surplus Regular Lottery for Education Total Fund Equity

$ 2,236.16 $ 2,236.16

$ 64,072.13

87,091.84 151,163.97

1,232.00

1,232.00

15,705.25

15,705.25

------------- ------------- -------------

$ 81,009.38 $ 89,328.00 $ 170,337.38
------------- ------------- -------------

$

1,005.15

12,793.94

21,545.44

7,838.74

23,384.40

4,398.47

$ 1,005.15 12,793.94 21,545.44 7,838.74 23,384.40 4,398.47

7,177.53

7,177.53

$

0.00

0.00

------------- ------------- -------------

$ 78,143.67 $

0.00 $ 78,143.67

------------- ------------- -------------

Total Liabilities and Fund Equity

$...159.,.1.5.3..0.5$

89,328.00 a

$ 248,481.05
---=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 22 -

THOMAS TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

FUND BALANCE - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit "I"
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30. 1993
Refunds to Granter Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE JUNE 30
(To Exh1btt G")

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

$ 48,655.44

$ 48,655.44

3,028.63 $

0.00

3,028.63

------------- ------------- -------------

$ 51,684.07 $

0.00 $ 51,684.07

------------- ------------- -------------

$ 4,316.02

$ 4,316.02

50,734.21 $

0.00

50,734.21

------------- ------------- -------------

$ 55,050.23 $

0.00 $ 55,050.23

------------- ------------- -------------

$ 3,028.63 $
670.30 24,891.70 $ 28,590.63$

0.00 $ 3,028.63
670.30 24,891.70 0.00 $ 28,590.63

$...7.8.,.1.4.3...6.7.$........0...0.0..$.....7.8.,1.43...67

See accompanying notes and Independent Accountant's Combined Report on Review of Ftnancial Statements and Supplementary Information.
- 23 -

THOMAS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "I" Page 1

FUNDS AVA I LAB LE
REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES
OTHER REVENUES RETAINED Contracts Georgia Department of Education Lottery Program - Postsecondary Options Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Donations Fees Application Graduation Parking Registration/Continuing Education Returned Checks Student Medical Testing Interest Earned Reimbursements From Various Sources Rents Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Prior Year Local Funds Private Grants
Total Carry-Over from Prior Year
Total Funds Available

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B"
LOTTERY FDR
EDUCATION

TOTAL

$3,036,094.37$ 296,328.00$ 3,332,422.37

$ 861,515.86

$ 861,515.86

$

576.00

$

576.00

67,830.00

67,830.00

9,657.95 2,000.00

9,657.95 2,000.00

15,249.00 4,019.06 2,391.34 105,298.89
150.00 7,223.16
4,941.18 921.28

15,249.00 4,019.06 2,391.34 105,298.89
150.00 7,223.16 4,941.18
921.28

27,920.49 44,880.00 72,622.46 381,405.58
7,955.84
-------------

27,920.49
44,880.00 72,622.46
381,405.58 7,955.84
-------------

$ 755,042.23
-------------

$ 755,042.23
-------------

$4,652,652.46$ 296,328.00 $ 4,948,980.46
------------- ------------- -------------

$ 22,493.23 2,398.47
-------------
$ 24,891.70
-------------

$ 22,493.23 2,398.47
-------------
$ 24,891.70
-------------

$4.,6.7..7.,5.4..4..1..6.$....2.9.6.,.3.2.8..0.0..$..4.,9.7.3.,.8.7.2..1.6.

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 24 -

THOMAS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "I" Page 2

EXPENDITURES

"A"
DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B"
LOTTERY FOR EDUCATION

TOTAL

PERSONAL SERVICES-INSTITUTIONS

Salaries and Wages Employer's Contributions for:
F. I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS
-------------------------------
Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Insurance and Bonding Other Operating Expenses Duplicating and Rapid Copy Publications and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges Software Equipment
Equipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
QUICK START PROGRAM

$ 2,654,962.13
38,636.51 285,322.09 302,996.31
9,525.00 1,093.00 3,829.00
-------------
$ 3,296,364.04
-------------
$ 12,647.12 200,076.67 101,456.92 116,088.51 6,089.42 147,474.82 10,536.46 20,004.47 43,921.06 289.00
111,098.81 1,056.00 902.78
1,619.00
47,443.97 1,025.00
33,581.50
62,589.54 18,428.80
-------------
$ 936,329.85
-------------

$ 2,654,962.13
38,636.51 285,322.09 302,996.31
9,525.00 1,093.00 3,829.00
-------------
$ 3,296,364.04
-------------
$ 12,647.12 200,076.67 101,456.92 116,088.51 6,089.42 147,474.82 10,536.46 20,004.47 43,921.06 289.00
111,098.81 1,056.00 902.78
1,619.00
47,443.97 1,025.00
33,581.50
62,589.54 18,428.80
-------------
$ 936,329.85
-------------

Personal Services Salaries and Wages Employer's Contribution for:
F. I.C.A.

$

756.00

10.96

-------------

s

766.96

-------------

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 2S -

$

756.00

10.96

-------------

s

766.96

-------------

THOMAS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "I" Page 3

EXPENDITURES
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F. I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Utilities Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Real Estate Rentals Per Diem, Fees and Contracts
Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT
----------------------------
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Publications and Printing Other Operating Expense
Travel

"A"
DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B"
LOTTERY FOR
EDUCATION

TOTAL

$ 263,092.50
3,B29.74 5,365.34 5,686.51
127.00 17.00 69.00
47,384.05 1,540.23 5,257.57 5,495.78 4,786.28
7,520.61 6,000.00
3,850.49
-------------
$ 360,022.10
-------------
$ 25,215.00
361.20 2,977.92 3,151.92
127.00 17.00 69.00
325.60 159.00 923.36
-------------
$ 33,327.00
-------------

$ 263,092.50
3,829.74 5,365.34 5,686.51
127.00 17.00 69.00
47,384.05 1,540.23 5,257.57 5,495.78 4,786.28
7,520.61 6,000.00
3,850.49
-------------
$ 360,022.10
-------------
$ 25,215.00
361.20 2,977.92 3,151.92
127.00 17.00 69.00
325.60 159.00 923.36
-------------
$ 33,327.00
-------------

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 26 -

THOMAS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "I" Page 4

EXPENDITURES
EQUIPMENT - STATE SCHOOLS
Equipment Equipment Purchases
Computer Charges Software
Total Expenditures Excess of Funds Available over Expenditures

.. A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B"
LOTTERY FOR EDUCATION

TOTAL

$ 283,056.00 $ 283,056.00

13,272.00

13,272.00

------------- -------------

$ 296,328.00 $ 296,328.00
------------- -------------
$ 4,626,809.95 $ 296,328.00 $ 4,923,137.95

50,734.21

0.00

50,734.21

------------- ------------- -------------

$ 4,677,544.16 $ 296,328.00 $ 4,973,872.16
-=========== czz======== =zzz:==

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 27 -

THOMAS TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LfABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1994

EXHIBIT "J"

FUND
Career Fare Trust Fund Concessions HOPE Program Pell Grant Program Student Incentive Grant Scholarship Fund Student Activities Fund Supplemental Educational
Opportunity Grants

ASSETS/
LIABILITIES JULY 1, 1993
------------

ADDITIONS
---------

$

949.13 $

286.22

DELETIONS
---------

ASSETS/
LIABILITIES JUNE 30, 1994
-------------

$

1,235.35

11,292.53

9,909.02 $ 14,398.15

6,803.40

0.00

96,575.00

96,575.00

0.00

3,199.74

485,912.94

488,848.82

263.86

0.00

12,413.00

12,113.00

300.00

102.84

102.84

5,883.87

14,156.87

--is,391.01

3,649.73

0.00

8,875.00

8,875.00

0.00

------------- ------------- ------------- -------------

$ 21,428.11 $ 628,128.05$ 637,200.98$ 12,355.18

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28 -

THOMAS TECHNICAL INSTITUTE CASH ANO CASH EQUIVALENTS
JUNE 30. 1994
NONINTEREST BEARING ACCOUNTS
Commercial Bank, Thomasville, Georgia
INTEREST BEARING ACCOUNTS
Commercial Bank, Thomasville, Georgia
Savings Account
OTHER
Petty Cash

SCHEDULE "l"
$ -4,435.89 23,414.51 235.00
$ 19,213.62
=------==---=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29 -

THOMAS TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1994

BUDGET FUND
Education, U.S. Department of Adult Education - State Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office
Federal Work-Study Program Direct
Vocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office
Vocational Education - Community Based Organizations Through Georgia Department of Technical and Adult Education - Administrative Central Office
Energy, U.S. Department of State Energy Conservation Stripper Well Oil Violation Funds Through Georgia Department of Technical and Adult Education - Administrative Central Office
Health and Human Services, U. S. Department of Job Opportunities and Basic Skills Training Through Georgia Department of Human Resources Various Offices of Department of Family and Children Services
Labor, U.S. Department of Job Training Partnership Act Through Georgia Department of Technical and Adult Education - Administrative Central Office Through Southwest Georgia Regional Development Center

CFDA NUMBER
84.002 84.033 84.048 84.174
81. 041
93.561
17.250 17.250

SCHEDULE "2"
AMOUNT
$ 100,778.50 9,408.00
450,354.75 10,000.00
18,310.55
110,670.00 33,390.03 128,604.03 $ 861,515.86 ===&:

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 30 -

THOMAS TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "3"

Totals per Annual Supplement Accruals June 30, 1994 June 30, 1993
Totals per Report
SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Adult Literacy Grants Job Training Partnership Act

SALARIES AND WAGES
---------
$ 2,943,606.63 $

TRAVEL 49,630.70

1,232.00
-813.00
------------- -------------

$ 2,944,025.63 $ 49,630.70
s=-==--==---= ----------=--

$ 2,654,962.13
$ 756.00 263,092.50 25,215.00

43,921.06
4,786.28 923.36

$ 2,944,025.63 $ 49,630.70

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 31 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

THOMAS TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status ofthe finding disclosed in the review report for the year ended June 30, 1993, is indicated below:

Audit Control Number

Status of Finding

846-93-01

See Audit Control Number 846-94-01

PRIOR YEAR/CURRENT YEAR

INVENTORIES lnadequa~e Resale Inventory Records Financial Statements .Audit Control Number 846-94-01

The review report for the year ended June 30, 1993, disclosed that accounting procedures did not provide for adequate internal controls over resale inventory procedures. For the year under review, the accounting procedures over resale inventory were again deficient as we were unable to reconcile beginning resale and ending resale inventories through an analysis of fiscal year purchases/sales activity.

Appropriate action should be taken by management to ensure that accounting records document the purchases/ sales activity for all inventory for resale.