WEST GEORGIA TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS - 
 
LETTER OF TRANSMITTAL 
 
SECTION I 
 
SELECTED FINANCIAL INFORMATION 
 
EXHIBITS 
 
A ANALYSIS OF CHANGES IN FUND BALANCE 
 
BUDGET FUND 
 
1 
 
SCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES 
 
COMPARED TO BUDGET 
 
BUDGET FUND 
 
B 
 
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION 
 
2 
 
C 
 
"B"LOTTERYFOREDUCATION 
 
3 
 
D RECONCILIATION OF SALARIES AND TRAVEL 
 
4 
 
SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 ;SELL W. HINTON 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
November 29,2000 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members ofthe State Board of Technical and Adult Education Members of the Local Board ofDirectors 
and Honorable William Sellers, President West Georgia Technical Institute 
Ladies and Gentlemen: 
As part ofour audit ofthe statutory basis financial statements ofthe State ofGeorgia presented in the State ofGeorgia Report ofthe State Auditor, the general purpose financial statements ofthe State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2000, we have performed certain audit procedures at West Georgia Technical Institute. Accordingly, the financial statements and compliance activities ofWest Georgia Technical Institute were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of1996. 
This Management Report contains information pertinent to the financial and compliance activities of West Georgia Technical Institute as of and for the year ended June 30, 2000. The particular information provided is enumerated in the Table of Contents. 
This report is intended solely for the information and use ofmanagement and members ofthe Local Board of Directors of West Georgia Technical Institute and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
0~s~selwl W..Hint4on f" State Auditor 
RWH:gp 
 
 SECTION I SELECTED FINANCIAL INFORMATION 
 
 WEST GEORGIA TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE 
BUDGET FUND YEAR ENDED JUNE 3D, 2000 
 
EXHIBIT "A" 
 
FUND BALANCE - JULY 1, 1999 
Reserved Surplus 
ADDITIONS 
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures 
Exhibit "B" 
Exhibit "c" 
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30,1999 Refunds to Grantors Federal Financial Assistance Georgia Department of Technical and Adult Education - Administrative Central Office Reserved Fund Balance Carried Over from Prior Year as Funds Available 
FUND BALANCE - JUNE 3D, 2000 
 
"A" DEPARTMENT OF 
TECHNICAL AND ADULT EDUCATION 
 
"B" 
LOTIERYFOR EDUCATION 
 
$ 
 
12,053.32 
 
4,609.31 $ 
 
0.00 
 
$ 
 
16,662.63 $ 
 
0.00 
 
$ 
 
3,512.26 
 
48,244.60 
 
$ 
 
0.00 
 
$ 
 
51,756.86 $ 
 
0.00 
 
$ 
 
4,609.31 $ 
 
0.00 
 
21.93 
 
11,273.90 
 
$ 
 
15,905.14 $ 
 
0.00 
 
$ 
 
52,514.35 $===.",,;;,O;,;;;'O~O 
 
SUMMARY OF FUND BALANCE Reserved Federal Financial Assistance For Refund to Grantor Agency Georgia Department of Technical and Adult Education - Administrative Central Office Other Live Work Projects Prior Year Local Funds 
Surplus 
-1- 
 
$ 
 
4,655.34 
 
939.55 
 
7,737.98 
 
1,042.37 
 
$ 
 
14,375.24 
 
38,139.11 $ 
 
0.00 
 
$ 
 
52,514.35 $ ===~O.~OO~ 
 
 WEST GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET BUDGET FUND 
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30. 2000 
 
EXHIBIT"B" 
 
$ 6,974,850.00 $ 6,571,928.95 $ 
 
-4. .:. ;0:. : 2:.:. .:,9:. : 2. .:. ;1.;.; ,.05,; . 
 
EXPENDITURES 
Personal Services-Institutions Operating Expenses-Institutions Capital Outlay Year 2000 Project Funding Adult Literacy Grants Job Training Partnership Act 
 
$ 4,791,868.00 $ 4,458,440.76 $ 
 
1,693,237.00 1,602,671.50 
 
10,000.00 
 
10,000.00 
 
8,100.00 
 
8,100.00 
 
448,990.00 
 
427,901.07 
 
22,655.00 
 
16,571.02 
 
333,427.24 90,565.50 0.00 0.00 21,088.93 6,083.98 
 
$ 6,974,850.00 $ 6,523,684.35 $ 
 
4. .:. ;5:. . ;1. !.,.,1:. : 6. .; .,5.;.; ,.6,; . 5 
 
Excess of Funds Available over Expenditures 
 
$ 48,244.60 $ ===4..8.=,2..4.=4.=6=0 
 
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 WEST GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET BUDGET FUND 
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 2000 
 
EXHIBIT"C" 
 
FUNDS AVAILABLE REVENUES 
State Appropriation 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 254,191.00 $ 254,191.00 $ 
 
...:0...:.0...;;..0 
 
EXPENDITURES Equipment-Technical Institutes 
 
- - - - - - $ 254,191.00 $ 254,191.00 $ 
 
0.00 
 
Excess of Funds Available over Expenditures 
 
$ 
 
0.00 $=====0=.0:=0 
 
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 WEST GEORGIA TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL 
YEAR ENDED JUNE 30. 2000 
 
EXHIBIT"D" 
 
Totals per Annual Supplement 
Accruals June 30, 2000 
Unlocated Variance 
 
SALARIES 
 
TRAVEL 
 
$ 3,846,827.19 $ 
 
38,553.80 
 
8,570.90 -1,742.80 
 
$ 3,853,655.29 $ ======3=:8=,5=5::::3.:=8=,=0 
 
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 SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 WEST GEORGIA TECHNICAL INSTITUTE AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-819-98-01 FS-819-99-01 FS-819-99-02 FS-819-99-03 
 
Further Action Not Warranted Previously Reported Corrective Action hnplemented Unresolved-See Corrective Action/Responses Partially Resolved-See Corrective Action/Responses 
 
CORRECTIVE ACTIONIRESPONSES 
 
CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: FS-819-99-02 
 
West Georgia Technical Institute will implement appropriate procedures and controls to ensure that all bank statements are reconciled to the general ledger on a timely basis and that all reconciling items are identified and corrected. The Accounting Manager will manage this process. Adjustments necessary for reconciliations will be adequately identified and detailed. Written procedures on performing bank reconciliations is being implemented and have been added to procedures manual for Administrative Services. The Vice President of Administrative Services will approve all bank reconciliations. 
 
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures Finding Control Number: FS-819-99-03 
 
West Georgia Technical Institute will perform a formal reconciliation of activity in the Asset Management System in FY2000. Accounting personnel will review inventory records to determine the proper valuation ofequipment items. Adjustments will be made to correct the overstated valuation and supporting documentation will be kept on file. The Accounting Manager is responsible for inventory reconciliation. 
 
PRIQR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
819-96-02 
 
Further Action Not Warranted 
 
 SECTION III CURRENT YEAR FINDINGS AND QUESTIONED COSTS 
 
 WEST GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: FS-819-00-01 
Accounting procedures ofthe West Georgia Technical Institute were insufficient to provide adequate internal controls over the Cash and Cash Equivalents and General Ledger control categories as noted below: 
Cash and Cash Equivalents 
(1) Book errors disclosed through the bank reconciliation process were carried as reconciling items for extended periods oftime. 
(2) Numerous reconciling items totaling $505,944.95, which were reflected on the bank reconciliation for the general operating account, were not properly documented. 
(3) The payroll account was not reconciled to the general ledger as presented for review nor were the auditors able to identify documentation to support $65,648.54 of unadjusted reconciling items. In addition, an unidentified variance of $1,101.75 existed between the bank reconciliation and general ledger at June 30, 2000. 
(4) Deposits were not recorded to bank accounts in a timely manner, if at all. 
(5) The Institute failed to record disbursements ofnumerous checks in the general ledger. 
(6) Numerous electronic banking activities were not recorded to the general ledger. 
(7) Clearing accounts included numerous unidentified transactions, which required extensive work by the auditors to correct. 
General Ledger 
(1) Journal entries were made to the accounting records without proper authorization. 
(2) Journal entries were made without proper supporting documentation or explanation. 
(3) Accounts payable per the general ledger at June 30, 2000 included items totaling $14,078.29, which were not adequately documented. 
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 WEST GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2000 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: FS-819-00-01 These deficiencies occurred because ofmanagement's failure to establish procedures to analyze and reconcile cash balances on the general ledger with supporting records, and management's failure to adequately monitor and document journal entries and other balance sheet accounts. The Institute should establish appropriate procedures to ensure that the general ledger is posted, balanced, and reviewed on a monthly basis and that detailed records supporting the general ledger are complete, accurate and reliable. In addition, the accounting personnel ofthe Institute were given instruction in the proper accounting procedures for journal entries, which includes the necessity of all journal entries being properly approved and documented prior to entry into the accounting system. GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures Finding Control Number: FS-819-00-02 The June 30, 2000, AM409 Report (General Ledger Inventory Report) contained several equipment items purchased in a prior year that appeared to be materially overstated in regard to acquisition cost. An estimated amount of $522,560.00 was determined to be overstated. This problem occurred because management failed to record equipment items at historical cost in accordance with the State Property System Manual. West Georgia Technical Institute should establish controls to ensure that equipment inventories are maintained in accordance with the State Property System Manual. In addition, accounting personnel should review the inventory records to determine the proper valuation of equipment items. 
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