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AUDIT REPORT STATE OF GEORGIA WALKER TECHNICAL INSTITUTE ROCK SPRING, GEORGIA YEAR ENDED JUNE 30, 1997

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

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

5

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

6

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

10

E " B " LOTTERY FOR EDUCATION

11

F NOTES TO THE FINANCIAL STATEMENTS

12

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

SCHEDULE

RECONCILIATION OF SALARIES AND TRAVEL

32

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
September 24, 1997

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Ray Brooks, President Walker Technical Institute
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying fmancial statements (Exhibits A through F) of Walker Technical Institute as of and for the year ended June 30, 1997. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit 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) ofWalker Technical Institute as of June 30, 1997, 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 fmancial statements taken as a whole. The accompanying supplementary information (Exhibits G through I and Schedule 1) is presented for purposes of additional analysis and is not a required part of the financial statements of Walker Technical Institute.
97ARL-IT

Such infonnation has been subjected to the auditing procedures applied in the audit ofthe fmancial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.

CLV:gp 97ARL-IT

Claude 1. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

WALKER TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30,1997

ASSETS
Cash and Cash Equivalents
Accounts Receivable Federal Financial Assistance Other
Fixed Assets Equipment
Amounts to be Provided for Payment of: Accrued Compensated Absences Capital Lease Commitments

GOVERNMENTAL FUND TYPE BUDGET

FIDUCIARY FUND TYPE
AGENCY

$

740,840,43 $

17,114.56

$

54,425,14

6,933.51

$

61,358.65

Total Assets
LIABILITIES AND FUND EQUITY
Liabilities Accounts Payable Salaries Payable Deferred Revenue Tuition and Fees Funds Held in Custody for Others Compensated Absences Capital Leases
Total Liabilities
Fund Equity Investment in General Fixed Assets Fund Balance Reserved Federal Financial Assistance For Refund to Georgia Department ofTechnical and Adult EducationAdministrative Central Office For Expired Grant Balances Live Work Projects State Grants and Contracts For Refund to Grantor Agency Unreserved Designated SurplUS Regular Lottery for Education
Total Fund Equity
Total Liabilities and Fund Equity
The notes to the financial statements are an integral part of this statement.
-2-

$

802,199.08 $

17,114.56

$

705,625.81

47,054.25

39,695.76 $

17,114.56

$

792,375.82 $

17,114.56

$

130,36

40.69

4,770,91

29.84

4,851.46 0.00

$

9,823,26

$

802,199.08 $

17,114.56

EXHIBIT "A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only) JUNE 30,1997 JUNE 30,1996

$ 757,954.99 $ 305,466.54

$

54,425.14 $

11,435.39

6,933.51

23,004.84

$

61,358.65 $

34,440.23

$ 3,140,959.89

$ 3,140,959.89 $ 2,051,048.44

$ 197,025.30 $ 197,025.30 $ 180,286.96

0.00

0.00

176.00

$ 197.025.30 $ 197,025.30 $ 180,462.96

$ 3,140,959.89 $ 197,025.30 $ 4,157,298.83 $ 2,571,418.17

$ 705,625.81 $ 281,962.94

47,054.25

0.00

$ 197,025.30 0.00

39,695.76 17,114.56 197,025.30
0.00

33,961.00 18,478.61 180,286.96
176.00

$ 197,025.30 $ 1,006,515.68 $ 514,865.51

$ 3,140,959.89

$ 3,140,959.89 $ 2,051,048.44

130.36 40.69 4,770.91
29.84

0.00 0.00 1,228.32
0.00

$ 3,140,959.89

4,851.46 0.00

2,503.90 1,772.00

$ 3,150.783.15 $ 2,056,552.66

$ 3,140,959.89 $ 197,025.30 $ 4,157.298.83 $ 2,571,418.17

-3-

THIS PAGE LEFT BLANK

WALKER TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30, 1997

EXHIBIT"B"

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 30,1997

EXHIBIT"C"

FUNDS AVAILABLE
REVENUES
STATE APPROPRIATIONS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES
OTHER REVENUES RETAINED Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office PEACH Project Contracts Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Fees Application Graduation Registration/Continuing Education Testing Other Interest Earned Sales and Services (Net) Tuition Vending Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Live Work Projects

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$ 4?74,785.77 $ 2,990,317.00 $ 893,013.12 $ 741,031.50

$

5,665.45 $

0.00

31,125.21

12,571.47

9,688.94

9,879.44

18,050.00 6,333.26 109,348.42 31,081.00 81,991.40 13,752.57 18,178.20 778,722.00 10,555.32 34,575.63

18,495.00 3,435.00
138,384.86 24,486.00 51,973.25 3,228.39 13,566.75
749,738.00 0.00
35,643.08

$ 1,149,067.40 $ 1,061 ,401.24

$ 6,816,866.29 $ 4,792,749.74

$

1,228.32 $

0.00

Total Funds Available

$ 6,818,094.61 $ 4,792,749.74

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.I.C.A.
The notes to the financial statements are an integral part of this statement.
-6-

$ 2,795,140.26 $ 2,523,009.73

44,397.22

41,269.79

WALKER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1997

EXHIBIT"C"

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Employer's Contributions for: Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS
Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Insurance and Bonding Other Operating Expenses Publications and Printing Equipment Purchases Non-Inventory
Travel Motor Vehicle Equipment Purchases Equipment
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges Software Equipment
Equipment Purchases Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.I.CA Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
The notes to the financial statements are an integral part of this statement.
-7-

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$ 286,323.56 $ 253,175.48

306,984.32

269,591.28

14,696.00

13,690.00

1,610.00

1,436.00

3,150.00

2,930.00

$ 3,452,301.36 $ 3,105,102.28

$

24,157.61 $

25,734.72

272,268.53

209,187.06

206,454.74

85,008.09

134,607.77

87,898.12

14,017.87

10,562.42

122,242.22

68,468.11

32,642.41

24,927.25

22,251.98 35,357.97
9,900.00

33,916.98 29,918.42
0.00

90,888.94 0.00
600.00

140,750.97 3,026.90 0.00

69,314.11

25,621.03

208,791.49 19,864.59

128,069.59 68,731.50

51,083.45 64,235.27

37,494.36 33,398.07

$ 1,378,678.95 $ 1,012,713.59

$ 335,069.75 $ 340,722.94

4,682.74 21,987.02 23,271.91
1,212.00 138.00 270.00

4,771.37 20,846.10 21,929.83
0.00 0.00 0.00

WALKER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1997

EXHIBIT"C"

EXPENDITURES
ADULT LITERACY GRANTS
Other Costs Supplies and Materials Repairs and Maintenance Utilities Other Operating Expenses Publications and Printing Equipment Purchases Non-Inventory
Travel Equipment
Equipment Purchases Computer Charges
Software Equipment
Equipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employer's Contributions for: F.J.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Other Operating Expenses Publications and Printing Equipment Purchases Non-Inventory
Travel Equipment
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges Software
The notes to the financial statements are an integral part of this statement.
-8-

TOTALS YEAR ENDED JUNE 3D, 1997 JUNE 3D, 1996

$

22,272.82 $

27,471.71

4,664.57

8,309.60

1,164.08

1,175,57

39,341.87

7,436.98

0.00

43.95

4,201.95 5,664.60

0.00 8,598.08

35,336.00

5,592.76

5,850.00

0.00

42,285.32 200.00
3,654.11

0.00 0,00 3,879.67

308.74 8,200.00

453.72 780.00

$ 559,775.48 $ 452,012.28

$

81,812.92 $

72,837.09

55.89 10,889.35 11,067.70
606.00 69.00 135.00

1,025,64 8,555.00 9,104.75
0.00 0.00 0.00

1,034.55 662.00
73,298.53 199.92

2,020.09 0.00
113,391.01 0.00

1,397,60 3,158.59

0.00 2,359.98

4,382.00 2,400.00
0.00

0.00 0.00 5,475.00

0.00

981.00

WALKER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1997

EXHIBIT"C"

EXPENDITURES JOB TRAINING PARTNERSHIP ACT
Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees
EQUIPMENT-TECHNICAL INSTITUTES Equipment Equipment Purchases Total Expenditures
Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

475.77 $

552.01

2,995.10

3,505.97

$ 194,639.92 $ 219,807.54

$ 1,213,522.00 $

0.00

$ 6,798,917.71 $ 4,789,635.69

19,176.90

3,114.05

$ 6,818,094.61 $ 4,792,749.74

The notes to the financial statements are an integral part of this statement.
-9-

WALKER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30.1997

EXHIBIT"D"

EXPENDITURES Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act
Excess of Funds Available over Expenditures

$ 5,791,463.00 $ 5,604,572.61 $

-1. ; ,.86; .,:.,8.;. .;9. . ;:,.0;. ;. .3.;. .;9

$ 3,456,838.00 $ 3,452,301.36 $

1,452,756.00

1,378,678.95

632,646.00

559,775.48

249,223.00

194,639.92

4,536.64 74,077.05 72,870.52 54,583.08

$ 5,791,463.00 $ 5,585,395.71 $ - - - -20-6',0-67-.2-9
$ 19,176.90 $ =======1=9=,1=7=6=.9=0=

The notes to the financial statements are an integral part of this statement. - 10 -

WALKER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1997

EXHIBIT"E"

FUNDS AVAILABLE REVENUES
State Appropriations

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 1,213,522.00 $ 1,213,522.00 $

..:..O..:...O~O

EXPENDITURES Equipment-Technical Institutes
Excess of Funds Available over Expenditures

$ 1,213,522.00 $ 1,213,522.00 $

0_.0_0

$

0.00 $=====0=,0.0..

The notes to the financial statements are an integral part of this statement. - 11 -

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Walker Technical Institute is one ofthirty (30) State supported member institutes ofpostsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education, an organizational unit ofthe State of Georgia. The accompanying fmancial statements reflect the operations of Walker Technical Institute as a separate reporting entity.
The Institute's Local Board of Directors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department ofTechnical and Adult Education by the General Assembly ofGeorgia. The Department's Administrative Central Office determines the amount of State appropriations to be received by Walker Technical Institute. The Institute does not have authority to retain unexpended State appropriations (swplus) for any given fiscal year. Accordingly, Walker Technical Institute is considered an organizational unit of the Georgia Department of Technical and Adult Education for financial reporting pwposes 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 of the State of Georgia. A fund is an independent fiscal and accounting entity with a selfbalancing set of accounts. Fund accounting segregates funds according to their intended pwpose 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 1996-1997. This fund also includes operations from various institutional services provided to students, faculty, and/or staffwhich 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 defined 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.
- 12 -

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F"

NOTE 1: 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 ifhistorical 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 costs of normal maintenance and repairs that do not add to the value of assets 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 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 fmancial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow ofcurrent 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 ofthe Department of Technical and Adult Education for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year.
GOVERNMENTAL FUND TYPE BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues that are accrued include primarily State appropriations, 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.

- 13 -

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
Contractual obligations for goods and services which have not been received at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. 1bis 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 ofencumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is liot consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
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. 1bis 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 1996-1997. The budget allocation and disbursement of these funds is made to the various technical institutes by the Administrative Central Office. In addition, the technical institutes receive certain Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions.
ACCOUNTS RECEIVABLE Accounts receivable consist of reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available.

- 14-

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,1997

EXHffiIT"F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVENTORIES No inventories of supplies are reported in these 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 through the Georgia Department of Technical and Adult Education - Administrative Central Office. As provided by the respective budget allocation to the Institute, these funds were required to be expended by June 30, 1997. At June 30, 1997, 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

$

10.19

120.17

$

130.36

EXPIRED GRANT BALANCES Expired grant balances represent the unexpended balance ofFederal fmancial assistance, other than through the Georgia Department of Technical and Adult Education - Administrative Central Office, remaining after the expiration of the Federal program/project. This amount is refundable to the applicable grantor.

LIVE WORK PROJECTS In accordance with the Official Code of Georgia Annotated Section 20-4-14(c), the accumulated balance of unexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects or for the benefit of instructional programs at the technical institute in subsequent fiscal years.

STATE GRANTS AND CONTRACTS The unexpended balance ofstate grants and contracts, other than through the Administrative Central Office, remaining after the expiration of the program/contract. This amount is refundable to the applicable grantors.

- 15 -

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or pennitted 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 ofTreasury and Fiscal Services in the subsequent fiscal year as surplus, as follows:
REGULAR - An amount ofunexpended regular appropriations designated for reappropriation by the State in subsequent years.
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 annual and compensatory 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 fmancial 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-Tenn Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" because they do not represent consolidated financial infonnation and are presented only to facilitate financial analysis. The columns do not present infonnation 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 of the 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.

- 16 -

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone 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 of the United States or of the State of Georgia.
(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intennediate Credit Bank, the Central Bank for Cooperatives, the Fann 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, 1997, are categorized below in order to provide infonnation 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 Institute's name.
- 17 -

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"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

Bank Balances

$ 757 65499 $ 1 269 583 85 $

Risk Categories

2

3

200 000.00 $,==~oo~o $ 1.069 583.85

NOTE 3: OPERATING LEASES

As of June 30, 1997, there were no future minimum lease payments for operating leases. Expenditures for rental of equipment under operating leases for the year ended June 30, 1997, totaled $2,400.00.

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$I,OOO.OO or greater are reflected in the General Fixed Assets Account Gmup.

The following is a summary of changes of equipment for the General Fixed Assets Account Group during the fiscal year:

Balance July 1, 1996

$ 2,051,048.44

Additions Deductions

1,214,904.68 124,993.23

Balance June 30, 1997

$ 3,140,959.89

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Term Debt for the year ended June 30, 1997, follows:

- 18 -

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F"

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT

Compensated Absences

Capital Leases

Total

Balance July 1, 1996

$ 180,286.96 $

176.00 $ 180,462.96

Additions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits
Deductions

16,497.66 240.68

176.00

16,497.66 240.68 176.00

Balance June 30, 1997

$ 197,025.30 $

0.00 $ 197,025.30

NOTE 6: RISK MANAGEMENT

Public Entity Risk Pool The State Personnel Board - Merit System of Personnel Administration administers for the State of Georgia a program of health benefits for the employees of units of government ofthe State of Georgia, units of county governments, and local education agencies located with the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board - Merit System of Personnel 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 processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The 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 various state organizations by DOAS to provide claims servicing and claims payment.

- 19-

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHffiIT"F"

NOTE 7: DEFERRED COMPENSATION PLAN
The State of Georgia 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 of their salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts 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 ofthe State of Georgia subject only to the claims ofthe State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equa) to the fair market value of the deferred account of each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1997.
A change in the Internal Revenue Code Section 457, effective August 20, 1996, requires that by January 1, 1999, all existing eligible deferred compensation plans must be held in trust for the exclusive benefit of participants and their beneficiaries. The State of Georgia's plan will be converted effective July 1, 1998.
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.
TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (l) has attained the age of 60 years and has at least ten years of creditable service, or (2) 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, normal retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereof by which the member has less than 30 years of service. The normal retirement pension is payable monthly for life; however, options are available for distribution of the 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.
- 20-

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F"

NOTE 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
Funding Policy Employees of the Institute who are covered by TRS are required to pay 5% of their gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1997, the employer contribution rate was 11.81% for covered employees. The interest rate assumption (rate of return on investments) was 7.50%. The Institute's payroll for the year ended June 30, 1997, for employees covered by TRS was $2,488,010.04. The Institute's total payroll for all employees was $3,212,022.93.
Total contributions to the plan made during fiscal year 1997 amounted to $418,234.94, ofwhich $293,834.00 was made by the Institute and $124,400.94 was made by employees. These contributions represented 11.81% (Institute) and 5% (employees) of covered payroll.
Total contributions from all employers to TRS for the year ended June 30, 1997, were $652,928,555.00. The Institute's contribution for the year ended June 30, 1997, of $293,834.00 was actuarially determined and represented .0450% of total contributions made by all participating employers.
Actuarial and Trend Information Actuarial and historical trend information is presented in the TRS June 30, 1997, financial report which can be obtained through TRS.
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 ofthe State of Georgia.
The benefit structure of ERS is defined by State statute and was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.

- 21 -

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F"

NOTE 8: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description
Under both the old plan and new plan, members become vested after 1 years of creditable service. A member may retire and receive normal retirement benefits after completion of 1 years of creditable service and attainment of age 65. If 1 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.
Retirement benefits paid to members are based upon a formula which considers the monthly average ofthe member's highest eight consecutive calendar quarters of salary, the number ofyears of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution 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 Institute's payroll for the year ended June 30, 1997, for employees covered by ERS was $122,014.18. The Institute's total payroll for all employees was $3,212,022.93.
Under the old plan, member contributions consist of 4% ofannual compensation up to $4,200.00 and 6% of annual compensation in excess of $4,200.00. Of these member contributions, the employee pays the first 1.25% and the Institute pays the remainder on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% ofannual compensation paid by employee. The Institute also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1997, the ERS employer contribution rate for the Institute amounted to 14.89% ofcovered payroll and included the amounts contributed on behalfofthe employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees.
Total contributions to the plan made during fiscal year 1997 amounted to $19,691.77, of which $18,167.91 was made by the Institute and $1,523.86 was made by employees. These contributions met the requirements ofthe plan.
Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 1997, financial report which may be obtained through ERS.

- 22-

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,1997

EXHIBIT "F"

NOTE 8: RETffiEMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Walker Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defmed 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. Ifa member has less than $ 3,500.00 credited to hislher 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 hislher account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute.
The Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS.
Contributions and Vesting Member contributions are seven and one-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 ofTrustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Institute's payroll for the year ended June 30, 1997, for employees covered by GDCP was $402,273.21. The Institute's total payroll for all employees was $3,212,022.93.
Total contributions made by employees during fiscal year 1997 amounted to $30,171.22 which represents 7.50% of covered payroll. These contributions met the requirements of the plan.
NOTE 9: LEAVE POLICIES
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees'length ofcontinuous State service with a maximum accumulation offorty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1- Compensated Absences
Employees earn one and one-quarter days of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
- 23-

WALKER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHffiIT"F"

NOTE 9: LEAVE POLICIES
Certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 10: NONMONETARY TRANSACTIONS
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, 1997, the Georgia State Financing and Investment Commission paid $1,038,208.30 to various vendors for approved projects for the benefit of 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 of Technical and Adult Education), ifany, 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, 1997.

- 24-

SUPPLEMENTARY INFORMATION - 25 -

WALKER TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30,1997

EXHIBIT"G"

ASSETS
Cash and Cash Equivalents
Accounts Receivable Federal Financial Assistance Other

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

118" LOTIERYFOR
EDUCATION

TOTAL

$

218,116.53 $ 522,723.90 $ 740,840.43

$

54,425.14

6,933.51

$

61,358.65

$

54,425.14

6,933,51

$

61,358.65

Total Assets

$

279,475.18 $ 522,723.90 $ 802,199.08

LIABILITIES AND FUND EQUITY

Liabilities

Accounts Payable

$

Salaries Payable

Deferred Revenue

Tuition and Fees

Total Liabilities

$

Fund Equity

Fund Balance

Reserved

Federal Financial Assistance

For Refund to Georgia Department of Technical and

Adult Education - Administrative Central Office

$

For Expired Grant Balances

Live Work Projects

State Grants and Contracts

For Refund to Grantor Agency

Unreserved

Designated

Surplus

Regular

Lottery for Education

Total Fund EqUity

$

182,901.91 $ 47,054.25
39,695.76
269,651.92 $

522,723.90 $ 522,723.90 $

705,625.81 47,054.25
39,695.76
792,375.82

130.36 40.69
4,770.91 29.84
4,851.46
$ 9,823.26 $

$

130.36

40.69

4,770.91

29.84

0.00 0:00 $

4,851.46 0.00
9,823.26

Total Liabilities and Fund Equity See notes to the financial statements.

$

279,475.18 $ 522,723.90 $ 802,199.08

- 26 -

WALKER TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30, 1997

EXHIBIT "H"

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

UBH
LOTTERY FOR EDUCATION

FUND BALANCE - JULY 1

Reserved Unreserved
Designated Surplus

$

1,228.32

$

2,503.90 $

1,772.00

$

3,732.22 $

1,772.00 $

ADDITIONS

Adjustments to Prior Year's Accounts Payable

$

3,191.04 $

Excess of Funds Available over Expenditures

Exhibit "I"

19,176.90

0.00 $

$

22,367.94 $

0.00 $

DEDUCTIONS

Unreserved Fund Balance (Surplus)

Returned to Georgia Department of Technical and

Adult Education - Administrative Central Office

Year Ended June 30, 1996

$

Refunds to Grantors

Georgia Department of Technical and Adult

Education - Administrative Central Office

Federal Financial Assistance

Reserved Fund Balance Carried Over from

Prior Year as Funds Available

2,503.90 $

1,772.00 $

12,544.68 1,228.32

$

16,276.90 $

1,772.00 $

FUND BALANCE - JUNE 30

(To Exhibit "G")

$

9,823.26 $

0.00 $

TOTAL
1,228,32 4,275.90 5,504.22
3,191,04 19,176.90 22,367.94
4,275.90
12,544.68 1,228.32
18,048.90
9,823.26

See notes to the financial statements.

- 27 -

WALKER TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1997

EXHIBIT "I"

"All
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

n8" LOTTERY FOR
EDUCATION

TOTAL

FUNDS AVAILABLE

REVENUES

STATE APPROPRIATIONS

Allotment from Georgia Department of Technical and

Adult Education - Administrative Central Office

$

3,561,263,77 $ 1,213,522,00 $ 4,774,785,77

FEDERAL REVENUES

$

893,013,12

$ 893,013,12

OTHER REVENUES RETAINED

Allotment from Georgia Department of Technical and

Adult Education - Administrative Central Office

PEACH Project

$

Contracts

Georgia Department of Human Resources

PEACH Project

Georgia Institute of Technology

Satellite Technology Program

Fees

Application

Graduation

Registration/Continuing Education

Testing

Other

Interest Earned

Sales and Services (Net)

Tuition

Vending

Other Sources

5,665.45
31,125,21
9,688,94
18,050.00 6,333,26 109,348.42 31,081,00 81,991.40 13,752,57 18,178,20 778,722,00 10,555,32 34,575,63

$

5,665.45

31,125,21
9,688,94
18,050,00 6,333.26
109,348.42 31,081,00 81,991.40 13,752,57 18,178,20
778,722,00 10,555,32 34,575,63

Total Other Revenues Retained

$

1,149,067.40

$ 1,149,067.40

Total Revenues

$

5,603,344,29 $ 1,213,522.00 $ 6,816,866,29

CARRY-OVER FROM PRIOR YEAR

Transfer from Reserved Fund Balance Live Work Projects

$

1,228.32

$

1,228,32

Total Funds Available

$

5,604,572,61 $ 1,213,522.00 $ 6,818,094.61

See notes to the financial statements.

- 28 -

See notes to the financial statements.

- 29 -

WALKER TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1997

EXHIBIT "I"

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

"All DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

$

335,069.75

4,682.74 21,987,02 23,271.91
1,212.00 138.00 270.00

22,272.82 4,664.57 1,164.08
39,341.87

4,201.95 5,664.60

35,336.00

5,850.00

42,285.32 200.00
3,654.11

308.74 8,200.00

$

559,775.48

$

81,812.92

55.89 10,889.35 11,067.70

$ 335,069.75
4,682.74 21,987.02 23,271,91
1,212.00 138.00 270.00
22,272.82 4,664.57 1,164.08
39,341,87
4,201.95 5,664.60
35,336.00
5,850.00
42,285.32 200.00
3,654.11
308.74 8,200.00
$ 559,775.48

$

81,812.92

55.89 10,889.35 11,067.70

See notes to the financial statements.

- 30 -

WALKER TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1997

EXHIBIT "I"

EXPENDITURES
JOB TRAINING PARTNERSHIP ACT
Personal Services Employer's Contributions for: Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Other Operating Expenses Publications and Printing Equipment Purchases Non-Inventory
Travel Equipment
Equipment Purchases Lease/Purchase of Equipment Telecommunications Per Diem, Fees and Contracts Per Diem and Fees
EQUIPMENT-TECHNICAL INSTITUTES
Equipment Equipment Purchases
Total Expenditures
Excess of Funds Available over Expenditures

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

flS" LOTTERY FOR
EDUCATION

TOTAL

$

606.00

69.00

135.00

1,034.55 662.00
73,298.53 199.92

1,397.60 3,158.59

4,382.00 2,400.00
475.77

2,995.10

$

194,639.92

$

606,00

69,00

135.00

1,034.55 662.00
73,298.53 199.92

1,397.60 3,158.59

4,382.00 2,400.00
475.77

2,995.10

$ 194,639.92

$ 1,213,522.00 $ 1,213,522.00

$ 5,585,395.71 $ 1,213,522.00 $ 6,798,917.71

19,176.90

0.00

19,176.90

$ 5,604,572.61 $ 1,213,522.00 $ 6,818,094.61

See notes to the financial statements.

.- 31 -

WALKER TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30,1997

SCHEDULE "1"

Totals per Annual Supplement
Accruals June 30, 1997

Totals per Report

SUMMARY BY OBJECT CLASS

BUDGET FUND

Personal Services-Institutions

Operating Expenses-I nstitutions



Adult Literacy Grants Job Training Partnership Act

SALARIES $ 3,164,968.68 $

TRAVEL 44,181.16

47,054.25

$ 3,212,022.93 $======44:::::.!,=18==:1=.1:=6

$ 2,795,140.26 $
335,069.75 81,812.92

35,357.97 5,664.60 3,158.59

$ 3,212,022.93 $ =====44=,=18=1==:.1=6

See notes to the financial statements.

- 32-

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

WALKER TECHNICAL INSTITUTE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

849-96-01

Previously Reported Corrective Action Implemented

PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

849-96-01

Previously Reported Corrective Action Implemented