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.