VALDOSTA TECHNICAL COLLEGE 
VALDOSTA, GEORGIA 
MANAGEMENT REPORT 
FOR FISCAL YEAR ENDED JUNE 30, 2009 
A Member College of the Technical College System of Georgia 
Georgia Department of Audits and Accounts Russell W. Hinton State Auditor 
 
 VALDOSTA TECHNICAL COLLEGE - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
LETTER OF TRANSMITTAL 
 
SELECTED FINANCIAL INFORMATION 
 
EXHIBITS 
 
A STATEMENT OF NET ASSETS - (GAAP BASIS) 
 
2 
 
B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - 
 
(GAAP BASIS) 
 
3 
 
C STATEMENT OF CASH FLOWS -(GAAP BASIS) 
 
5 
 
D SELECTED FINANCIAL NOTES 
 
6 
 
SUPPLEMENTARY INFORMATION 
 
SCHEDULES 
 
1 BALANCE SHEET - (STATUTORY BASIS) - BUDGET FUND 
 
18 
 
2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT 
 
(STATUTORY BASIS) BUDGET FUND 
 
19 
 
3 STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING 
 
SOURCE COMPARED TO BUDGET 
 
(STATUTORY BASIS) BUDGET FUND 
 
20 
 
4 RECONCILIATION OF SALARIES AND TRAVEL 
 
23 
 
SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS 
 
 SECTION I FINANCIAL 
 
 Russell W. Hinton 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 
October 22, 2009 
 
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 Ray Perren, President Valdosta Technical College 
Ladies and Gentlemen: 
As part ofour audit of the basic financial statements ofthe State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2009, we have performed certain audit procedures at Valdosta Technical College. Accordingly, the financial statements and compliance activities ofValdosta Technical College were examined to the extent considered necessary in order to express an opinion as to the fair presentation ofthe financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. 
This Management Report contains information pertinent to the financial and compliance activities of Valdosta Technical College as of and for the year ended June 30, 2009. Information contained in this report is a by-product of our audit ofthe basic financial statements ofthe State ofGeorgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1, is enumerated in the Table of Contents. 
 
 This report is intended solely for the information and use of management of Valdosta Technical College, members of the Local Board of Directors, and the Southern Association of Colleges and Schools - Commission on Colleges and is not intended to be and should not be used by anyone other than these specified parties. 
 
Respectfully submitted, 
 
... 
 
~~ ... mw_-<d~ 
 
Russell W. Hinton, CPA, CGFM State Auditor 
 
RWH:as 
 
 SELECTED FINANCIAL INFORMATION - 1- 
 
 VALDOSTA TECHNICAL COLLEGE STATEMENT OF NET ASSETS - (GAAP BASIS) 
JUNE 30, 2009 
ASSETS 
Current Assets Cash and Cash Equivalents Accounts Receivable Federal Financial Assistance Other Inventories 
Total Current Assets 
Noncurrent Assets Capital Assets, Net 
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 Unrestricted 
Total Net Assets 
 
EXHIBIT "A" 
 
$ 
 
998,490.15 
 
166,366.56 164,033.90 476,069.59 
 
$ 1,804,960.20 
 
23,924,133.33 
$ 25,729,093.53 
 
$ 
 
262,739.28 
 
48,468.45 
 
11,325.00 
 
246,595.21 
 
343,265.02 
 
$ 
 
912,392.96 
 
316,719.93 $ 1,229,112.89 
 
$ 23,924,133.33 575,847.31 
 
$ 24,499,980.64 
 
-2 - 
 
 VALDOSTA TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS- (GAAP BASIS) 
YEAR ENDED JUNE 30, 2009 
 
EXHIBIT"B" 
 
OPERATING REVENUES 
Student Tuition and Fees Less: Scholarship Allowances 
Grants and Contracts Federal 
Sales and Services Other Operating Revenues 
Total Operating Revenues 
OPERATING EXPENSES 
Salaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation 
Total Operating Expenses 
Operating Income (Loss) 
NONOPERATING REVENUES (EXPENSES) 
State Appropriations Grants and Contracts 
Federal Gifts Interest and Other Investment Income Interest Expense (Capital Assets) Other Nonoperating Revenues Other Nonoperating Expenses 
Net Nonoperating Revenues 
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses 
Capital Grants and Gifts State Loss on Disposal of Capital Assets 
Total Other Revenues, Expenses, Gains, or Losses 
Increase (Decrease) in Net Assets 
Net Assets - Beginning of Year 
Net Assets End of Year 
 
$ 4,801,341.12 -776,040.46 
49,481.79 839,944.29 
11590.63 
$ 419161317.37 
 
$ 8,579,696.30 1,710,715.20 53,929.18 2,656,589.54 628,413.35 2,866,964.73 8321432.73 
$ 171328z741.03 
$ -1214121423.66 
 
$ 7,436,032.00 
 
4,386,305.44 2,635,232.48 
12,750.67 -2,060.16 75,667.00 -215181692.39 
 
$ 1210251235.04 
 
$ 
 
-3871188.62 
 
$ 14,341,009.16 -47 873.68 
$ 1412931135.48 $ 13,905,946.86 
1015941033. 78 
 
$ 24,4991980.64 
 
-3- 
 
 (This page left intentionally blank) 
 
 VALDOSTA TECHNICAL COLLEGE STATEMENT OF CASH FLOWS- (GAAP BASIS) 
YEAR ENDED JUNE 30, 2009 
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships 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 Receipts 
Net Cash Flows Provided (Used) by Noncapital Financing Activities 
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of Capital Assets Principal Paid on Capital Debt Interest Paid on Capital Debt 
Net Cash Provided (Used) by Capital and Related Financing Activities 
CASH FLOWS FROM INVESTING ACTIVITIES Earnings 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: Accounts Receivable Inventories 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 
 
EXHIBIT "C" 
 
$ 4,006,740.86 -27,939.40 839,944.29 
-5,707,716.57 -8,580,444.58 -2,656,589.54 
11590.63 
$ -121124,414.31 
 
$ 
 
7,436,032.00 
 
104,597.34 
 
7,021,537.92 
 
-214431025.39 
 
$ 121119,141.87 
 
$ 
 
-653, 763.52 
 
-70,885.98 
 
-2 060.16 
 
$ 
 
-726,709.66 
 
$ 
 
12 750.67 
 
$ 
 
-719,231.43 
 
1717721.58 
 
$ -12,412,423.66 
832,432.73 -77,421.19 -255,397.81 18,206.34 -192,112.33 -18,559.80 -191138.59 
$ -12,124,414.31 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY Valdosta Technical College is one of thirty-three (33) State supported member colleges of postsecondary education in Georgia which comprise the Technical College System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Valdosta Technical College as a separate reporting entity. 
The Technical College's Local Board of Directors is composed of twelve (12) members serving staggered three-year terms who are appointed by the State Board ofTechnical and Adult Education. Appropriation of State funds is made to the Technical College System of Georgia by the General Assembly of Georgia. The System Office of the Technical College System of Georgia determines the amount of State appropriations to be received by Valdosta Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Valdosta Technical College is considered an organizational unit of the Technical College System ofGeorgia for financial reporting purposes because ofthe significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. 
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 of outstanding 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 of related debt. 
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). Unexpended state appropriations must be refunded to the Technical College System of Georgia for remittance to the Office of Treasury and Fiscal Services. At June 30, 2009, there was no surplus balance to be refunded. 
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. 
 
-6- 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D" 
 
NOTE 2: DEPOSITS 
DEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the Technical College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Technical College) 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, bills, certificates of indebtedness, notes, or other direct obligations of the 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 ofGeorgia, 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, 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 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 allows agencies of the State of Georgia (and thus Valdosta Technical College), the option of exempting demand deposits from the collateral requirements. 
At June 30, 2009, the carrying value of deposits was $995,260.15 and the bank balance was $1,377,696.75. Of the Technical College's deposits, $1,014,783.09 were uninsured. Of these uninsured deposits, $1,014,783.09 were collateralized with securities held by the pledging financial institution, by its trust department or agency. 
NOTE 3: ACCOUNTS RECEIVABLE 
Accounts receivable at June 30, 2009, consists of the following: 
 
-7- 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D" 
 
NOTE 3: ACCOUNTS RECEIVABLE 
 
Student Tuition and Fees Federal, State and Private Funds GSFIC Other 
 
$ 
 
4,655.00 
 
166,366.56 
 
91,148.00 
 
68,230.90 
 
Total Accounts Receivable 
 
$ 330A00.46 
 
NOTE 4: CAPITAL ASSETS 
 
Following are the changes in capital assets for the year ended June 30, 2009: 
 
Beginning Balance Julx I, 2008 
 
Additions 
 
Reductions 
 
Ending Balance June 30, 2009 
 
Capital Assets, Not Being Depreciated: Land and Land Improvements Construction In Progress 
 
$ 1,245,082.00 258,741.00 $ 
 
$ 1,245,082.00 
 
63,608.00 $ 214,400.00 
 
107,949.00 
 
Total Capital Assets Not Being Depreciated 
 
$ 1,503,823.00 $ 63,608.00 $ 214,400.00 $ 1,353,031.00 
 
Capital Assets, Being Depreciated: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections 
 
$10,274,814.99 $13,757,702.61 
 
I, 123,527.00 
 
4,935,653.43 1,348,115.54 $ 
 
173,655.59 
 
39,746.53 
 
533,202.23 4,028.52 
 
$ 24,032,517.60 1,123,527.00 5,750,566.74 209,373.60 
 
Total Assets Being Depreciated 
 
$16,507,651.01 $ 15,145,564.68 $ 537,230.75 $31,115,984.94 
 
Less: Accumulated Depreciation: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections 
 
$ 3,071,041.78 $ 1,054,562.03 3,982,717.70 93,485.44 
 
443,480.66 15,614.70 
357,271.79 $ 
 
485,328.55 4,028.52 
 
$ 3,514,522.44 1,070,176.73 3,854,660.94 105,522.50 
 
Total Accumulated Depreciation 
 
$ 8,201,806.95 $ 832,432.73 $ 489,357.07 
 
Total Capital Assets, Being Depreciated, 
 
Net 
 
$ 8,305,844.06 $14,313,131.95 $ 
 
47,873.68 $22,571,102.33 
 
Capital Assets, Net 
 
$ 14.376.739.95 $ 262.273 68 $ 23.924 133.33 
 
NOTE 5: DEFERRED REVENUE 
 
Deferred revenue at June 30, 2009, consists of the following: 
 
Prepaid Tuition and Fees 
 
$====11'::::i:.3=2=:::::5;;;::::o:==o 
 
-8- 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D" 
 
NOTE 6: LONG-TERM LIABILITIES 
 
Long-Term liability activity for the year ended June 30, 2009 was as follows: 
 
Leases Lease Obligations 
Other Liabilities Compensated Absences 
Total Long-Term Liabilities 
 
Balance Jutx 1, 2008 
 
Additions 
 
Reductions 
 
Balance June 30, 2009 
 
Current Portion 
 
$ 70,885.98 
 
$ 70,885.98 $ 
 
0.00 
 
679,123.54 $ 633,629.51 
$ 750 009.52 $ 633 629.51 
 
652,768.10 
 
659,984.95 $ 343,265.02 
 
$ 659 984.95 $ 343 265.02 
 
NOTE 7: NET ASSETS 
 
Changes in Net Asset activity for the year ended June 30, 2009 was as follows: 
 
Invested in Capital Assets Net of Related Debt 
Unrestricted Net Assets 
Total Net Assets 
 
Balance Jutx I, 2008 
 
Additions 
 
Reductions 
 
Balance June 30, 2009 
 
$ 9,738,781.08 $ 14,447,625.93 $ 262,273.68 $23,924,133.33 
 
855,252.70 21,737,785.05 22,017,190.44 
 
575,847.31 
 
$ 1Q,524,033 18 $ 36,185,410.98 $22,279,464, 12 $ 24,499 980.64 
 
NOTE 8: LEASE OBLIGATIONS 
 
OPERATING LEASES Valdosta Technical College has entered into certain agreements to lease equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised. 
 
Expenses for rental of equipment under operating leases for the year ended June 30, 2009, totaled $38,005.38. 
 
SUMMARY OF LEASE OBLIGATIONS Future commitments for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2009, were as follows: 
 
-9- 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D" 
 
NOTE 8: LEASE OBLIGATIONS 
 
SUMMARY OF LEASE OBLIGATIONS 
 
Year Ending June 30 2010 2011 2012 2013 2014 
 
Operating Leases 
$ 88,110.42 103,009.12 101,849.43 99,872.13 90,036.36 
 
Total Minimum Lease Payments 
 
$ 482!877.46 
 
NOTE 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
Plan Description Valdosta Technical College participates in the Teachers Retirement System of Georgia (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 ofGeorgia. 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 Georgia Department of Audits and Accounts. 
 
Funding Policy Employees of Valdosta Technical College who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. Valdosta Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2009, the employer contribution rate was 9.28% 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 
 
2009 2008 2007 
 
100% 100% 100% 
 
$ 549,536.90 $ 538,537.02 $ 520,598.76 
 
- 10 - 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D" 
 
NOTE 9: RETIREMENT PLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Plan Description Valdosta Technical College participates in the Employees' Retirement System of Georgia (ERS), a single-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. 
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 ofthe 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 benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects 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. Members hired on or after July 1, 1982 but prior to January 1, 2009 are "new plan" members subject to the modified plan provisions. Effective January 1, 2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the "old" or "new" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). ERS members hired prior to January 1, 2009 also have the option to change their membership to the GSEPS plan. 
Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. 
Retirement benefits paid to members are based upon a formula adopted by the Board ofTrustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to members' benefits provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the 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. 
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 
 
- 11 - 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D" 
 
NOTE 9: RETIREMENT PLANS 
 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
 
Funding Policy College's payroll for the year ended June 30, 2009, for employees covered by ERS was $632,366.43. The Technical College's total payroll for all employees was $8,579,696.30. 
 
Member contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200 plus 6% of annual compensation in excess of$4,200. Under the old plan, the Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' eamable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The Technical College is required to contribute at a specified percentage of active member payroll established by the Board ofTrustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Technical College contributions are not at any time refundable to the member or his/her beneficiary. 
 
Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2009 2008 2007 
 
100% 100% 100% 
 
$ 64,330.10 $ 42,603.56 $ 40,431.52 
 
Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2009 financial report, which may be obtained through ERS. 
 
GEORGIA DEFINED CONTRIBUTION PLAN 
 
Plan Description Valdosta Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly ofGeorgia for the purpose of providing 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. 
 
- 12 - 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D" 
 
NOTE 9: RETIREMENT PLANS 
GEORGIA DEFINED CONTRIBUTION PLAN 
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500.00 credited to his/her account, the Board of Trustees has the option ofrequiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a 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, 2009, for employees covered by GDCP was $939,033.09. The Technical College's total payroll for all employees was $8,579,696.30. 
Total contributions made by employees during fiscal year 2009 amounted to $70,428.20 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. 
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 Valdosta Technical College expects such amounts, if any, to be immaterial to its overall financial position. 
Litigation, claims and assessments filed against Valdosta Technical College (an organizational unit ofthe Department ofTechnical 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, 2009. 
 
- 13 - 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D" 
 
NOTE 11: POSTEMPLOYMENT BENEFITS 
 
The Technical College participates in two State of Georgia postemployment benefit plans, the Georgia Retiree Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices. 
 
Georgia Retiree Health Benefit Fund The Georgia Retiree Health Benefit Fund (GRHBF) is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers retired employees of the State including all departments, agencies and local school systems. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code ofGeorgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions ofthe employees' health insurance plan (including benefits for retirees) to the Board of Community Health (Board). 
 
The contribution requirements ofthe plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. 
 
Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected "pay-as-you-go" financing requirements. The combined rates for the active and retiree plans for the fiscal year ended June 30, 2009, were as follows: 
 
July 2008 - January 2009 February 2009 March 2009 - June 2009 
 
22.165% of covered payroll for August - February Coverage 1.926% of covered payroll for March Coverage 0.000% of covered payroll for April - July Coverage 
 
No additional contribution was required by the Board for fiscal year 2009 nor contributed to GRHBF to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation. 
 
The following table summarizes the Technical College's contributions to the health insurance plans for the years ending June 30, 2009 and June 30, 2008, (dollars in thousands): 
 
- 14 - 
 
 VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 
 
EXHIBIT "D'' 
 
NOTE 11: POSTEMPLOYMENT BENEFITS 
 
Georgia Retiree Health Benefit Fund 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2009 2008 
 
100% 100% 
 
$ 901,817.34 $ 1,518,896.53 
 
State Employees' Assurance Department - OPEB State Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multiple-employer defined benefit postemployment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of the Employees' Retirement System. 
 
Contributions by plan members are established by the Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of eamable compensation). The Board of Trustees of the Employees' Retirement System establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% of eamable compensation. For the fiscal year ended June 30, 2009, contributions of ERS "old plan" members were 0.45% of eamable compensation, 0.22% ofwhich was paid by the employer. Contributions ofERS "new plan" members were 0.23% of eamable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30, 2009 and June 30, 2008. 
 
NOTE 12: SUBSEQUENT EVENTS 
 
During September and December 2008, the State Board ofTechnical and Adult Education voted to merge Valdosta Technical College with East Central Technical College effective July 1, 2010. 
 
NOTE 13: AFFILIATED ORGANIZATIONS 
 
The Valdosta Technical College Foundation, Inc., is a legally separate, tax exempt organization whose activities primarily support Valdosta Technical College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39,Determining Whether Certain Organizations are Component Units. Therefore, the financial statements ofthis affiliated organization are not included in these financial statements. Copies ofthe financial statements for the affiliated organization may be obtained from Valdosta Technical College. 
 
- 15 - 
 
 (This page left intentionally blank) 
 
 SUPPLEMENTARY INFORMATION - 17 - 
 
 VALDOSTA TECHNICAL COLLEGE BALANCE SHEET- (STATUTORY BASIS) 
BUDGET FUND JUNE 30, 2009 
ASSETS 
Cash and Cash Equivalents Accounts Receivable 
Federal Financial Assistance Other Inventories 
Total Assets 
LIABILITIES AND FUND EQUITY 
Liabilities Salaries Payable Accounts Payable Encumbrances Payable Deferred Revenue 
Total Liabilities 
Fund Balances Reserved Sales and Services Federal Financial Assistance Live Work Projects Prior Year Local Funds Technology Fees Inventories 
Total Fund Balances 
Total Liabilities and Fund Balances 
 
SCHEDULE "1" 
 
$ 
 
903,650.72 
 
157,575.78 68,250.90 
476,069.59 
 
$ ====1,=60=5=,5=46=.=99= 
 
$ 
 
48,468.45 
 
259,162.03 
 
740,310.80 
 
11,325.00 
 
$ 
 
1,059,266.28 
 
$ 
 
71,779.52 
 
558.31 
 
132,096.74 
 
13,372.32 
 
274,905.99 
 
53,567.83 
 
$ 
 
546,280.71 
 
$ ==1=,6=05,=54=6.9=9 
 
Statutory Basis financial information was 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. 
- 18 - 
 
 VALDOSTA TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) 
BUDGET FUND YEAR ENDED JUNE 30, 2009 
 
SCHEDULE "2" 
 
REVENUES 
 
State Appropriation 
 
State General Funds 
 
$ 
 
Federal Funds 
 
Other Funds 
 
Total Revenues 
 
$ 
 
CARRY-OVER FROM PRIOR YEAR 
 
Transfer from Reserved Fund Balance 
 
Total Funds Available 
 
$ 
 
EXPENDITURES 
 
Adult Literacy 
 
$ 
 
Economic Development 
 
Technical Education 
 
Total Expenditures 
 
$ 
 
Excess of Funds Available over Expenditures 
 
FUND BALANCE JULY 1 
 
Reserved 
 
ADJUSTMENTS 
 
Prior Year Payables/Expenditures Prior Year Receivables/Revenues Prior Year Reserved Fund Balance Included in Funds Available 
 
FUND BALANCE JUNE 30 
 
BUDGET 
7,436,032.00 $ 1,079,220.00 818081514.00 17,323,766.00 $ 
0.00 17,323i166.00 $ 
727,544.00 $ 570,977.00 1610251245.00 17,3231766.00 $ 
$ 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
7,436,032.00 $ 1,031,176.65 517541762.05 
14,221,970.70 $ 
 
0.00 -48,043.35 -3,053,751.95 
-3,101,795.30 
 
1,032,242.07 1512541212.77 $ 
 
1,0321242.07 -210691553.23 
 
696,540.92 $ 192,316.00 1318491197.22 
14 738 054.14 $ 
516,158.63 $ 
 
31,003.08 378,661.00 211761047.78 
2,585?11.86 
5161158.63 
 
1,085,809.90 
 
-77.61 -23,368.14 -11032,242.07 
 
SUMMARY OF FUND BALANCE 
Reserved Sales and Services Federal Financial Assistance Live Work Projects P~orYearLoc~Funds Technology Fees Inventories 
Total Fund Balance 
 
$ 
 
71,779.52 
 
558.31 
 
132,096.74 
 
13,372.32 
 
274,905.99 
 
53 567.83 
 
Statutory Basis financial information was 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. 
 
 VALDOSTA TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET 
(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2009 
 
Adult Literacy State Appropriation State General Funds Federal Funds Other Funds 
Total Adult Literacy 
 
Original Appropriation 
 
Final Budget 
 
Current Year Revenues 
 
Funds Available Comeared to Budget 
 
Prior Year Carry-Over 
 
Total Funds Available 
 
Variance Positive (Negative) 
 
$ 
 
493,190.00 
 
233,508.00 
 
60,587 00 
 
787,285.00 
 
425,238.00 241,719.00 
60 587.00 
727,544.00 
 
425,238.00 $ 234,610.30 
48 482.00 
708,330.30 
 
0.00 0.00 0.00 
0.00 $ 
 
425,238.00 $ 234,610.30 
48 482.00 
708,330.30 
 
0.00 -7,108.70 -12 105.00 
-19,213.70 
 
Economic Development Other Funds 
 
525,477.00 $ 
 
570,977.00 $ 
 
196,737.25 $ 
 
0.00 $ 
 
196,737.25 $ -374,239.75 
 
Technical Education State Appropriation State General Funds Federal Funds American Recovery and Reinvestment Act of 2009 Federal Stabilization Funds Other Federal Funds Other Funds 
Total Technical Education 
 
o. 8,285,134 00 $ 7,010,794.00 $ 7,01 794.00 $ 
 
0.00 $ 7,010,794.00 $ 
 
0.00 
 
000 750,348.00 3 527 424.00 
 
59,707.00 777,794.00 8 176 950.00 
 
12 562 906.00 $ 16 025 245.00 
 
59,707.00 736,859.35 5 509 542.80 
13316903.15 
 
0.00 0.00 1,032 242.07 
 
59,707.00 736,859.35 6541,784.87 
 
1,032 242.07 $ 14,349 145.22 
 
000 -40,934.65 -1 635,165.13 
-1 676,099.78 
 
Grand Totals - All Programs 
 
13,875,668.00 $ 17,323,766.00 $ 14,221,970.70 $ 1,032,242.07 $ 15,254,212.77 $ -2,069,553.23 
 
Statutory Basis financial information was 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. 
-20- 
 
 SCHEDULE "3" 
 
Expenditures Comeared to Bud9et 
 
Variance 
 
Positive 
 
Actual 
 
(Negative) 
 
Actual Funds Available 
Over/(Under) Expenditures 
 
Prior Period Adjustments 
 
Other Adjustments 
 
Program Fund 
Balances 
 
Transfers 
 
Proaram Fund Balances 
 
Reserve 
 
~ 
 
Total Fund Balance 
 
425,238.00 
 
0.00 
 
o.oo $ 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 $ 
 
0.00 
 
234,610.27 
 
7,108.73 
 
0.03 
 
0.00 
 
0.00 
 
0.03 
 
0.00 
 
0.03 
 
0.00 
 
0.03 
 
36 692.65 
 
23 894.35 
 
11 789.35 
 
0.00 
 
0.00 
 
11 789.35 
 
.11 789.35 
 
0.00 _..2:.QQ_ 
 
0.00 
 
696,540.92 
 
31,003.08 
 
11,789.38 
 
0.00 
 
0.00 
 
11,789.38 
 
-11,789.35 
 
0.03 $ 
 
0.00 $ 
 
0.03 
 
192,316.00 $ 378,661.00 $ 
 
4,421.25 $ -4,421.25 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
0.00 $ 
 
0.00 
 
7,010,794 00 $ 
 
000 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
o.oo $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
59,707.00 736,301 07 6,042,395.15 
13 849197.22 
 
0.00 41,492.93 2 134 554.85 
2176 047.78 
 
0.00 558.28 499 389.72 
499 948.00 
 
0.00 0.00 -19,024.50 
-19 024.50 $ 
 
0.00 
 
0.00 
 
0.00 
 
55828 
 
0.00 
 
480 365.22 
 
0.00 0.00 11 789.35 
 
0.00 558.28 492 154.57 
 
0.00 000 _..2:.QQ_ 
 
0.00 558.28 492154.57 
 
0.00 
 
480 923.50 $ 11 789.35 
 
492 712.85 $ ~ $ 
 
492 712.85 
 
14,738,054.14 $ 2,585,711.86 $ 
 
516,158.63 $ -23,445.75 $ 
 
0.00 $ 492,712.88 $ 
 
0.00 $ 492,712.88 $ 
 
000 $ 
 
492,712.88 
 
Unexpendable Reserves Inventories 
 
53 567.83 546 280.71 
 
- 21 - 
 
 (This page left intentionally blank) 
 
 VALDOSTA TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL 
YEAR ENDED JUNE 30, 2009 
 
SCHEDULE "4" 
 
Totals per Annual Supplement 
Accruals June 30, 2009 June 30, 2008 
Compensated Absences June 30, 2009 June 30, 2008 
Lag Salaries June 30, 2008 
Agency Funds 
Unidentified Variance 
 
SALARIES 
 
TRAVEL 
 
$ 
 
8,577,163.05 $ 
 
53,929.18 
 
48,468.45 -30,262.11 
 
533,903.61 -546,389.21 
 
1,025.00 -4,645.00 
432.51 
 
- 23 - 
 
 SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS 
 
 VALDOSTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS 
YEAR ENDED JUNE 30, 2009 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) No matters were reported.