Technical College System of Georgia, Atlanta, Georgia, budgetary compliance report for the fiscal year ended June 30, 2012 [June 30, 2012]

TECHNICAL COLLEGE SYSTEM OF GEORGIA
ATLANTA, GEORGIA
BUDGETARY COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012
Georgia Department of Audits and Accounts Greg S. Griffin State Auditor

TECHNICAL COLLEGE SYSTEM OF GEORGIA - TABLE OF CONTENTS -

SECTION I
COMPLIANCE
INDEPENDENT ACCOUNTANT'S REPORT
EXHIBITS
A STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE BUDGET FUND
B STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE BUDGET FUND

Page
2 4

SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I COMPLIANCE

Greg S. Griffin
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
November 19, 2012

Honorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the State Board of the Technical College System of Georgia
and Honorable Ronald Jackson, Commissioner Technical College System of Georgia
INDEPENDENT ACCOUNTANT'S REPORT
Ladies and Gentlemen:
We were engaged to examine the Technical College System of Georgia's compliance with the 2012 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia for fiscal year ended June 30, 2012. Management is responsible for the Technical College System of Georgia's compliance with the following requirements:
An appropriated budget unit cannot overspend their authorized budgeted amounts at the legal level of budgetary control (funding source within program). This means that the amounts that are reflected in the "actual" and "variance" columns of the appropriated budget unit's budgetary comparison schedule at the legal level of budgetary control (funding source within program) are all positive variances or result in an excess of funds available over expenditures.
The Constitution of the State of Georgia (Article VII, Section IV Paragraph VIII) provides, in part, "...the credit of the State shall not be pledged or loaned to any individual, company, corporation or association." As applied here, this provision of the Constitution of the State of Georgia requires that an appropriated budget unit have available, at the time of entering into a provider agreement, sufficient appropriated funds, not otherwise obligated, to satisfy all potential liabilities to be incurred by the State pursuant to such agreement.
Our responsibility is to express an opinion on the Technical College System of Georgia's compliance with these requirements based on our examination.
Except as disclosed in the following paragraph, our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, includes examining, on a test basis, evidence about the Technical College System of Georgia's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Technical College System of Georgia's compliance with those requirements; however, our report may be useful to legal counsel or others in making such determinations.

In accordance with section 50-6-1(c) of the Official Code of Georgia Annotated, Greg S. Griffin was appointed State Auditor on July 1, 2012. During the year under review, Mr. Griffin served as the State Accounting Officer. As the State Accounting Officer, Mr. Griffin was responsible for the State's accounting and financial reporting practices and managing the enterprise accounting and payroll systems.
In our opinion, the Technical College System of Georgia complied, in all material respects, with the aforementioned requirements for the fiscal year ended June 30, 2012.
This report is intended solely for the information and use of the Board and management of the Technical College System of Georgia and the State of Georgia, including the Governor and the Georgia General Assembly and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,

GSG:as

Greg S. Griffin State Auditor

EXHIBITS - 1 -

Technical College System of Georgia
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2012

Departmental Administration State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified American Recovery & Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds
Total Departmental Administration
Adult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds
Total Adult Literacy
Quick Start and Customized Services State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds
Total Quick Start and Customized Services
Technical Education State Appropriation State General Funds Federal Funds Child Care and Development Block Grant Federal Funds Not Itemized American Recovery and Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds
Total Technical Education
Budget Unit Totals

Original Appropriation

Amended Appropriation

Final Budget

Funds
Current Year Revenues

$ 7,635,862.00 $ 7,636,801.00 $ 7,636,801.00 $ 7,636,801.00

2,650,000.00

1,995,084.00

1,425,078.00

1,325,099.50

1,440,000.00

210,000.00

976,315.00 129,409.00

293,964.05 131,070.48

11,725,862.00

9,841,885.00

10,167,603.00

9,386,935.03

12,828,054.00
16,860,000.00 4,250,000.00
33,938,054.00

13,144,937.00
19,110,000.00 5,480,000.00
37,734,937.00

13,144,937.00
18,435,359.00 6,066,016.00
37,646,312.00

13,144,937.00
18,075,922.76 5,276,315.66
36,497,175.42

12,769,875.00
1,200,000.00 9,630,000.00
23,599,875.00

12,910,423.00
1,000,000.00 8,930,000.00
22,840,423.00

12,910,423.00
1,017,828.00 8,858,195.00
22,786,446.00

12,910,423.00
576,087.64 6,457,478.78
19,943,989.42

280,037,095.00
2,850,000.00 47,199,000.00
266,750,000.00
596,836,095.00

281,175,814.00
44,999,000.00
255,450,000.00
581,624,814.00

281,175,814.00
49,890,997.00
4,678,701.00 319,116,742.00
654,862,254.00

281,175,814.00
37,992,430.27
3,051,995.25 271,736,543.00
593,956,782.52

$ 666,099,886.00 $ 652,042,059.00 $ 725,462,615.00 $ 659,784,882.39

- 2 -

EXHIBIT "A"

Available Compared to Budget

Prior Year Reserve Program Transfers

Carry-Over

or Adjustments

Total Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Actual

Variance Positive (Negative)

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

$

-$

639.28

-

639.28

- $ 7,636,801.00 $

-

1,325,738.78

-

293,964.05

-

131,070.48

-

9,387,574.31

- $ 7,636,801.00 $

(99,339.22)

1,325,099.50

(682,350.95) 1,661.48

293,964.05 123,162.37

(780,028.69)

9,379,026.92

-$ 99,978.50 682,350.95
6,246.63 788,576.08

639.28
7,908.11 8,547.39

-
104,564.31 86,341.94
190,906.25

-
4,250.89 268,569.96
272,820.85

13,144,937.00
18,184,737.96 5,631,227.56
36,960,902.52

-
(250,621.04) (434,788.44)
(685,409.48)

13,115,300.87
18,025,819.74 5,567,521.68
36,708,642.29

29,636.13
409,539.26 498,494.32
937,669.71

29,636.13
158,918.22 63,705.88
252,260.23

-
3,605.60 3,490,100.19
3,493,705.79

-
202,926.93
202,926.93

12,910,423.00
579,693.24 10,150,505.90
23,640,622.14

-
(438,134.76) 1,292,310.90
854,176.14

12,910,320.87
564,297.51 6,749,757.68
20,224,376.06

102.13
453,530.49 2,108,437.32
2,562,069.94

102.13
15,395.73 3,400,748.22
3,416,246.08

-
661,531.78
70.01 57,477,908.19
58,139,509.98

-
(21,204.57)
22,169.34 (476,712.55)
(475,747.78)

281,175,814.00
38,632,757.48
3,074,234.60 328,737,738.64
651,620,544.72

-
(11,258,239.52)
(1,604,466.40) 9,620,996.64
(3,241,709.28)

281,161,941.49
38,057,972.68
3,047,805.55 279,219,929.98
601,487,649.70

13,872.51
11,833,024.32
1,630,895.45 39,896,812.02
53,374,604.30

13,872.51
574,784.80
26,429.05 49,517,808.66
50,132,895.02

$ 61,824,761.30 $

- $ 721,609,643.69 $ (3,852,971.31) $ 667,799,694.97 $ 57,662,920.03 $ 53,809,948.72

- 3 -

Technical College System of Georgia
Statement of Changes to Fund Balance By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2012

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Period as Funds Available

Return of Fiscal Year 2011
Surplus

Prior Period Adjustments

Departmental Administration State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds
Total Departmental Administration
Adult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds
Total Adult Literacy
Quick Start and Customized Services State Appropriation State General Funds Federal Funds Federal Funds Not Itemized Other Funds
Total Quick Start and Customized Services
Technical Education State Appropriation State General Funds Federal Funds Child Care and Development Block Grant Federal Funds Not Itemized American Recovery and Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds
Total Technical Education
Total Operating Activity
Prior Year Reserves Not Available for Expenditure Inventories Refunds to Grantors Other Reserves

$

34,065.77 $

639.28

23,849.06

58,554.11

-$ (639.28)
(639.28)

(34,065.77) $ -
(23,849.06) (57,914.83)

2,509.13 -
31,741.90 34,251.03

25,558.62
104,564.31 90,400.89
220,523.82

-
(104,564.31) (86,341.94)
(190,906.25)

(25,558.62)
(4,058.95)
(29,617.57)

1,738.19
(50,210.08) 5,641.34
(42,830.55)

30,018.76
3,605.60 3,490,423.96
3,524,048.32

-
(3,605.60) (3,490,100.19)
(3,493,705.79)

(30,018.76)
(323.77)
(30,342.53)

11,553.28
(11,789.75) 16,910.93
16,674.46

76,075.80
661,531.78
70.01 57,630,289.96
58,367,967.55
62,171,093.80

-
(661,531.78)
(70.01) (57,477,908.19)
(58,139,509.98)
(61,824,761.30)

(76,075.80)
-
(152,381.77)
(228,457.57)
(346,332.50)

120,612.02
(428,256.69)
1,119.00 (1,457,758.12)
(1,764,283.79)
(1,756,188.85)

4,216,796.94

-

-

-

257.23

-

-

6,476.31

891,333.47

-

-

-

Budget Unit Totals

$ 67,279,481.44 $ (61,824,761.30) $ (346,332.50) $ (1,749,712.54)

- 4 -

EXHIBIT "B"

Other Adjustments

Early Return of Fiscal Year 2012
Surplus

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

Ending Fund Balance/(Deficit)
June 30

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

$

-$

(2,163.59) $

-$

345.54 $

(639.28)

-

639.28

0.00

1,505.08

(7,634.61)

7,908.11

33,520.48

865.80

(9,798.20)

8,547.39

33,866.02

-$ -

345.54 $ -
33,520.48 33,866.02

345.54 0.00 -
33,520.48 33,866.02

-
(22,708.12) 4,249.56
(18,458.56)

-

29,636.13

31,374.32

-

-

158,918.22

-

63,705.88

86,000.02 73,596.78

86,000.02 57,935.75

-

252,260.23

190,971.12

143,935.77

31,374.32
15,661.03
47,035.35

31,374.32
86,000.02 73,596.78
190,971.12

-
(3,605.60) (239,787.02)
(243,392.62)

(3,725.73)
-
(3,725.73)

102.13
15,395.73 3,400,748.22
3,416,246.08

7,929.68
0.38 3,177,872.13
3,185,802.19

-
0.38 3,177,795.87
3,177,796.25

7,929.68
76.26
8,005.94

7,929.68
0.38 3,177,872.13
3,185,802.19

2,615.74
(39,020.77)
(27,478.05) 49,930.25
(13,952.83)
(274,938.21)

(9,627.05)
-
-
(9,627.05)
(23,150.98)

13,872.51
574,784.80
26,429.05 49,517,808.66
50,132,895.02
53,809,948.72

127,473.22
107,507.34
70.00 48,109,980.79
48,345,031.35
51,755,670.68

-
107,507.34
70.00 48,017,308.26
48,124,885.60
51,446,617.62

127,473.22
-
92,672.53
220,145.75
309,053.06

127,473.22
107,507.34
70.00 48,109,980.79
48,345,031.35
51,755,670.68

89,226.05

-

1,489.30

-

(122,640.31)

-

-

4,306,022.99

4,306,022.99

-

8,222.84

8,222.84

-

768,693.16

768,693.16

-

4,306,022.99

-

8,222.84

-

768,693.16

$ (306,863.17) $

(23,150.98) $ 53,809,948.72 $ 56,838,609.67 $ 56,529,556.61 $

309,053.06 $ 56,838,609.67

Summary of Ending Fund Balance Reserved
Inventories Federal Financial Assistance Refunds to Grantors Other Reserves Unreserved, Undesignated Surplus
Total Ending Fund Balance - June 30

$ 4,306,022.99 $ 193,577.74 8,222.84
52,021,733.04
-
$ 56,529,556.61 $

-
309,053.06
309,053.06

$ 4,306,022.99 193,577.74 8,222.84
52,021,733.04
309,053.06
$ 56,838,609.67

- 5 -

SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS

TECHNICAL COLLEGE SYSTEM OF GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2012
No matters were reported.