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STATE OF GEORGIA DEPARTMENT OF AUDITS 
254 WASHINGTON STREET ATLANTA, GEORGIA 30334 
 
 AUDIT REPORT STATE OF GEORGIA WALKER TECHNICAL INSTITUTE ROCK SPRING, GEORGIA YEAR ENDED JUNE 30, 1995 
 
 WALKER TECHNICAL INSTITUTE - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON 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 
 
BUDGET FUND 
 
4 
 
STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES 
 
COMPARED TO BUDGET 
 
BUDGET FUND 
 
D 
 
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION 
 
7 
 
E 
 
"B"LOTTERYFOREDUCATION 
 
8 
 
F NOTES TO THE FINANCIAL STATEMENTS 
 
9 
 
SUPPLEMENTARY INFORMATION 
 
G COMBINING BALANCE SHEET (STATUTORY BASIS) 
 
BUDGET FUND 
 
26 
 
H COMBINING STATEMENT OF CHANGES IN FUND BALANCE 
 
(STATUTORY BASIS) 
 
BUDGET FUND 
 
27 
 
I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
 
BUDGET FUND 
 
28 
 
J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
 
FIDUCIARY FUND TYPE - AGENCY FUNDS 
 
31 
 
SCHEDULES 
 
I CASH AND CASH EQUNALENTS 
 
32 
 
2 SCHEDULE OF FEDERAL REVENUES 
 
33 
 
3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL 
 
34 
 
 WALKER 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 AUDITOR (404) 656-217, 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
February 1, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board ofTechnical and Adult Education Members ofthe Local Board ofDirectors 
and Honorable Ray Brooks, President Walker Technical Institute 
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION 
Ladies and Gentlemen: 
We have audited the accompanying financial statements (Exhibits A through F) ofWalker Technical Institute as of and for the year ended June 30, 1995. These financial statements are the responsibility of the Institute's management. Our responsibility is to express an opinion on these financial statements based on our audit. 
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
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. 
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position (statutory basis) of Walker Technical Institute as of June 30, 1995, and the results of its operations (statutory basis) for the year then ended, on the basis of accounting described in Note 1. 
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits G through J and Schedules 1 through 3) is presented for purposes of additional analysis and is not a required part of the financial statements of Walker Technical 
95ARL-1 
 
 Institute. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole. 
Respectfully submitted, 
~~ 
Claude L. Vickers State Auditor 
CLV:cm 95ARL-1 
 
 FINANCIAL STATEMENTS - 1- 
 
 WALKER TECHNICAL INSTITUTE 
COMBINED BALANCE SHEET CSTAlUTORY BASIS} ALL FUND JYPES AND ACCOUNT GROUPS 
JUNE30 1995 
 
EXHIBIT"A" 
 
GOVERNMENTAL FUND TYPE BUDGET 
 
FIDUCIARY FUND TYPE 
AGENCY 
 
~ 
 
Cllsh and cash Equivalents 
 
$ 
 
98,523.78 $ 17,129.36 
 
Accounts Receivable 
 
State Funds 
 
$ 
 
0.00 
 
Fedelal Financial Assistance 
 
67,206.94 
 
Other 
 
5400.12 $ 
 
30.00 
 
$ 
 
72,607.06 $ 
 
30.00 
 
FD<ed Assets 
 
Equipment 
 
$ 
 
Amounts to be Provided for Payment of: Accrued Compensated Ab&ences Capital Lease Commitments 
 
ACCOUNT GROUPS 
 
GENERAL 
 
GENERAL 
 
FIXED 
 
LONG-TERM 
 
ASSETS 
 
DEBT 
 
TOTALS 
 
(Memorandum On~ 
 
JUNE 301 1995 
 
JUNE 301 1994 
 
$ 
 
115 653.14 $ 
 
317 421.04 
 
$ 
 
0.00 $ 
 
5,624.00 
 
67,206.94 
 
37,246.78 
 
5,430.12 
 
10,244.08 
 
$ 
 
72,637.06 $ 
 
53114.86 
 
1,890,175.92 
 
$ 1,890,175.92 $ \354,001.74 
 
$ 
 
140,060.88 $ 
 
140,060.88 $ 
 
127,295.71 
 
2745.45 
 
2745.45 
 
13,267.96 
 
$ 
 
142,806.33 $ 
 
142,806.33 $ 
 
140,563.67 
 
Total Assets 
 
$ 
 
171130.84 $ 
 
17159.36 $ 118901175.92 $ 
 
142,806.33 $ 2,221,272.45 $ 118651101.31 
 
LIABILITIES AND FUND EQUITY 
 
Liabilities 
 
Accounts Payable 
 
$ 
 
Salaries Payable 
 
Defened Revenue 
 
Tuition and Fees 
 
Funds Held in Custody for Others 
 
Compensated Ab&ences 
 
Capital Leases 
 
Total Liabilities 
 
$ 
 
Fund Equity 
 
Investment in General Fixed Assets 
 
Fund Balance 
 
Reserved 
 
Federal Financial Assistance 
 
For Refund to Georgia 
 
Department of Technical 
 
and Adult Education - 
 
Administrative Central 
 
Office 
 
$ 
 
For Expired Grant Balances 
 
For Other 
 
Live Work Projects 
 
Unreserved 
 
Designated 
 
Surplus 
 
Regular 
 
Lottery for Education 
 
Total Fund Equity 
 
$ 
 
Total Liabilities and 
 
Fund Equity 
 
$ 
 
143,654.63 0.00 
25,439.00 $ 
 
17,159.36 
 
169,093.63 $ 17159.36 
 
$ 
 
143,654.63 $ 
 
342,101.95 
 
0.00 
 
495.00 
 
$ 
 
140,060.88 
 
2745.45 
 
25,439.00 17,159.36 140,060.88 
2745.45 
 
13,649.00 7,446.36 
127,295.71 13 267.96 
 
$ 
 
142,806.33 $ 
 
329,059.32 $ 
 
504,255.98 
 
$ 1,890,175.92 
 
$ 1,890,175.92 $ 1,354,001.74 
 
1,207.15 239.23 0.00 0.00 
 
1,207.15 239.23 0.00 0.00 
 
525.29 252.68 
17.61 3,444.73 
 
530.83 60.00 
2 037.21 
 
$ 1,890,175.92 
 
530.83 60.00 
 
2,603.28 0.00 
 
$ 1,892,213.13 $ 1,360,845.33 
 
171 130.84 $ 
 
s 17159.36 $ 118901175.92 
 
142,806.33 $ 2,221,272.45 $ 118651101.31 
 
The notes to the financial statements are an integral part of this statement. -2- 
 
 WALKER TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE <STATUTORY BASIS) 
GOVERNMENTAL FUND TYPE 
YEAR ENDED JUNE 30. 1995 
 
EXHIBIT"B" 
 
FUND BALANCE - JULY 1 
Reserved Unreserved 
Designated Surplus 
APPITIONS 
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, 1993 Year Ended June 30, 1994 
Adjustments to Prior Year's Accounts Receivable 
Refunds to Grantoni 
Coosa Valley Regional Development Center Job Training Partnership Act 
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, 1995 
 
JUNE 30, 1994 
 
$ 
 
4,240.31 $ 
 
6,741.71 
 
2,603.28 
 
91297.49 
 
$ 
 
6,843.59 $ 
 
16,039.20 
 
$ 
 
2,405.88 $ 
 
537.37 
 
3,649.44 
 
6,711.75 
 
$ 
 
6,055.32 $ 
 
7,249.12 
 
$ 
 
0.00 $ 
 
9,297.49 
 
2,603.28 
 
0.00 
 
265.45 
 
221.00 
 
0.00 
 
2,475.00 
 
252.33 
 
421.21 
 
3,444.73 4,295.91 
 
4,030.03 0.00 
 
$ 
 
10,861.70 $ 
 
16,444.73 
 
$ 
 
2,037.21 $ 
 
6,843.59 
 
The notes to the financial statements are an integral part of this statement. -3- 
 
 WALKER TECHNICAL INSTITUTE 
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND 
YEAR ENDED JUNE 30. 1995 
 
EXHIBIT"C" 
 
FUNDS AVAILABLE 
R~NUES 
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central OlflC8 
FEDERAL REVENUES (See Schedule) 
OTHER REVENUES RETAINED Contracts Georgia Building Authority Americans with Disabilities Act Georgia Department of Administrative Services Distance Leaming Project Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program FApplication Registration/Continuing Education Testing Other Interest Earned Sales and Services {Net) Tuition Other Sources 
Total Other R-nues Retained 
Total Revenues 
CARRY-OVER FROM PRIOR YEAR 
Transfer from Reserved Fund Balance Federal Financial Assistance Live Work Projects 
Total Ceny-Over from Prior Year 
Total Funds Available 
EXPENDITURES 
PERSONAL SERVICES-INSTITUTIONS 
Salaries and Wages Employer's Contributions for: 
F.I.CA. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 1995 
 
JUNE 30, 1994 
 
$ 
 
2,812,549.97 $ 
 
2,615,151.00 
 
$ 
 
824,200.21 $ 
 
992.950.43 
 
$ 
 
1,600.00 $ 
 
0.00 
 
1,400.00 
 
0.00 
 
5,583.26 
 
0.00 
 
9,m.42 
 
15,972.77 
 
17,600.00 73,954.95 13,895.00 19,499.50 3,613.35 72,707.39 546,672.15 8,981.54 
 
16,105.00 73,788.56 13,n3.93 18,826.12 2,982.53 11,472.06 468,556.28 
0.00 
 
$ 
 
ns.219.56 s 
 
621,477.25 
 
$ 
 
4,412,029.74 $ 
 
4,229,578.68 
 
$ 
 
0.00 $ 
 
299.30 
 
3,444.73 
 
3,730.73 
 
$ 
 
3,444.73 $ 
 
4,030.03 
 
$ 
 
4,415,474.47 $ 
 
4,233,608.71 
 
$ 
 
2,319,519.74 $ 
 
2,236,749.99 
 
40,549.79 235,964.30 255,192.56 
16,247.00 2,705.00 3,742.00 
 
37,854.96 224,522.26 234,560.70 
5,976.00 3,942.00 3,318.00 
 
$ 
 
2,873,920.39 $ 
 
2,746,923.91 
 
The notes to the financial statements are an integral part of this statement. -4- 
 
 WALKER TECHNICAL INSTITUTE 
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND 
YEAR ENDED JUNE 30, 1995 
 
EXHIBIT "C" 
 
EXPENPIJURES 
QeERAIINQ EXPENSES:!NSTITUTIONS 
Ota-Costs Motor Vehicle Expenses Supplies and Material& Repairs and Maintenance Utilities Insurance and Bonding Ota- Operating Expenses Publications and Printing 
Travel Equipment 
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges Software Telecommunications Per Diem, F - and Contracts Per Diem and FContracts 
ADULT L,IIERACY GRANTS 
Personal Services Salaries and Wages Employer's Contributions for: F.I.CA. Retirement Health Insurance 
Ota-Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Ota- Operating Expenses Publication and Printing 
Travel Equipment 
Equipment Purchases Computer Charges 
Software Telecommunications Per Diem, F- and Contracts 
Per Diem and FContracts 
JOB TRAINING PARTNERSHIP ACT 
Personal Services Salaries and Wages Employer's Contributions for: F.I.CA. Retirement Health Insurance 
Ota-Costs Supplies and Materials Repairs and Maintenance 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 1995 
 
JUNE 30, 1994 
 
$ 
 
17,484.76 $ 
 
26,188.50 
 
244,098.31 
 
187,729.05 
 
66,913.11 
 
63,954.35 
 
79,892.83 
 
73,127.76 
 
8,887.56 
 
15,520.42 
 
163,053.60 
 
165,992.73 
 
22,585.94 
 
32,151.06 
 
27,736.15 
 
33,487.90 
 
124,667.24 5,472.67 4,450.00 
 
153,946.90 5,109.73 470.25 
 
22,499.22 22,286.61 
 
12,471.61 24,961.79 
 
39,892.65 26,590.33 
 
35,646.54 26,464.79 
 
$ 
 
876,510.98 $ 
 
857,223.38 
 
$ 
 
274,280.50 $ 
 
215,959.31 
 
3,959.20 15,270.52 16,162.96 
 
3,197.83 11,619.42 12,273.25 
 
0.00 40,705.31 
3,819.04 1,207.37 7,880.87 1,146.10 8,589.64 
 
24.81 28,973.73 
572.41 1,365.57 2,115.96 
194.82 6,884.02 
 
8,040.75 
 
7,470.64 
 
7,850.01 2,361.40 
 
15,182.30 752.03 
 
1,393.70 0.00 
 
486.00 780.00 
 
$ 
 
392,667.37 $ 
 
307,852.10 
 
$ 
 
43,540.00 $ 
 
43,762.05 
 
432.93 3,770.90 3,991.26 
 
540.13 3,516.12 3,721.56 
 
25.00 7,024.00 
 
0.00 2,103.41 
 
The notes to the financial statements are an integral part of this statement. -5- 
 
 WALKER TECHNICAL INSTITUTE 
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND 
YEAR ENDED JUNE 30. 1995 
 
EXHIBIT "C" 
 
EXPENDITURES 
JOB TRAINING PARTNERSHIP ACT 
Travel Equipment 
Equipment Purchases 
f:;QUIMtfi-TECt!NIQ&. INSTITUTES Equipment Equipment Purchases OtherCosts Repairs and Maintenance 
Total Expenditures Excess of Funds Available over Expenditures 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 1995 
 
JUNE 301 1994 
 
$ 
 
286.20 $ 
 
492.00 
 
0.00 
 
299.30 
 
$ 
 
59,070.29 $ 
 
54,434.57 
 
$ 
 
209,656.00 $ 
 
229,786.26 
 
0.00 
 
30,676.74 
 
$ 
 
209,656.00 $ 
 
260,463.00 
 
$ 
 
4,411,825.03 $ 
 
4,226,896.96 
 
3,649.44 
 
6,711.75 
 
$ 
 
4,415,474.47 $ 
 
4,233,608.71 
 
The notes to the financial statements are an integral part of this statement. -6- 
 
 WALKER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET BUDGET FUND 
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30. 1995 
 
EXHIBIT"D" 
 
FUNDS AVAILABLE REVENUES 
State Funds Federal Revenues Other Revenues Retained 
CARBY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE {UNFAVORABLE} 
 
$ 
 
2,603,164.00 $ 
 
2,602.893.97 $ 
 
922.018.00 
 
824,200.21 
 
966,965.00 
 
nS,279.56 
 
$ 
 
4,492,147.00 $ 
 
4,202,373.74 $ 
 
-270.03 -97,817.79 -191,685.44 
-289,n3.26 
 
0.00 
 
3,444.73 
 
3,444.73 
 
$ 
 
4,492,147.00 $ 
 
4,205,818.47 $ _ _ _-.;;;.286_;.:..,3...;;2_8_.53_ 
 
EXPENDITURES Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act 
Excess of Funds Available over Expenditures 
 
$ 
 
2,915,953.00 $ 
 
2,873,920.39 $ 
 
1,105,787.00 
 
876,510.98 
 
409,n2.oo 
 
392,667.37 
 
60,635.00 
 
59,070.29 
 
42,032.61 229,276.02 
17,104.63 1,564.71 
 
$ 
 
4,492,147.00 $ 
 
4,202,169.03 $ - - - -2-8-9,'9-n.-97- 
 
$ 
 
3 649.44 $ ====3=,649====.44= 
 
The notes to the financial statements are an integral part of this statement. -7- 
 
 WALKER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET 
BUDGET FUND "B" LOTTERY FOR EDUCATION 
YEAR ENDED JUNE 30 1995 
 
EXHIBIT"E" 
 
FUNDS AVAILABLE REVENUES 
state Funds 
EXPENDITURES Equipment-Technical Institutes Repairs and Renovations 
 
BUDGET. 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 
 
469,656.00 $ 
 
- - - - - - 209,656.00 $ 
 
-260,000.00 
 
$ 
 
209,656.00 $ 
 
209,656.00 $ 
 
0.00 
 
260,000.00 
 
0.00 
 
260,000.00 
 
$ 
 
469,656.00 $ 
 
209,656.00 s _ _ _26_0_,o_oo_.oo_ 
 
Excess of Funds Available over Expenditures 
 
$ 
 
o.oo $ =====o=.oo= 
 
The notes to the financial statements are an integral part of this statement. -8- 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXHIBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY Walker Technical Institute is one of twenty-nine (29) 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 Walker Technical Institute as a separate reporting entity. 
The lnstitute's Local Board ofDirectors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department 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 Walker Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Walker 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 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. 
FUND ACCOUNTING Walker Technical Institute uses funds and account groups to report on its financial position and the results of its operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. 
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 1994-1995. 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. 
-9- 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
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 cost or at estimated historical cost if historical cost is not practically determinable. 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. 
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life of the assets are included in the General Fixed Assets Account Group. 
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 MEASUREMENT 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 flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office of the Department of Technical and Adult Education for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year. 
GOVERNMENTAL FUND TYPE BUDGETFUND 
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 are "measurable and available"). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues that are accrued include primarily State funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. 
 
- 10- 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXlilBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND 
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 generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles. 
Contractual terms ofcertain Federal grant agreements received by the Institute for vocational training services 
require that grant funds earned be recorded as Federal revenues rather than as revenues from tuition and fees. Accordingly, it is the Institute's policy to record certain Federal grant funds as Federal revenues and also as other revenues retained with offsetting expenditures for student expenses charged to the other operating expenses expenditure account. This accounting policy results in an overstatement of both revenues and expenditures in the financial statements for such Federal grants. This policy is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but is not consistent with generally accepted accounting principles. 
Prior period adjustments and certain other items 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 prescribed or permitted by statutes and regulations of the 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 and do not measure results of operations or have a measurement focus. 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 appropriation allotments 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 1994-1995. 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. 
- 11 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXIIlBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
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 ofreimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. 
 
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase. 
 
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 
Walker Technical Institute receives Federal funds for the Adult Education Act and the Carl D. Perkins Vocational and Applied Technology Education Act, and the Job Training Partnership Act through the Georgia Department ofTechnical 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, 1995. At June 30, 1995, 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 
Job Training Partnership Act 
 
$ 595.88 
64.25 14.81 532.21 
 
$ 1,207.15 
 
EXPIRED GRANT BALANCES Expired grant balances represent the unexpended balance ofFederal financial assistance, other than through the Georgia Department ofTechnical and Adult Education - Administrative Central Office, remaining after the expiration of the Federal program/project. This amount is refundable to the applicable grantor. 
 
- 12 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXIIlBIT "F" 
 
NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is returned to the Georgia Department of Technical and Adult Education - Administrative Central Office for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus, as follows: 
REGULAR - An amount of unexpended general appropriations available to the State for reappropriation in subsequent years. 
LOTIERY FOR EDUCATION -An amount of unexpended lottery appropriations available for future reappropriation for Lottery for Education. 
COMPENSATED ABSENCES Compensated absences represent obligations of the Institute relating to employees' 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. The columns do not present information that reflects 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 selected sections of the accompanying :financial statements in order to provide an understanding ofthe changes in the Institute's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Institute's financial position and operations or would cause the statements to be unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. 
 
- 13 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXIIlBIT "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 tlie 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: 
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations ofthe United States or of the State of Georgia. 
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State of Georgia. 
(3) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. 
(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe 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 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. 
CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk: 
Category 1 - 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 pledging financial institution's trust department or agent in the lnstitute's name. 
- 14 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXIIlBIT "F" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS 
 
CATEGORIZATION OF DEPOSITS Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution, or by its trust department or agent but not in the Institute's name, and amounts uncollateralized. 
 
Cash Deposits 
 
Carrying Amount 
s 115353 14 
 
Bank Balances 
s 324 021 35 
 
Risk Categories 
 
2 
 
3 
 
s 200 000.00 s===o..,.oo..,. s 124 021 35 
 
NOTE 3: CAPITAL LEASES 
 
Walker 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. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes. 
 
As of June 30, 1995, future minimum lease payments under capital leases are as follows: 
 
Fiscal Year Ending June 30 
1996 1997 
Present Value ofFuture Minimum Lease Payments 
 
$ 2,569.45 176.00 
$ 2,745.45 
 
NOTE 4: CHANGES IN GENERAL FIXED ASSETS 
 
In accordance with the statutory definition of moveable personal property as defined in 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, 1994 
Additions Deductions 
Balance June 30, 1995 
 
$ 1,354,001.74 885,041.01 348,866.83 
$ 1,890,175 92 
 
- 15 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXHIBIT "F" 
 
NOTE 5: GENERAL LONG-TERM DEBT 
 
CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Tenn Debt for the year ended June 30, 1995, follows: 
 
Compensated Absences 
 
Balance July 1, 1994 
 
$ 127,295.71 
 
Additions Annual Leave Earned and Utilized (Net) 
Salaries and W?res Salary-Related ringe Benefits Deductions 
 
12,577.29 
187.88 
 
Balance June 30, 1995 
 
$ 140,060.88 
 
Capital Leases 
 
Total 
 
$ 13,267.96 $ 140,563.67 
 
10,522.51 $ 2,745.45 
 
12,577.29 
187.88 
10,522.51 
$ 142 806.33 
 
NOTE 6: RISK MANAGEMENT 
 
Public Entity Risk Pool The State Personnel Board - Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia and units of county governments and local education agencies located with the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board - Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board. 
 
Other Risk Management The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Institute, as an organizational unit of the Georgia Department of Technical and Adult Education, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment. 
 
- 16 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXHIBIT "F" 
 
NOTE 7: DEFERRED COMPENSATION PLAN 
The State ofGeorgia offers its employees a deferred compensation plan 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 oftheir 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 of compensation 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 of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor ofthe 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, 1995. 
NOTE 8: RETIREMENT PLANS 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
Plan Description Walker Technical Institute participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The lnstitute's payroll for the year ended June 30, 1995, for employees covered by TRS was $2,027,229.12. The Institute's total payroll for all employees was $2,637,340.24. 
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe_member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse 
is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time of disability. 
- 17 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXIIlBIT "F" 
 
NOTE 8: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
Benefits Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. 
 
Contributions Required and Contributions Made Employees ofthe Institute who are covered by TRS are required to pay 5% oftheir gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1995, the employer contribution rate was 11.81% for covered employees. The interest rate assumption (rate of return on investments) was 7.50%. 
 
Total contributions to the plan made during fiscal year 1995 amounted to $340,777.55, of which $239,415.75 was made by the Institute and $101,361.80 was made by employees. These contributions represented 11.81% (Institute) and 5% (employees) of covered payroll. 
 
Funding Status and Progress Pension Benefit Obligation 
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardiz.ed measurement is the actuarial present value of credited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofthe PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS. 
 
The total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, which was the latest information available, was as follows: 
 
Total pension benefit obligation 
 
$ 15,313,743,000.00 
 
Net assets available for benefits, at cost 
 
14,254,785,000.00 
 
Unfunded pension benefit obligation 
 
$ 1,058,958,000 00 
 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as ofthe same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. 
 
- 18 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXHIBIT "F" 
 
NOTE 8: RETIREMENT PLANS 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
Funding Status and Progress Retirement System Contributions 
Total contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The Institute's contribution for the year ended June 30, 1995, of $239,415.75 was actuarially determined and represented 00.0423% oftotal contributions made by all participating employers. 
Trend Information Historical trend information is presented in the financial report ofTRS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Plan Description Walker Technical Institute participates in the Employees' Retirement System of Georgia (ERS), a singleemployer 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 Institute's payroll for the year ended June 30, 1995, for employees covered by ERS was $113,422.00. The Institute's total payroll for all employees was $2,637,340.24. 
Benefits The benefit structure of ERS was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions. 
Members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution 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. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age. 
 
- 19 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXIIlBIT "F" 
 
NOTE 8: RETIREMENT PLANS 
 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
 
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% of annual compensation and 4.75% of annual compensation paid by the Institute on behalf ofthe employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Institute also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. Contributions are also made on amounts paid for accumulated leave of retiring employees. 
 
Total contributions to the plan made during fiscal year 1995 amounted to $18,306.31, ofwhich $16,888.53 was made by the Institute and $1,417.78 was made by employees. These contributions represented 14.890/o (Institute) and 1.25% (employees) of covered payroll. 
 
Funding Status and Progress Pension Benefit Obligation 
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects ofprojected salary increases and step-rate benefits, estimated to be payable in the future as a result ofemployee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value ofcredited projected benefits, and is independent of the funding method used to determine contributions to the plan. 
 
The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include the following: 
 
(1) The present value of future pension benefits paid was computed using a discounted rate of7.5%. This rate is also the same rate assumed to be earned on investments in the plan in future years. 
 
(2) Future pension payments reflect the following assumed salary increases as a result of inflation and merit increases: 
 
Age 
20 25 30 35 40 to 65 
 
Percentage 
9.5% 8.5% 6.5% 6.0% 5.7% 
 
(3) ERS has the authority to grant cost-of-living adjustments by State statute. As of June 30, 1994, cost-of-living adjustments have been included in the pension benefit obligation. 
 
-20- 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXHIBIT "F" 
 
NOTE 8: RETIREMENT PLANS 
 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
 
Funding Status and Progress Pension Benefit Obligation 
The total unfunded pension benefit obligation ofERS as of June 30, 1994, which was the latest information available, was as follows: 
 
Pension Benefit Obligation: 
 
Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving benefits 
 
$ 2,227,653,000.00 
 
Current employees: 
 
Accumulated contributions 
 
648,516,000.00 
 
Employer financed - vested 
 
1,085,190,000.00 
 
Employer financed - nonvested 
 
1,206,805,000.00 
 
Total pension benefit obligation 
 
$5,168,164,000.00 
 
Net assets available for benefits, at cost 
 
4,858,015,000.00 
 
Unfunded pension benefit obligation 
 
$ 310 149,000.00 
 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as of the same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers. 
 
Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date. 
 
Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Institute's contribution for the year ended June 30, 1995, of $16,888.53 was actuarially determined and represented 00.0066% of total contributions made by all participating employers. 
 
- 21 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXIIlBIT "F" 
 
NOTES: RETIREMENTPLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Funding Status and Progress Funding Policy 
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation. 
Trend Information Historical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. 
GEORGIA DEFINED CONTRIBUTION PLAN 
Plan Description Walker Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees ofthe Employees' Retirement System of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by GDCP was $379,982.74. The Institute's total payroll for all employees was $28,499.12. 
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than$ 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 ofmaking 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. 
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. 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. 
Total contributions made by employees during fiscal year 1995 amounted to $28,499.12 which represents 7.50% of covered payroll. These contributions met the requirements of the plan. 
 
- 22 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXIIlBIT "F" 
 
NOTE 9: LEAVE POLICIES 
Employees earn annual leave ranging from one and one-quarter clays to one and three-quarter days each month depending upon the employees' length ofcontinuous State service with a maximum accumulation of forty-five clays. 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. 
Certain employees who retire with one hundred and twenty days or more offorfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia. 
NOTE 10: NONMONETARYTRANSACTIONS. 
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, GSFIC is 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, 1995, the Georgia State Financing and Investment Commission paid $1,003,573.01 to various vendors for approved projects related to Walker Technical Institute. 
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 expenditures which are disallowed 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 Walker Technical Institute (as an organizational unit of the Department ofTechnical and Adult Education), ifany, 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, 1995. 
 
- 23 - 
 
 WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1995 
 
EXIDBIT "F" 
 
NOTE 12: BONDING INFORMATION 
The President and all employees ofWalker 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, 1995. Under this agreement, the public employee dishonesty coverage insures Walker 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 $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment. 
All employees ofWalker Technical Institute are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Institute to a maximum of $9,000,000.00 against loss sustained through :fraudulent or dishonest acts by its employees. 
 
- 24 - 
 
 SUPPLEMENTARY INFORMATION - 25 - 
 
 WALKER TECHNICAL INSTITUTE COMBINING BALANCE SHEET <STATUTORY BASIS} 
BUDGET FUND 
JUNE 30 1995 
 
EXHIBIT"G" 
 
ASSETS Cash and Cash Equivalents 
Accounts Receivable Federal Financial Assistance Other 
TotalAssets 
LIABILITIES AND FUND EQUITY 
Liabilities Accounts 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 Expired Grant Balances Unreserved Designated Surplus Regular Lottery for Education 
Total Fund Equity 
Total Liabilities and Fund Equity 
 
"A" DEPARTMENT OF 
TECHNICAL AND ADULT EDUCATION 
 
"B" LOTTERY FOR EDUCATION 
 
TOTAL 
 
$ 
 
94,591.78 $ 
 
3,932.00 $ 
 
98,523.78 
 
$ 
 
67,206.94 
 
5,400.12 
 
$ 
 
72,607.06 
 
$ 
 
67,206.94 
 
5,400.12 
 
$ 
 
72,607.06 
 
$ 
 
167,198.84 $ 
 
3,932.00 $ ====1==7=1,!:::::130==.84= 
 
$ 
 
139,782.63 $ 
 
25,439.00 
 
$ 
 
165,221.63 $ 
 
3,872.00 $ 3,872.00 $ 
 
143,654.63 25,439.00 169,093.63 
 
$ 
 
1,207.15 
 
239.23 
 
530.83 $ 
 
$ 
 
1,977.21 $ 
 
$ 
 
167,198.84 $ 
 
$ 
 
1,207.15 
 
239.23 
 
60.00 60.00 $ 
 
530.83 60.00 
2,037.21 
 
3,932.00 $ ====1==7=1!::130:::::::.84:::: 
 
See notes to the financial statements. 
 
-26- 
 
 WALKER TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE lSTATUTORY BASIS} 
BUDGET FUND YEAR ENDED JUNE 30 1995 
 
EXHIBtTw 
 
FUND BALANCE - JULY 1 
Reserved Unreserved 
Designated Surplus 
ADDITIONS 
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures 
Exhibit 1 
DEDUCTIONS 
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1994 
Adjustments to Prior Year's Accounts Receivable Refunds to Grantor"S 
Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistarice 
Reserved Fund Balance Carried Over from Prior Year as Funds Available 
Uncollectible Debts Written Off 
FUND BALANCE - JUNE 30 
(To Exhibit G") 
 
A 
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION 
 
s 
LOTTERY FOR EDUCATION 
 
TOTAL 
 
$ 
 
4,240.31 
 
2,603.28 $ 
 
$ 
 
6,843.59 $ 
 
$ 
0.00 0.00 $ 
 
4,240.31 
2,603.28 6,843.59 
 
$ 
 
2,345.88 $ 
 
3,649.44 
 
$ 
 
5,995.32 $ 
 
60.00 $ 0.00 
60.00 $ 
 
2,405.88 3,649.44 6,055.32 
 
$ 
 
2,603.28 $ 
 
265.45 
 
252.33 
 
3,444.73 4,295.91 
 
$ 
 
10,861.70 $ 
 
$ 
 
1,9TT.21 $ 
 
0.00 $ 
0.00 $ 60.00 $ 
 
2,603.28 265.45 
252.33 3,444.73 4,295.91 10,861.70 
2,037.21 
 
See notes to the financial statements. 
 
- 27 - 
 
 WALKER TECHNICAL INSTITUTE COMBINING STATEMENT Of FUNDS AVAILABLE AND EXPENOOURES 
BUDGET FUND VEAR ENDED JUNE 30, 1995 
 
EXHIBITT 
 
Bla'.ENUES 
 
FUNDS AVAllABLE 
 
STATE FUNDS Allotment from Georgia Depal1ment of Technical and Adult Education - AdminilltratiYe Cenlnal Office 
 
FEDERAL REVENUES 
 
OTHER REVENUES RETAINED 
Conlracls Georgia Building Authority Americans with Disabilities /Id. Georgia Department of Adminilstrative Services Diatance Learning Project Georgia Depa,tment of Human Resources PEACH Project 8-gia Institute of Technology Satellite Technology Program 
Donations F- 
Application 
RegistrallonlConlinuing Education Testing 0lher Interest Earned 
Sales and Services (Net) Tuition Other Sources 
 
Tolal Other~- Retained 
 
TotalR-.- 
 
CARRY-OVER FROM PRIOR VEAR 
 
Transfer from R - - i Fund Balance Live Work Projects 
 
Tolal Funds Available 
 
EXPENOOURES 
e,ERSONAL SERVICES-INSTITUTIQNS 
Salaries and Wages Employer's Contributions for: 
FJ.CA Relirement Heatth Insurance Liability Insurance Unemployment Compensation Insurance 
WOfkers' Compensation Insurance 
 
"A" DEPARTMENT OF 
TECHNICAL ANDADULT EDUCATION 
 
"B" LOTTERY FOR 
EDUCATION 
 
TOTAL 
 
s 
 
2,602,893.97 S 
 
209,656.00 $ 
 
2,8121549.97 
 
s 
 
824,200.21 
 
s 
 
824~.21 
 
s 
 
1,600.00 
 
1,400.00 
 
5,583.26 
 
s.m.42 
 
17,600.00 73,954.95 13,895.00 19,499.50 
3,613.35 72,707.39 546,672.15 
8,981.54 
 
s 
 
775,279.56 
 
s 
 
4.202,373.74 $ 
 
s 
 
1,600.00 
 
1,400.00 
 
5,583.26 
 
s.m.42 
 
s 
209,656.00 S 
 
17,600.00 73,954.95 13,895.00 19,499.50 
3,613.35 72,707.39 546,672.15 8,981.54 
775,279.56 
4,412,029.74 
 
s 
 
3,444.73 
 
s 
 
3,444.73 
 
s 
 
4,205,818.47 $ 
 
209,656.00 $ 
 
4,415,474.47 
 
s 
 
2,319,519.74 
 
40,549.79 235,964.30 255,192.56 
16,247.00 2,705.00 3,742.00 
 
s 
 
2,873,920.39 
 
s 
 
2,319,519.74 
 
40,549.79 235,964.30 255,192.56 
16,247.00 2,705.00 3,742.00 
 
$ 
 
2,873,920.39 
 
See noles to the financial statements. 
 
-28- 
 
 WALKER TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND 
VEAR ENDED JUNE 30. 1995 
 
EXHIBITT 
 
EXPENPIIURES 
QfEMTINQ EXPENSES:INSTITUT!Qt:!S 
Other Costs 
Molor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Insurance and Bonding Other Operating Expenses Publications and Printing Travel Equipment Equipment Purchases l.Nse/Purchase ol Equipment Rental ol Equipment Computer Charges 
Software 
Telecommunications Per Diem, F- and Contracts 
Per Diem and FContracts 
ADULT LITERACY GRANTS 
Personal Services Salaries and Wages Employer's Contributions for: F.I.CA. Retirement Health Insurance 
Other Costs Supplies and Materials Repairs and Maintenance Utilities Publications and Printing Other Operating Expenses 
Travel Equipment 
Equipment Purchases Computer Charges 
Software Telecommunications Per Diem, F - and Contracts 
Per Diem and F- 
JOB TRA!NIN~ PARTNERSHIP ACT 
Personal Selvices Salaries and Wages Employer's Contributions for: F.I.CA. Retirement Health Insurance 
Other Costs Supplies and Materials Repairs and Maintenance 
Travel 
See notes to the financial statements. 
 
"A" DEPARTMENT OF 
TECHNICAL ANDADULT EDUCATION 
 
"B" LOTTERY FOR 
EDUCATION 
 
TOTAL 
 
$ 
 
17,-48-4.76 
 
244,098.31 
 
66,913.11 
 
79,892.83 
 
8,887.56 
 
163,053.60 
 
22,585.94 
 
27,736.15 
 
124,667.24 5,472.67 4,450.00 
 
22,499.22 22,286.61 
 
39,892.65 26,590.33 
 
$ 
 
876,510.98 
 
$ 
 
274,280.50 
 
3,959.20 15,270.52 16,162.96 
 
40,705.31 3,819.04 1,207.37 1,146.10 7,880.87 8,589.64 
 
8,040.75 
 
7,850.01 2,361.40 
 
1,393.70 
 
$ 
 
392,667.37 
 
$ 
 
43,540.00 
 
432.93 3,770.90 3,991.26 
 
25.00 7,024.00 
286.20 
 
$ 
 
59,070.29 
 
-29- 
 
$ 
 
17,-48-4.76 
 
244,098.31 
 
66,913.11 
 
79,892.83 
 
8,887.56 
 
163,053.60 
 
22,585.94 
 
27,736.15 
 
124,667.24 5,472.67 4,450.00 
 
22,499.22 22,286.61 
 
39,892.65 26,590.33 
 
$ 
 
876,510.98 
 
$ 
 
274,280.50 
 
3,959.20 15,270.52 16,162.96 
 
40,705.31 3,819.04 1,207.37 1,146.10 7,880.87 8,589.64 
 
8,040.75 
 
7,850.01 2,361.40 
 
1,393.70 
 
$ 
 
392,667.37 
 
$ 
 
43,540.00 
 
432.93 3,770.90 3,991.26 
 
25.00 7,024.00 
286.20 
 
$ 
 
59,070.29 
 
 WALKER TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND 
YEAR ENDED JUNE 30. 1995 
 
EXHIBITT 
 
EXPENDITURES EQUIPMENT-TECHNICAL INSTITUTES 
Equipment Equipment Purchases 
Total Expenditures Excess of Fund& Available ewer Expenditures 
 
"A" DEPARTMENT OF 
TECHNICAL 
ANDADULT EDUCATION 
 
"B" LOTTERY FOR 
EDUCATION 
 
TOTAL 
 
$ 
 
209,656.oo s _ _ _209___.,_656_.oo_ 
 
$ 
 
4,202,169.03 $ 
 
209,656.00 $ 
 
4,411,825.03 
 
3,649."" 
 
0.00 
 
$ 
 
4,205,818.47 $ 
 
209,656.oo s --"-"..1..s.."..1._4_-"_7 
 
See notes to the financial statements. 
 
-30- 
 
 WALKER TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
FIDUCIARY FUND TYPE - AGENCY FUNDS 
YEAR ENDED JUNE 30, 1995 
 
EXHIBIT"J" 
 
.E.Y..t:m 
HOPE Scholarship Program Licensed Practical Nurse Examination Fees Pell Grant Program Student Activities Fund Student Insurance 
 
ASSETS/ LIABILITIES JULY1, 1994 
 
$ 
 
0.00 $ 
 
0.00 
 
0.00 
 
7,446.36 
 
0.00 
 
ADDITIONS 
 
DEDUCTIONS 
 
ASSETS/ LIABILITIES JUNE 30, 1995 
 
571,535.58 $ 
 
561,302.16 $ 
 
10,233.42 
 
1,729.35 
 
1,473.35 
 
256.00 
 
346,327.00 
 
346,327.00 
 
0.00 
 
20,292.75 
 
21,069.17 
 
6,669.94 
 
783.00 
 
783.00 
 
0.00 
 
$ 
 
7446.36 $ 
 
940,667.68 $ 
 
930,954.68 $ ======1=7'=159==.36= 
 
See notes to the financial statements. 
 
- 31 - 
 
 NONINTEREST BEARING ACCOUNTS 
Bank of LaFayette, LaFayette, Georgia 
INTEREST BEARING ACCOUNTS 
Bank of LaFayette, LaFayette, Georgia 
N. 0. W. Account 
Qit.:iER 
C&shonHand PettyC&sh 
 
WALKER TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS 
JUNE30 1995 
 
$ 
 
6,624.94 
 
108,728.20 300.00 
$ ===1=1=5'=653=.1=4 
 
See notes to the financial statements. 
 
-32- 
 
 WALKER TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES 
YEAR ENDED JUNE 30.1995 
BUDGET FUND 
Education,U.S.Departmentof 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 - Consumer and Homemaking Education 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 
Tech-Prep Education Through Catoosa County Board of Education Through Chattooga County Board of Education Through City of Chickamauga Board of Education 
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 Coosa Valley Regional Developmental Commission Through Georgia Department of Education 
 
SCHEDULE "2" 
 
CFDA NUMBER 
 
AMOUNT 
 
84.002 
 
$ 
 
84.033 
 
186,872.69 10,000.00 
 
84.048 
 
294,847.96 
 
84.049 
 
24,863.94 
 
84.174 
84.243 84.243 84.243 
 
9,500.00 
7,950.50 7,949.50 7,899.48 
 
93.561 
17.250 17.250 
 
9,199.45 
205,551.40 59,565.29 
 
$ ===8=2=4=,200==.2=1 
 
See notes to the financial statements. 
 
-33- 
 
 WALKER TECHNICAL INSTITUTE 
RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL 
YEAR ENDED JUNE 30 1995 
 
SCHEDULE "3" 
 
Totals per Annual Supplement 
 
Accruals June 30, 1994 
 
Adjustments Brown, Celaway, Cerrington, Fuller, Jackson, Mullinax, Visage, 
Weaver, 
Willkomm, 
 
Barbara A. 
StacyM. 
Kathy Louise Still Sandra D. Bonnie L. Lee Ann Charlotte R. Sandra L. 
 
Totals per Report 
 
SUMMARY BY OBJECT CLASS 
BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act 
 
SALARIES ANDWAGES 
 
$ 
 
2,639,085.34 $ 
 
TRAVEL 36,611.99 
 
-495.00 
 
-161.50 -127.50 -301.75 
-23.45 -114.75 -142.37 -174.25 
-23.90 -180.63 
 
$ 
 
216371340.24 $ =====36='=61=1=.99= 
 
$ 
 
2,319,519.74 
 
$ 
 
274,280.50 
 
43,540.00 
 
27,736.15 8,589.64 286.20 
 
$ 
 
2,637,340.24 $ =====36==,6=11=.99= 
 
See notes to the financial statements. 
 
-34- 
 
 SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 WALKER TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1995 
 
STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
The status offindings disclosed in the review report for the year ended June 30, 1994, is summarized below: 
 
Audit Control Number 
 
Status ofFinding 
 
849-94-01 849-94-02 
 
Corrective Action Implemented Corrective Action Implemented