VALDOSTA TECHNICAL COLLEGE
VALDOSTA, GEORGIA
MANAGEMENT REPORT
FOR FISCAL YEAR ENDED
JUNE 30,2010
A Member College of the Technical
College System of Georgia
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VALDOSTA TECHNICAL COLLEGE - TABLE OF CONTENTS -
SECTION I
LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION
EXHIBITS A STATEMENT OF NET ASSETS - (GAAP BASIS) B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (GAAP BASIS) C STATEMENT OF CASH FLOWS - (GAAP BASIS) D SELECTED FINANCIAL NOTES SUPPLEMENTARY INFORMATION
SCHEDULES
1 BALANCE SHEET - (STATUTORY BASIS) - BUDGET FUND 2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
(STATUTORY BASIS) BUDGET FUND 3 STATEMENT OF PROGRAM REVENUESAND EXPENDITURES BY FUNDING
SOURCE COMPARED TO BUDGET (STATUTORY BASIS) BUDGET FUND
4 RECONCILIATION OF SALARIES AND TRAVEL
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

DEPARTMENOTF AUDITSAND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
October 29,2010

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 Ronald Jackson, Commissioner Technical College System of Georgia Valdosta Technical College
Ladies and Gentlemen:
As part of our audit of the basic financial statements of the 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, 2010, we have performed certain audit procedures at Valdosta Technical College. Accordingly, the financial statements and compliance activities of Valdosta Technical College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the 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, 2010. Information contained in this report is a by-product of our audit of the basic financial statements of the State of Georgia 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,

~ u k e lWl . Hinton, CPA, CGFM State Auditor

SELECTED FINANCIAL INFORMATION

VALDOSTA TECHNICAL COLLEGE STATEMENT OF NET ASSETS - (GAAP BASIS)
JUNE 30,2010
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 h n ~ e n s a t e Adbsences
Total Current Liabilities
Noncurrent Liabilities Compensated Absences
Total Liabilities
NET ASSETS
Invested in Capital Assets. Net of Related Debt Restricted
Expendable Unrestricted
Total Net Assets

EXHIBIT "A"

VALDOSTA TECHNICAL COLLEGE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS)
YEAR ENDED JUNE 30,2010
OPERATING REVENUES
Student Tuition and Fees Less: Scholarship Allowances
Grants and Contracts Federal
Sales and Services of Educational Departments 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 Other Nonoperating Revenues/Expenses
Net Nonoperating Revenues
Income (Loss) Before Other Revenues. Expenses, Gains, or Losses
Capital Grants and Gifts State Gain on Disposalof Capital Assets
Total Other Revenues, Expenses, Gains or Losses
Increase(Decrease) in Net Assets
Net Assets - Beginningof Year
Net Assets - End of Year

EXHIBIT "B"

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VALDOSTA TECHNICAL COLLEGE STATEMENT OF CASH FLOWS - (GMP BASIS)
YEAR ENDED JUNE 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Servlces of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarsh~psand Fellowships Other Receipts (Payments)
Net Cash Provided (Used) by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transacuons Gifts and Grants Received for Other than Capital Purposes Other Nonoperaung Recelpts
Net Cash Flows Provided (Used) by Noncapital FinancingActivities
CASH FLOWS FROM CAPITAL AND RELATED FINANCINGACTIVITIES Purchases of Ca~itaAl ssets
CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments
Net Increase (Decrease) in Cash
Cash and Cash Equlvalents - 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 Operat~ngIncome to Net Cash
Provlded (Used) by Operating Actlvitles Depreclatlon Change in Assets and Liabil~ties: Accounts Receivable lnventor~es Accounts Payable Salaries 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

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Valdosta Technical College is one of twenty-seven (27) 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 eleven (11) members serving staggered three-year terms who are appointed by the State Board of the Department of Technical 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 of Georgia for financial reporting purposes because of the 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 Re~ortinRStandards.
N ET ASSETS
The Technical College's net assets are classified as follows:
Invested in capital asseb, net of related 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.
Restrctw'netassets- expendable: Restricted expendable net assets include resources in which the Technical College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties, except for unexpended grant funds of $516.69 due to grantor agencies.
Unrestrided 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.

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2010

EXHIBIT "Dm

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 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, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the 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 MortgageAssociation, and the Federal National MortgageAssociation.
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, 2010, the carrying value of deposits was $2,672,878.50 and the bank balance was $2,958,636.97. Of the Technical College's deposits, $2,563,534.45 were uninsured. Of these uninsured deposits, $2,563,534.45 were collateralized with securities held by the financial institution's trust department or agency, but not in the Technical College's name.

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBIT "D"

NOTE 3: ACCOUNTS RECEIVABLE

Accounts receivable at June 30,2010, consists of the following:

Student Tuition and Fees

$ 149,086.96

Federal, State and Private Funds

183,750.54

Georgia State Financingand Investment Commission 326,696.78

Other

61,629.87

Total Accounts Receivable

NOTE 4: CAPITAL ASSETS Followingare the changes in capital assets for the year ended June 30, 2010:

Beginning Balance
July 1.2009

Additions

Reductions

Capital Assets, Not Being Depreciated: Land and Land lmprovements Construction Work-In-Progress

Total Capital Assets, Not Being Depreciated

Capital Assets. Being Depreciated: Buildingand Building lmprovements lmprovements Other Than Buildings Equipment Library Collections

Total Assets Being Depreciated

Less: Accumulated Depreciation: Buildingand BuildingImprovements lmprovements Other Than Buildings Equipment Library Collections

Total Accumulated Depreciation

Total Capital Assets, Being Depreciated, Net

Capital Assets, Net

Ending Balance June 30.2010

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBIT "D"

NOTE 5: DEFERRED REVENUE Deferred revenue at June 30, 2010, consists of the following:

Prepaid Tuition and Fees

NOTE 6: LONG-TERM LIABILITIES Long-Term liability activity for the year ended June 30, 2010, was as follows:

Beginning Balance July 1,2009

Additions

Reductions

Ending Balance June 30,2010

Other Liabilities Compensated Absences

5

659,984.95 5

623,586.91 $

662,203.99 5

621,367.87 $

Current Portion
323,388.25

NOTE 7: NET ASSETS Changes in Net Asset activity for the year ended June 30, 2010, was as follows:

Balance July 1,2009

Additions

Reductions

Balance June 30, 2010

Invested in Capital Assets Net of Related Debt

Restricted Net Assets

Unrestricted Net Assets

Total Net Assets

NOTE 8: LEASE OBLIGATIONS
OPERATING LEASES Valdosta Technical College has entered into certain agreements to lease copiers 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 multiyear leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised.
Expenses for rental of copiers under operating leases for the year ended June 30, 2010, totaled $88,110.42.

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2010

EXHIBIT " D

NOTE 8: LEASE OBLIGATIONS
SUMMARY OF LEASE OBLIGATIONS Future commitments for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2010, were as follows:

Operating Leases

Year EndingJune 30: 2011 2012 2013 2014

Total Minimum Lease Payments

$ 394,767.04

NOTE 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description Valdosta Technical College participates in the Teachers Retirement System of Georgia (TRS), a costsharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia 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 5.25% of their gross earnings to TRS. Valdosta Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2010, the employer contribution rate was 9.74% 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

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBIT "D"

NOTE 9: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Descr@tion 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 of the Internal Revenue Code (IRC) as a portion of ERS. 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 1 0 years of creditable service and attainment of age 60 or 3 0 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 of Trustees for such purpose. The formula considers the monthly average of the member's highest 2 4 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 1,2010. 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 of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The Technical College's payroll for the year ended June30, 2010, for employees covered by ERS was $786,333.07. The Technical College'stotal payroll for all employees was $9,002,268.25.
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

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBIT "D"

NOTE 9: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Policy members' accounts for refund purposes and are used in the computation of the members' earnable 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 of Trustees 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

Actuarial and TrendInformation Actuarial and historical trend information is presented in the ERS June 30, 2010, 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 of Georgia 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.
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 of requiring 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.

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBlT "D"

NOTE 9: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Contributionsand Vesting Member contributions are seven and one-half percent (7.5%) of gross 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, 2010, for employees covered by GDCP was $1,289,542.93. The Technical College's total payroll for all employees was $9,002,268.25.
Total contributions made by employees during fiscal year 2010 amounted to $96,639.57 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 10: POST-EMPLOYMENT BENEFITS
The Technical College participates in the following State of Georgia post-employment benefit plans: the Georgia State Employees Post-employment 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.
Retiree health benefits were previously funded through the Georgia Retiree Health Benefit Fund (GRHBF). In 2009, the General Assembly revisited the GRHBF and enacted legislation that, effective August 31, 2009, separated the GRHBF into two new funds: the Georgia School Personnel Postemployment Health Benefit Fund and the Georgia State Employees Post-employment Health Benefit Fund. The purpose of this change was to assure employers responsible for planning and funding future retiree health costs that their contributions will be dedicated to their respective retiree populations. Funds in the GRHBF were transferred to the Georgia State Employees Post-employment Health Benefit Fund or the Georgia School Personnel Post-employment Health Benefit Fund as described in the plan financial statements. The statute that created the GRHBF is repealed effective September 1,2010.
GEORGIA STATE EMPLOYEES POST-EMPLOYMENT HEALTH BENEFIT FUND The Georgia State Employees Post-employment Health Benefit Fund (State OPEB Fund) is a costsharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of State organizations and other entities authorized by law to contract with the Department of Community Health for inclusion in the plan. The State OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board).
The contribution requirements of 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 receiving benefits 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.

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2010

EXHIBIT "D"

NOTE 10: POST-EMPLOYMENT BENEFITS

GEORGIA STATE EMPLOYEES POST-EMPLOYMENT HEALTH BENEFIT FUND Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected "pay-as-you-go" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The combined active and retiree contribution rates established by the Board for employers participating in the State OPEB Fund were as follows for the fiscal year ended June 30, 2010:

July 2 0 0 9 August 2 0 0 9 - October 2 0 0 9 November 2 0 0 9 -June 2 0 1 0

22.165% of covered payroll for August coverage 16.581% of covered payroll for September - November coverage 22.165% of covered payroll for December- July coverage

No additional contribution was required by the Board for fiscal year 2010 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation.
The following table summarizes the Technical College combined active and retiree contributions to the health insurance plans for the years ending June 30,2010, June 30,2009 and June 30,2008:

Fiscal Year

Percentage Contributed

Required Contribution

STATE EMPLOYEES' ASSURANCE DEPARTMENT - OPEB State Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multiple-employer defined benefit post-employment 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 Employees', Judicial (JRS), and Legislative (LRS) Retirement Systems, amended t o exclude members of JRS and LRS hired on or after July 1,2009. Pursuant to Title 47 of the OCGA, the authority to establish and amend the benefit provisions of the plan is assigned to the Boards of Trustees of the Employees' and Judicial Retirement Systems.
Contributions by plan members are established by the Boards of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The Boards of Trustees of the Employees' and Judicial Retirement Systems establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% of earnable compensation. For the fiscal year ended June 30, 2010, contributions of ERS "old plan" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS "new plan" members and of members of the Judicial and Legislative Retirement Systems were 0.23% of earnable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30,2010, June 30,2009 and June 30,2008.

VALDOSTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2010

EXHIBIT "DM

NOTE 11: 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 of the Technical College System of Georgia), 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 30,2010.
NOTE 12: SUBSEQUENT EVENTS
Effective July 1,2010, Valdosta Technical College and East Central Technical College merged to become Wiregrass Georgia Technical College.
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 Organkations are Component Units. Therefore, the financial statements of this affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Valdosta Technical College.

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SUPPLEMENTARY INFORMATION

VALDOSTA TECHNICAL COLLEGE BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30,2010
ASSETS
Cash and Cash Equivalents Accounts Receivable
Federal Financial Assistance Other Inventories
Total Assets
LIABILITIESAND FUND EOUlTY
Liabilities Salaries Payable Payroll Withholdings Accounts Payable Encumbrance Payable Deferred Revenue
Total Liabilities
Fund Balances Resewed Departmental Sales and Services Federal Financial Assistance Live Work Projects Prior Year Local Funds Technology Fees Inventories Tuition
Total Fund Balances
Total Liabilities and Fund Balances

SCHEDULE "1"

Statutory Basisfinancial 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 comprehensivebasis of accounting other than generally accepted accounting principles.

VALDOSTATECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS)
BUDGET FUND YEAR ENDEDJUNE 30.2010

REVENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Resewed Fund Balance
Total Funds Available
EXPENDITURES
Adult Literacy Economic Development Technical Education
Total Expenditures
Excess of Funds Avallable over Expenditures
FUND BALANCE JULY 1
Reserved
ADJUSTMENTS
Prior Year Payables/xpendltures Prior Year Rece~vables/Revenues Refunds to Grantors
Federal Financial Assistance Returned to Technical College System of Georgia Year Ended June 30,2009
Prior Year Resewed Fund Balance Included In Funds Avallable
FUND BALANCEJUNE 3 0

BUDGET

SUMMARY OF FUND BALANCE
Reserved Departmental Sales and Sewlces Federal Financial Assistance Live Work Projects Prior Year Local Funds Technology Fees lnventorles Tultlon

Total Fund Balance

Statutory Basis financial information was prepared on a prescribed basis of accountmg that demonstrates compliance with budgetary statutes and regulations of the State of Georgla, which is a comprehensive basis of accounting other than generally accepted accounting pr~nclples.

ACTUAL

SCHEDULE "2"
VARIANCE -
FAVORABLE (UNFAVORABLE)

Adult Literacy SPte Appropriation State General Funds Federal Funds Other Funds
Total Adult Literacy

VALDOSTA TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGEI
(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30.2010

Original Appropriation

Final Budget

Current Year Revenues

Funds~vallableComparedto Budget

Prior Year Carry-Over

Total Funds AvaiPble

varlance Positive (Negative)

Other Funds
Technlwl EduCBUOn State Appropriation State General Funds Federal Funds Amencan Recovery and ReinvestmentAct of 2009 Federal StabilizationFunds Other Federal Stimulus Other Federal Funds Other Funds
Total Technical Education
- Grand Totals All Programs

statutory Basisfinancial onformationwas preparedon a prescribedbasis of account~ngtnat demonstrates compliance with budgetary statutes and regulations of the State of GeorgJa. which is a comprehensive basisof accountingother than generaliy accepted accountingprindples.

Ex~endliureC~omparedto Budget Variance

POSI~IV~

Actual

(Negative)

Actual Funds Avallable over/(under)
Expenditures

prior ~ e r l o d

other

~ojustments Aqustments

Program Fund
salances

Transfers

program ~ u n Bdalances

Reserve

Surplus

Total Fund Balance

Uneylendable Reserves lnventorles

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Totals per Annual Supplement
Accruals June 30,2010 June 30,2009
Compensated Absences June 30,2010 June 30.2009
Agency Funds

VALDOSTA TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30,2010

SCHEDULE "4"

SALARIES $ 9,058,656.49$

TRAVEL 62,925.14

SECTION II FINDINGS, QUESTIONEDCOSTS AND OTHER ITEMS

VALDOSTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS
YEAR ENDED JUNE 30,2010
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.