{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn66-b2010-h2011","title":"North Georgia Technical College, Clarkesville, Georgia, management report for fiscal year ended June 30, 2011","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts. Education Division"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts. Education Division"],"dc_date":["2011-06-30"],"dcterms_description":["Continues North Georgia Technical College, Clarkesville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts. Education Division"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["North Georgia Technical College--Appropriations and expenditures--Periodicals.","Technical institutes--Georgia--Auditing--Periodicals.","Technical institutes--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["North Georgia Technical College, Clarkesville, Georgia, management report for fiscal year ended June 30, 2011"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b2010-h2011"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b2010-h2011"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"NORTH GEORGIA TECHNICAL COLLEGE \r\nCMRKESVILLE, GEORGLA \r\nMANAGEMENT REPORT \r\nFOR FISCAL YEAR ENDED \r\nJUNE 30,2011 \r\nA Member College of the Technical \r\nCollege System of Georgia \r\nGeorgia I Aa\u0026b and Accopltlts \r\n.' LI \r\nI State Auditor \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nLETTER OF TRANSMITTAL \r\n \r\nSELECTED FINANCIAL INFORMATION \r\n \r\nEXH IBlTS \r\n \r\nA STATEMENT OF NET ASSETS - (GAAP BASIS) \r\n \r\nB STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS (GAAP BASIS) \r\n \r\nC STATEMENT OF CASH FLOWS - (GAAP BASIS) \r\n \r\nD SELECTED FINANCIAL NOTES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULES \r\n \r\n1 BALANCE SHEET - (STATUTORY BASIS) - BUDGET FUND \r\n \r\n16 \r\n \r\n2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\n \r\n(STATUTORY BASIS) BUDGET FUND \r\n \r\n17 \r\n \r\n3 STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET \r\n \r\nBY PROGRAM AND FUNDING SOURCE \r\n \r\n(STATUTORY BASIS) BUDGET FUND \r\n \r\n18 \r\n \r\n4 STATEMENT OF CHANGES TO FUND BALANCE \r\n \r\nBY PROGRAM AND FUNDING SOURCE \r\n \r\n(STATUTORY BASIS) BUDGET FUND \r\n \r\n20 \r\n \r\n5 RECONCILIATIONOF SALARIES AND TRAVEL \r\n \r\n23 \r\n \r\nSECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n SECTION I FI NANClAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1- 156 \r\nAtlanta, Georgia 30334-8400 \r\nNovember 1 6 , 2 0 1 1 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the State Board of the Technical College System of Georgia Members of the Local Board of Directors \r\nand HonorableSteve Dougherty, President North Georgia Technical College \r\nLadies and Gentlemen: \r\nAs part of our audit of the basic financial statements of the State of Georgia presented in the State of \r\nGeorgia ComprehensiveAnnual Financial Report and the issuance of a State of Georgia Single Audit \r\nReport pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2011, we have performed certain audit procedures at North Georgia Technical College. Accordingly, the financial statements and compliance activities of North Georgia Technical College 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 of 1996. \r\nThis Management Report contains information pertinent to the financial and compliance activities of North Georgia Technical College as of and for the year ended June 30, 2011. Information contained in this report is a by-product of our audit of the basic financial statements of the State of Georgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1, is enumerated in the Table of Contents. \r\nThis report is intended solely for the information and use of management of North Georgia Technical College, members of the Local Board of Directors, and the Southern Association of Colleges and Schools - Commission on Colleges and is not intended to be and should not be used by anyone other than these specified parties. \r\n. Respectfullysubmitted, \r\n \r\n~\u0026sselWl . Hinton, CPA, CGFM State Auditor \r\n \r\n SELECTED FlNANClAL INFORMATION \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE STATEMENT OF NET ASSETS (GAAP BASIS) \r\nJUNE 3 0 . 2 0 1 1 \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Accounts Receivable Federal Financial Assistance Other Prepaid Items Inventories \r\nTotal Current Assets \r\nNoncurrent Assets Capital Assets, Net \r\nTotal Assets \r\nLIABILITIES \r\nCurrent Liabilities Accounts Payable Salaries Payable Deferred Revenue Funds Held for Others Compensated Absences \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Compensated Absences \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted \r\nExpendable Unrestricted \r\nTotal Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE STATEMENTOF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (GAAP BASIS) \r\nYEAR ENDED JUNE 30,2011 \r\nOPERATING REVENUES \r\nStudent Tuition and Fees Less: Scholarship Allowances \r\nGrants and Contracts Federal \r\nRents and Royalties Sales and Services Other Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \r\nTotal Operating Expenses \r\nOperating Income (Loss) \r\nNONOPERATING REVENUES (EXPENSES) \r\nState Appropriations Grants and Contracts \r\nFederal Local Gifis Interest and Other Investment Income Other Nonoperating Expenses \r\nNet Nonoperating Revenues \r\nIncome (Loss) Before Other Revenues, Expenses, Gains, or Losses \r\nCapital Grants and Gifts Federal State Nongovernmental Loss on Disposal of Capital Assets \r\nTotal Other Revenues, Expenses. Gains, or Losses \r\nIncrease (Decrease) in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXHIBIT \"B\" \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE STATEMENT OF CASH FLOWS (GAAP BASIS) \r\nYEAR ENDED JUNE 3 0 , 2 0 1 1 \r\nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments) \r\nNet Cash Provided (Used) by Operatlng Activities \r\nCASH FLOWS FROM NONCAPITAL FINANCINGACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Recetpts \r\nNet Cash Flows Provided (Used) by Noncapital Financing Activities \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received Purchases of Cap~taAl ssets \r\nNet Cash Provided (Used) by Cap~taal nd Related FinancingActivities \r\nCASH FLOWS FROM INVESTING ACTIVITIES Earnings on Investments \r\nNet Increase (Decrease) In Cash \r\nCash and Cash Equivalents - Beginning of Year \r\nCash and Cash Equivalents - End of Year \r\nRECONCILIATION OFOPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: \r\nOperatlng income (Loss) Adjustments to Reconcile Operating Income t o Net Cash \r\nProvided (Used) by Operating Activit~es Depreciation Expense Change in Assets and Liabilities: Accounts Receivable Inventories Prepaid Items Salaries Payable Accounts Payable Deferred Revenue C o m ~ e n S a t e dAbsences \r\nNet Cash Provided (Used) by OperatingActivit~es \r\nNONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2011 \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nEXHIBIT \"Dm \r\n \r\nNorth Georgia Technical College is one of twenty-six (26) State supported member colleges of postsecondary education in Georgia which comprise the Technical College System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of North Georgia Technical College as a separate reporting entity. \r\nThe Technical College's Local Board of Directors is composed of ten (10) members serving staggered three-year terms who are appointed by the State Board of the Technical College System of Georgia. Appropriation of State funds is made to the Technical College System of Georgia by the General Assembly of Georgia. The System Office of the Technical College System of Georgia determines the amount of State appropriations to be received by North Georgia Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, North Georgia Technical College is considered an organizational unit of the Technical College System of Georgia for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial R e ~ o r t i n Sg tandards. \r\nNET ASSETS \r\nThe Technical College's net assets are classified as follows: \r\nInvested in capita/ assets, net of related debt: This amount represents the Technical College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\n- Restrictednetassets expendable: Restricted expendable net assets include resources in which \r\nthe Technical College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties, except for unexpended grant funds of $10.00 due to grantor agencies. \r\nU n m net~ ass~ets: Unrestricted net assets represent available resources derived from student tuition and fees, state appropriations, and sales and services of educational departments. These resources will be used for transactions relating to the educational and general operations of the Technical College, and may be used at the discretion of the governing board to meet subsequent fiscal year expenses for those purposes, except for unexpended state appropriations (surplus) of $7,073.76. Unexpended state appropriations must be refunded to the Technical College System of Georgia for remittance to the Office of the State Treasurer. \r\nWhen an expense is incurred that can be paid using either restricted or unrestricted resources, the Technical College's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources. \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: DEPOSITS \r\nDEBSOSITS \r\nThe custodial credit risk for deposits is the risk that in the event of a bank failure, the Technical College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Technical College) 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 any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: \r\n \r\n1. Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia. \r\n \r\n2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. \r\n \r\n3. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. \r\n4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. \r\n5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National MortgageAssociation. \r\n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\nAt June 30, 2011, the carrying value of deposits was $2,565,609.53 and the bank balance was $3,068,846.22. Of the Technical College's deposits, $2,757,583.26 were uninsured. Of these uninsured deposits, $2,757,583.26 were collateralized with securities held by the financial institution's trust department or agency, but not in the Technical College's name. \r\n \r\nNOTE 3: ACCOUNTS RECEIVABLE \r\n \r\nAccounts receivable at June 30, 2011, consists of the following: \r\n \r\nStudent Tuition and Fees \r\n \r\n$ \r\n \r\n10,421.91 \r\n \r\nFederal, State and Private Funds \r\n \r\n566,265.44 \r\n \r\nGeorgia State Financingand Investment Commission \r\n \r\n31,753.92 \r\n \r\nOther \r\n \r\n57,820.89 \r\n \r\nTotal Accounts Receivable \r\n \r\n NORTH GEORGIA TECH NlCAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4: CAPITAL ASSETS \r\n \r\nFollowingare the changes in capital assets for the year ended June 30, 2011: \r\n \r\nBeanning Balance July 1,2010 \r\n \r\nTransfers From Other Technical \r\nCollege \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30.2011 \r\n \r\nCapital Assets, Not Being Depreciated: land and land Improvements Construction Work In Progress \r\n \r\n$ 560.722.00 $ 88,790.78 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n$ 960,532.06 \r\n \r\n0.00 $ 560.722.00 1,049,322.84 \r\n \r\nTotal Capital Assets, Not Being Depreciated $ 649.512.78 $ \r\n \r\n0.00 $ 960,532.06 $ \r\n \r\n0.00 $ 1,610,044.84 \r\n \r\nCapital Assets, Being Depreciated: Buildingand BuildingImprovements Improvements Other Than Buildings Equipment Library Collections \r\n \r\n$ 33,144,664.78 2,579,078.00 5,891.226.68 $ 796.716.61 \r\n \r\n$ 62,822.76 \r\n \r\n136,900.00 \r\n \r\n$ 33.281.564.78 \r\n \r\n2,579,078.00 \r\n \r\n731,923.64 $ 530,721.73 6,155.251.35 \r\n \r\n56,560.01 35,300.76 \r\n \r\n817,975.86 \r\n \r\nTotal Assets Being Depreciated \r\n \r\n$ 42,411,686.07 $ \r\n \r\n62,822.76 $ 925.383.65 $ 566.022.49 $ 42.833.869.99 \r\n \r\nLess: Accumulated Depreciation: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections \r\n \r\n$ 5,777.564.44 1,760,518.05 \r\n \r\n$ 857.179.42 104,138.00 \r\n \r\n$ 6,634.743.86 1,864.656.05 \r\n \r\nTotal Accumulated Depreciation \r\n \r\n$ 12,805,020.23 $ \r\n \r\n62,822.76 $ 1,632.440.65 $ 564,256.68 $ 13,936,026.96 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 29,606,665.84 $ \r\n \r\n0.00 $ -707,057.00 $ 1,765.81 $ 28,897,843.03 \r\n \r\nCapital Assets, Net \r\n \r\nNOTE 5: DEFERRED REVENUE \r\n \r\nDeferred revenue at June 30, 2011, consists of the following \r\n \r\nPrepaid Tuition and Fees Other Deferred Revenue \r\nTotal Deferred Revenue \r\n \r\n$ \r\n \r\n104,123.70 \r\n \r\nNOTE 6: LONG-TERM LIABILITIES \r\n \r\nLong-Term liability activity for the year ended June 30, 2 0 1 1 was as follows: \r\n \r\nOther Liabilities Compensated Absences \r\n \r\nBeginning Balance July 1.2010 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30,2011 \r\n \r\nCurrent Portion \r\n \r\n$ 861,78125 $ 597,298.12 $ 603,175.10 $ 855,904.27 $ 409.97815 \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 3 0 , 2 0 1 1 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 7: NET ASSETS \r\n \r\nChanges in Net Asset activity for the year ended June 30,2011 was as follows: \r\nBeginning \r\n \r\nBalance \r\n \r\nJuly 1,2010 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nInvested in Capital Assets \r\n \r\nNet of Related Debt \r\n \r\n$ 30,256,178.62$ \r\n \r\n253,475.06 $ \r\n \r\n1,765.81 $ \r\n \r\nEnding Balance June 30,2011 \r\n30,507,887.87 \r\n \r\nRestricted Net Assets \r\n \r\n0.00 \r\n \r\n8,119,364.79 8,119,354.79 \r\n \r\n10.00 \r\n \r\nUnrestricted Net Assets \r\n \r\n898,305.39 18,479,955.61 17.612.642.44 l,765,618.56 \r\n \r\nTotal Net Assets \r\n \r\n$ 3l,154,484.01$ 26.852.795.46 $ 25,733,763.04$ 32,273,516.43 \r\n \r\nNOTE 8: LEASE OBLIGATIONS \r\nCPF~E!.~AT~PL~ETAGSES \r\nNorth Georgia Technical College has entered into certain agreements to lease copiers and office space which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised. \r\nExpenses for rental of copiers and office space under operating leases for the year ended June 30, 2011, totaled $138,039.20. \r\nSUMMARY OF I-EASE BBLIGATTBNS \r\nFuture commitments for noncancellable operating leases having remaining terms in excess of one year as of June 30,2011, were as follows: \r\nOperating Leases \r\nYear EndingJune 30: 2012 2013 2014 2015 \r\n \r\nTotal Minimum Lease Payments \r\n \r\n$ \r\n \r\n112,110.24 \r\n \r\nNOTE 9: RETIREMENT PLANS \r\n \r\nNorth Georgia Technical College participates in various retirement plans administered by the State of Georgia under two major retirement systems: Employees' Retirement System of Georgia (ERS System) and Teachers Retirement System of Georgia. These two systems issue separate publicly available financial reports that include the applicable financial statements and required supplementary information. The reports may be obtained from the respective system offices. The significant retirement plans that North Georgia Technical College participates in are described below. More detailed information can be found in the plan agreements and related legislation. Each plan, including benefit and contribution provisions, was established and can be amended by State law. \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 3 0 . 2 0 1 1 \r\n \r\nEXHIBIT \"D\" \r\n \r\nX:rnpioyeesQRetirement System of Georgia \r\nThe ERS System is comprised of individual retirement systems and plans covering substantially all employees of the State of Georgia except for teachers and other employees covered by the Teachers Retirement System of Georgia. One of the ERS System plans, the Employees' Retirement System of Georgia (ERS), is a cost-sharing multiple-employer defined benefit pension plan that was established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. ERS acts pursuant to statutory direction and guidelines, which may be amended prospectively for new hires but for existing members and beneficiaries may be amended in some aspects only subject to potential application of certain constitutional restraints against impairment of contract. \r\nOn November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of ERS. SRBP-ERS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1, 1998, all members and retired former members in ERS are eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on benefits imposed by IRC Section 415. \r\nThe benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects 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. Members hired on or after July 1,1982 but prior to January 1,2009 are \"new plan\" members subject to the modified plan provisions. Effective January 1,2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the \"old\" or \"new\" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). ERS members hired prior to January 1, 2009 also have the option to change their membership to the GSEPS plan. \r\nUnder the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 1 0 years of creditable service and attainment of age 6 0 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to members' benefits provided the members were hired prior to July 1, 2009. 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. \r\nMember contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, North Georgia Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these North Georgia Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\ncontributions under the new plan and GSEPS are 1.25% of annual compensation. North Georgia Technical College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These North Georgia Technical College contributions are not at any time refundable t o the member or his/her beneficiary. \r\nEmployer contributions required for fiscal year 2 0 1 1 were based on the June 30, 2008 actuarial valuation for the old and new plans and were set by the Board of Trustees on September 18, 2008 for GSEPS as follows: \r\nOld Plan* New Plan GSEPS \r\n* 5.66% exclusive of contributions paid by the employer on behalf of old plan \r\nmembers \r\nMembers become vested after 1 0 years of service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \r\nTeachers Retirement System of Georgia \r\nThe Teachers Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1,1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 3 0 years of creditable service, regardless of age, or after 1 0 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 4 0 years. Early retirement benefits are reduced by the lesser of one-twelfth 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 3 0 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 3 0 , 2 0 1 1 \r\n \r\nEXHIBIT \" D \r\n \r\nTRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 1 0 years of service. If a member terminates with less than 1 0 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2 0 1 1 were 5.53% of annual salary. Employer contributions required for fiscal year 2 0 1 1 were 10.28% of annual salary as required by the June 30, 2008 actuarial valuation. \r\n \r\nThe following table summarizes North Georgia Technical College contributions by defined benefit plan for the years ending June 30,2011, June 30,2010, and June 30,2009: \r\n \r\nE RS Required Contribution \r\n \r\nPercent Contributed \r\n \r\nTRS \r\n \r\nRequired \r\n \r\nPercent \r\n \r\nContribution Contributed \r\n \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description North Georgia Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined 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. \r\nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\nThe Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. \r\nContributions 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 of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Technical College's payroll for the year ended June 30, 2011, for employees covered by GDCP was $1,442,616.54. The Technical College's total payroll for all employees was $9,519,668.80. \r\nTotal contributions made by employees during fiscal year 2 0 1 1 amounted to $108,210.44 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 3 0 , 2 0 1 1 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 10: POST-EMPLOYMENT BENEFITS \r\n \r\nNorth Georgia Technical College participates in the following State of Georgia post-employment benefit plans: the Georgia State Employees Post-employment Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices. \r\n \r\nRetiree health benefits were previously funded through the Georgia Retiree Health Benefit Fund (GRHBF). In 2009, the General Assembly revisited the GRHBF and enacted legislation that, effective August 31, 2009, separated the GRHBF into two new funds: the Georgia School Personnel Postemployment Health Benefit Fund and the Georgia State Employees Post-employment Health Benefit Fund. The purpose of this change was to assure employers responsible for planning and funding future retiree health costs that their contributions will be dedicated to their respective retiree populations. Funds in the GRHBF were transferred to the Georgia State Employees Post-employment Health Benefit Fund or the Georgia School Personnel Post-employment Health Benefit Fund as described in the plan financial statements. The statute that created the GRHBF is repealed effective September 1,2010. \r\n \r\nGeorgia State Employees Postemployment Health Benefit Fund The Georgia State Employees Postemployment Health Benefit Fund (State OPEB Fund) is a costsharing multipleemployer defined benefit post-employment healthcare plan that covers eligible former employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health for inclusion in the plan. The State OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). \r\n \r\nThe contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\n \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the State OPEB Fund were as follows for the fiscal year ended June 30, 2011: \r\n \r\nJune 2010 July 2010 -April 2 0 1 1 \r\nMay 2011- June 2 0 1 1 \r\n \r\n22.165% of covered payrollfor July coverage 25.586% of covered payrollfor August - May coverage 22.667% of covered payrollfor June - July coverage \r\n \r\nNo additional contribution was required by the Board for fiscal year 2 0 1 1 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \r\n-12- \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 3 0 , 2 0 1 1 \r\n \r\nEXHIBIT \"Dn \r\n \r\nThe following table summarizes North Georgia Technical College combined active and retiree contributions to the health insurance plans for the years ending June 30, 2011, June 30, 2010 and \r\n \r\nJune 30,2009: \r\n \r\nPercentage \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nContributed \r\n \r\nContribution \r\n \r\nState Employees'Assurance Department - OPEB \r\nState Employees' Assurance Department - OPE6 (SEAD-OPEB) is a cost-sharing multipleemployer defined benefit post-employment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of Employees', Judicial (JRS), and Legislative (LRS) Retirement Systems, amended to exclude members of JRS and LRS hired on or after July 1,2009. Pursuant to Title 47 of the OCGA, the authority to establish and amend the benefit provisions of the plan is assigned to the Boards of Trustees of the Employees' and Judicial Retirement Systems. \r\nContributions by plan members are established by the Boards of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The Boards of Trustees of the Employees' and Judicial Retirement Systems establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% of earnable compensation. For the fiscal year ended June 30, 2011, contributions of ERS \"old plan\" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS \"new plan\" members and of members of the Judicial and Legislative Retirement Systems were 0.23% of earnable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30,2011, June 30,2010 and June 30,2009. \r\nNOTE 11: CONTINGENCIES \r\nAmounts 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 expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although North Georgia Technical College expects such amounts, if any, to be immaterial to its overall financial position. \r\nLitigation, claims and assessments filed against North Georgia Technical College (an organizational unit of the Technical College System of Georgia), if any, 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 30,2011. \r\nNOTE 12: AFFILIATED ORGANIZATIONS \r\nThe North Georgia Technical Foundation is a legally separate, tax exempt organization whose activities primarily support North Georgia Technical College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement \r\nNo. 39, Determining Whether Certain Organizat-ionsare Component Units. Theref0re, the financiaI \r\nstatements of the affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from North Georgia Technical College. \r\n \r\n (This page left intentionally blank) \r\n \r\n SUPPLEMENTARY INFORMATION \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE BALANCE SHEET (STATUTORY BASIS) \r\nBUDGET FUND JUNE 3 0 . 2 0 1 1 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable \r\nFederal Financial Assistance Other Prepaid Expenditures Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND EOUITY \r\nLiabilities Salaries Payable Encumbrances Payable Accounts Payable Deferred Revenue Funds Held for Others \r\nTotal Liabilities \r\nFund Balances Reserved Bookstore Continuing Education Federal Financial Assistance lnventories Live Works Projects Sales and Services Technology Fees Tuition Unreserved Surplus \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nSCHEDULE \"1\" \r\n \r\nStatutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n-16- \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SUMMARY BUDGEICOMPARISON AND SURPLUSANALYSIS REPORT (STATUTORYBASIS) \r\nBUDGET FUND YEAR ENDEDJUNE30.2011 \r\n \r\nREVENUES \r\nState Appropriation State General Funds \r\nFederal Funds Other Funds \r\nTotal Revenues \r\nADJUSTMENTS AND PROGRAM TRANSFERS \r\nCARRY-OVER FROM PRIOR YEARS \r\nTransfers from Resewed Fund Balance \r\nTotal Funds Available \r\nEXPENDITURES \r\nAdult Literacy Economic Development Technical Education \r\nTotal Exoendltures \r\nExcess of Funds Available over Expendltures \r\nFUND BALANCEJ U U \r\nReserved UnreSeNed \r\nADJUSTMENTS \r\nPrlor Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned \r\nto Technical College System of Georgia Year Ended June 30,2010 \r\nPrior Year Reserved Fund Balance Includedin Funds Available \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nSCHEDULE \"2\" \r\nVARIANCE FAVORABLE (UNFAVORABLE) \r\n \r\nSUMMARY OF FUND BALANCF \r\nReserved Bookstore ContlnulngEducat~on Federal Flnanc~aAl ssistance lnventortes Llve Work Projects Sales and Services Technology Fees Tultlon \r\nTotal Reserved \r\nUnrese~ed Surplus \r\nTotal Fund Balance \r\nStatutory Basis financ~allnformatlon was preparedon a prescribed basis of accountingthat demonstratescompl~ancew~thbudgetary statutes and regulationsof the State of Georgia. which is a comprehensive bas6 of accountingother than generally acceptedaccounting principles. \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE \r\n(STATUTORY BASIS) BUDGET FUND YEAR ENDEDJUNE 30.2011 \r\n \r\nAdult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Spec~ficallyldentified Other Funds \r\nTotal Adult Llteracy \r\nEconomic Development Other Funds \r\nTechnical Education State Approprlatlon State General Funds Federal Funds Federal Funds Not Specifically ldentified Amerlcan Recoveryand Reinvestment Act of 2009 Federal Funds Not Spec~ficallyldent~f~ed Other Funds \r\nTotal Technical Education \r\nTotals By Program \r\n \r\nOriginal Appropriat~on \r\n \r\nAmended Appropriat~on \r\n \r\nF~nal Budget \r\n \r\nCurrent Year Revenues \r\n \r\nStatutory Basis financial ~nformattonwas prepared on a prescribed basis of accounting that demonstrates compllance wlth budgetary statutes and regulations of the State of Georgia. which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n \r\n SCHEDULE 3\" \r\n \r\nFunds Ava~lableCompared to Budget \r\n \r\n~ r l oyrear \r\n \r\nAdjustments and \r\n \r\nTotal \r\n \r\nCarry-Over \r\n \r\nProgram Transfers Funds Available \r\n \r\nVar~ance Posltlve (Negative) \r\n \r\nExpenditures Compared to Budget \r\n \r\nVarlance \r\n \r\nActual \r\n \r\nPosltlve (Negat~ve) \r\n \r\nExcess (Def~clency) of Funds Available \r\nOver/(Under) Expend~tures \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE \r\n(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30.2011 \r\n \r\nAdult Literacy State Appropriatlon State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds \r\nTotal Adult Literacy \r\nEconomic Development Other Funds \r\nTechnical Education State Appropriatlon State General Funds Federal Funds Federal Funds Not Specifically ldentlfied American Recovety and Reinvestment Act of 2009 Federal Funds Not Specifically ldentlfied Other Funds \r\nTotal Technical Education \r\nTotal Operating Activity \r\nPnor Year Reserves Not Available for Expenditure Inventories \r\nBudget Unit Totals \r\n \r\nBeginning Fund Balance/(Deficit) \r\nJuly 1 \r\n \r\nFund Balance Carried Over from \r\nPrior Period as Funds Available \r\n \r\nReturn of Fiscal Year 2010 \r\nSurplus \r\n \r\nPrior Period Adjustments \r\n \r\nStatutory Basis financial information was prepared on a prescribed basis of accountingthat demonstrates compliance with budgetary statutes and regulations of the State of Georgia, whlch 1s a comprehensive basls of accounting other than generally accepted accounting principles. \r\n \r\n SCHEDULE \"4\" \r\n \r\nOther Adjustments \r\n \r\nEarly Return of Fiscal Year 2 0 1 1 \r\nSurplus \r\n \r\nExcess (Deficiency) of Funds Available \r\nOver/(Under) Expenditures \r\n \r\nEnding Fund Balance/(Deficit) \r\nJune 30 \r\n \r\nAnalysis of Ending Fund Balance \r\n \r\nReserved \r\n \r\nSurplus/(Defic~t) \r\n \r\nTotal \r\n \r\nSummary of Ending Fund Balance Reserved \r\nBookstore Continuing Education Federal Financial Assistance Inventories Live Work Projects Sales and Services Technology Fees Tuition Unreserved Sur~lus \r\nTotal Endlng Fund Balance - June 30 \r\n \r\n (This page left intentionally blank) \r\n \r\n Totals per Annual Supplement \r\nAccruals June 3 0 . 2 0 1 1 June 3 0 , 2 0 1 0 \r\nLag Salaries June 3 0 , 2 0 1 1 June 3 0 , 2 0 1 0 \r\nCompensated Absences June 3 0 , 2 0 1 1 June 3 0 , 2 0 1 0 \r\nAdjustments Agency Fund \r\n \r\nNORTH GEORGIA TECHNICAL COLLEGE RECONCILIATIONOF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 3 0 , 2 0 1 1 \r\nSALARIES \r\n \r\nSCHEDULE \"5\" TRAVEL \r\n \r\n SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n NORTH GEORGIA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONEDCOSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30,2011 \r\nFINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported. OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1999-h2000","title":"Management report, North Georgia Technical Institute, Clarkesville, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2000","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts. Education Division"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts. Education Division"],"dc_date":["2000-06-30"],"dcterms_description":["Continued by: North Georgia Technical College"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts. Education Division"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["North Georgia Technical College--Appropriations and expenditures--Periodicals.","Technical institutes--Georgia--Auditing--Periodicals.","Technical institutes--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Management report, North Georgia Technical Institute, Clarkesville, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2000"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":" NORTH GEORGIA TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS - \r\n \r\nLEITER OF TRANSMITIAL \r\n \r\nSELECTED FINANCIAL INFORMATION \r\n \r\nEXHIBITS \r\n \r\nA ANALYSIS OF CHANGES IN FUND BALANCE \r\n \r\nBUDGET FUND \r\n \r\n1 \r\n \r\nSCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nCOMPARED TO BUDGET \r\n \r\nBUDGET FUND \r\n \r\nB \r\n \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\n2 \r\n \r\nC \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\n3 \r\n \r\nD RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n4 \r\n \r\n USSELL W. HINTON \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nSeptember 22, 2000 \r\n \r\nHonorable Roy E. Barnes, Governor Members ofthe General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors \r\nand Honorable Ruth Nichols, President North Georgia Technical Institute \r\nLadies and Gentlemen: \r\nAs 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 North Georgia Technical Institute. Accordingly, the financial statements and compliance activities of North 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 of 1996. \r\nThis Management Report contains information pertinent to the financial and compliance activities of North Georgia Technical Institute as of and for the year ended June 30, 2000. The particular information provided is enumerated in the Table of Contents. \r\nThis report is intended solely for the information and use ofmanagement and members ofthe Local Board ofDirectors ofNorth Georgia Technical Institute and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\nw.~ \r\nR sell W. Hinton State Auditor \r\nRWH:gp \r\n \r\n SELECTED FINANCIAL INFORMATION \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE \r\nBUDGET FUND YEAR ENDED JUNE 30. 2000 \r\n \r\nEXHIBIT \"A\" \r\n \r\nFUND BALANCE - JULY 1, 1999 \r\nReserved Surplus \r\nADDITIONS \r\nAdjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures \r\nExhibit \"B\" Exhibit \"CO Prior Year's Checks Voided \r\nDEDUCTIONS \r\nUnreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1999 \r\nAdjustments to Prior Year's Accounts Receivable \r\nRefunds to Grantors Federal Financial Assistance Georgia Department ofTechnical and Adult Education - Administrative Central Office Other \r\nReserved Fund Balance Carried Over from Prior Year as Funds Available \r\nFUND BALANCE - JUNE 30. 2000 \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" LOTIERYFOR \r\nEDUCATION \r\n \r\n$ \r\n \r\n19,134,30 \r\n \r\n22,777.93 $ \r\n \r\n156.50 \r\n \r\n$ \r\n \r\n41,912,23 $ \r\n \r\n156.50 \r\n \r\n$ \r\n \r\n10,078.74 $ \r\n \r\n7,141,53 \r\n \r\n48,999,02 425,00 \r\n \r\n5,031,59 \r\n \r\n$ \r\n \r\n59,502.76 $ \r\n \r\n12,173.12 \r\n \r\n$ \r\n \r\n22,777,93 $ \r\n \r\n156,50 \r\n \r\n3,557,29 \r\n \r\n3,986,90 443,82 \r\n \r\n19,134,30 \r\n \r\n$ \r\n \r\n49,900,24 $ \r\n \r\n156,50 \r\n \r\n$ \r\n \r\n51,514,75 $ \r\n \r\n12,173.12 \r\n \r\nSUMMARY OF FUND BALANCE Reserved Federal Financial Assistance For Refund to Grantor Agency Georgia Department of Technical and Adult Education - Administrative Central Office Other Inventories Live Work Projects PEACH Project For Refund to Georgia Department of Human Resources \r\nSurplus \r\n- 1- \r\n \r\n$ \r\n \r\n1,141,75 \r\n \r\n7,98 \r\n \r\n6,886.03 \r\n \r\n26,397,92 \r\n \r\n54,57 \r\n \r\n$ \r\n \r\n34,488.25 \r\n \r\n17,026.50 $ \r\n \r\n12,173,12 \r\n \r\n$ \r\n \r\n51,514,75 $ \r\n \r\n12,173.12 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 2000 \r\n \r\nEXHIBIT\"B\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Appropriation Federal Revenues Other Revenues Retained \r\nCARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 7,381,513.00 $ 7,381,513.00 $ \r\n \r\n1,137,544.00 \r\n \r\n938,916.77 \r\n \r\n3,032,901.00 \r\n \r\n2,785,625.06 \r\n \r\n$ 11,551,958.00 $ 11,106,054.83 $ \r\n \r\n0.00 -198,627.23 -247,275.94 \r\n-445,903.17 \r\n \r\n0.00 \r\n \r\n19,134.30 \r\n \r\n19,134.30 \r\n \r\n$ 11,551,958.00 $ 11,125,189.13 $ \r\n \r\n-4..:.:2:.:::6~,7..::::6.:::8.:.:::.87:.... \r\n \r\nEXPENDITURES \r\nPersonal Services-Institutions Operating Expenses-Institutions Capital Outlay Year 2000 Project Funding Adult Literacy Grants \r\n \r\n$ 7,209,707.00 $ 7,062,434.58 $ \r\n \r\n3,637,087.00 \r\n \r\n3,328,078.24 \r\n \r\n10,000.00 \r\n \r\n10,000.00 \r\n \r\n7,600.00 \r\n \r\n7,567.43 \r\n \r\n687,564.00 \r\n \r\n668,109.86 \r\n \r\n147,272,42 309,008.76 \r\n0.00 32.57 19,454.14 \r\n \r\n$ 11,551,958.00 $ 11,076,190.11 $ \r\n \r\n4..:..:7:.::5~,7..::::6..:..:7.:.:::.89:::.. \r\n \r\nExcess of Funds Available over Expenditures \r\n \r\n$ \r\n \r\n48,999.02 $ ===4=8:,9:=9=9.:=02= \r\n \r\n-2- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"B\" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 2000 \r\n \r\nEXHIBIT\"C\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Appropriation \r\nEXPENDITURES Equipment-Technical Institutes \r\nExcess of Funds Available over Expenditures \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCE FAVORABLE (UNFAVORABLE) \r\n \r\n$ 1,161,945,00 $ 311,945.00 $ \r\n \r\n-8:::.:5:::::o~,0:.::::0.=.:0.:.::,00:::.. \r\n \r\n$ 1,161,945.00 $ 306,913.41 $ _ _--:8:::.:5:::::5~,O:.::::3..:.,:1.::,59:::.. \r\n \r\n$ \r\n \r\n5,031,59 $ ==:==:5;;;,o,O~3~1~.5.;;;,,9 \r\n \r\n-3- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30. 2000 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30, 1999 June 30, 2000 \r\n \r\nSALARIES \r\n \r\nTRAVEL \r\n \r\n$ 5,819,453.75 $ 91,521.32 \r\n \r\n-25,032.66 39,349.66 \r\n \r\n$ 5,833,770.75 $ 91,521.32 \r\n \r\n-4- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1998-h99","title":"Management report, North Georgia Technical Institute, Clarkesville, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1999","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts. Education Division"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts. Education Division"],"dc_date":["1999-06-30"],"dcterms_description":["Title varies: Review report"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts. Education Division"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["North Georgia Technical College--Appropriations and expenditures--Periodicals.","Technical institutes--Georgia--Auditing--Periodicals.","Technical institutes--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Management report, North Georgia Technical Institute, Clarkesville, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1999"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1998-h99"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1998-h99"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"C.I\\ Aioc \r\n. ~\\ \r\nN!olo \r\n\\G\\1\\1\u003e-'l'\\ \r\n. - MANAGEMENT REPORT NORTII GEORGIA TECHNICAL INSTITUTE \r\n~SMI:UTuEtGEORGIA \r\nmoRGA,NlZATION:ALUNR: O:E Tim.s.I.~IP- Q:f GEORGIA \r\ny,EAR ENBED JUNE 30, 1999 \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\n \r\n NORTII GEORGIA TECHNICAL INS]TIJJTE MANAGEMENT REPORT -TABLE OF CONTENTS - \r\n \r\nLEITER OF TRANSMITTAL \r\n \r\nSELECTED FINANCIAL INFORMATION \r\n \r\nEXHIBITS \r\n \r\nA ANALYSIS OF CHANGES IN FUND BALANCE \r\n \r\nBUDGET FUND \r\n \r\n. 1 \r\n \r\nSCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nCOMPARED TO BUDGET \r\n \r\nBUDGETFUND \r\n \r\nB \r\n \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\n2 \r\n \r\nC \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\n3 \r\n \r\nD RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n4 \r\n \r\n w. RUSSELL HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nAugust 23, 1999 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members ofthe State Board of Technical and Adult Education Members ofthe Local Board ofDirectors \r\nand Honorable Judy Hulsey, President North Georgia Technical Institute \r\nLadies and Gentlemen: \r\nAs part ofour audit of the statutory basis financial statements of the State of Georgia presented in the State of Georgia Report ofthe State Auditor, the general purpose financial statements of the 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, 1999, we have performed certain audit procedures at North Georgia Technical Institute. Accordingly, the financial statements and compliance activities of North 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 of 1996. \r\nThis Management Report contains information pertinent to the financial and compliance activities ofNorth Georgia Technical Institute as of and for the year ended June 30, 1999. The particular information provided is enumerated in the Table of Contents. \r\nThis report is intended solely for the information and use of management and members of the Local Board ofDirectors ofNorth Georgia Technical Institute and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~.,..a? c.J ..::g~ \r\n~ e l l W. Hinton . State Auditor \r\nRWH:jb \r\n \r\n SELECTED FINANCIAL INFORMATION \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE \r\nANALYSIS OF CHANGES IN FUND BALANCE \r\nBUDGET FUND \r\nYEAR ENDED JUNE 30, 1999 \r\n \r\nEXHIBITA \r\n \r\nFUND BALANCE - JULY 1, 1998 \r\nReserved Surplus \r\nADDITIONS \r\nAdjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures \r\nExhibitB \r\nExhibit c \r\nDEDUCTIONS \r\nUnreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1998 \r\nAdjustments to Prior Year's Accounts Receivable Refunds to Grantors \r\nGeorgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance \r\nGeorgia Department of Human Resources PEACH Project \r\nReserved Fund Balance carried Over from Prior Year as Funds Available \r\nFUND BALANCE - JUNE 30, 1999 \r\n \r\nA \r\nDEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\nB LOTTERY FOR \r\nEDUCATION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n14,909.37 \r\n \r\n634.30 $ \r\n \r\n$ \r\n \r\n15.543.67 $ \r\n \r\n$ 34.94 \r\n34.94 $ \r\n \r\n14,909.37 669.24 \r\n15.578.61 \r\n \r\n$ \r\n \r\n15,791.25 \r\n \r\n$ \r\n \r\n15,791.25 \r\n \r\n29,915.06 $ \r\n \r\n156.50 \r\n \r\n29,915.06 156.50 \r\n \r\n$ \r\n \r\n45-706.31 $ \r\n \r\n156.50 $ 45.862.81 \r\n \r\n$ \r\n \r\n634.30 $ \r\n \r\n34.94 $ \r\n \r\n669.24 \r\n \r\n1,479.75 \r\n \r\n1,479.75 \r\n \r\n1,773.32 \r\n \r\n541.01 \r\n \r\n14.909.37 \r\n \r\n$ \r\n \r\n19.337.75 $ \r\n \r\n34.94 $ \r\n \r\n1,773.32 541.01 \r\n14.909.37 19.372.69 \r\n \r\n$ \r\n \r\n41,912.23 $ \r\n \r\n156.50 $ 42,068.73 \r\n \r\nSUMMARY OF FUND BALANCE \r\nReserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education -Administrative Central Office For Refund to Grantors For Continuation of Federal Programs Inventories Live Work Projects \r\nSurplus \r\n \r\n$ \r\n \r\n2,171.66 \r\n \r\n$ \r\n \r\n2,171.66 \r\n \r\n55.95 \r\n \r\n55.95 \r\n \r\n2,357.87 \r\n \r\n2,357.87 \r\n \r\n3,345.84 \r\n \r\n3,345.84 \r\n \r\n11,202.96 \r\n \r\n11,202.96 \r\n \r\n22.777.93 $ \r\n \r\n156.50 \r\n \r\n22.934.43 \r\n \r\n$ \r\n \r\n41,912.23 $ \r\n \r\n156.50 $ \r\n \r\n42,068.73 \r\n \r\n-1- \r\n \r\n / \r\n \r\nNORTH GEORGIA TECHNICAL INSTITUTE \r\n \r\nEXHIBIT\"B\" \r\n \r\nSCHEDULE OFFUNBSiAVAILABLE:IAND:-EXPENDITURES \r\nCOMPARED T01BliDG.ET \r\n \r\nBUDGET FUND . \r\n \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\nYEAR ENDED JUNE 30. 1999 \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Appropriations Federal Revenues Other Revenues Retained \r\nCARBY-O~B FROM PRIOB YEAB \r\nTransfer from Reserved Fund Balance \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (Ut-:JFAVORABLE) \r\n \r\n$ 6,841,891.00 $ 6,841,891.00 $ \r\n \r\n_1,315,988.00 \r\n \r\n1,068,036.04 \r\n \r\n21611 1096.oo \r\n \r\n2.553.738.61 \r\n \r\ns $ 10,828,975:oo \r\n \r\n10,463,665.65 $ \r\n \r\n0.00 \r\n \r\n14.909.37 \r\n \r\n0.00 -247,951.96 -117.357.39 \r\n-365,309.35 \r\n\u003c. \r\n14.909.37 \r\n \r\n$ 10,828,975.00 $ 10,478,575.02 $ _ _ _-3_5_0_,3_9_9_.9_8 \r\n \r\nEXPENDITURES Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants \r\n.. Excess of Funds Available over Expenditures \r\n \r\n$ 6,761,246.00 $ 6,612,740.22 .$ \r\n \r\n3,362,526.00 \r\n \r\n'3,134,483.55 \r\n \r\n705.203.00 \r\n \r\n701_436.19 \r\n \r\n148,505.78 228,042.45 \r\n3.766.81 \r\n \r\n---------- $ 10,828,975.00 $ 10,448,659.96 $ \r\n \r\n380,315.04 \r\n \r\n.$ . 291915.06 $ =======29=,=91=5=.=06= \r\n \r\n-2 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"B\" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1999 \r\n \r\nEXHIBIT c \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Appropriations \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\ns s s_ _ _ _ 1,909,000.00 \r\n \r\n1,909,000.00 \r\n \r\n....;o..;.;.o...;..o \r\n \r\nEXPENDITURES Equipment-Technical Institutes \r\n \r\n$ 1,909,000.00 $ 1,908,843.50 $ _ _ __;,.15:;..;;6;.;.;;.5...;..0 \r\n \r\nExcess of Funds Available over Expenditures \r\n \r\n$ \r\n \r\n156~0 $====1~5~6-~50~ \r\n \r\n-3- \r\n \r\n NORTH GEORGIA TECHNICAUNSTITUTE . RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 1999 \r\nl. \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30, 1998  June 30, 1999  \r\n \r\nSALARIES $ 5,502,174.09 $ \r\n \r\nTRAVEL 67,026.90  \r\n \r\n-20,528.96 25,032.66 \r\n \r\n-33.25 \r\n \r\n$ 5,506,677.79 $ ====6=6'=99=3=.6===5 \r\n \r\n-4- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1997-h98","title":"Management report, North Georgia Technical Institute, Clarkesville, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1998","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits. Education Division"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits. Education Division"],"dc_date":["1998-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2011.","Report year covers fiscal year.","For some years, report may be released instead called: North Georgia Technical College, Clarkesville, Georgia, report on audit of the financial statements for the fiscal year ended ... or: North Georgia Technical College, Clarkesville, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended ...","Fiscal year ended June 30, 2011; title from PDF cover (Georgia Government Publications database, viewed September 8, 2023).","Fiscal year ended June 30, 2011; (Georgia Government Publications database, viewed September 8, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits. Education Division"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["North Georgia Technical College--Appropriations and expenditures--Periodicals.","Technical institutes--Georgia--Auditing--Periodicals.","Technical institutes--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Management report, North Georgia Technical Institute, Clarkesville, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1998"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1997-h98"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1997-h98"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":",-/\\ \r\n~~oo \r\nRI i\\Jbb \r\n!qql-~~ \r\nMANAGEMENT REPORT NORTH GEORGIA TECHNICAL INSTITUTE \r\nCLARKESVILLE, GEORGIA AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA \r\nYEAR ENDED JUNE 30, 1998 \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS - \r\n \r\nLETTER OF TRANSMITTAL \r\n \r\nSECTION I \r\n \r\nSELECTED FINANCIAL INFORMATION \r\n \r\nEXHIBITS \r\n \r\nA ANALYSIS OF CHANGES IN FUND BALANCE \r\n \r\nBUDGET FUND \r\n \r\nSCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nCOMPARED TO BUDGET \r\n \r\nBUDGET FUND \r\n \r\nB \r\n \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\n2 \r\n \r\nC \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\n3 \r\n \r\nD RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n4 \r\n \r\nSECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CLAUDE L. VICKERS \r\nSTATE AUDITOR \r\n(404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nAugust 21, 1998 \r\n \r\nHonorable 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 \r\nand Honorable Judy Hulsey, President North Georgia Technical Institute \r\nLadies and Gentlemen: \r\nAs part of our audit of the statutory basis financial statements of the State of Georgia presented in the Report ofthe State Auditor, the general purpose financial statements of the 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, 1998, we have performed certain audit procedures at North Georgia Technical Institute. Accordingly, the financial statements and compliance activities ofNorth Georgia Technical Institute were examined to the extent considered necessary in order to express opinion as to the fair presentation ofthe financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. \r\nThis Management Report contains information pertinent to the financial and compliance activities of North Georgia Technical Institute as of and for the year ended June 30, 1998. The particular information provided is enumerated in the Table of Contents. \r\nThis report is intended solely for the use of management ofNorth Georgia Technical Institute. However, this report is a matter of public record and its distribution is not limited. \r\nRespectfully submitted, \r\n \r\nCLV:ds \r\n \r\nClaude L. Vickers State Auditor \r\n \r\n SECTION I SELECTED FINANCIAL INFORMATION \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE \r\nBUDGET FUND YEAR ENDED JUNE 30.1998 \r\n \r\nEXHIBIT \"A\" \r\n \r\nFUND BALANCE - JULY 1 \r\nReserved Surplus \r\nADDITIONS \r\nAdjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures \r\nExhibit \"B\" \r\nDEDUCTIONS \r\nUnreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1997 \r\nAdjustments to Prior Year's Accounts Receivable Refunds to Grantors \r\nGeorgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance \r\nGeorgia Department of Human Resources PEACH Project \r\nReserved Fund Balance Carried Over from Prior Year as Funds Available \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"8\" LOTIERYFOR \r\nEDUCATION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n27,736.92 \r\n \r\n2,184.22 $ \r\n \r\n$ \r\n \r\n29,921.14 $ \r\n \r\n$ 1.00 \r\n1.00 $ \r\n \r\n27,736.92 2,185.22 \r\n29,922.14 \r\n \r\n$ \r\n \r\n7,039.13 $ \r\n \r\n34.94 $ \r\n \r\n7,074.07 \r\n \r\n11,319.90 \r\n \r\n11,319.90 \r\n \r\n$ \r\n \r\n18,359.03 $ \r\n \r\n34.94 $ \r\n \r\n18,393.97 \r\n \r\n$ \r\n \r\n2,184.22 $ \r\n \r\n2,514.33 \r\n \r\n295.63 \r\n \r\n5.40 \r\n \r\n27,736.92 \r\n \r\n$ \r\n \r\n32,736.50 $ \r\n \r\n1.00 $ \r\n \r\n2,185.22 2,514.33 \r\n \r\n1.00 $ \r\n \r\n295.63 5.40 \r\n27l36.92 \r\n32,737.50 \r\n \r\nFUND BALANCE - JUNE 30 \r\n \r\n$ \r\n \r\n15,543.67 $ \r\n \r\n34.94 $===15=,5=7=8=.6.1.. \r\n \r\nSUMMARY OF FUND BALANCE \r\nReserved Federal Financial Assistance Live Work Projects Private Donations \r\nSurplus \r\n \r\n$ \r\n \r\n1,617.41 \r\n \r\n$ \r\n \r\n1,617.41 \r\n \r\n13,152.28 \r\n \r\n13,152.28 \r\n \r\n139.68 \r\n \r\n139.68 \r\n \r\n634.30 $ \r\n \r\n....::3::::::4~.9:3.4 \r\n \r\n669.24 \r\n \r\n$ \r\n \r\n15,543.67 $ \r\n \r\n34.94 $===1;:;05,=57=8,;;:;.6=1 \r\n \r\n-1- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1998 \r\n \r\nEXHIBIT\"B\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Appropriations Federal Revenues Other Revenues Retained \r\nCARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCE FAVORABLE (UNFAVORABLE) \r\n \r\n$ 5,608,670.00 $ 5,608,670.00 $ \r\n \r\n738,660.00 \r\n \r\n597,251.56 \r\n \r\n2,167,196.00 1,956,997.04 \r\n \r\n$ 8,514,526.00 $ 8,162,918.60 $ \r\n \r\n0.00 -141,408.44 -210,198.96 \r\n-351,607.40 \r\n \r\n0.00 \r\n \r\n27,736.92 \r\n \r\n27,736.92 \r\n \r\n$ 8,514,526.00 $ 8,190,655.52 $ \r\n \r\n-. : :32=.:3:.l.:,8:. :.7. :.;0.:. .:.48;:., \r\n \r\nEXPENDITURES \r\nPersonal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants \r\n \r\n$ 5,331,006.00 $ 5,160,522.37 $ \r\n \r\n2,546,724.00 2,382,017.25 \r\n \r\n636,796.00 \r\n \r\n636,796.00 \r\n \r\n170,483.63 164,706.75 \r\n0.00 \r\n \r\n$ 8,514,526.00 $ 8,179,335.62 $ _ _-=3..:.;35:!,.,1.:.:9:.=.0;.::.3..:.;8 \r\n \r\nExcess of Funds Available over Expenditures \r\n \r\n$ \r\n \r\n11,319.90 $ ===,,;.11~,3;;;.:1;,;;;,9;,;;;.9,;.0 \r\n \r\n-2 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"B\" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30.1998 \r\n \r\nEXHIBIT\"C\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Appropriations \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 118,427.00 $ 118,427.00 $ \r\n \r\n0_.0_0 \r\n \r\nEXPENDITURES Equipment-Technical Institutes \r\nExcess of Funds Available over Expenditures \r\n \r\n$ 118,427.00 $ 118,427.00 $ - - - - -0.0-0 \r\n \r\n$ \r\n \r\n0.00 $=======,=0=:.0::::0 \r\n \r\n-3- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 1998 \r\n \r\nEXHIBIT \"0\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30, 1997 June 30,1998 \r\n \r\nSALARIES \r\n \r\nTRAVEL \r\n \r\n$ 4,314,170.69 $ 76,052.39 \r\n \r\n-20,027.59 20,530.96 \r\n \r\n33.25 \r\n \r\n$ 4,314,674.06 $ 76,085.64 \r\n \r\n-4- \r\n \r\n SECTIONll AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-838-97-01 FS-838-97-02 \r\n \r\nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1996-h97","title":"Management report, North Georgia Technical Institute, Clarkesville, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1997","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits. Education Division"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits. Education Division"],"dc_date":["1997-06-30"],"dcterms_description":["Title varies: Review report"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits. Education Division"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["North Georgia Technical College--Appropriations and expenditures--Periodicals.","Technical institutes--Georgia--Auditing--Periodicals.","Technical institutes--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Management report, North Georgia Technical Institute, Clarkesville, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1997"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1996-h97"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1996-h97"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"16A !,A\u003c660 .K! \r\n,NIoIo  \r\n,qc/b-cn \r\nMANAGEMENT REPORT NORTH GEORGIA TECHNICAL INSTITUTE \r\nCLARKESVILLE, GEORGIA AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA \r\nYEAR ENDED JUNE 30, 1997 \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS - \r\n \r\nLETTER OF TRANSMITTAL \r\n \r\nSECTION I \r\n \r\nSELECTED FINANCIAL INFORMATION \r\n \r\nEXHIBITS \r\n \r\nA ANALYSIS OF CHANGES IN FUND BALANCE \r\n \r\nBUDGET FUND \r\n \r\n2 \r\n \r\nSCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nCOMPARED TO BUDGET \r\n \r\nBUDGET FUND \r\n \r\nB \r\n \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\n3 \r\n \r\nC \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\n4 \r\n \r\nD RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n5 \r\n \r\nSECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n CLAUDE L. VICKERS \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nAugust 22, 1997 \r\n \r\nHonorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors \r\nand Honorable Judy Hulsey, President North Georgia Technical Institute \r\nLadies and Gentlemen: \r\nAs part of our audit ofthe statutory basis financial statements of the State of Georgia presented in the Report ofthe State Auditor, the general purpose financial statements of the 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 ofand for the year ended June 30, 1997, we have performed certain audit procedures at North Georgia Technical Institute. Accordingly, the financial statements and compliance activities ofNorth Georgia Technical Institute were examined to the extent considered necessary in order to express 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 of 1996. \r\nThis Management Report contains information pertinent to the financial and compliance activities of North Georgia Technical Institute as of and for the year ended June 30, 1997. The particular information provided is enumerated in the Table of Contents. \r\nThis report is intended solely for the use of management ofNorth Georgia Technical Institute. However, this report is a matter of public record and its distribution is not limited. \r\nRespectfully submitted, \r\n \r\nCLV:cm \r\n \r\nClaude L. Vickers State Auditor \r\n \r\n SECTION I SELECTED FINANCIAL INFORMATION \r\n \r\n THIS PAGE LEFT BLANK \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE \r\nBUDGET FUND YEAR ENDED JUNE 30,1997 \r\n \r\nEXHIBIT \"A\" \r\n \r\nFUND BALANCE - JULY 1, 1996 \r\nReserved Surplus \r\nADDITIONS \r\nAdjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures \r\nExhibit \"B\" Exhibit \"C\" \r\nDEDUCTIONS \r\nUnreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30.1996 \r\nAdjustments to Prior Year's Accounts Receivable Refunds to Grantors \r\nGeorgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance \r\nGeorgia Department of Human Resources PEACH Project \r\nReserved Fund Balance Carried Over from Prior Year as Funds Available \r\n \r\nnAil \r\nDEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\nIIB\" LOTIERYFOR EDUCATION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n28,762.63 \r\n \r\n472.29 $ \r\n \r\n$ \r\n \r\n29,234.92 $ \r\n \r\n$ 2.55 \r\n2.55 $ \r\n \r\n28,762.63 474.84 \r\n29,237.47 \r\n \r\n$ \r\n \r\n3.713.61 \r\n \r\n27.739.96 $ \r\n \r\n$ \r\n \r\n31,453.57 $ \r\n \r\n$ \r\n1.00 1.00 $ \r\n \r\n3,713.61 \r\n27,739.96 1.00 \r\n31,454.57 \r\n \r\n$ \r\n \r\n472.29 $ \r\n \r\n1,453.16 \r\n \r\n44.89 \r\n \r\n34.38 \r\n \r\n28.762.63 \r\n \r\n$ \r\n \r\n30.767.35 $ \r\n \r\n2.55 $ \r\n \r\n474.84 1,453.16 \r\n \r\n2.55 $ \r\n \r\n44.89 34.38 28,762.63 30.769.90 \r\n \r\nFUND BALANCE - JUNE 30. 1997 \r\n \r\n$ \r\n \r\n29,921.14 $ \r\n \r\n1.00 $ ===29:::l:,9:=2=2=.14= \r\n \r\nSUMMARY OF FUND BALANCE \r\nReserved Live Work Projects Private Donations \r\nSurplus \r\n \r\n$ \r\n \r\n12,736.92 \r\n \r\n15,000.00 \r\n \r\n2.184.22 $ \r\n \r\n$ \r\n \r\n29,921.14 $ \r\n \r\n-2- \r\n \r\n$ \r\n....:.;1.~0.::..0 \r\n \r\n12,736.92 15,000.00 \r\n2.185.22 \r\n \r\n1.00 $ ===2::!9.=92=2=.1==4 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1997 \r\n \r\nEXHIBIT\"B\" \r\n \r\nEXPENDITURES Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants \r\nExcess of Funds Available over Expenditures \r\n \r\n$ 8,265,754.00 $ 7,771,410.65 $ \r\n \r\n-4..;;..94,..:.,34_3_.3_5 \r\n \r\n$ 5,052,482.00 $ 5,018,397,10 $ \r\n \r\n2,624,104.00 \r\n \r\n2,138,261.26 \r\n \r\n589,168.00 \r\n \r\n587,012.33 \r\n \r\n34,084.90 485,842.74 \r\n2,155.67 \r\n \r\n$ 8,265,754.00 $ 7,743,670.69 $ _ _......;5..;;;;22~,.:..08:;..;;3......;,3_1 \r\n \r\n$ \r\n \r\n27,739.96 $ =====2=7=,7::::3=9.::::9=6 \r\n \r\n-3- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"B\" LOTIERY FOR EDUCATION YEAR ENDED JUNE 30, 1997 \r\n \r\nEXHIBIT\"C\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Appropriations \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 100,769,00 $ 100,769,00 $ \r\n \r\n...;.o...;..o~O \r\n \r\nEXPENDITURES Equipment-Technical Institutes \r\n \r\n$ 100,769.00 $ 100,768.00 $ \r\n \r\n1._0_0 \r\n \r\nExcess of Funds Available over Expenditures \r\n \r\n$ \r\n \r\n1.00 $ ======1=.0=0 \r\n \r\n-4- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30. 1997 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30,1996 June 30, 1997 \r\n \r\nSALARIES $ 4,159,514.22 $ \r\n \r\nTRAVEL 49,301.88 \r\n \r\n-5,724.68 20,027.59 \r\n \r\n$ 4,173,817.13 $=====4=9,=30=1::::::.8==8 \r\n \r\n-5- \r\n \r\n SECTIONll AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\n838-96-01 \r\n \r\nFurther Action Not Warranted \r\n \r\n SECTIONID CURRENT YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1997 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCASH AND CASH EQUIVALENTS Theft of Funds Amount: $7,241.13 Finding Control Number FS-838-97-01 \r\nFor the year under review and through July 31, 1997, it was discovered that a theft of funds had occurred at North Georgia Technical Institute. An employee with access to the checks and a signature stamp wrote and cashed checks from the general and payroll bank accounts totaling $6,946.13. These checks were not recorded on the general ledger. In addition, this same employee wrote personal checks to the Institute for cash totaling $295.00 which were later returned to the Institute as insufficient fund checks. Documentation relating to the unrecorded checks and returned deposits was removed from the bank statements by the employee. \r\nThis condition occurred because management failed to provide for adequate internal control over the bank reconciliation process and the check writing function. Procedures should be implemented to ensure that internal controls relating to the bank reconciliation process and the check writing function are operating effectively. North Georgia Technical Institute should seek restitution from the individual involved for the total amount of$7,241.13 for deposit into the appropriate Institute bank accounts. \r\nThe individual involved in the theft of funds is no longer employed by the Institute. \r\nCASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Finding Control Number FS-838-97-02 \r\nFor the year under review, our examination of internal controls disclosed that North Georgia Technical Institute's accounting procedures did not provide for adequate internal controls over the bank reconciliation process and the check writing function. The following deficiencies were found to exist: \r\n(1) Blank checks for the Institute's general, payroll and Pell Grant bank accounts were not safeguarded appropriately. \r\n(2) The duty of performing the bank reconciliations on the payroll and Pell Grant accounts was not adequately separated from the check writing function for these accounts. \r\n(3) There was no administrative review to determine that bank reconciliations were prepared accurately and that all reconciling items were identified and the appropriate adjustments made to the accounting records. \r\nThese conditions occurred because management failed to evaluate its assignment of accounting duties and perform administrative reviews in relation to bank reconciliations and the check writing function. \r\nThe Institute should implement the appropriate procedures and controls to ensure that internal controls related to the bank reconciliation process and check writing function are in place and operating effectively. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1995-h96","title":"Review report, state of Georgia, North Georgia Technical Institute, Clarkesville, Georgia, year ended June 30, 1996","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits. Education Division"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits. Education Division"],"dc_date":["1996-06-30"],"dcterms_description":["Title varies: Management report"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits. Education Division"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["North Georgia Technical College--Appropriations and expenditures--Periodicals.","Technical institutes--Georgia--Auditing--Periodicals.","Technical institutes--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Review report, state of Georgia, North Georgia Technical Institute, Clarkesville, Georgia, year ended June 30, 1996"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1995-h96"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1995-h96"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"6J\\ \r\nAgoo \r\n.fU \r\nN6h \r\n/Qq5\"11o \r\n \r\nREVIEW REPORT STAlE OF GEORGIA NORTH GEORGIA lECHNICAL INSTITUlE CLARKESVILLE, GEORGIA YEAR ENDED JUNE 30, 1996 \r\n \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS \r\n254 WASHINGTON STREET ATLANTA. GEORGIA 30334 \r\n( \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nEXHIBITS \r\n \r\nFINANCIAL STATEMENTS \r\n \r\nA COMBINED BALANCE SHEET (STATUTORY BASIS) \r\n \r\nALL FUND TYPES AND ACCOUNT GROUPS \r\n \r\n2 \r\n \r\nB STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BAS1S) \r\n \r\nALL FUND TYPES \r\n \r\n5 \r\n \r\nC STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nBUDGET FUND \r\n \r\n6 \r\n \r\nSTATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\n\\ \r\n::::S' \r\n \r\nCOMPARED TO BUDGET \r\n \r\n3 \r\nD \r\n \r\nBUDGET FUND \"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\n10 \r\n \r\nE \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\nIi \r\n \r\nF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE \r\n \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND \r\n \r\n12 \r\n \r\nG NOTES TO THE FINANCIAL STATEMENTS \r\n \r\n13 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nH COMBINING BALANCE SHEET (STATUTORY BASIS) \r\n \r\nBUDGET FUND \r\n \r\n30 \r\n \r\nI COMBINING STATEMENT OF CHANGES IN FUND BALANCE \r\n \r\n(STATUTORY BASIS) \r\n \r\nBUDGET FUND \r\n \r\n31 \r\n \r\nJ COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nBUDGET FUND \r\n \r\n32 \r\n \r\nK COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nFIDUCIARY FUND TYPE - AGENCY FUNDS \r\n \r\n35 \r\n \r\nSCHEDULES \r\n \r\n1 CASH AND CASH EQUIVALENTS \r\n \r\n36 \r\n \r\n2 INVESTMENTS \r\n \r\n37 \r\n \r\n3 SCHEDULE OF FEDERAL REVENUES \r\n \r\n38 \r\n \r\n4 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL \r\n \r\n39 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE - TABLE OF CONTENTS - \r\nSECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n CLAUDE L. VICKERS \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nSeptember 13, 1996 \r\n \r\nHonorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe State Board ofTechnical and Adult Education Members ofthe Local Board ofDirectors \r\nand Honorable Judy Hulsey, President North Georgia Technical Institute \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have reviewed the accompanying financial statements (Exhibits A through G) ofNorth Georgia Technical Institute as of and for the year ended June 30, 1996, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. 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. All information included in these financial statements is the representation of the management ofNorth Georgia Technical Institute. \r\nA review consists principally ofinquiries of Institute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. \r\nBased on our review, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1. \r\nOur review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Exhibits H through K and Schedules 1 through 4) is presented only for supplementary analysis purposes. Such information has been \r\n \r\n96ARL-4T \r\n \r\n subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we are not aware of any material modifications that should be made thereto. \r\nRespectfully submitted, \r\n~,.......~ \r\nClaude L. Vickers State Auditor \r\nCLV:gp 96ARL-4T \r\n \r\n FINANCIAL STATEMENTS \r\n- 1- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS) \r\nALL FUND TYPES AND ACCOUNT GROUPS JUNE30 1996 \r\n \r\nASSETS \r\nCash and Cash EqUivalents \r\nInvestments \r\nAccounts Receivable State Funds Federal Financial Assistance Student Notes Other \r\nFixed Assets Equipment \r\nAmounts to be Provided for Payment of \r\nAccrued Compensated Absences \r\n \r\nGOVERNMENTAL \r\n \r\nFIDUCIARY FUND TYPES \r\n \r\nFUND TYPE NONEXPENDABLE \r\n \r\nBUDGET \r\n \r\nTRUST \r\n \r\nAGENCY \r\n \r\n$ \r\n \r\n561,650.17 $ \r\n \r\n$ \r\n \r\n$ \r\n \r\n26,353.43 \r\n \r\n53,274.38 \r\n \r\n180,658.93 \r\n \r\n$ \r\n \r\n260,286.74 \r\n \r\n437.21 $ 38,544.04 35,000.00 \r\n$ 8,040.00 48,995.00 \r\n$ 57,035.00 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n821,936.91 $ \r\n \r\n35,437.21 $ 95,579.04 \r\n \r\nLlABILIT!ES AND FUND EQUITY \r\nliabilities Accounts Payable Salaries Payable Payroll Wlthholdings Deferred Revenue Tuition and Fees Funds Held in Custody for Others Compensated Absences \r\nTotal liabilities \r\nFund Equity Investment In General Fixed Assets Fund Balance Reserved Endowment Corpus Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education Administrative Central Office live Work Projects Private Donations Unreserved Designated Surplus Regular Lottery for Education Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n619,654.85 \r\n \r\n5,724.68 \r\n \r\n1,578.91 \r\n \r\n165,741.00 \r\n \r\n$ \r\n \r\n792,699.44 \r\n \r\n$ 95,579.04 $ 95,579.04 \r\n \r\n$ \r\n \r\n35,000.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n13,762.63 \r\n \r\n15,000.00 \r\n \r\n472.29 2.55 \r\n \r\n437.21 \r\n \r\n$ \r\n \r\n29,237.47 $ \r\n \r\n35,437.21 \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\nSee Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\n \r\nThe notes to the financial statements are an integral part of this statement. \r\n \r\n-2- \r\n \r\n821,936.91 $ \r\n \r\n35,437.21 $ 95,579.04 \r\n \r\n ACCOUNT GROUPS \r\n \r\nGENERAL GENERAL \r\n \r\nFIXED \r\n \r\nLONG-TERM \r\n \r\nASSETS \r\n \r\nDEBT \r\n \r\nTOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30,1995 \r\n \r\n$ 600,631.42 $ 469,657.29 $ 35,000.00 $ 35,000.00 \r\n \r\n$ 26,353.43 $ 53,274.38 8,040.00 229,653.93 \r\n \r\n25,058.29 \r\nQ,254Zf \r\n8,040.00 60,333.30 \r\n \r\n$ 317,321.74 $ 160,685.86 \r\n \r\n$ 2,913,9n.28 \r\n \r\n$ 2,913,9n.28 $ 2,575,083.83 \r\n \r\n$ 416,890.13 $ 416,890.13 $ 361,387.89 \r\n \r\n$ 2,913,9n.28 $ 416,890.13 $ 4,283,820.57 $ 3,601,814.87 \r\n \r\n$ 619,654.85 $ 5,724.68 1,578.91 \r\n \r\n$ 416,890.13 \r\n \r\n165,741.00 95,579.04 416,890.13 \r\n \r\n$ 416,890.13 $ 1,305,168.61 $ \r\n \r\n541,635.21 0.00 0.00 \r\n10,992.50 62,163.09 361,387.89 \r\n976,178.69 \r\n \r\n$ 2,913,9n.28 \r\n \r\n$ 2,913,9n.28 $ 2,575,083.83 \r\n \r\n35,000.00 \r\n \r\n35,000.00 \r\n \r\n0.00 13,762.63 15,000.00 \r\n \r\n24.18 13,040.65 \r\n0.00 \r\n \r\n$ 2,913,9n.28 \r\n \r\n472.29 2.55 \r\n437.21 \r\n \r\n1,396.23 396.58 694.71 \r\n \r\n$ 2,978,651.96 $ 2,625,636.18 \r\n \r\n$ 2,913,9n.28 $ 416,890.13 $ 4,283.820.57 $ 3,601 ,814.87 \r\n \r\n-3- \r\n \r\n THIS PAGE LEFT BLANK \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS) \r\nALL FUND TYPES YEAR ENDED JUNE 30,1996 \r\n \r\nEXHIBIT-B\" \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information, \r\nThe notes to the financial statements are an integral part of this statement \r\n-5 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30, 1996 \r\n \r\nEXHIBIT\"C\" \r\n \r\nFUNDS AVAILABLE \r\nREVENUES \r\nSTATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office \r\nFEDERAL REVENUES (See Schedule) \r\nOTHER REVENUES RETAINED Allotments from Georgia Department ofTechnical and Adult Education - Administrative Central Office Construction Reserve Trust Fund Contracts Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Rabun Council of Economic Development Organization Donations Fees Application Parking Registration/Continuing Education Testing Other Reimbursements from Various Sources Sales and Services (Net) Tuition Vending Other Sources \r\nTotal Other Revenues Retained \r\nTotal Revenues \r\nCARRY-OVER FROM PRIOR YEAR \r\nTransfer from Reserved Fund Balance Live Work Projects \r\nTotal Carry-Over from Prior Year \r\n \r\nTOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 \r\n \r\n$ 5,536,689,76 $ 5,448,158.94 $ 697,275.52 $ 732,223.82 \r\n \r\n$ \r\n \r\n97.00 $ \r\n \r\n0.00 \r\n \r\n20,146.20 \r\n \r\n17,442.10 \r\n \r\n9,262.69 \r\n \r\n15,229.09 \r\n \r\n284.06 15,000.00 \r\n \r\n88,926.81 0.00 \r\n \r\n12,330.00 153.00 \r\n198,350.25 14,608.00 95,531.94 54,658.70 \r\n248,200.82 773,852.68 \r\n1,045.10 15,554.86 \r\n \r\n12,600.00 0.00 \r\n161,493.36 19,944.00 29,400.00 55,897.94 \r\n312,508.67 553,346.91 \r\n0.00 2,076.62 \r\n \r\n$ 1,459,075.30 $ 1,268,865.50 \r\n \r\n$ 7,693,040.58 $ 7,449,248.26 \r\n \r\n$ \r\n \r\n13,040.65 $_---'-10\"\"',.;..;;18-.9,;,,;;;.6\"\"-5 \r\n \r\n$ \r\n \r\n13,040.65 $_---'-10\"\"',.;..;;18-.9,;,,;;;.6\"\"-5 \r\n \r\nTotal Funds Available \r\n \r\n$ 7,706,081.23 $ 7,459,437.91 \r\n \r\nSee Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n-6- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 3D. 1996 \r\n \r\nEXHIBIT\"C\" \r\n \r\nSee Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial Statements are an integral part of this statement. \r\n-7- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30,1996 \r\n \r\nEXHIBIT\"C\" \r\n \r\nTOTALS YEAR ENDED JUNE 3D, 1996 JUNE 3D, 1995 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30,1996 \r\n \r\nEXHIBIT\"C\" \r\n \r\n$ 7,706,081.23 $ 7,459,437.91 \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement \r\n-9- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\nwAwDEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30,1996 \r\n \r\nEXHIBIT wOw \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Funds Federal Revenues Other Revenues Retained \r\nCARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 5,537,332.00 $ 5,536,689.76 $ \r\n \r\n811,868.00 \r\n \r\n697,275.52 \r\n \r\n2,444,309.00 \r\n \r\n1,458,978.30 \r\n \r\n$ 8,793,509.00 $ 7,692,943.58 $ \r\n \r\n-642.24 -114,592.48 -985,330.70 \r\n-1,100,565.42 \r\n \r\n0.00 \r\n \r\n13,040.65 \r\n \r\n13,040.65 \r\n \r\n$ 8,793,509.00 $ 7,705,984.23 $ -1,087,524.77 \r\n \r\nEXPENDITURES \r\nPersonal Services-Institutions .Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act \r\n \r\n$ 5,380,415,00 $ 5,036,599.64 $ \r\n \r\n2,667,971.00 2,041,593.51 \r\n \r\n604,877.00 \r\n \r\n566,597.97 \r\n \r\n140,246.00 \r\n \r\n32,421.77 \r\n \r\n343,815.36 626,377.49 \r\n38,279.03 107,824.23 \r\n \r\n$ 8,793,509.00 $ 7,677,212.89 $ - - - '1-,'1;16\",2\"9:6'.1-128,771.34 \r\n \r\nSee Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\n. The notes to the financial statements are an integral part of this statement. \r\n- 10 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"B\" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 1996 \r\n \r\nEXHIBIT \"E\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nOther Revenues Retained \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n97.00 $ \r\n \r\n97.00 $ - - - - - -0.00 \r\n \r\nEXPENDITURES Repairs and Renovations \r\n \r\n$ \r\n \r\n97.00 $ \r\n \r\n97.00 $ \r\n \r\n-.;.0.;.;..0.;..0 \r\n \r\nExcess of Funds Available over Expenditures \r\n \r\n$ \r\n \r\n0.00 $ ========0.:=00... \r\n \r\nSee Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary tnformation. The notes to the financial statements are an integral part of this statement. \r\n- 11 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1996 \r\n \r\nEXHIBIT \"F\" \r\n \r\nREVENUES Interest Earned \r\nEXPENDITURES Operating Expenses Scholarships \r\nExcess of Revenues over (under) Expenditures FUND BALANCE JULY 1. 1995 \r\n \r\nLENORAM. SARLING \r\nSCHOLARSHIP FUND \r\n \r\n$ \r\n \r\n18;.,;;8-..7=.5,;;..0 \r\n \r\n$ _ _.:.2.r.:..14.:.;:5.:;;.0.:..0 \r\n \r\n$ \r\n \r\n-257.50 \r\n \r\n35.694.71 \r\n \r\nFUND BALANCE JUNE 30.1996 \r\n \r\n$ ===3=5=,4=:37=,2=1 \r\n \r\nSee Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n-12 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30.1996 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES / \r\nREPORTING ENTITY \r\nNorth Georgia Technical Institute is one of twenty-nine (29) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations ofNorth Georgia Technical Institute as a separate reporting entity. \r\nThe Institute's Local Board ofDirectors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department ofTechnical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State funds to be received by North Georgia Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, NorthGeorgia Technical Institute is considered an organizational unit ofthe Georgia Department ofTechnical and Adult Education for financial reporting purposes because of the significance ofits legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. \r\nFUND ACCOUNTING \r\nNorth Georgia Technical Institute uses funds and account groups to report on its financial position and the results ofits 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 ofaccounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number offunds 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. \r\nFunds and account groups presented in the accompanying financial statements are as follows: \r\nGOVERNMENTAL FUND TYPE \r\nBUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1995-1996. 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. \r\nFIDUCIARY FUND TYPES \r\nNONEXPENDABLE TRUST FUND - The fund used to account for assets, revenues, and expenses utilized in accordance with the provisions ofthe trust established by individual agreement, statute, or administrative action. Nonexpendable trust funds are used when only the revenues earned on the principal (corpus) of the \r\n- 13 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT IIGil \r\n \r\nNOTE 1: SUM?vfARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFUND ACCOUNTING \r\nFIDUCIARY FUND TYPES \r\nNONEXPENDABLE TRUST FUND trust may be expended for the purposes designated in the trust agreement and the principal of the trust agreement must remain intact. \r\nAGENCY FUNDS - The funds used to account for assets held for use by other funds, governments,- or individuals. \r\nACCOUNT GROUPS \r\nGENERAL FIXED ASSETS - The account group used to account for fixed asset~ used in governmental fund type operations. Fixed assets purchased are recorded at cost or at estimated historical cost if historical cost is not practically determinable. Donated fixed assets are recorded at fair market value on the date d9nated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets. \r\nThe cost of normal maintenance and repairs that do not add to the value ofthe asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life ofthe assets are included in the General Fixed Assets Account Group. \r\nGENERAL 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. \r\nBASIS OF ACCOUNTING MEASUREMENT FOCUS \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office of the Department ofTechnical and Adult Education for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year. Nonexpendable trust funds, on the other hand, should be accounted for on a flow of economic resources measurement focus, in which all assets and all liabilities are included on the balance sheet. However, in accordance with accounting practices prescribed or permitted by the State of Georgia, the nonexpendable trust funds utilize the current financial resources measurement focus. \r\n \r\n- 14 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGETFUND \r\nExcept as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they are \"measurable and available\"). \"Measurable\" means the amount 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 funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. \r\nContractual 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. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles. \r\n. Prior period adjustments and certain other items are reported as additions to and deductions from fund balance of the Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. \r\nFIDUCIARY FUND TYPES NONEXPENDABLE TRUST FUND \r\nThe Nonexpendable Trust Fund is maintained 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 become both measurable and available). \"Measurable\" means the amount ofthe transaction can be determined and lIavailablell means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Revenues that are accrued include primarily interest income and certain amounts earned under terms ofthe trust agreements. Expenditures are recorded when the related fund liability is incurred. \r\nA Statement ofCash Flows is not presented for the Nonexpendable Trust Fund in the accompanying financial statements as required by generally accepted accounting principles. \r\n- 15 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1996 \r\n \r\nEXlllBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nBASIS OF ACCOUNTING FIDUCIARY FUND TYPES AGENCY FUNDS \r\nAgency 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. \r\n \r\nBUDGET 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 1995-1996. The budget allocation and disbursement ofthese 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. \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCash and Cash Equivalents include currency on hand and demand deposits with banks and other authoriZed \r\n \r\nfinancial institutions. \r\n \r\n. \r\n \r\nINVESTMENTS Investments are defined as those financial instruments with terms in excess ofthree months from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost. \r\n \r\nACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Georgia Department of Technical and Adult Education - Administrative Central Office, reimbursements due from Federal, State. local, and private grants and contracts, and other receivables disclosed from information available. \r\n \r\nAccounts receivable (Other) arising from operations are reported at gross value. Based on management's evaluation that amounts uncollectible are not material, no provision has been made for such amounts. \r\n \r\nINVENTORIES No inventories of supplies are reported in these financial statements. Expendable supplies are recorded as expenditures at the time of purchase. \r\n \r\nRESERVED 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: \r\n \r\n- 16- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30.1996 \r\n \r\nEXIllBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nRESERVED FUND BALANCE \r\n \r\nLIVE WORK PROJECTS In accordance with the Official Code of Georgia Annotated Section 20-4-14(c), the accumulated balance ofunexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects or for the benefit ofinstructional programs at the technical institute in subsequent fiscal years. \r\n \r\nENDOWMENT CORPUS The principal (corpus) of the Lenora M. Sarling Scholarship Fund. This amount must remain intact per provisions ofthe trust agreement. \r\n \r\nPRIVATE DONATIONS The unexpended balance of private donations which is restricted for expenditur~ in future years for the specific purposes as designated by the grantors. \r\n \r\nUNRESERVED FUND BALANCE \r\n \r\nIn accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of \r\n \r\nGeorgia, the Budget Fund's unreserved fund balance is returned to the Georgia Department ofTechnical and \r\n \r\nAdult Education - Administrative Central Office for remittance to the Office ofTreasury and Fiscal Services \r\n \r\nin the subsequent fiscal year as surplus, as follows: \r\n \r\n. \r\n \r\nREGULAR - An amount ofunexpended regular appropriations designated for reappropriation by the State in subsequent years. \r\n \r\nLOTTERY FOR EDUCATION - An amount ofunexpended lottery appropriations designated for future reappropriation by the State for Lottery for Education. \r\n \r\nCOMPENSATED 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 withexpendable available financial resources. Funds are provided in the allotment of State funds each year to the Institute to cover the cost of annual leave paid to terminated employees. \r\n \r\nThe liability for compensated absences at year-end is reported in the General Long-Term Debt Account Group for governmental funds. \r\n \r\n- 17 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 3D. 1996 \r\n \r\nEXlllBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nMEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned \"Memorandum Only\" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. \r\nCOMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding ofthe changes in the Institute's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding ofthe Institute's financial position and operations or would cause the statements to be unduly complex and difficult to understand. \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia 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: \r\n(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations ofthe United States or ofthe State of Georgia. \r\n(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State ofGeorgia. \r\n(3) Bonds ofany 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. \r\n(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia. \r\n(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\n- 18 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1996 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES As authorized in the Official Code ofGeorgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia (which include technical institutes) the option ofexempting demand deposits from the collateral requirements. \r\n \r\nCATEGORIZATION OF DEPOSITS \r\n \r\nFor purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include \r\n \r\ndemand deposits and/or interest bearing accounts. The bank balances as ofJune 30, 1996, are categorized \r\n \r\nbelow in order to provide information about the extent to which such deposits are exposed to custodial credit \r\n \r\nrisk: \r\n \r\n. \r\n \r\nCategory 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. \r\n \r\nCategory 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the Institute's name. \r\n \r\nCategory 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. \r\n \r\nCash Deposits \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 598631 42 $ 92999475 $ 271 531 01 $,==~Ql!olQ~Q $ 658463 74 \r\n \r\nCATEGORIZATION OF INVESTMENTS For purposes of analysis of custodial credit risk, investments consist of U. S. government securities. Investments are stated at cost, and are summarized and classified as to custodial credit risk within the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the Institute or its agent in the Institute's name. \r\n \r\nCategory 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Institute's name. \r\n \r\nCategory 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Institute's name. \r\n \r\n- 19- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT IIGil \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nCATEGORIZATION OF INVESTMENTS The carrying amounts of investment balances as ofJune 30, 1996, are categorized below: \r\n \r\nType ofInvestment U. S. Government Securities \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\nCarrying Amount \r\n \r\nMarket Value \r\n \r\n$ 3500000 $ \r\n \r\no 34 00 $,====-=~O~,OO~ $ 35 000 00 $ \r\n \r\n848 00 \r\n \r\nNOTE 3: OPERATING LEASES \r\n \r\nNorth Georgia Technical Institute has entered into certain agreements to lease equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date ofthe original term ofthe lease, the Institute has the option of renewing the lease on a year-to-year basis. \r\n \r\nExpenditures for rental of equipment under operating leases for the year ended June 30, 1996, totaled $2,440.00. \r\n \r\nNOTE 4: CHANGES IN GENERAL FIXED ASSETS \r\n \r\nIn accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost of$I,OOO.OO or greater are reflected in the General Fixed Assets Account Group. \r\n \r\nThe following is a summary ofchanges ofequipment for the General Fixed Assets Account Group during the fiscal year: \r\n \r\nBalance July 1, 1995 \r\n \r\n$ 2,575,083.83 \r\n \r\nAdditions Deductions \r\n \r\n423,731.91 84.838.46 \r\n \r\nBalance June 30, 1996 \r\n \r\n$ 2.913.977,28 \r\n \r\nNOTE 5: GENERAL LONG-TERM DEBT \r\n \r\nCHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1996, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group: \r\n \r\n- 20- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 5: GENERAL LONG-TERM DEBT \r\n \r\nCHANGES IN GENERAL LONG-TERM DEBT \r\n \r\nBalance July 1, 1995 \r\n \r\n$ 361,387.89 \r\n \r\nAdditions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits \r\n \r\n53,391.71 2.110.53 \r\n \r\nBalance June 30, 1996 \r\n \r\n$ 416.890.13 \r\n \r\nNOTE 6: RISK MANAGEMENT \r\n \r\nPublic Entity Risk Pool \r\n \r\n. \r\n \r\nThe State Personnel Board - Merit System ofPersonnel Administration administers for the State of Georgia \r\n \r\na program ofhea1th benefits for the employees ofunits ofgovernment ofthe State of Georgia, units of county \r\n \r\ngovernments, and local education agencies located with the State of Georgia. This plan is funded by \r\n \r\nparticipants covered in the plan, by employers' contributions paid by the various units of government \r\n \r\nparticipating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel \r\n \r\nBoard - Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to \r\n \r\nprocess claims in accordance with the State Employees' Health Benefit Plan as established by the State \r\n \r\nPersonnel Board. \r\n \r\nOther 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 ofcommercial 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. \r\n \r\nNOTE 7: DEFERRED COMPENSATION PLAN \r\n \r\nThe State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not \r\n \r\n- 21 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT IIGil \r\n \r\nNOTE 7: DEFERRED COMPENSATION PLAN \r\navailable to employees until tennination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996. \r\nNOTE 8: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description North Georgia Technical Institute participates in the Teachers Retirement System of Georgia (TRS), a costsharing multiple-employer public employee retirement system (PERS) established by the General Assembly ofGeorgia for the purpose ofproviding retirement allowances and other benefits for teachers ofthe State of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by TRS was $1,204,725.91. The Institute's total payroll for all employees was $4,133,301.03. \r\nBenefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number ofyears ofcreditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. \r\nRetirement 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 ofdeath or up to the time of disability. \r\nMembers become fully vested after ten years of service. If a member tenninates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. \r\n \r\n- 22- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1996 \r\n \r\nEXHIBIT IIGil \r\n \r\nNOTE 8: RETIREMENTPLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nContributions Required and Contributions Made Employees ofthe Institute who are covered by TRS are required to pay 5% oftheir gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1996, the employer contribution rate was 11.81% for covered employees. The interest rate assumption (rate of return on investments) was 7.50%. \r\n \r\nTotal contnoutions to the plan made during fiscal year 1996 amounted to $202,516.97, of which $142,278.23 was made by the Institute and $60,238.74 was made by employees. These contributions represented 11.81% (Institute) and 5% (employees) of covered payroll. \r\n \r\nFunding Status and Progress \r\n \r\nPension Benefit Obligation \r\n \r\n, \r\n \r\nThe amount of the total pension benefit obligation is based on a standardized measurement established by \r\n \r\nStatement No.5 of the Governmental Accounting Standards Board (GASB) that is required to be used for \r\n \r\nreporting purposes. The standardized measurement is the actuarial present value ofcredited projected benefits. \r\n \r\nThis pension valuation method reflects the present value of estimated pension benefits that will be paid in \r\n \r\nfuture years as a result of employee services performed to date and is adjusted for the effects of projected \r\n \r\nsalary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was \r\n \r\nadopted by the GASB to enable readers of the PERS financial statements to assess that PERS funding status \r\n \r\non a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and \r\n \r\nmake comparisons among similar PERS. \r\n \r\nThe total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, which was the latest information available, was as follows: \r\n \r\nTotal pension ,benefit obligation \r\n \r\n$ 17,442,607,000.00 \r\n \r\nNet assets available for benefits, at cost \r\n \r\n15,857,066,000.00 \r\n \r\nUnfunded pension benefit obligation \r\n \r\n$ 1.585 541.00000 \r\n \r\nThe measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits were valued as ofthe same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers. \r\n \r\nRetirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1996, were $607,274,559.00. The Institute's contribution for the year ended June 30, 1996, of $142,278.23 was actuarially determined and represented .0234% of total contributions made by all participating employers. \r\n \r\n- 23- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 8: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nTrend Information Historical trend information is presented in the TRS June 30, 1996, financial report. This information gives an indication ofthe progress made in accumulating sufficient assets to pay benefits when due. \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description North Georgia Technical Institute participates in the Employees' Retirement System of Georgia (ERS), a single-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose ofproviding retirement allowanceS for employees ofthe State of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by ERS was $2,429,257.96. The Institute's total payroll for all employees was $4,133,301.03. \r\nBenefits The benefit structure. of ERS was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an \"old plan\" member subject to the plan provisions in effect prior to July 1, 1982. All other members are \"new plan\" members subject to the modified plan provisions. \r\nUnder both the old plan and new plan, members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age. \r\nRetirement 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 of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are, also available through ERS. \r\nContributions Required and Contributions Made As established by State statute, all full-time employees ofthe State of Georgia and its political subdivisions, who are not members ofother state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. \r\n \r\n- 24- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 8: RETmEMENTPLANS \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nContributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofcompensation and 4.75% ofcompensation paid by the Institute on behalf ofthe employee. Under the new plan, member contnbutions consist solely of 1.25% of 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, 1996, the ERS employer contribution rate for the Institute amounted to 14.89% ofcovered payroll and included the 4.75% contributed on behalfofthe employee under the old plan referred to above. The employer contributions are projected to liquidate the unfunded actuarial liability within 20 years based upon the actuarial valuation of June 30, 1995. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. \r\nActuarial assumptions used by the ERS to compute actuarially determined contribution requirements are the same as those used to compute the pension benefit obligation. \r\nTotal contributions to the plan made during fiscal year 1996 amounted to $421,219.90, ofwhich $391,293.06 was made by the Institute and $29,926.84 was made by employees. These contributions met the requirements ofthe plan. \r\nFunding Status and Progress . Funding status and progress information is presented in the ERS June 30, 1996, financial report which may . be obtained through ERS. \r\nTrend Information Historical trend information is presented in the ERS June 30, 1996, financial report which may be obtained through ERS. This information gives an indication ofthe progress made in accumulating sufficient assets to pay benefits when due. \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description North Georgia Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined 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 ofthe Employees' Retirement System of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by GDCP was $347,265.97. The Institute's total payroll for all employees was $4,133,301.03. \r\n \r\n- 25- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30.1996 \r\n \r\nEXIllBIT \"G\" \r\n \r\nNOTE 8: RETIREMENT PLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nBenefits. A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $ 3,500.00 credited to hislher account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa member, a lump sum distribution equaling the amount credited to hislher account will be paid to the member's designated beneficiary. \r\nContributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination ofemployment, the amount ofthe member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 1996 amounted to $26,045.62 which represents 7.50% ofcovered payroll. These contributions met the requirements ofthe plan. \r\nNOTE 9: LEAVB POLICIES \r\nEmployees 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 . \r\nEmployees earn one and one-quarter days ofsick 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. \r\nCertain 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 ofGeorgia. \r\nNOTE 10: NONMONETARY TRANSACTIONS \r\nThe 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 ofunits of State government or to contract with units of State government for the construction or acquisition ofcapital outlay projects. During the fiscal year ended June 30, 1996, the Georgia State Financing and Investment Commission paid $609,984.26 to various vendors for approved projects for the benefit of North Georgia Technical Institute. \r\n- 26- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30.1996 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 11: CONTINGENCIES \r\nAmounts 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. \r\nLitigation, claims and aSsessments filed against North Georgia Technical Institute (as an organizational unit ofthe Department of Technical and Adult Education), ifany, are generally considered to be actions against the State ofGeorgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996. \r\nNOTE 12: BONDING INFORMATION \r\nThe President and all employees ofNorth Georgia Technical Institute are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium has been paid to October 1, 1996. Under this agreement, the public employee dishonesty coverage insures North Georgia Technical Institute to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum of$I,OOO,OOO.OO against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment. \r\nAll employees ofNorth Georgia Technical Institute are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 6260116752 and 626 0122944, on which the premiums have been paid to October 1, 1996. Under these additional public employee dishonesty coverages, the policies insure the Institute to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees and from failure of its employees to perform faithfully. \r\n \r\n- 27- \r\n \r\n THIS PAGE LEFT BLAHK \r\n \r\n SUPPLEMENTARY INFORMAnON - 29 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS) \r\nBUDGET FUND JUNE 30, 1996 \r\n \r\nEXHIBIT\"H\" \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable State Funds Federal Financial Assistance Other \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" LOTTERY FOR \r\nEDUCATION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n561,647.62 $ \r\n \r\n$ \r\n \r\n26,353.43 \r\n \r\n53,274.38 \r\n \r\n180,658.93 \r\n \r\n$ _ _-=2:;::,;60:.z:,2::.::8~6.:.:..7..:..4 \r\n \r\n2.55 $ 561,650.17 \r\n$ 26,353.43 53,274.38 180,658.93 \r\n$ 260.286.74 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n821 .934.36 $ \r\n \r\n2.55 $ 821,936.91 \r\n \r\nLIABILITIES AND FUND EqUITY \r\nUabilities Accounts Payable Salaries Payable Payroll Wrthholdings Deferred Revenue Tuition and Fees \r\nTotal Uabilities \r\nFund Equity Fund Balance Reserved Live Work Projects Private Donations Unreserved Designated Surplus Regular Lottery for Education \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n619,654.85 \r\n \r\n5,724.68 \r\n \r\n1,578.91 \r\n \r\n165,741.00 \r\n \r\n$ \r\n \r\n792,699.44 \r\n \r\n$' \r\n \r\n13,762.63 \r\n \r\n15,000.00 \r\n \r\n472.29 $ \r\n \r\n$ \r\n \r\n29,234.92 $ \r\n \r\n$ 619,654.85 5,724.68 1,578.91 \r\n165,741.00 \r\n$ 792,699.44 \r\n \r\n$ \r\n \r\n13,762.63 \r\n \r\n15,000.00 \r\n \r\n2.55 2.55 $ \r\n \r\n472.29 2.55 \r\n29,237.47 \r\n \r\nTotal Uabilities and Fund Equity \r\n \r\n$ \r\n \r\n821 ,934.36 $ \r\n \r\n2.55 $ 821,936.91 \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 30 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS) \r\nBUDGET FUND YEAR ENDED JUNE 30, 1996 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFUND BALANCE - JULY 1 \r\nReserved Unreserved \r\nDesignated Surplus \r\nADDITIONS \r\nAdjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures \r\nExhibit\"J\" \r\nDEDUCTIONS \r\nUnreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30,1995 \r\nRefunds to Grantors Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance \r\nReserved Fund Balance Carried Over from Prior Year as Funds Available \r\nFUND BALANCE - JUNE 30 \r\n(To Exhibit \"Hi \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" LOTTERY FOR \r\nEDUCATION \r\n \r\n$ \r\n \r\n13,064.83 \r\n \r\n$ \r\n \r\n1,396,23 $ \r\n \r\n396.58 \r\n \r\n$ \r\n \r\n14,461.06 $ \r\n \r\n396.58 $ \r\n \r\n$ \r\n \r\n518.11 $ \r\n \r\n28,771.34 \r\n \r\n$ \r\n \r\n29,289.45 $ \r\n \r\n2.55 $ 2.55 $ \r\n \r\n$ \r\n \r\n1,396.23 $ \r\n \r\n396,58 $ \r\n \r\n78,71 \r\n \r\n13,040.65 \r\n \r\n$ \r\n \r\n14,515.59 $ \r\n \r\n396.58 $ \r\n \r\n$ \r\n \r\n29,234.92 $ \r\n \r\n2.55 $ \r\n \r\nTOTAL \r\n13,064.83 1,792,81 \r\n14,857.64 \r\n520,66 28,771.34 29,292.00 \r\n1,792,81 \r\n78.71 13,040.65 14,912.17 \r\n29,237.47 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information, \r\n- 31 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30,1996 \r\n \r\nEXHIBIT HJ't \r\n \r\nTotal Funds Available \r\n \r\n$ \r\n \r\n7,705,984.23 $====9=7.=0.0... $ 7,706,081.23 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 32 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND \r\nYEAR ENDED JUNE 30,1996 \r\n \r\nEXHIBIT \"J\" \r\n \r\nEXPENDITURES \r\nPERSONAL SERVICES-INSTITUTIONS \r\nSalaries and Wages Employer's Contributions for: \r\nF.I.CA Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Merit System Assessment \r\nOPERATING EXPENSES-INSTITUTIONS \r\nOther Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing \r\nTravel Motor Vehicle Purchases Equipment \r\nEquipment Purchases Computer Charges \r\nSoftware Telecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees Contracts \r\nADULT LITERACY GRANTS \r\nPersonal Services Salaries and Wages Employer's Contributions for: F.I.CA Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\nliB\" LOTTERY FOR \r\nEDUCATION \r\n \r\nTOTAL \r\n \r\n$ 3,747,149.99 \r\n193,675.55 521,243.82 426,665.20 \r\n21,090.00 4,250.00 119,412.00 3,113.08 \r\n$ 5,036,599,64 \r\n \r\n$ \r\n \r\n26,913.41 \r\n \r\n535,757.02 \r\n \r\n75,295.48 \r\n \r\n360,338.10 \r\n \r\n11,291.49 \r\n \r\n17,953.00 \r\n \r\n121,883.81 \r\n \r\n44,056.35 \r\n \r\n44,877.37 \r\n \r\n35,245.22 \r\n \r\n576,012,16 \r\n \r\n60,286.11 45,602.13 \r\n \r\n85,766.86 315.00 \r\n \r\n$ 2,041,593.51 \r\n \r\n$ \r\n \r\n361,508.35 \r\n \r\n6,995.21 29,177.36 29,715.83 \r\n1,295.00 294.00 \r\n7,945.00 \r\n \r\n$ 3,747,149.99 \r\n193,675.55 521,243.82 426,665.20 21,090.00 \r\n4,250.00 119,412.00 \r\n3,113,08 \r\n$ 5,036,599.64 \r\n$ 26,913.41 535,757.02 75,295.48 360,338.10 11,291.49 17,953.00 121,883.81 44,056.35 44,877.37 35,245.22 \r\n576,012.16 \r\n60,286.11 45,602.13 \r\n85,766.86 315.00 \r\n$ 2,041,593.51 \r\n$ 361,508.35 \r\n6,995.21 29,177.36 29,715.83 \r\n1,295.00 294.00 \r\n7,945.00 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 33 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND \r\nYEAR ENDED JUNE 30,1996 \r\n \r\nEXHIBIT\"J\" \r\n \r\nEXPENDITURES \r\nADULT LITERACY GRANTS \r\nOther Costs Supplies and Materials Repairs and Maintenance Utilities Rents (other than Real Estate) other Operating Expenses Publications and Printing \r\nTravel Equipment \r\nEquipment Purchases Computer Charges \r\n.Software Telecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees \r\nJOB TRAINING PARTNERSHIP ACT \r\nPersonal Services Salaries and Wages Employer's Contributions for: F.I.CA Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance \r\nOther Costs Supplies and Materials Utilities \r\nComputer Charges Software \r\nREPAIRS AND RENOVATIONS \r\nOther Costs Repairs and Maintenance \r\nTotal Expenditures \r\nExcess of Funds Available over Expenditures \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" LOTTERY FOR \r\nEDUCATION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n54.837.99 \r\n \r\n1,377.00 \r\n \r\n4.762.60 \r\n \r\n2,527.72 \r\n \r\n16,578.33 \r\n \r\n1,279.74 \r\n \r\n15,432.11 \r\n \r\n23,453.00 \r\n \r\n2,064.86 5,893.29 \r\n \r\n1,460.58 \r\n \r\n$ \r\n \r\n566,597.97 \r\n \r\n$ 54.837.99 1,377.00 4,762.60 2,527.72 \r\n16,578.33 1,279.74 \r\n15,432.11 \r\n23.453.00 \r\n2,064.86 5,893.29 \r\n1.460.58 \r\n$ 566,597.97 \r\n \r\n$ \r\n \r\n24,642.69 \r\n \r\n347.34 1.788.00 1,892.34 \r\n185.00 42.00 1.135.00 \r\n \r\n280.23 462.17 \r\n \r\n1.647.00 \r\n \r\n$ \r\n \r\n32,421.77 \r\n \r\n$ 24,642.69 \r\n347.34 1,788.00 1,892.34 \r\n185.00 42.00 1,135.00 \r\n280.23 462.17 \r\n1,647.00 \r\n$ 32,421.77 \r\n \r\n$ $ 7,677,212.89 $ \r\n28,771.34 \r\n \r\n97.00 $ \r\n \r\n97.00 \r\n \r\n97.00 $ 7,677,309.89 \r\n \r\n0.00 \r\n \r\n28,771.34 \r\n \r\n$ \r\n \r\n7,705.984.23 $====9;;,;7,;,;:'0~0 $ 7.706,081.23 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n \r\n- 34 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUNDS \r\nYEAR ENDED JUNE 30, 1996 \r\n \r\nEXHIBIT\"K\" \r\n \r\nFUND Berry, R. Roger, Scholarship Funds Clarey, William C., Scholarship Fund Federal Supplemental Educational Opportunity Grants Fund Georgia Electrification Council Educational Loan Fund HOPE Scholarship Program Mount Vernon Mills Scholarship Fund Pell Grant Program Private Scholarship Fund Student Activities Fund \r\n \r\nASSETSI LIABILITIES \r\nJULY 1.1995 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nASSETSI LIABILITIES \r\nJUNE 30, 1996 \r\n \r\n$ \r\n \r\n300.00 \r\n \r\n$ \r\n \r\n300.00 \r\n \r\n1.58 $ \r\n \r\n8.38 $ \r\n \r\n9.96 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n28,519.00 \r\n \r\n28,519.00 \r\n \r\n0.00 \r\n \r\n11,544.11 0.00 \r\n300.00 0.00 \r\n54.50 49,962.90 \r\n \r\n106.22 914,327.00 \r\n439,327.00 8,071.33 \r\n107,576.64 \r\n \r\n914,327.00 \r\n439,327.00 4,974.44 77,362.22 \r\n \r\n11,650.33 0.00 \r\n300.00 0.00 \r\n3,151.39 80,177.32 \r\n \r\n$ \r\n \r\n62,163.09 $ 1,497,935.57 $ 1,464,519.62 $=====9=5,=:57:;9=.0:=4 \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 35- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE 30, 1996 \r\nNONINTEREST BEARING ACCOUNTS Habersham Bank, Cornelia, Georgia \r\nINTEREST BEARING ACCOUNTS \r\nCommunity Bank and Trust, Cornelia, Georgia \r\nMoney Market Account (3.04%) \r\nHabersham Bank, Cornelia, Georgia \r\nMoney Market Accounts (3.00%) \r\nOTHER \r\nCash on Hand Petty Cash \r\n \r\nSCHEDULE -1- \r\n$ 528,316.17 3,610.33 \r\n66,704.92 2,000,00 \r\n$ 600.631.42 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial State'ments and Supplementary Information. \r\n-36 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE INVESTMENTS JUNE 30,1996 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNONEXPENDABLE TRUST FUND \r\nSarling, Lenora M., SCholarship Fund U. S. Treasury Securities Holdings Account No. 2000-007-9925 912827J78 912827M25 \r\n \r\nPURCHASE DATE \r\n \r\nINTEREST RATE \r\n \r\nMATURITY DATE \r\n \r\nAMOUNT \r\n \r\nMay 17,1993 August 31, 1993 \r\n \r\n6.25% 4.75% \r\n \r\nFebruary 15, 2003 $ August 31, 1998 \r\n \r\n15,000.00 20,000.00 \r\n \r\n$ \r\n \r\n35,000.00 \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information, \r\n- 37- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30,1996 \r\n \r\nSCHEDULE \"3\" \r\n \r\nBUDGET FUND \r\nEducation, U. S. Department of Adult Education - State Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office \r\nFederal Work-Study Program Direct \r\nVocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office \r\nVocational Education - Consumer and Homemaking Education Through Georgia Department of Technical and Adult Education - Administrative Central Office \r\nTech-Prep Education Through Habersham County Board of Education \r\nHealth and Human Services, U. S. Department of Job Opportunities and Basic Skills Training Through Georgia Department of Human Resources Various Offices of Department of FamDy and Children Services \r\nLabor, U. S. Department of Job Training Partnership Act Through Georgia Department of Technical and Adult Education - Administrative Central Office \r\n \r\nCFDA NUMBER \r\n \r\nAMOUNT \r\n \r\n84.002 $ 165,104.79 \r\n \r\n84.033 \r\n \r\n78,452.00 \r\n \r\n84.048 \r\n \r\n341,997.76 \r\n \r\n84.049 84.243 \r\n \r\n38,276.00 15,000.00 \r\n \r\n93,561 \r\n \r\n28,308.02 \r\n \r\n17.250 \r\n \r\n30,136.95 \r\n \r\n$ 697,275.52 \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Financial Stater.nents and Supplementary Information. \r\n- 38 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES. AND TRAVEL \r\nYEAR ENDED JUNE 30, 1996 \r\n \r\nSCHEDULE \"4\" \r\n \r\nTotals per Annual Supplement Accruals June 30, 1996 \r\nTotals per Report \r\nSUMMARy BY OBJECT CLASS BUDGET FUND Personal Services-Institutions Adult Uteracy Grants Job Training Partnership Act \r\n \r\nSALARIES AND WAGES \r\n$ 4,127,576.35 $ \r\n \r\nTRAVEL 60,309.48 \r\n \r\n5,724.68 \r\n \r\n$ 4,133,301.03 $ ====6='53=:9=.4=8 \r\n \r\n$ 3,747,149.99 $ 361,508.35 24,642.69 \r\n \r\n44,877.37 15,432.11 \r\n \r\n$ 4,133,301.03 $ ====6=0,=:30=:9::;.4=8 \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 39- \r\n \r\n SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\n NORm GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1996 \r\n \r\nSTATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\nThe status offindings disclosed in the review report for the year ended June 30, 1995, is summarized below: \r\n \r\nAudit Control Number \r\n \r\nStatus ofFinding \r\n \r\n838-95-01 838-95-02 \r\n \r\nCorrective Action Implemented See Audit Control Number 838-96-01 \r\n \r\nPRIOR YEAR/CURRENT YEAR \r\n \r\nGENERAL LEDGER Agency Funds - Inadequate Accounting Records Financial Statements Audit Control Number 838-96-01 \r\n \r\nThe review report for the year ended June 30, 1995, disclosed that North Georgia Technical Institute maintains a student loan program funded by the Georgia Electrification Council. As ofJune 30, 1996, this fund had a cash balance of $3,610.33 and student notes receivable of $8,040.00 that were included on the Combined Balance Sheet (Statutory Basis) of the Institute. The student notes receivable, totaling $8,040.00, are in default. \r\n \r\nNorth Georgia Technical Institute's decision effective June 30, 1992 to discontinue the loan program was accepted by the Georgia Electrification Council with the stipulation that the Institute return the original principal of$10,000.00 less a deceased student's loan of$5oo.00 to the Council. As ofthe date ofthis report, a final disposition ofthe principal balance had not been made. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1994-h95","title":"Review report, state of Georgia, North Georgia Technical Institute, Clarkesville, Georgia, year ended June 30, 1995","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits. Education Division"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits. Education Division"],"dc_date":["1995-06-30"],"dcterms_description":["Title varies: Management report"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits. Education Division"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["North Georgia Technical College--Appropriations and expenditures--Periodicals.","Technical institutes--Georgia--Auditing--Periodicals.","Technical institutes--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Review report, state of Georgia, North Georgia Technical Institute, Clarkesville, Georgia, year ended June 30, 1995"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1994-h95"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1994-h95"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"GJ-t \r\nA 800 , Rl Nb6 1994-0S \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS \r\n254 WASHINGTON STREET ATLANTA, GEORGIA 30334 \r\n \r\n REVIEW REPORT \r\nSTATE OF GEORGIA NORTH GEORGIA TECHNICAL INSTITUTE \r\nCLARKESVILLE, GEORGIA YEAR ENDED JUNE 30, 1995 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nEXHIBITS \r\n \r\nFINANCIAL STATEMENTS \r\n \r\nA COMBINED BALANCE SHEET (STATUTORY BASIS) \r\n \r\nALLFUNDTYPESANDACCOUNTGROUPS \r\n \r\n2 \r\n \r\nB STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS) \r\n \r\nALL FUND TYPES \r\n \r\n5 \r\n \r\nC STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nBUDGET FUND \r\n \r\n6 \r\n \r\nSTATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nCOMPARED TO BUDGET \r\n \r\nBUDGET FUND \r\n \r\nD \r\n \r\n\"A\"DEPARTMENTOFTECHNICALANDADULTEDUCATION \r\n \r\n10 \r\n \r\nE \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\n11 \r\n \r\nF STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE \r\n \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND \r\n \r\n12 \r\n \r\nG NOTES TO THE FINANCIAL STATEMENTS \r\n \r\n13 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nH COMBINING BALANCE SHEET (STATUTORY BASIS) \r\n \r\nBUDGET FUND \r\n \r\n32 \r\n \r\nCOMBINING STATEMENT OF CHANGES IN FUND BALANCE \r\n \r\n(STATUTORY BASIS) \r\n \r\nBUDGET FUND \r\n \r\n33 \r\n \r\nJ COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nBUDGET FUND \r\n \r\n34 \r\n \r\nK COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nFIDUCIARY FUND TYPE - AGENCY FUNDS \r\n \r\n38 \r\n \r\nSCHEDULES \r\n \r\nI CASH AND CASH EQUIVALENTS \r\n \r\n39 \r\n \r\n2 INVESTMENTS \r\n \r\n40 \r\n \r\n3 SCHEDULE OF FEDERAL REVENUES \r\n \r\n41 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE -TABLE OF CONTENTS- \r\nSECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\n SECTION! FINANCIAL \r\n \r\n CLAUDE L. VICKERS \r\nSTATE AUDITOR {404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nNovember 14, 1995 \r\n \r\nHonorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the State Board of Technical and Adult Education Members ofthe Local Board ofDirectors \r\nand Honorable Judy Hulsey, President North Georgia Technical Institute \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have reviewed the accompanying financial statements (Exhibits A through G) of North Georgia Technical Institute as of and for the year ended June 30, 1995, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. 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. All inforniation included in these financial statements is the representation of the management of North Georgia Technical Institute. \r\nA review consists principally of inquiries of Institute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. \r\nBased on our review, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in confonnity with the basis of accounting described in Note 1. \r\nOur review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in confonnity with the basis of accounting described in Note 1. The accompanying supplementary inforniation (Exhibits H through K and Schedules I through 3) is presented only for supplementary analysis purposes. Such information has been \r\n \r\n95ARL-4T \r\n \r\n subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we are not aware of any material modifications that should be made thereto. \r\nt t ~ ~ Respectfully submitted, \r\nClaude L. Vickers State Auditor \r\nCLV:gp 95ARL-4T \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINED BAI ANCE SHEET (STATUTORY BASIS) \r\nALL FUNP tvPFS AHP ACCOUNT GROUP \r\nJUNE ;in 1995 \r\n \r\nCall and Call Equ...- \r\n1.- \r\nAoccunts Receivable 5-Funds Federal Anancial Assistance Student Notes Other \r\nFocedAssels Equipment \r\nAmounts to be Provided \"\" Pyment of: Accrued Compensated Absences \r\nTotal Assets \r\n \r\nGOVERNMENTAL FUN0TYPE . \r\nBUDGET \r\n \r\nFIDUCIARY FUND TYPES \r\n \r\nNON EXPENDABLE \r\n \r\nTRUST \r\n \r\nAGENCY \r\n \r\n414,838.\u003c49 $ \r\n25,058.29 67,254.27 60,333.30 152,645.88 \r\n \r\n694.71 $ ---'54=,1=23aa.09~ 35,000.00 \r\n \r\n$ \r\n \r\n8,040.00 \r\n \r\n$ \r\n \r\n8,040.00 \r\n \r\n567,485.35 $ \r\n \r\n35,694.71 s ____62_,1_63_._oe., \r\n \r\nLIABILITIES ANO FUND EQUITY \r\nLiabilities Aoccunts Payable OererredRevenue Tuition and Fees Funds Held in Custody for Others Compensated Absences \r\nTotal Liabilities \r\nFund Equity Investment in General Fixed Assets Fund Balances ReseM\u003ed Endowment Corpus Federal F\"manciat Assistance For Refund to Georgia Department of Technical and Adutt Education - Administrative Central Office Live Work Projec;ts Unreserved Designated Surplus Regular \r\nLottery r... Education \r\nUndesignted \r\nTotal Fund Equity \r\n \r\n541,635.21 10,992.50 \r\n$ _ _.;;55a;;2a,;,62=7::..71:.. \r\n \r\n$ \r\n \r\n24.18 \r\n \r\n13,040.65 \r\n \r\n1,396.23 396.58 \r\n \r\n$ \r\n \r\n14,857.64 $ \r\n \r\nTotal Liabilities and Fund Equity \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. \r\n-2 - \r\n \r\n567,485.35 $ \r\n \r\n62,163.09 $ _ _ _62~,1_63_._09_ \r\n35,000.00 \r\n \r\n694.71 35,694.71 \r\n35,694.71 $ \r\n \r\n62,163.09 \r\n \r\n EXHIBIT\"A\" \r\n \r\nACCOUNT GROUPS \r\n \r\nGENERAL \r\n \r\nGENERAL \r\n \r\nFIXED \r\n \r\nLONG-TERM \r\n \r\nASSETS \r\n \r\nDEBT \r\n \r\nTOTALS \r\n \r\n(Memorandum On!):) \r\n \r\nJUNE 30, 1995 \r\n \r\nJUNE 30, 1994 \r\n \r\n2,575,083.83 \r\n \r\n-469,657.29 $ \r\n \r\n133,891..43 \r\n \r\n$ \r\n \r\n35,000.00 $ \r\n \r\n35,000.00 \r\n \r\n25,058.29 $ 67,254.27 8,040.00 60,333.30 \r\n160,685.86 $ \r\n \r\n0.00 17,062.27 8,040.00 16,174.34 \r\n41,276.61 \r\n \r\n2,575,083.83 $ \r\n \r\n2,378,575.43 \r\n \r\n361,387.89 $ \r\n \r\n361,387.89 $ \r\n \r\n378,756.75 \r\n \r\n$ \r\n \r\n2,575,083.83 $ \r\n \r\n361,387.89 $ \r\n \r\n3,601,814.87 $ \r\n \r\n2,967,500.22 \r\n \r\n$ 2,575,083.83 \r\n \r\n361,387.89 361,387.89 $ \r\n \r\n541,635.21 $ \r\n10,992.50 62,163.09 361,387.89 \r\n976,178.69 $ \r\n \r\n90,494.32 \r\n7,957.25 65,832.n 378,756.75 \r\n543,041.09 \r\n \r\n2,575,083.83 $ \r\n \r\n2,378,575.43 \r\n \r\n35,000.00 \r\n \r\n35,000.00 \r\n \r\n24.18 13,040.65 \r\n \r\n0.00 10,189.65 \r\n \r\n2,575,083.83 \r\n \r\n1,396.23 396.58 694.71 \r\n2,625,636.18 $ \r\n \r\n501.84 0.00 \r\n192.21 \r\n2,424,459.13 \r\n \r\n2,575,083.83 $ \r\n \r\n361,387.89 $ \r\n \r\n3,601,814.87 $ \r\n \r\n2,967 ,50022 \r\n \r\n-3- \r\n \r\n  NORTH GEORGIA TECHNICAL INSTITUTE SJAifMfNI Pf CHANGE$ JN FUND BALANCE /STATUTORY BAs1s1 \r\nALL ELJNP TYPES YfAB fNDfD JUNE 3Q 1995 \r\n \r\nEXHIBIT\"B\" \r\n \r\nGOVERNMENTAL FUND TYPE BUDGET \r\n \r\nFIDUCIARY FUND TYPE NONEXPENDABLE \r\nTRUST \r\n \r\nTOTALS \r\n(Memorandum On!XJ YEAR ENDED \r\nJUNE 30, 1995 JUNE 30, 1994 \r\n \r\nFUND BALANCES - JULY 1 \r\n \r\nReseMld Unreserved \r\nDesignated Surplus \r\nUndesignated \r\n \r\n$ \r\n \r\n10,189.65 $ \r\n \r\n501.84 \r\n \r\n35,000.00 $ 192.21 \r\n \r\n45,189.65 $ \r\n501.84 192.21 \r\n \r\n41,987.39 \r\n190.35 239.31 \r\n \r\n$ \r\n \r\n10,691.49 $ \r\n \r\n35,192.21 \r\n \r\n45,883.70 $ \r\n \r\n42.417.05 \r\n \r\nADDITIONS \r\n \r\nAdjustments to Prior Yea(s Accounts Payable Excess of Funds Available over Expenditures \r\nExhibit\"C\" Excess of Revenues over Expenditures \r\nExhibit\"F\" \r\n \r\n$ \r\n \r\n1,685.88 \r\n \r\n13,171.76 \r\n \r\n$ \r\n \r\n$ 502.50 \r\n \r\n1,685.88 $ 13,171.76 \r\n502.50 \r\n \r\n500.73 12,834.73 \r\n-47.10 \r\n \r\n$ \r\n \r\n14,857.64 $ \r\n \r\n502.50 $ \r\n \r\n15,360.14 $ \r\n \r\n13,288.36 \r\n \r\nDEDUCTIONS \r\n \r\nUnreserved Fund Balance (Surplus) \r\n \r\nReturned to Georgia Department of Technical and \r\n \r\nAdult Education - Administrative Central Office \r\n \r\nYear Ended June 30, 1993 \r\n \r\n$ \r\n \r\nYear Ended June 30, 1994 \r\n \r\nAdjustments to Prior Year's Accounts Receivable \r\n \r\nReserved Fund Balance Carried Over from \r\n \r\nPrior Year as Funds Available \r\n \r\n0.00 501.84 \r\n10,189.65 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n501.84 \r\n \r\n10,189.65 \r\n \r\n190.35 2,643.97 6,987.39 \r\n \r\n$ \r\n \r\n10,691.49 \r\n \r\n$ \r\n \r\n10,691.49 $ \r\n \r\n9,821.71 \r\n \r\nFUND BALANCES - JUNE 30 \r\n \r\n(To Exhibit \"A\") \r\n \r\n$ \r\n \r\n14,857.64 $ \r\n \r\n35,694.71 $ \r\n \r\n50552.35 $ \r\n \r\n45,883.70 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. -5- \r\n \r\n NORTH GEQBGIA TFQHN1CAI INSTITUTE STATEMENT OF FUNDS AVAILABLE ANQ EXPENDITURES \r\nBUQGETFUND YEAR ENQEP JUNE :lQ 1995 \r\n \r\nEXHIBIT\"C\" \r\n \r\nFUNDS Al/An ABLE \r\n~ \r\nSTATE FUNDS Allalment from Georgia Department of Technical and Adult Education  Administrative Central Office \r\nFEDERAL REVENUES (See Schedule) \r\nOTHER REVENUES RETAINED Contract Georgia Department of Human Resoorces PEACH Project Georgia Institute of Technology Satellite Technology Program Rabun Council of Economic Development Organization \r\nF- \r\nApplicalion Registration/Continuing Education Testing Other Reimbursements from Various Sources Sales and Services (Net) Tuition Other Sources \r\nTotal Other Revenues Retained \r\nTotal Revenues \r\nCARRY-OVER FROM PRIOR YEAR \r\nTransfer from ReseM!d Fund Balance Live Work Projects \r\nTotal Carry-Over from Prior Year \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 1995 \r\n \r\nJUNE 30, 1994 \r\n \r\n5,448,158.94 $ _ _4,c,85cc2::,,.:.;156=.38::. 732,223.82 $ ---'7.:;88::.,,9;;.:7.:;5:=;.93::. \r\n \r\n$ \r\n \r\n17,442.10 $ \r\n \r\n15,229.09 \r\n \r\n88,926.81 \r\n \r\n12,600.00 161,493.36 19,944.00 \r\n29,400.00 55,897.94 312,508.67 553,346.91 \r\n2,076.62 \r\n \r\n$ ---'1=,26=8,8=65:.5:0. $ \r\n$ _ __7,,4=49=,24=8.'2-6- $ \r\n \r\n19,248.41 \r\n13,021.96 \r\n0.00 \r\n13,480.00 158,318.69 25,605.00 \r\n22,888.83 53,166.00 283,982.14 423,833.97 \r\n2,022.56 \r\n1,015,567.56 \r\n6,656,699.87 \r\n \r\n10,189.65 $ _ _ _6::.,,98=7-:::39::. 10,189.65 $ _ _ _6::.,,98=7:::.39::. \r\n \r\nTotal Funds Available \r\n \r\n7,459 437.91 $ ==,,;;6.;663~68=7-~26;;;, \r\n \r\nEXPENDITURES \r\nPERSONAL SERVICES~NSTITUTIONS \r\nSalaries and Wages Employe(s Contributions for: \r\nF.I.C.A. Retirement Health Insurance \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lntonnation. \r\nThe notes to the financial statements are an integral part of this statement.  6. \r\n \r\n3,779,676.53 $ \r\n192,646.47 482,077.72 406,146.32 \r\n \r\n3,491,669.62 \r\n187,046.21 468,453.52 378,175.56 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE \r\nSTATEMENT OF FUNDS AVAILABLE ANp EXPENDITURES \r\nBUPGETFUNp YEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"C\" \r\n \r\nEXPENDITURES \r\nPERSONAL SERVJCES-INSTITLJTIONS \r\nEmploier's Contributions for: Liability Insurance Unemployment Compensation Insurance Worl\u003cers' Compensation Insurance Merit System Assessment \r\nOPERATING EXPENSES-INSTITUTIONS \r\nOtherCosts Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing \r\nTravel Motor Vehicle Purchases Equipment \r\nEquipment Purchases Computer Charges \r\nOther Costs Supplies and Materials Repairs and Maintenance \r\nSoftware Equipment \r\nEquipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees Contracts \r\nQUICK START PROGRAM \r\nPersonal Services Salaries and Wages Emploier's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' compensatk\u003en Insurance \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplemenlary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n-7- \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 1995 \r\n \r\nJUNE 30, 1994 \r\n \r\n$ \r\n \r\n22,985.21 $ \r\n \r\n3,268.62 \r\n \r\n118,625.00 \r\n \r\n3,739.07 \r\n \r\n13,716.00 2,677.00 74,230.00 4,561.84 \r\n \r\n$ \r\n \r\n5,009,164.94 $ \r\n \r\n4,620,529.75 \r\n \r\n$ \r\n \r\n23,371.07 $ \r\n \r\n26,126.34 \r\n \r\n418,214.39 \r\n \r\n412,198.71 \r\n \r\n69,380.36 \r\n \r\n139,430.62 \r\n \r\n338,490.64 \r\n \r\n350,800.89 \r\n \r\n6,420.28 \r\n \r\n5,846.63 \r\n \r\n16,519.00 \r\n \r\n7,870.00 \r\n \r\n63,245.57 \r\n \r\n88,297.71 \r\n \r\n24,019.75 \r\n \r\n29,028.00 \r\n \r\n42,126.08 \r\n \r\n36,195.55 \r\n \r\n36,239.00 \r\n \r\n16,250.00 \r\n \r\n75,371.42 \r\n \r\n138,487.81 \r\n \r\n17,173.34 6,188.20 \r\n17,996.39 \r\n128,933.58 1,250.00 \r\n47,821.55 \r\n124,165.01 0.00 \r\n1,476,925.63 $ \r\n \r\n15,150.63 15,317.78 16,317.26 \r\n133,124.03 0.00 \r\n37,044.06 \r\n21,149.72 315.00 \r\n1,488,950.74 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n16,244.64 \r\n \r\n0.00 \r\n \r\n241.57 \r\n \r\n0.00 \r\n \r\n1,972.80 \r\n \r\n0.00 \r\n \r\n2,088.00 \r\n \r\n0.00 \r\n \r\n127.00 \r\n \r\n0.00 \r\n \r\n27.00 \r\n \r\n0.00 \r\n \r\n750.00 \r\n \r\n NORTH GEORGIA TECHNICAi INSTITUTE STATEMENT OF FUNDS AVAILABLE ANP EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 3Q 199 \r\n \r\nEXHIBIT\"C\" \r\n \r\nEXPfNDITIJRfS \r\nQUICK START PROGRAM \r\nOlherCosts Supplies and Matmls Repairs and Maintenance UtiHties \r\nother Operating E\u003ecpenses Travel \r\nEquipment Equipment Purchases \r\nTelecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees \r\nADULT LITFRACY GRANTS \r\nPersonal Services Salaries and Wages Employe(s Contributions for: \r\nF.I.C.A. \r\nRetirement Health Insurance Liability Insurance Unemployment Compensation Insurance Wor1\u003cers' Compensation Insurance other Costs Supplies and Materials Repairs and Maintenance Rents (other than Real Estate) other Operating Expenses Publications and Printing Travel Equipment Equipment Purchases Computer Charges Software Equipment Equipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees \r\nJOB TRAINING PARTNERSHIP ACT \r\nPersonal Services Salaries and Wages Employe(s Contribution for: \r\nF. I. C.A. \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n. 8. \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 1995 \r\n \r\nJUNE 30, 1994 \r\n \r\n606.90 $ 0.00 \r\n2,307.18 8,398.03 \r\n612.78 \r\n0.00 601.19 \r\n823.68 \r\n13,349.76 $ \r\n \r\n522.19 1,843.04 3,745.76 3,750.00 2,769.18 \r\n391.94 \r\n649.26 \r\n140.00 \r\n35,262.38 \r\n \r\n286,402.07 $ \r\n5,928.05 15,367.10 15,527.12 \r\n435.78 65.38 \r\n2,374.00 \r\n51,406.26 2,024.64 1,000.00 9,941.83 1,431.00 \r\n13,966.77 \r\n2,180.34 \r\n1,654.30 \r\n2,705.30 250.00 \r\n4,191.98 \r\n2,780.00 \r\n419,632.12 $ \r\n \r\n249,523.64 \r\n3,573.55 6,585.60 6,970.56 \r\n254.00 54.00 \r\n1,500.00 \r\n33,397.50 9,951.77 0.00 0.00 794.50 \r\n10,848.56 \r\n3,444.91 \r\n1,276.75 \r\n4,721.64 0.00 \r\n2,348.79 \r\n250.00 \r\n335,495.77 \r\n \r\n22,106.06 $ 225.79 \r\n \r\n8,076.36 108.88 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE \r\nSTATEMENT OF FUNDS AYA!LABLE AND EXPENDITURES \r\nBUDGET FUND \r\nYEAR ENDED JUNE 3Q 1995 \r\n \r\nEXHIBIT\"C\" \r\n \r\nEXPENDITURES \r\nJQB TRAINING PARTNERSHIP ACT \r\nPenional Services Employers Contributions for: Retirement Health Insurance \r\nother Coots Supplies other Operating Expenses \r\nEquipment Equipment Purchases \r\nComputer Charges Software \r\nTelecommunications \r\n(aQUIPM!;NT-TECHNICAL INSTITUTES \r\nother Cost other Operating Expenses \r\nComputer Charges Equipment Equipment Purchases \r\nEquipment Equipment Purchases \r\nREPAIRS AND RENOVATIONS \r\nother Cost Repairs and Maintenance other Operating Expenses \r\nTotal Expenditures \r\nExcess of Funds Available over Expenditures \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 1995 \r\n \r\nJUNE 30, 1994 \r\n \r\n0.00 $ 237.28 \r\n1,486.79 55.85 \r\n1,020.15 \r\n7,229.03 953.87 \r\n33,314.82$ \r\n \r\n908.05 1,009.60 \r\n0.00 0.00 \r\n0.00 \r\n0.00 0.00 \r\n10,102.89 \r\n \r\n132.99 $ \r\n \r\n0.00 \r\n \r\n12,192.82 \r\n \r\n0.00 \r\n \r\n141,650.88 \r\n \r\n160,511.00 \r\n \r\n$ \r\n \r\n153,976.69 $ \r\n \r\n160,511.00 \r\n \r\n$ \r\n \r\n339,370.23 $ \r\n \r\n0.00 \r\n \r\n531.96 \r\n \r\n0.00 \r\n \r\n339,902.19 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n7,446,266.15 $ \r\n \r\n6,650,852.53 \r\n \r\n13,171.76 \r\n \r\n12,834.73 \r\n \r\n$ \r\n \r\n7 459437.91 $ \r\n \r\n6,663,687.26 \r\n \r\nSee Independent Accourltant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. -9 - \r\n \r\n NORTH GEORGIA TECHNICAL INSmUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"D\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nstate Funds Federal Revenues Other Revenues Retained \r\nCARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n4,955,441.00 $ \r\n \r\n844,664.00 \r\n \r\n2107 053.00 \r\n \r\n$ \r\n \r\n7,907,158.00 $ \r\n \r\n4,954,280.06 $ 732,223.82 \r\n1 268,865.50 \r\n6,955,369.38 $ \r\n \r\n-1,160.94 -112,440.18 -838187.50 \r\n-951,788.62 \r\n \r\n0.00 \r\n \r\n10,189.65 \r\n \r\n10 189.65 \r\n \r\n$ \r\n \r\n7,907,158.00 $ \r\n \r\n6,965,559.03 $ \r\n \r\n-941,598.97 \r\n \r\nEXPENDITURES \r\nPersonal Services-Institutions Operating Expenses-Institutions Quick start Program Adult Literacy Grants Job Training Partnership Act \r\n \r\n$ \r\n \r\n5,245,718.00 $ \r\n \r\n2,164,537.00 \r\n \r\n14,455.00 \r\n \r\n442,568.00 \r\n \r\n39,880.00 \r\n \r\n5,009,164.94 $ 1,476,925.63 \r\n13,349.76 419,632.12 \r\n33,314.82 \r\n \r\n236,553.06 687,611.37 \r\n1,105.24 22,935.88 \r\n6,565.18 \r\n \r\n$ \r\n \r\n7,907,158.00 $ \r\n \r\n6,952,387.27 $ \r\n \r\n954,TT0.73 \r\n \r\nExcess of Funds Available over Expenditures \r\n \r\n$ \r\n \r\n13,171.76 $ \r\n \r\n13,171.76 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. \r\n- 10 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"B\" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"E\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Funds \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n494,000.00 $ \r\n \r\n493,878.88 $ _ _ _ _-1_2_1._12_ \r\n \r\nEXPENDITURES Equipment - Technical Institutes Repairs and Renovations \r\n \r\n$ \r\n \r\n.154,000.00 $ \r\n \r\n340,000.00 \r\n \r\n153,976.69 $ 339,902.19 \r\n \r\n23.31 97.81 \r\n \r\n$ \r\n \r\n494,000.00 $ \r\n \r\n493,878.88 $ _ _ ___;1.::;2_;_1...;.12~ \r\n \r\nExcess of Funds Available over Expendttures \r\n \r\n$ \r\n \r\n0.00 $ = = = = =0.0=0 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. \r\n- 11 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"F\" \r\n \r\nREVENUES Interest Earned \r\nEXPENDITURES Scholarships \r\nExcess of Revenues over (under) Expenditures FUND BALANCE JULY 1 1994 \r\n \r\nLENORAM. SARLING \r\nSCHOLARSHIP FUND \r\n \r\n$ \r\n \r\n1 887.50 \r\n \r\n$ \r\n \r\n1 385.00 \r\n \r\n$ \r\n \r\n502.50 \r\n \r\n35192.21 \r\n \r\nFUND BALANCE JUNE 30 1995 \r\n \r\n$ \r\n \r\n35,694.71 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement - 12 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE30 1995 \r\n \r\nEXEilBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY North Georgia Technical Institute is one of twenty-nine (29) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit ofthe State of Georgia. The accompanying financial statements reflect the operations ofNorth Georgia Technical Institute as a separate reporting entity. \r\nThe Institute's Local Board ofDirectors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department ofTechnical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State funds to be received by North Georgia Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, North Georgia Technical Institute is considered an organizational unit ofthe Georgia Department of Technical and Adult Education for financial reporting purposes because of the significance ofits legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. \r\nFUND ACCOUNTING North Georgia Technical Institute uses funds and account groups to report on its financial position and the results ofits 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 purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number offunds 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. \r\nFunds and account groups presented in the accompanying financial statements are as follows: \r\nGOVERNMENTAL FUND TYPE \r\nBUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1994-1995. This fund also includes operations from various institutional services provided to students, faculty, and/or 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 identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund. \r\nFIDUCIARY FUND TYPES \r\nNONEXPENDABLE lRUST FUND - The fund used to account for assets, revenues, and expenses utilized in accordance with the provisions ofthe trust established by individual agreement, statute, or administrative action. Nonexpendable trust funds are used when only the revenues earned on the principal (corpus) of the \r\n- 13 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE30 1995 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFUND ACCOUNTING \r\nFIDUCIARY FUND TYPES \r\nNONEXPENDABLE TRUST FUND trust may be expended for the purposes designated in the trust agreement and the principal of the trust agreement must remain intact. \r\nAGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals. \r\nACCOUNT GROUPS \r\nGENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. 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. \r\nThe cost of normal maintenance and repairs that do not add to the value ofthe asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life of the assets are included in the General Fixed Assets Account Group. \r\nGENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions ofcertain governmental long-term liabilities, such as claims, judgments, and compensated absences, which will be paid from future resources. \r\nBASIS OF ACCOUNTING MEASUREMENT FOCUS \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office of the Department of Technical and Adult Education for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year. Nonexpendable trust funds, on the other hand, should be accounted for on a flow of economic resources measurement focus, in which all assets and all liabilities are included on the balance sheet. However, in accordance with accounting practices prescribed or permitted by the State of Georgia, the nonexpendable trust funds utilize the current financial resources measurement focus. \r\n \r\n- 14 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND \r\nExcept 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 ofaccounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they are \"measurable and available\"). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to pay liabilities ofthe current period. Revenues that are accrued include primarily State funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. \r\nContractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles. \r\nPrior period adjustments and certain other items are reported as additions to and deductions from fund balance of the Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. \r\nFIDUCIARY FUND TYPES NONEXPENDABLETRUSTFUND \r\nThe Nonexpendable Trust Fund is maintained in accordance with the modified accrual basis ofaccounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both 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 be used to pay liabilities ofthe current period. Revenues that are accrued include primarily interest income and certain amounts earned under terms ofthe trust agreements. Expenditures are recorded when the related fund liability is incurred. \r\nA Statement ofCash Flows is not presented for the Nonexpendable Trust Fund in the accompanying financial statements as required by generally accepted accounting principles. \r\n- 15 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING FIDUCIARY FUND TYPES AGENCY FUNDS \r\nAgency Funds are custodial in nature and do not measure results of operations or have a measurement focus. The modified accrual basis ofaccounting is utilized for recognizing assets and liabilities. \r\nBUDGET The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriation allotments and certain Federal funds for the various technical institutes throughout the State. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 1994-1995. The budget allocation and disbursement ofthese 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. \r\nCASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions. \r\nINVESTMENTS Investments are defined as those financial instruments with terms of three months or more from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost. \r\nACCOUNTS RECEIVABLE Accounts receivable consist ofallotments due from the Georgia Department of Technical and Adult Education - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. \r\nINVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase. \r\nRESERVED 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: \r\nFEDERAL FINANCIAL ASSISTANCE REFUNDTO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE \r\nNorth Georgia 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 \r\n- 16 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXEilBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nRESERVED FUND BALANCE \r\n \r\nFEDERAL FINANCIAL ASSISTANCE REFUND TO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE \r\nand Adult Education - Administrative Central Office. As provided by the respective budget allocation to the Institute, these funds were required to be expended by June 30, 1995. At June 30, 1995, the following programs had unexpended Federal funds which should be refunded to the Administrative Central Office: \r\n \r\nAdult Education Act Adult Education \r\nCarl D. Perkins Vocational and Applied Technology Education Act Vocational Education - Community Based Organizations \r\n \r\n$ \r\n \r\n12.66 \r\n \r\n11.52 \r\n \r\nLIVE WORK PROJECTS The accumulated balance of unexpended funds derived from student live work projects. This amount is restricted to expenditures for Jive work projects in subsequent fiscal years. \r\nENDOWMENT CORPUS The principal (corpus) of the Lenora M. Sarling Scholarship Fund. This amount must remain intact per provisions ofthe trust agreement. \r\nUNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is returned to the Georgia Department of Technical and Adult Education - Administrative Central Office for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus, as follows: \r\nREGULAR - An amount of unexpended general appropriations available to the State for reappropriation in subsequent years. \r\nLOTTERY FOR EDUCATION - An amount ofunexpended lottery appropriations available for future reappropriation for Lottery for Education. \r\nCOMPENSATED ABSENCES Compensated absences represent obligations of the Institute relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the Budget Fund for the current portion ofthis obligation as this amount will not be liquidated with \r\n- 17 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXJilBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCOMPENSATED ABSENCES expendable available financial resources. Funds are provided in the allotment of State funds each year to the Institute to cover the cost of annual leave paid to terminated employees. \r\nThe liability for compensated absences at year-end is reported in the General Long-Term Debt Account Group for governmental funds. \r\nMEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial an.alysis. The columns do not present information that reflects financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. \r\nCOMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding ofthe changes in the Institute's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Institute's financial position and operations or would cause the statements to be unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia 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 any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: \r\n(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations of the United States or ofthe State of Georgia. \r\n(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities of the State of Georgia. \r\n(3) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. \r\n(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia. \r\n \r\n- 18 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE30 1995 \r\n \r\nEXIIlBIT \"G\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, certificates of indebtedness, notes, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Horne Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Horne Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\n(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\n \r\nAs authorized in the Official Code ofGeorgia 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. \r\n \r\nCATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk: \r\n \r\nCategory 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. \r\n \r\nCategory 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the Institute's name. \r\n \r\nCategory 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. \r\n \r\nCash Deposits \r\n \r\nCanying Amount \r\n \r\nBank Balances \r\n \r\nS 467 657 29 S 753 707 96 \r\n \r\nRisk Categories \r\n254 760 80 s'--=\"o,.,oo\"\" s 428 241 16 \r\n \r\nCATEGORIZATION OF INVESTMENTS For purposes of analysis of custodial credit risk, investments consist of U. S. government securities. Investments are stated at cost and are summarized and classified as to custodial credit risk within the three categories described below: \r\n \r\n- 19 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTIWTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXlilBIT \"G\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nCATEGORIZATION OF INVESTMENTS Category I - Insured or registered, or securities held by the Institute or its agent in the Institute's name. \r\n \r\nCategory 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Institute's name. \r\n \r\nCategory 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Institute's name. \r\n \r\nThe carrying amounts ofinvesttnent balances as ofJune 30,.1995, are categorized below: \r\n \r\nType oflnyestment U. S. Government Securities \r\n \r\nRisk Categories \r\n \r\nCarrying Amount \r\n \r\nMarket Value \r\n \r\nS 3500000 S \r\n \r\nooo s,....._=\"o,..o.,.o s 35 ooo oo s 34 36\u0026 oo \r\n \r\nNOTE 3: OPERATING LEASES \r\n \r\nNorth Georgia Technical Institute has entered into certain agreements to lease equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date ofthe original term of the lease, the Institute has the option ofrenewing the lease on a year-to-year basis. \r\n \r\nExpenditures for rental of equipment under operating leases for the year ended June 30, 1995, totaled $2,280.00. \r\n \r\nNOTE 4: CHANGES IN GENERAL FIXED ASSETS \r\n \r\nIn accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost of$1,000.00 or greater are reflected in the General Fixed Assets Account Group. \r\n \r\nThe following is a summary ofchanges ofequipment for the General Fixed Assets Account Group during the fiscal year: \r\n \r\nBalance July 1, 1994 \r\n \r\n$ 2,378,575.43 \r\n \r\nAdditions Deductions \r\nBalance June 30, 1995 \r\n \r\n230,357.01 33 848.61 \r\n$ 2 575 083 83 \r\n \r\n- 20- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 5: GENERAL LONG-TERM DEBT \r\n \r\nCHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1995, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group: \r\n \r\nBalance July 1, 1994 \r\n \r\n$ 378,756.75 \r\n \r\nAdditions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits \r\n \r\n-15,427.35 -1 941.51 \r\n \r\nBalance June 30, 1995 \r\n \r\n$ 361 387 89 \r\n \r\nNOTE 6: RISK MANAGEMENT \r\n \r\nPublic Entity Risk Pool The State Personnel Board - Merit System of Personnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government ofthe State of Georgia and units of county governments and local education agencies located with the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board - Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board. \r\n \r\nOther Risk Management The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts ofcommercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Institute, as an organizational unit of the Georgia Department of Technical and Adult Education, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment. \r\n \r\n- 21 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXIIlBIT \"G\" \r\n \r\nNOTE 7: DEFERRED COMPENSATION PLAN \r\nThe State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State ofGeorgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995. \r\nNOTES: RETIREMENTPLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description North Georgia Technical Institute participates in the Teachers Retirement System of Georgia (TRS), a costsharing multiple-employer public employee retirement system (PERS) established by the General Assembly ofGeorgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by TRS was $916,277.89. The Institute's total payroll for all employees was $4,088,184.66. \r\nBenefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years ofcreditable service, regardless ofage, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number of years ofcreditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7/4 for each year or fraction thereofby which the member has less than 30 years of service. The no111lal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. \r\nRetirement 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. \r\n- 22 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXIIlBIT \"G\" \r\n \r\nNOTES: RETIREMENTPLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nBenefits Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. \r\n \r\nContributions Required and Contributions Made 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 1995, the employer contribution rate was 11.81% for covered employees. The interest rate assumption (rate ofretum on investments) was 7.50%. \r\n \r\nTotal contributions to the plan made during fiscal year 1995 amounted to $154,028.55, of which $108,212.39 was made by the Institute and $45,816.16 was made by employees. These contributions represented 11.81% (Institute) and 5% (employees) of covered payroll. \r\n \r\nFunding Status and Progress Pension Benefit Obligation \r\nThe amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value ofcredited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of the PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS. \r\n \r\nThe total unfunded pension benefit obligation ofTRS as of June 30, 1994, which was the latest information available, was as follows: \r\n \r\nTotal pension benefit obligation \r\n \r\n$ 15,313,743,000.00 \r\n \r\nNet assets available for benefits, at cost \r\n \r\n14 254 785 000.00 \r\n \r\nUnfunded pension benefit obligation \r\n \r\n$ I 058 958 000 00 \r\n \r\nThe measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available for benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. \r\n \r\n- 23 - \r\n \r\n NORTII GEORGIA TECHNICAL INSTITUTE NOTES TO TIIE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 8: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFunding Status and Progress Retirement System Contributions \r\nTotal contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The Institute's contribution for the year ended June 30, 1995, of $108,212.39 was actuarially determined and represented .0192% oftotal contributions made by all participating employers. \r\nTrend Information Historical trend information is presented in the financial report ofTRS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description North Georgia Technical Institute participates in the Employees' Retirement System of Georgia (ERS), a single-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose ofproviding retirement allowances for employees of the State of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by ERS was $2,391,697.00. The Institute's total payroll for all employees was $4,088,184.66. \r\nBenefits The benefit structure of ERS was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an \"old plan\" member subject to the plan provisions in effect prior to July 1, 1982. All other members are \"new plan\" members subject to the modified plan provisions. \r\nMembers become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age. \r\n \r\n- 24- \r\n \r\n NORTH GEORGIA TECHNICAL INSTmJTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE30 1995 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTES: RETIREMENTPLANS \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\nContributions Required and Contributions Made Under the old plan, member contnbutions consist of employee contnbutions paid by the employee of 1.25% ofannual compensation and 4.75% of annual compensation paid by the Institute on behalfofthe employee. Under the new plan, member contnbutions consist solely of 1.25% of annual compensation paid by employee. The Institute also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. Contributions are also made on amounts paid for accumulated leave of retiring employees. \r\n \r\nTotal contributions to the plan made during fiscal year 1995 amounted to $402,718.26, of which $372,821.94 was made by the Institute and $29,896.32 was made by employees. These contributions represented 14.89\"/o (Institute) and 1.25% (employees) of covered payroll. \r\n \r\nFunding Status and Progress Pension Benefit Obligation \r\nThe amount shown as the \"pension benefit obligation\" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result ofemployee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value ofcredited projected benefits, and is independent of the funding method used to determine contributions to the plan. \r\n \r\nThe pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include the following: \r\n \r\n(1) The present value of future pension benefits paid was computed using a discounted rate of7.5%. This rate is also the same rate assumed to be earned on investments in the plan in future years. \r\n \r\n(2) Future pension payments reflect the following assumed salary increases as a result of inflation and merit increases: \r\n \r\n~ \r\n20 25 30 35 40 to 65 \r\n \r\nPercentage \r\n9.5% 8.5% 6.5% 6.0% 5.7% \r\n \r\n- 25 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXIIlBIT \"G\" \r\n \r\nNOTES: RETIREMENTPLANS \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\nFunding Status and Progress Pension Benefit Obligation (3) ERS has the authority to grant cost-of-living adjustments by State statute. As of June 30, 1994, cost-of-living adjustments have been included in the pension benefit obligation. \r\n \r\nThe total unfunded pension benefit obligation ofERS as ofJune 30, 1994, which was the latest information available, was as follows: \r\n \r\nPension Benefit Obligation: \r\n \r\nRetirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving benefits \r\n \r\n$ 2,227,653,000.00 \r\n \r\nCurrent employees: \r\n \r\nAccumulated contributions \r\n \r\n648,516,000.00 \r\n \r\nEmployer financed - vested \r\n \r\n1,085,190,000.00 \r\n \r\nEmployer financed - nonvested \r\n \r\n1 206 805 000.00 \r\n \r\nTotal pension benefit obligation \r\n \r\n$5,168,164,000.00 \r\n \r\nNet assets available for benefits, at cost \r\n \r\n4 858 015 000.00 \r\n \r\nUnfunded pension benefit obligation \r\n \r\n$ 310 ]49 000 00 \r\n \r\nThe measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as of the same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers. \r\n \r\nFunding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date. \r\n \r\n-26- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTES: RETIREMENTPLANS \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\nFunding Status and Progress Funding Policy \r\nTotal contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Institute's contribution for the year ended June 30, 1995, of $372,821.94 was actuarially determined and represented .1453% of total contributions made by all participating employers. \r\n \r\nSignificant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation. \r\n \r\nTrend Information \r\n \r\nHistorical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This \r\n \r\ninformation gives an indication of the progress made in accumulating sufficient assets to pay benefits when \r\n \r\ndue. \r\n \r\n \r\n \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\n \r\nPlan Description North Georgia Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees ofthe Employees' Retirement System of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by GDCP was $515,250.57. The Institute's total payroll for all employees was $4,088,184.66. \r\n \r\nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has less than$ 3,500.00 credited to his/her account, the Board of Trustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated \r\nbeneficiary. \r\n \r\nContributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination ofemployment, the amount ofthe member's account is refundable upon request \r\nby the member. \r\n \r\n- 27 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 199S \r\n \r\nEXIIlBIT \"G\" \r\n \r\nNOTES: RETIREMENTPLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nContributions and Vesting Total contributions made by employees during fiscal year 1995 amounted to $38,644.35 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan. \r\nNOTE 9: LEAVE POLICIES \r\nEmployees 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 of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences \r\nEmployees 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. \r\nCertain 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. \r\nNOTE 10: NONMONETARY TRANSACTIONS \r\nThe Georgia State Financing and Investment Commission (GSFIC), a unit of State government, is responsible for the issuance of state debt and for the investment and accounting for proceeds derived from the issuance of state debt. In addition, GSFIC is authorized to acquire and construct projects for the benefit of units of State government or to contract with units of State government for the construction or acquisition of capital outlay projects. During the fiscal year ended June 30, 1995, the Georgia State Financing and Investment Commission paid $979,482.71 to various vendors for approved projects related to North Georgia Technical Institute. \r\nNOTE 11: CONTINGENCIES \r\nAmounts 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. \r\nLitigation, claims and assessments filed against North Georgia Technical Institute (as an organizational unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self-insurance which provides coverage for such \r\n- 28 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30 1995 \r\n \r\nEXIIlBIT \"G\" \r\n \r\nNOTE 11: CONTINGENCIES \r\nlitigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995. \r\nNOTE 12: BONDING INFORMATION \r\nThe President and all employees ofNorth Georgia Technical Institute are bonded under a Public Employees Blanket Bond written by the Employers Insurance of Wausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1995. Under this agreement, the public employee dishonesty coverage insures North Georgia Technical Institute to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment. \r\nAll employees ofNorth Georgia Technical Institute are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626011675 2 and 626 012294 4, on which the premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Institute to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. \r\n \r\n- 29- \r\n \r\n 3u \r\n \r\n SUPPLEMENTARY INFORMATION - 31 - \r\n \r\n NORTH GfORGIA TECHNICAL INSTITUTE COMBINING BAlANCf SHEET ISTATUTORy BASIS) \r\nBUDGET FUND JUNE 30 1995 \r\n \r\nEXHIBIT\"H\" \r\n \r\nCash and Cash Equiva- \r\nAccounts Receivable State Funds Federal Financial Assistance Other \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY \r\nLiabilities Cash OVerdraft Accounts Payable Deferred Revenue Tuition and Fees \r\nTotal Liabilities \r\nFund Equity Fund Balance Reserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education  Administrative Central Office Live Work Projects Unreserved Designated Surplus Regular Lottery for Education \r\nTotal Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\n. \r\n \r\n\"A\" \r\n \r\nDEPARTMENT OF. \r\n \r\nTECHNICAL \r\n \r\nAND ADULT \r\n \r\nEDUCATION \r\n \r\ne \r\nLOTTERY FOR \r\nEDUCATION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n434,694.07 $ \r\n \r\n434,694.07 \r\n \r\n$ \r\n \r\n10,055.41 $ \r\n \r\n,,,;}.54.'Zl \r\n \r\n60,333.30 \r\n \r\n$ \r\n \r\n137,642.98 $ \r\n \r\n15,002.88 $ 15,002.88 $ \r\n \r\n25,058.29 l,f,254.'Zl 60,333.30 \r\n152,645.86 \r\n \r\n$ \r\n \r\n137642.98 $ \r\n \r\n449696.95 $ \r\n \r\n587339.93 \r\n \r\n19,854.58 92,334.84 $ \r\n10,992.50 \r\n123,181.92 $ \r\n \r\n$ 449,300.37 \r\n \r\n19,854.58 541,635.21 \r\n \r\n10,992.50 \r\ns 449,300.37 --~s~n~,482-=.29- \r\n \r\n$ \r\n \r\n24.18 \r\n \r\n13,040.65 \r\n \r\n$ \r\n \r\n24.18 \r\n \r\n13,040.65 \r\n \r\n1,396.23 $ \r\n \r\n$ \r\n \r\n14,461.06 $ \r\n \r\n396.58 396.58 $ \r\n \r\n1,396.23 396.58 \r\n14,857.64 \r\n \r\n137642.98 $ \r\n \r\n449696.95 $ \r\n \r\n587339.93 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial statements and Supplementary Information. \r\n 32 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE /STATUTORY BASIS) \r\nBUDGET FUND \r\nVEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"!\" \r\n \r\nFUND BALANCE  JULY 1 Reserved Un\"\"\"\"1HMI Designated Surplus \r\nADDITIONS Adjustments to Prior Yea(s Accounts Payable Excess of Funds Available over Expendttures \r\nExhibil\"J\" \r\nDEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1994 Reserved Fund Balance Carried over from Prior Year as Funds AvailabJe \r\nFUND BALANCE JUNE 30 \r\n(To Exhibit \"H\") \r\n \r\n\"A\" DEPARTMENT OF . \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" \r\nLOTTERY FOR EDUCATION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n10,189.65 \r\n \r\n501.84 $ \r\n \r\n$ \r\n \r\n10,691.49 $ \r\n \r\n0.00 0.00 $ \r\n \r\n10,189.65 \r\n501.84 10,691.49 \r\n \r\n$ \r\n \r\n1,289.30 $ \r\n \r\n13,171.76 \r\n \r\n$ \r\n \r\n14,461.06 $ \r\n \r\n396.58 $ 396.58 $ \r\n \r\n1,685.88 13,171.76 14,857.64 \r\n \r\n501.84 $ 10,189.65 10,691.49 $ \r\n14461.06 $ \r\n \r\n0.00 $ \r\n \r\n501.84 \r\n \r\n10,189.65 \r\n \r\n0.00 $ _ ___c1.=,0,\"'69'--'1'-'.49\"- \r\n \r\n396.58 $ ===1=40.857==64= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n. 33. \r\n \r\n NORTH GEORGIA TECHNICAL INSmUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND VEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"J\" \r\n \r\nFUNDS AVAILABLE \r\nREVENUES \r\nSTATE FUNDS Allotment from Georgia Department of Technical and Adult Education -Administrative Central Office \r\nFEDERAL REVENUES \r\nOTHER REVENUES RETAINED Contract Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Rabun Council of Economic Development Organization Fees Application Registration/Continuing Education Testing Other Reimbursements from Various Sources Sales and Services (Net) Tuition Other Sources \r\nTotal Other Revenues Retained \r\nTotal Revenues \r\nCARRY-OVER FROM PRIOR YEAR \r\nTransfer from Reserved Fund Balance Live Work Projects \r\nTotal Carry-Over from Prior Year \r\nTotal Funds Available \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n4 954,280.06 $ \r\n \r\n$ _ _..:.732=,223=:=82=- \r\n \r\n493,878.88 $ ----=5'-',448=1-'-'58=.94-'$ ---=-732=,223=:=8=-2 \r\n \r\n17,442.10 \r\n \r\n15,229.09 \r\n \r\n88,926.81 \r\n \r\n12,600.00 161,493.36 \r\n19,944.00 29,400.00 55,897.94 312,508.67 553,346.91 \r\n2,076.62 \r\n \r\n$ \r\n \r\n1,268,865.50 \r\n \r\n$ \r\n \r\n6,955,369.38 $ \r\n \r\n17,442.10 \r\n15,229.09 \r\n88,926.81 \r\n12,600.00 161,493.36 \r\n19,944.00 29,400.00 55,897.94 312,508.67 553,346.91 \r\n2,076.62 \r\n$ _ __a1,:,268=,865=:=50~ \r\n493,878.88 $ ---'7'-'-,44-'-'=9-\"'.2'-'48\"'.=-26=- \r\n \r\n$ \r\n \r\n10.189.65 \r\n \r\n$ \r\n \r\n10,189.65 \r\n \r\n$ ----'1'-=0-'-'1,.::;89.::;.::;65=. $ _ ___a10:c,,-\"189=.65;a._ \r\n \r\n6.965.559.03 $ \r\n \r\n493,878.88 $ ==7=,4=59,,.,43=7=.9=1 \r\n \r\nEXPENDITURES \r\nPERSONAL SERVICES-INSTITUTIONS \r\nSalaries and Wages Employer's Contributions for: \r\nF.I.C.A. Retirement \r\n \r\n3,779,676.53 \r\n192,646.47 482,077.72 \r\n \r\n3,779,676.53 \r\n192,646.47 482,077.72 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Revievf of Financial Statements and Supplementary Information. \r\n- 34 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"J\" \r\n \r\nEXPENDITURES \r\nPERSONAL SERVICES-INSTITUTIONS \r\nEmployer's ContriWions for: Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Merit System Assessment \r\nOPERATING EXPENSES-INSTITUTIONS \r\nOther Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Util~ies Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing \r\nTravel Motor Vehicle Purchases Equipment \r\nEquipment Purchases Computer Charges \r\nOther Costs Supplies and Materials Repairs and Maintenance \r\nSoftware Equipment \r\nEquipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees \r\nQUICK START PROGRAM \r\nOther Costs Supplies and Materials Util~ Other Operating Expenses \r\nTravel Telecommunications Per Diem Fees and Contracts \r\nPer Diem and Fees \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\nTOTAL \r\n \r\n406,146.32 22,985.21 3,268.62 \r\n118,625.00 3,739.07 \r\n5,009,164.94 \r\n \r\n23,371.07 418,214.39 \r\n69,380.36 338,490.64 \r\n6,420.28 16,519.00 83,245.57 24,019.75 42,126.08 36,239.00 \r\n75,371.42 \r\n17,173.34 6,188.20 17,996.39 \r\n128,933.58 1,250.00 \r\n47,821.55 \r\n124,165.01 \r\n1,476,925.63 \r\n \r\n$ \r\n \r\n606.90 \r\n \r\n2,307.18 \r\n \r\n8,398.03 \r\n \r\n612.78 \r\n \r\n601.19 \r\n \r\n823.68 \r\n \r\n13,349.76 \r\n \r\n$ \r\n \r\n406,146.32 \r\n \r\n22,985.21 \r\n \r\n3,268.62 \r\n \r\n118,625.00 \r\n \r\n3,739.07 \r\n \r\n5,009,164.94 \r\n \r\n$ \r\n \r\n23,371.07 \r\n \r\n418,214.39 \r\n \r\n69,380.36 \r\n \r\n338,490.64 \r\n \r\n6,42028 \r\n \r\n16,519.00 \r\n \r\n83,245.57 \r\n \r\n24,019.75 \r\n \r\n42,126.08 \r\n \r\n36,239.00 \r\n \r\n75,371.42 \r\n \r\n17,173.34 6,188.20 \r\n17,996.39 \r\n128,933.58 1,250.00 \r\n47,821.55 \r\n124,165.01 \r\n1,476,925.63 \r\n \r\n606.90 2,307.18 8,398.03 \r\n612.78 601.19 \r\n \r\n823.68 \r\n \r\n$ \r\n \r\n13,349.76 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUQGETFUND YEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"J\" \r\n \r\nEXPENDITURES \r\nADULT LITERACY GRANTS \r\nPersonal Services Salaries and Wages Employer's Contributions for: F.I.CA Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance \r\nOtherCosts Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Operating E,cpenses Publications and Printing \r\nTravel Equipment \r\nEquipment Purchases Computer Charges \r\nSoftware Equipment \r\nEquipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts \r\nPer Dtem and Fees \r\nJOB TRAINING PARTNERSHIP ACT \r\nPenional Services Salaries and Wages Employer's Contributions For. F.I.C.A Health Insurance \r\nOther Costs Supplies Other Operating Elcpenses \r\nEquipment Equipment Purchases \r\nComputer Charges Software \r\nTelecommunications \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\nTOTAL \r\n \r\n286,402.07 \r\n5,928.05 15,367.10 15,527.12 \r\n435.78 65.38 2,374.00 \r\n51,406.26 2,024.84 1,000.00 9,941.83 1,431.00 13,966.77 \r\n2,180.34 \r\n1,654.30 \r\n2,705.30 250.00 \r\n4,191.98 \r\n2,780.00 \r\n$ _ _ _4_19~,63~2-~12~ \r\n \r\n$ \r\n \r\n22,106.06 \r\n \r\n225.79 237.28 \r\n \r\n1,486.79 55.85 \r\n \r\n1,020.15 \r\n \r\n7,229.03 953.87 \r\n \r\n33,314.82 \r\n \r\n286,402.07 \r\n5,928.05 15,367.10 15,527.12 \r\n435.78 65.38 2,374.00 \r\n51,406.26 2,024.84 1,000.00 9,941.83 1,431.00 \r\n13,966.77 \r\n2,180.34 \r\n1,654.30 \r\n2,705.30 250.00 \r\n4,191.98 \r\n2,780.00 \r\n$ --~4~19~,63_2_.1~2 \r\n \r\n$ \r\n \r\n22,106.06 \r\n \r\n225.79 237.28 \r\n \r\n1,486.79 55.85 \r\n \r\n1,020.15 \r\n \r\n7,229.03 953.87 \r\n \r\n33,314.82 \r\n \r\nSee accompanying notes and Independent Acccunlant's Combined Report on Review of Financial Statements and Supplementary lnfonnation. \r\n- 36 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"J\" \r\n \r\nEXPENDITURES \r\nEQUIPMENT-TECHNICAL INSTITUTES \r\nOther Coot Other Operating Expenses \r\nComputer Charges Equipment Equipment Purchases \r\nEquipment Equipment Purchases \r\nREPAIRS AND RENOVATIONS \r\nOtherCoot Repairs and Maintenance Other Operating Expenses \r\nTolal Expenditures Excess of Funds Available over Expenditures \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n'.B\" LOTTERY FOR EDUCATION \r\n \r\nTOTAL \r\n \r\n132.99 $ \r\n12,192.82 141,650.88 \r\n$---=153=,976.69 $ \r\n \r\n132.99 \r\n12,192.82 141,650.88 153,976.69 \r\n \r\n6,952,387.27 $ 13,171.76 \r\n \r\n339,370.23 $ 531.96 \r\n339,902.19 $ \r\n493,878.88 $ 0.00 \r\n \r\n339,370.23 531.96 \r\n339,902.19 \r\n7,446,266.15 13,171.76 \r\n \r\n======= 6,965,559.03 $ \r\n \r\n493,878.88 $ \r\n \r\n7,459,437.91 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 37 - \r\n \r\n NORTH GEORGIA TECHNICAi INSTITUTE COMBINING STATEMENT Of CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUNDS \r\nYEAR ENDED JUNE 30 1995 \r\n \r\nEXHIBIT\"K\" \r\n \r\nfUt:!P Berry, R. Roger, Scholarship Funds \r\nClan,y, WIiiiam C., Scholarship Fund Federal Supplemental Educational \r\nOpportunity Grants Fund ~ Electrification Council \r\nEducational Loan Fund HOPEScholarshpProgram \r\nKnittle Scholarship Fund Mount Vernon Mills Scholarship Fund \r\nPell Grant Program Private Scholarship Fund Student Activities Fund \r\n \r\nASSETS/ LIABILITIES JULY1, 1994 \r\n \r\n$ \r\n \r\n300.00 \r\n \r\n2.10 $ \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nASSETS/ LIABILITIES JUNE 30, 1995 \r\n \r\n$ \r\n \r\n300.00 \r\n \r\nTT.94 $ \r\n \r\n78.46 \r\n \r\n1.58 \r\n \r\n0.00 \r\n \r\n32,479.00 \r\n \r\n32,479.00 \r\n \r\n0.00 \r\n \r\n11,440.74 0.00 0.00 \r\n100.00 0.00 \r\n74.90 53,915.03 \r\n \r\n103.37 592,808.75 \r\n215.00 200.00 357,782.00 \r\n41.14 27,746.29 \r\n \r\n592,808.75 215.00 \r\n357,782.00 61.54 \r\n31,698.42 \r\n \r\n11,544.11 0.00 0.00 \r\n300.00 0.00 \r\n54.50 49,962.90 \r\n \r\n$ \r\n \r\n65832.n $ \r\n \r\n1 011 453.49 $ \r\n \r\n1 015,123.17 $ \r\n \r\n62163.09 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n-38- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE30 1995 \r\nNONINTEREST BEARING ACCOUNTS Habersham Bank, Comelia,~ia \r\nINTEREST BEARING ACCOUNTS Community Bank and Trust, Comelia,~ia Money Market Account Habersham Bank, Ccmelia,~ia Money Market Accounts \r\nOTHER Cashon Hand Petty Cash \r\n \r\nSCHEDULE 1 \r\n414,839.49 3,504.11 \r\n49,313.69 2.000.00 $ ===469='=65=7=.29= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n-39- \r\n \r\n NORTH GEORGIA TECHNICAL IHSIIIVIE \r\nINVESTMENTS JUNE:,O 1995 \r\n \r\nSCHEDULE \"Z' \r\n \r\nNONEXPENQABLE IRVSI fUNQ \r\nSa~ing, Lenora M., Scholarship Fund U.S. Treasury Sacurilies Holdings Account No. 2000-007-9925 912827J78 912827M25 \r\n \r\nPURCHASE DATE \r\n \r\nINTEREST RATE \r\n \r\nMATURITY DATE \r\n \r\nAMOUNT \r\n \r\nMay 17, 1993 August 31, 1993 \r\n \r\n6.25% 4.75% \r\n \r\nFebruary 15, 2003 $ August 31, 1998 \r\n$ \r\n \r\n15,000.00 20,000.00 \r\n35000.00 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n-40- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30 1995 \r\n \r\nBUDGET FUND \r\nAppalachian Regional Commission Appalachian Regional Development Direct \r\nEducation, U. S. Department of Adult Education - S- Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office \r\nCollege Work-Study Program Direct \r\nVocational Education - Basic Grants to States Through Georgia Department of Technical and Adult \r\nEducation - Administrative Central Office \r\nTech-Prep Education Through Habersham County Board of Education \r\nHealth and Human Services, U. S. Department of Job Opportunities and Basic Skills Training Through Georgia Department of Human Resources Various Offices of Department of Family and Children Services \r\nLabor, U. S. Department of Job Training Partnership Act Through Georgia Department of Technical and Adult Education - Administrative Central Office Through Georgia Mountains Regional Development Center \r\n \r\nCFDA NUMBER \r\n23.001 \r\n84.002 84.033 84.048 84.243 \r\n93.561 \r\n17.250 17.250 \r\n \r\nSCHEDULE\"3\" \r\n \r\nAMOUNT \r\n \r\n$ \r\n \r\n29,497.48 \r\n \r\n159,757.08 80,597.00 \r\n343,875.18 35,000.00 \r\n \r\n28,737.85 \r\n \r\n33,314.82 21,444.41 \r\n732,223.82 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial S-ments and Supplementary Information. \r\n- 41 - \r\n \r\n SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\nYEAR ENDED JUNE 30 1995 \r\n \r\nSTATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\nThe status offindings disclosed in the review report for the year ended June 30, 1994, is summarized below: \r\n \r\nAudit Control Number \r\n \r\nStatus ofFindings \r\n \r\n838-93-07 838-94-01 838-94-02 838-94-03 838-94-04 \r\n \r\nCorrective Action Implemented See Audit Control Number 838-95-01 See Audit Control Number 838-95-02 Corrective Action Implemented Corrective Action Implemented \r\n \r\nPRIOR YEAR/CURRENT YEAR \r\n \r\nREVENUES/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures Subsidiary Accounts Receivable Listing for Tuition and Fees Financial Statements Audit Control Number 838-95-01 \r\n \r\nThe review report for the year ended June 30, 1994, disclosed that a detailed accounting of student tuition and fees activity was not maintained in the formal accounting records for the Governmental Fund Type - Budget Fund in accordance with the Policy Manual of the State Board of Technical and Adult Education. Instead, a detail of activity was maintained in subsidiary ledgers with collections posted to the Fiscal Accounting and Control System as cash was received. As a result, no accounts receivable were included on the formal accounting records for those tuition and fees guaranteed by financial aid. For the year under review, this deficiency continued to exist. \r\n \r\nThe Institute should follow established procedures to ensure that accounts receivable for tuition and fees guaranteed by financial aid are recorded on the Fiscal Accounting and Control System as required by State Board policy. \r\n \r\nGENERAL LEDGER Agency Funds - Inadequate Accounting Records Financial Statements Audit Control Number 838-95-02 \r\n \r\nThe review report for the year ended June 30, 1994, disclosed that North Georgia Technical Institute maintains a student loan program funded by the Georgia Electrification Council. As of June 30, 1995, this fund had a cash balance of$3,504.11 and student notes receivable of$8,040.00 that were included on the Combined Balance Sheet (Statutory Basis) of the Institute. The student notes receivable, totaling $8,040.00, are in \r\ndefault. \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\nYEAR ENDED JUNE 30 1995 \r\nPRIOR YEAR/CURRENT YEAR \r\nGENERAL LEDGER Agency Funds - Inadequate Accounting Records Financial Statements Audit Control Number 838-95-02 \r\nThe review report for the year ended June 30, 1994, also noted that a loan was improperly made to a student in excess ofthe $250.00 per quarter per student stipulation in the Georgia Electrification Council agreement. No new loans were made during the year under review. \r\nNorth Georgia Technical Institute's decision effective June 30, '1992, to discontinue the loan program was accepted by the Georgia Electrification Council with the stipulation that the Institute return the original principal ofSI0,000.00 less a deceased student's loan of$500.00 to the Council. As ofthe date of this report, a final disposition of the principal balance had not been made. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1993-h94","title":"Review report, state of Georgia, North Georgia Technical Institute, Clarkesville, Georgia, year ended June 30, 1994","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits. Education Division"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits. Education Division"],"dc_date":["1994-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2011.","Report year covers fiscal year.","For some years, report may be released instead called: North Georgia Technical College, Clarkesville, Georgia, report on audit of the financial statements for the fiscal year ended ... or: North Georgia Technical College, Clarkesville, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended ...","Fiscal year ended June 30, 2011; title from PDF cover (Georgia Government Publications database, viewed September 8, 2023).","Fiscal year ended June 30, 2011; (Georgia Government Publications database, viewed September 8, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits. Education Division"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["North Georgia Technical College--Appropriations and expenditures--Periodicals.","Technical institutes--Georgia--Auditing--Periodicals.","Technical institutes--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Review report, state of Georgia, North Georgia Technical Institute, Clarkesville, Georgia, year ended June 30, 1994"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1993-h94"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn66-b1993-h94"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"GA P,300 .Rl \r\nN!ob \r\n\\lllt3-94 \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS \r\n254 WASHINGTON STREET ATLANTA. GEORGIA 30334 \r\n \r\n REVIEW REPORT \r\nSTATE OF GEORGIA NORTH GEORGIA TECHNICAL INSTITUTE \r\nCLARKESVILLE, GEORGIA YEAR ENDED JUNE 30, 1994 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nEXHIBITS \r\n \r\nFINANCIAL STATEMENTS \r\n \r\nA COMBINED BALANCE SHEET (STATUTORY BASIS) \r\n \r\nALL FUND TYPES AND ACCOUNT GROUPS \r\n \r\n2 \r\n \r\nB STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS) \r\n \r\nALL FUND TYPES \r\n \r\n5 \r\n \r\nC STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nBUDGET FUND \r\n \r\n6 \r\n \r\nSTATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nCOMPARED TO BUDGET \r\n \r\nBUDGET FUND \r\n \r\nD \r\n \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\n10 \r\n \r\nE \r\n \r\n\"B\" LOTTERY FOR EDUCATION \r\n \r\n11 \r\n \r\nF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN \r\n \r\nFUND BALANCE \r\n \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND \r\n \r\n12 \r\n \r\nG NOTES TO THE FINANCIAL STATEMENTS \r\n \r\n13 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nH COMBINING BALANCE SHEET (STATUTORY BASIS) \r\n \r\nBUDGET FUND \r\n \r\n24 \r\n \r\nI COMBINING STATEMENT OF CHANGES IN FUND BALANCE \r\n \r\n(STATUTORY BASIS) \r\n \r\nBUDGET FUND \r\n \r\n25 \r\n \r\nJ COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\n \r\nBUDGET FUND \r\n \r\n26 \r\n \r\nK COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nFIDUCIARY FUND TYPE - AGENCY FUNDS \r\n \r\n30 \r\n \r\nSCHEDULES \r\n \r\n1 CASH AND CASH EQUIVALENTS \r\n \r\n31 \r\n \r\n2 INVESTMENTS \r\n \r\n32 \r\n \r\n3 SCHEDULE OF FEDERAL REVENUES \r\n \r\n33 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE - TABLE OF CONTENTS - \r\nSECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n CLAUDE L VICKERS \r\nSTATE AUDITOR (404) 656-2174 \r\nTAX RATIO (404) 656-0494 \r\n \r\n~.epartm.ent nf J\\ubits \r\n254 WASHINGTON STREET, S.W. ROOM 214 \r\nJ\\tlnuht, \u003cieorBin 30334-8400 \r\nSeptember 16, 1994 \r\n \r\nFINANCIAL AUDITS (404) 656-2180 \r\nPROGRAM AUDITS (404) 656-2006 \r\n \r\nHonorable 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 ofDirectors \r\nand Honorable James H. Marlowe, President North Georgia Technical Institute \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have reviewed the accompanying financial statements (Exhibits A through G) of North Georgia Technical Institute as of and for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that \r\ndemonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a \r\ncomprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of North Georgia Technical Institute. \r\nA review consists principally of inquiries of Institute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. \r\nBased on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1. \r\nOur review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note I. The accompanying supplementary information (Exhibits H through Kand Schedules 1 through 3) is presented only for supplementary analysis purposes. Such information has been \r\n94ARL-4T \r\n \r\n subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we are not aware of any material modifications that should be made thereto. \r\nRespectfully submitted, \r\n~~~ \r\nClaude L. Vickers State Auditor \r\nCLV:gp 94ARL-4T \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS) \r\nALL FUND TYPES AND ACCOUNT GROUPS JUNE 30 1 1994 \r\n \r\n. ASSETS \r\nCash and Cash Equivalents (See Schedule) \r\nInvestments (See Schedule) \r\nAccounts Receivable State Funds Federal Financial Assistance Student Notes Other \r\nFixed Assets Equipment \r\nAmount to be Provided for Payment of Accrued Compensated Absences \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY Liabilities \r\nAccounts Payable Deferred Revenue \r\nTuition and Fees Funds Held for Others Compensated Absences \r\nTotal Liabilities Fund Equity \r\nInvestment in General Fixed Assets Fund Balances \r\nReserved Live Work Projects Endowment Corpus \r\nUnreserved Designated Surplus Regular Undesignated Total Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\nGOVERNMENTAL \r\n \r\nFIDUCIARY FUND TYPES \r\n \r\nFUND TYPE NONEXPENDABLE \r\n \r\nBUDGET \r\n \r\nTRUST \r\n \r\nAGENCY \r\n \r\n$ 75,906.45 $ \r\n \r\n!92.21 $ 57,792.77 \r\n \r\n$ 35,0Q0.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n17,062.27 \r\n \r\n16,174.34 \r\n \r\n$ 33,236.61 \r\n \r\n$ 8,040.00 $ 8,040.00 \r\n \r\n$ 109,143.06 $ 35.192.21 $ 65,832.77 \r\n \r\n$ 90,494.32 7,957.25 \r\n$ 98 I 451. 57 \r\n \r\n$ 65,832.77 $ 65,832.77 \r\n \r\n$ 10,189.65 $ 35,000.00 \r\n \r\n501.84 \r\n \r\n192.21 \r\n \r\n$ 10,691.49 $ 35,192.21 \r\n \r\n$ 109,143.06 $ 35,192.21 $ 65.832.77 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. \r\n- 2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nACCOUNT GROUPS \r\n \r\nGENERAL \r\n \r\nGENERAL \r\n \r\nFIXED \r\n \r\nLONG-TERM \r\n \r\nASSETS \r\n \r\nDEBT \r\n \r\nTOTALS \r\n(Memorandum Only) JUNE 30, 1994 JUNE 30, 1993 \r\n \r\n$ 133,891.43 $ 128,829.59 \r\n \r\n$ 35,000.00 $ 35,000.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n6,683.41 \r\n \r\n17,062.27 \r\n \r\n26,806.77 \r\n \r\n8,040.00 \r\n \r\n8,685.00 \r\n \r\n16,174.34 \r\n \r\n27,882.85 \r\n \r\n$ 41,276.61 $ 70,058.03 \r\n \r\n$ 2,378,575.43 \r\n \r\n$ 2,378,575.43 $ 1,821,910.40 \r\n \r\n$ 378,756.75 $ 378,756.75 $ 347,679.42 \r\n \r\n$ 2,378,575.43 $ 378,756.75 $ 2,967,500.22 $ 2,403,477.44 \r\n \r\n$ 90,494.32 $ 94,240.61 \r\n \r\n$ 378,756.75 \r\n \r\n7,957.25 65,832.77 378,756.75 \r\n \r\n19,838.00 77,391.96 347,679.42 \r\n \r\n$ 378,756.75$ 543,041.09 $ 539,149.99 \r\n \r\n$ 2,378,575.43 \r\n \r\n$ 2,378,575.43 $ 1,821,910.40 \r\n \r\n10,189.65 35,000.00 \r\n \r\n6,987.39 35,000.00 \r\n \r\n$ 2,378,575.43 \r\n \r\n501. 84 192.21 \r\n \r\n190.35 239.31 \r\n \r\n$ 2,424,459.13 $ 1,864,327.45 \r\n \r\n$ 2,378,575.43 $ 378,756.75 $ 2,967,500.22 $ 2,403,477.44 \r\n \r\n- 3- \r\n \r\n ~\\cuiJL \r\nLU l,I \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS) \r\nALL FUND TYPES YEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT \"B\" \r\n \r\nGOVERNMENTAL FUND TYPE \r\n------------BUDGET \r\n \r\nFIDUCIARY FUND TYPE \r\n------------- \r\nNONEXPENDABLE TRUST \r\n------------- \r\n \r\nTOTALS (Memorandum Only) \r\n---------------------------YEAR ENDED \r\n---------------------------- \r\nJUNE 30, 1994 JUNE 30, 1993 \r\n------------- ------------- \r\n \r\nFUND BALANCES - JULY 1 \r\n---------------------- \r\n \r\nReserved Unreserved \r\nDesignated Surplus \r\nUndesignated \r\n \r\n$ \r\n \r\n6,987.39 $ 35,000.00 $ 41,987.39 $ 40,227.40 \r\n \r\n190.35 \r\n \r\n190.35 \r\n \r\n60,268.06 \r\n \r\n239.31 \r\n \r\n239.31 \r\n \r\n411.80 \r\n \r\n------------- ------------- ------------- ------------- \r\n \r\n$ 7,177.74 \r\n------------- \r\n \r\n$ 35,239.31 \r\n------------- \r\n \r\n$ 42,417.05 \r\n------------- \r\n \r\n$ \r\n \r\n100,907.26 \r\n------------- \r\n \r\nADDITIONS \r\n--------- \r\n \r\nAdjustments to Prior Year's \r\n \r\nAccounts Payable \r\n \r\n$ \r\n \r\n500.73 \r\n \r\n$ \r\n \r\n500.73 $ \r\n \r\n131. 74 \r\n \r\nExcess of Funds Available over Expenditures \r\n \r\nExhibit \"C\" \r\n \r\n12,834.73 \r\n \r\n12,834.73 \r\n \r\n7,046.00 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\nExhibit \"F\" \r\n \r\n$ \r\n \r\n-47.10 \r\n \r\n-47.10 \r\n \r\n-172.49 \r\n \r\n------------- ------------- ------------- ------------- \r\n \r\n$ -----1-3-,3--3-5-.4--6 \r\n \r\n$---------4--7-. -1-0 \r\n \r\n$ 13,288.36 \r\n------------- \r\n \r\n$ \r\n \r\n7,005.25 \r\n \r\n------------- \r\n \r\nDEDUCTIONS \r\n---------- \r\n \r\nUnreserved Fund Balance (Surplus) Returned to Georgia Department of \r\nTechnical and Adult Education - \r\nAdministrative Central Office \r\nYear Ended June 30, 1992 Year Ended June 30, 1993 \r\nAdjustments to Prior Year's \r\nAccounts Receivable Reserved Fund Balance Carried Over from \r\nPrior Year as Funds Available \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n190.35 \r\n \r\n2,643.97 \r\n \r\n6,987.39 \r\n------------- \r\n \r\n$ \r\n \r\n0.00 $ 60,268.06 \r\n \r\n190.35 \r\n \r\n0.00 \r\n \r\n2,643.97 \r\n \r\n0.00 \r\n \r\n6,987.39 \r\n \r\n5,227.40 \r\n \r\n------------- ------------- \r\n \r\nFUND BALANCES - JUNE 30 \r\n----------------------- \r\n \r\n$ 9,821.71 \r\n------------- \r\n \r\n$ \r\n \r\n9,821.71 $ 65,495.46 \r\n \r\n------------- ------------- \r\n \r\n(To Exhibit \"A\") \r\n \r\n$ 10,691.49 $ 35,192.21 $ 45,883.70 $ 42,417.05 \r\n============= :::============ ============= ============= \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n- 5- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30. 1994 \r\n \r\nEXHIBIT \"C\" Page 1 \r\n \r\nFUNDS AVAILABLE \r\nREVENUES \r\nSTATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office \r\nFEDERAL REVENUES (See Schedule) \r\nOTHER REVENUES RETAINED Contracts Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Donations Fees Application Registration/Continuing Education Testing Other Reimbursements From Various Sources Sales and Services (Net) Tuition Other Sources \r\nTotal Other Revenues Retained \r\nTotal Revenues \r\nCARRY-OVER FROM PRIOR YEAR \r\nTransfer from Reserved Fund Balance Federal Financial Assistance Live Work Projects \r\nTotal Carry-Over from Prior Year \r\nTotal Funds Available \r\n \r\nTOTALS \r\n------------------------- -- \r\nYEAR ENDED JUNE 30, 1994 JUNE 30, 1993 \r\n \r\n$4,852,156.38$ 4,355,226.77 $ 788,975.93 $ 733,544.19 \r\n \r\n$ 19,248.41 $ 14,906.74 \r\n \r\n13,021.96 0.00 \r\n \r\n9,000.00 350.00 \r\n \r\n13,480.00 \r\n158,318.69 25,605.00 22,888.83 \r\n \r\n12,340.20 \r\n263,360.02 11,493.04 \r\n13,562.04 \r\n \r\n53,166.00 283,982.14 423,833.97 \r\n2,022.56 \r\n \r\n1,842.49 277,909.49 \r\n372,882.54 \r\n200.00 \r\n \r\n$1,015,567.56$ 977,846.56 \r\n \r\n$ 6,656,699.87 $ 6,066,617.52 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.11 \r\n \r\n6,987.39 \r\n \r\n5,227.29 \r\n \r\n------------- ------------- \r\n \r\n$ \r\n \r\n6,987.39 \r\n \r\n------------- \r\n \r\n$ ------5-,2--2-7-.4--0 \r\n \r\n$6,663,687.26$ 6,071,844.92 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n- 6- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND \r\nYEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT \"C\" Page 2 \r\n \r\nEXPENDITURES \r\nPERSONAL SERVICES-INSTITUTIONS \r\nSalaries and Wages Employer's Contributions for: \r\nF.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance . Workers' Compensation Insurance Assessments by Merit System Drug Testing \r\nOPERATING EXPENSES-INSTITUTIONS \r\nOther Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing \r\nTravel Motor Vehicle Purchases Equipment \r\nEquipment Purchases Lease/Purchase of Equipment Computer Charges Other Costs \r\nSupplies and Materials Repairs and Maintenance Software Equipment Equipment Purchases Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts \r\n \r\nTOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993 \r\n \r\n$ 3,491,669.62 $ 3,419,370.56 \r\n \r\n187,046.21 \r\n468,453.52 378,175.56 \r\n13,716.00 2,677.00 \r\n74,230.00 4,561.84 \r\n0.00 \r\n------------- \r\n \r\n191,058.50 \r\n447,074.87 372,184.82 \r\n10,545.00 967.00 \r\n53,928.81 4,853.24 \r\n118.50 \r\n------------- \r\n \r\n$ 4,620,529.75 $ 4,500,101.30 \r\n \r\n$ 26,126.34 $ 17,688.44 \r\n \r\n412,198.71 \r\n \r\n436,669.80 \r\n \r\n139,430.62 \r\n \r\n70,552.10 \r\n \r\n350,800.89 \r\n \r\n341,128.63 \r\n \r\n5,846.63 \r\n \r\n6,121.83 \r\n \r\n7,870.00 \r\n \r\n10,070.00 \r\n \r\n88,297.71 \r\n \r\n126,449.13 \r\n \r\n29,028.00 \r\n \r\n19,133.85 \r\n \r\n36,195.55 \r\n \r\n25,657.06 \r\n \r\n16,250.00 \r\n \r\n0.00 \r\n \r\n138,487.81 0.00 \r\n \r\n104,672.62 6,713.84 \r\n \r\n15,150.63 15,317.78 16,317.26 \r\n \r\n0.00 0.00 18,391.32 \r\n \r\n133,124.03 37,044.06 \r\n \r\n17,072.68 34,706.05 \r\n \r\n21,149.72 \r\n \r\n17,515.18 \r\n \r\n315.00 \r\n \r\n11,271.00 \r\n \r\n------------- ------------- \r\n \r\n$1,488,950.74 $1,263,813.53 \r\n------------- ------------- \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n- 7- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND \r\nYEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT \"C\" Page 3 \r\n \r\nEXPENDITURES \r\nQUICK START PROGRAM \r\nPersonal Services Salaries and Wages Employer's Contributions for: F. I .C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance \r\nOther Costs Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Other Operating Expenses \r\nTravel Equipment \r\nEquipment Purchases Computer Charges \r\nSoftware Telecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees \r\nADULT LITERACY GRANTS \r\nPersonal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance \r\nOther Costs Supplies and Materials Repairs and Maintenance Other Operating Expenses Publications and Printing \r\nTravel Equipment \r\nEquipment Purchases \r\n \r\nTOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993 \r\n \r\n$ 16,244.64 $ 19,168.78 \r\n \r\n241. 57 1,972.80 \r\n2,088.00 127.00 27.00 750.00 \r\n \r\n259.56 2,163.88 \r\n2,524.22 95.00 0.00 544.73 \r\n \r\n522.19 \r\n1,843.04 3,745.76 \r\n0.00 3,750.00 2,769.18 \r\n \r\n2,055.16 \r\n1,907.23 3,822.86 \r\n12.00 9,600.00 2,816.21 \r\n \r\n391.94 \r\n \r\n535.00 \r\n \r\n0.00 649.26 \r\n \r\n505.95 632.51 \r\n \r\n140.00 \r\n \r\n1,823.68 \r\n \r\n------------- ------------- \r\n \r\n$ -----3-5-,2--6-2-.3--8 \r\n \r\n$ 48,466.77 \r\n------------- \r\n \r\n$ 249,523.64 $ 177,599.37 \r\n \r\n3,573.55 6,585.60 6,970.56 \r\n254.00 54.00 \r\n1,500.00 \r\n \r\n2,535.11 6,386.52 6,753.84 \r\n190.00 0.00 \r\n1,089.46 \r\n \r\n33,397.50 9,951.77 \r\n0.00 794.50 \r\n10,848.56 \r\n \r\n22,146.84 0.00 \r\n3,457.58 171. 00 \r\n6,759.03 \r\n \r\n3,444.91 \r\n \r\n3,506.57 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n- 8- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND \r\nYEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT \"C\" Page 4 \r\n \r\nEXPENDITURES \r\nADULT LITERACY GRANTS \r\nComputer Charges Software Equipment Equipment Purchases \r\nTelecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees Contracts \r\nJOB TRAINING PARTNERSHIP ACT \r\nPersona 1 Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance \r\nEQUIPMENT - STATE SCHOOLS \r\nEquipment Equipment Purchases \r\nTotal Expenditures Excess of Funds Available over Expenditures \r\n \r\nTOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993 \r\n \r\n$ 1,276.75 $ 4,090.50 \r\n \r\n4,721.64 2,348.79 \r\n \r\n10,916.00 0.00 \r\n \r\n250.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n6,815.50 \r\n \r\n------------- ------------- \r\n \r\n$ 335,495.77 $ 252,417.32 \r\n------------- ------------- \r\n \r\n$ 8,076.36 $ \r\n \r\n0.00 \r\n \r\n108.88 \r\n \r\n0.00 \r\n \r\n908.05 \r\n \r\n0.00 \r\n \r\n1,009.60 \r\n \r\n0.00 \r\n \r\n------------- ------------- \r\n \r\n$ 10,102.89 $ \r\n \r\n0.00 \r\n \r\n------------- ------------- \r\n \r\n$ 160,511.00 $ \r\n \r\n0.00 \r\n \r\n------------- ------------- \r\n \r\n$ 6,650,852.53 $ 6,064,798.92 \r\n \r\n12,834.73 \r\n \r\n7,046.00 \r\n \r\n------------- ------------- \r\n \r\n$ 6,663,687.26 $ 6,071,844.92 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n- 9- \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"A\" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT 110\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Funds Federal Revenues Other Revenues Retained \r\nCARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 4,691,646.00 $ 4,691,645.38 $ \r\n \r\n-0.62 \r\n \r\n752,946.00 \r\n \r\n788,975.93 \r\n \r\n36,029.93 \r\n \r\n1,501,683.00 1,015,567.56 -486,115.44 \r\n------------- r------------ ------------- \r\n \r\n$ 6,946,275.00 $ 6,496,188.87 $ -450,086.13 \r\n \r\n0.00 \r\n \r\n6,987.39 \r\n \r\n6,987.39 \r\n \r\n$6,946,275.00$ 6,503,176.26$ -443,098.74 \r\n \r\nEXPENDITURES \r\nPersonal Services-Institutions Operating Expenses-Institutions Quick Start Program Adult Literacy Grants Job Training Partnership Act \r\n \r\n$ 4,721,743.00 $ 4,620,529.75 $ 101,213.25 \r\n \r\n1,806,945.00 1,488,950.74 317,994.26 \r\n \r\n35,263.00 \r\n \r\n35,262.38 \r\n \r\n0.62 \r\n \r\n355,829.00 335,495.77 \r\n \r\n20,333.23 \r\n \r\n26,495.00 \r\n \r\n10,102.89 \r\n \r\n16,392.11 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ 6,946,275.00 $ 6,490,341.53 $ 455,933.47 \r\n \r\nExcess of Funds Availabl~ over Expenditures \r\n \r\n$ 12,834.73 $ 12,834.73 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. \r\n- 10 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nCOMPARED TO BUDGET BUDGET FUND \r\n\"B\" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT \"E\" \r\n \r\nFUNDS AVAILABLE REVENUES \r\nState Funds \r\nEXPENDITURES Equipment - State Schools \r\nExcess of Funds Available over Expenditures \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 160,511.00$ 160,511.00 $ \r\n \r\n0.00 \r\n \r\n$ 160,511.00$ 160,511.00$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. \r\n- 11 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994 \r\n \r\nEXHIBiT \"F\" \r\n \r\nREVENUES Interest Earned \r\nEXPENDITURES Scholarships \r\nExcess of Revenues over (under) Expenditures FUND BALANCE JULY 1, 1993 \r\nFUND BALANCE JUNE 30, 1994 \r\n \r\nLENORA M. SARLI NG SCHOLARSHIP FUND \r\n$ 1,517.90 \r\n \r\n$ 1,565.00 \r\n \r\n$ \r\n \r\n-47.10 \r\n \r\n35,239.31 \r\n \r\n$ 35,192.21 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. \r\n- 12 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXIIlBIT \"G\" \r\n \r\nNOTE 1: SUM11ARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY North Georgia Technical Institute is one of twenty-eight (28) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations ofNorth Georgia Technical Institute as a separate reporting entity. \r\nThe Institute's Local Board ofDirectors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department ofTechnical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State funds to be received by North Georgia Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, North Georgia Technical Institute is considered an organizational unit ofthe Georgia Department of Technical and Adult Education for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. \r\nFUND ACCOUNTING North Georgia Technical Institute uses funds and account groups to report on its financial position and the results of its operations determined in conformity with the accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. \r\nFunds and account groups presented in the accompanying financial statements are as follows: \r\nGOVERNMENTAL FUND TYPE \r\nBUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1993-1994. This fund also includes operations from various institutional services provided to students, faculty, and/or staff which are funded by fees charged to participants that are directly related to, but not necessarily equal to, the cost of service. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund. \r\nFIDUCIARY FUND TYPES \r\nNONEXPENDABLE TRUST FUND - The fund used to account for assets, revenues, and expenses utilized in accordance with the provisions ofthe trust established by individual agreement, statute, or administrative action. Nonexpendable trust funds are used when only the revenues earned on the principal (corpus) of the \r\n- 13 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXHIBIT \"Gil ... \r\n \r\nNOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFUND ACCOUNTING \r\nFIDUCIARY FUND TYPES \r\nNONEXPENDABLETRUSTFUND trust may be expended for the purposes designated in the trust agreement and the principal of the trust agreement must remain intact. \r\nAGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals. \r\nACCOUNT GROUPS \r\nGENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. 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. \r\nGENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions ofcertain governmental long-term liabilities, such as claims, judgments, and compensated absences, which will be paid from future resources. \r\nBASIS OF ACCOUNTING MEASUREMENT FOCUS \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e.,expenditures) in net current assets. Nonexpendable trust funds, on the other hand, should be accounted for on a flow of economic resources measurement focus, in which all assets and all liabilities are included on the balance sheet. However, in accordance with accounting practices prescribed or permitted by the State of Georgia, the nonexpendable trust funds utilize the current financial resources measurement focus. \r\nGOVERNMENTAL FUND TYPE BUDGET FUND \r\nExcept as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e.,when they become both 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 be used to pay liabilities of the current period. Revenues that are accrued include primarily State funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified \r\n- 14 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND \r\naccrual basis of accounting calls for expenditures, other than accrued interest of general long-term debt, to be recorded when the related fund liability is incurred. \r\nContractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording 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. \r\nPrior period adjustments are reported as additions to and deductions from fund balance of the Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. \r\nFIDUCIARY FUND TYPES NONEXPENDABLETRUSTFUND \r\nThe Nonexpendable Trust Fund is maintained 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 become both 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 be used to pay liabilities ofthe current period. Revenues that are accrued include primarily interest income and certain amounts earned under terms ofthe trust agreements. Expenditures are recorded when the related fund liability is incurred. \r\nA Statement ofCash Flows is not presented for the Nonexpendable Trust Fund in the accompanying financial statements as required by generally accepted accounting principles. \r\nAGENCY FUNDS Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis of accounting is utilized for recognizing assets and liabilities. \r\nBUDGET The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriated funds and certain Federal funds for the various technical institutes throughout the State. The \r\n- 15 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBUDGET appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 1993-1994. 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. \r\nCASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions. \r\nINVESTMENTS Investments are defined as those financial instruments with terms of three months or more from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost. \r\nACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available. \r\nINVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase. \r\nRESERVED 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: \r\nLIVE WORK PROJECTS The accumulated balance of unexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects in subsequent fiscal years. \r\nENDOWMENT CORPUS The principal (corpus) of the Lenora M. Sarling Scholarship Fund. This amount must remain intact per provisions of the trust agreement. \r\nCOMPENSATED ABSENCES Compensated absences represent obligations of the Institute relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the Budget Fund for the current portion ofthis obligation as this amount will not be liquidated with \r\n- 16 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCOMPENSATED ABSENCES expendable available financial resources. Funds are provided in the allotment of State funds each year to the Institute to cover the cost of annual leave paid to terminated employees. \r\nThe liability for compensated absences at year-end is reported in the General Long-Term Debt Account Group for governmental funds. \r\nMEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present 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. \r\nCOMPARATIVE DATA Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Institute's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand. \r\nCertain reclassifications have been made to the comparative data in order to provide comparability with the current year classifications. \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia 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 any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: \r\n(1) Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia. \r\n(2) Bonds, bills, notes, certificates ofindebtedness, or other obligations of the counties or municipalities of the State of Georgia. \r\n(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. \r\n(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. \r\n- 17 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, notes, certificates ofindebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\n(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\n \r\nAs 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. \r\n \r\nCOLLATERALIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consists of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk: \r\n \r\nCategory 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. \r\n \r\nCategory 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Institute's name. \r\n \r\nCategory 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the Institute's name, and amounts uncollateralized. \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\nCash Deposits \r\n \r\n$ 131 891 43 $ 385 41004 $ 256 32165 $=====0\"='00.,,,, $ 129088 39 \r\n \r\nCATEGORIZATION OF INVESTMENTS For purposes of analysis of custodial credit risk, investments consist of U. S. government securities. Investments are stated at cost and are summarized and classified as to custodial credit risk within the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the Institute or its agent in the Institute's name. \r\n \r\n- 18 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nCATEGORIZATION OF INVESTMENTS Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Institute's name. \r\n \r\nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Institute's name. \r\n \r\nType of Investment \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\nCarrying Amount \r\n \r\nMarket Value \r\n \r\nU. S. Government Securities $ 35,000 00 $ \r\n \r\n0 00 $ =====0,.,,,.0-0 $ 35 000.00 $ 32 504 70 \r\n \r\nNOTE 3: CHANGES IN GENERAL FIXED ASSETS \r\n \r\nIn accordance with the statutory definition ofmoveable personal property (Official Code of Georgia Annotated Section 50-16-161 ), only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group. \r\n \r\nThe following is a summary ofchanges of equipment for the General Fixed Assets Account Group during the fiscal year: \r\n \r\nBalance July 1, 1993 \r\n \r\n$ 1,821,910.40 \r\n \r\nAdditions Deductions \r\n \r\n570,867.27 14,202.24 \r\n \r\nBalance June 30, 1994 \r\n \r\n$ 2,378 575.43 \r\n \r\nNOTE 4: GENERAL LONG-TERM DEBT \r\n \r\nCHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1994, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group: \r\n \r\n- 19 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXlflBIT \"G\" \r\n \r\nNOTE 4: GENERAL LONG-TERM DEBT \r\n \r\nCHANGES IN GENERAL LONG-TERM DEBT \r\n \r\nBalance July 1, 1993 \r\n \r\n$ 347,679.42 \r\n \r\nAdditions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits (*) \r\n \r\n7,883.55 23,193.78 \r\n \r\nBalance June 30, 1994 \r\n \r\n$ 378,756.75 \r\n \r\n(*) Includes salary-related fringe benefits applicable to compensated absences at July 1, 1993. \r\n \r\nNOTE 5: DEFERRED COMPENSATION PLAN \r\n \r\nThe State of Georgia offers its employees a deferred compensation plan created 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 of the State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board Merit System of Personnel Administration for the year ended June 30, 1994. \r\n \r\nNOTE 6: RETIREMENT PLANS \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA TEACHERS RETIREMENT SYSTEM OF GEORGIA Substantially all employees are members of the Employees' Retirement System of Georgia or the Teachers Retirement System of Georgia. The Employees' Retirement System of Georgia is a single-employer, defined benefit pension plan, while the Teachers Retirement System of Georgia is a cost-sharing multiple-employer public employee retirement sys_tem. \r\n \r\nThese Retirement Systems were established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. Both Retirement Systems are funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage ofannual compensation. Employer contributions are for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Institute \r\n \r\n- 20 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXHIBIT\"G\" \r\n \r\nNOTE 6: RETIREMENT PLANS \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA TEACHERS RETIREMENT SYSTEM OF GEORGIA contributed $391,740.13 to the Employees' Retirement System of Georgia and $86,179.84 to the Teachers Retirement System of Georgia. Participation in either Retirement System is not segregated by employee groups of individual governmental units and the Institute has no further liability under either Retirement System other than future employer contributions as established for each fiscal year. Information relative to each plan's description, funding status, and historical trends is presented in the financial reports of the Employees' Retirement System of Georgia and the Teachers Retirement System of Georgia for the year ended June 30, 1994. \r\nGEORGIA DEFINED CONTRIBUTION PLAN The State of Georgia provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Retirement Systems referred to above through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of 65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994. \r\nNOTE 7: LEAVE POLICIES \r\nEmployees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences \r\nEmployees 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. \r\nCertain 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. \r\n \r\n- 21 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1994 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 8: NONMONETARY TRANSACTIONS \r\nThe Administrative Central Office of the Georgia Department of Technical and Adult Education used lottery proceeds to purchase $411,214.90 of equipment for North Georgia Technical Institute during the fiscal year ended June 30, 1994. Those items with an acquisition cost of $1,000.00 or greater will be reflected as received in the General Fixed Assets Account Group in the accompanying financial statements. However, revenues and expenditures for these lottery proceeds are not reflected in these financial statements. \r\nThe 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, 1994, the Georgia State Financing and Investment Commission paid $249,664.80 to various vendors for approved projects related to North Georgia Technical Institute. \r\nNOTE 9: BONDING INFORMATION \r\nThe President and all employees ofNorth Georgia Technical Institute are bonded under a Public Employees Blanket Bond written by the Employers Insurance of Wausau, their Bond No.1450-00-110723, on which the premium has been paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures North Georgia Technical Institute to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum of $100,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment. \r\nAll employees ofNorth Georgia Technical Institute are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium has been paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Institute to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. \r\n \r\n- 22 - \r\n \r\n SUPPLEMENTARY INFORMATION - 23 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS) \r\nBUDGET FUND JUNE 30, 1994 \r\n \r\nEXHIBIT \"H\" \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable Federal Financial Assistance Other \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY \r\n--------------------------- \r\nLiabilities Accounts Payable Deferred Revenue Tuition and Fees \r\nTotal Liabi l iti es \r\nFund Equity Fund Balance Reserved Live Work Projects Unreserved Designated Surplus Regular Lottery for Education \r\nTotal Fund Equity \r\nTotal Li abilities and Fund Equity \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n------------- \r\n \r\n\"B\" LOTTERY FOR \r\nEDUCATION \r\n----------- \r\n \r\nTOTAL \r\n \r\n$-----6-7-,-7-8-9-.-6-6 \r\n \r\n$ 8,116.79 \r\n------------- \r\n \r\n$ 75,906.45 \r\n------------- \r\n \r\n$ 17,062.27 16,174.34 \r\n------------- \r\n$ 33,236.61 \r\n------------- \r\n \r\n$ 17,062.27 16,174.34 \r\n------------- \r\n$ 33,236.61 \r\n------------- \r\n \r\n$ 101,025.27 $ 8,116.79 $ 109,143.06 \r\n============= ============= ============= \r\n \r\n$ 82,377.53 $ 8,116.79 $ 90,494.32 \r\n \r\n7,957.25 \r\n \r\n7,957.25 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ 90,334.78 $ 8,116.79 $ 98,451.57 \r\n------------- ------------- ------------- \r\n \r\n$ 10,189.65 \r\n \r\n$ 10,189.65 \r\n \r\n501.84 \r\n \r\n501.84 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ 10,691.49 $ \r\n \r\n0.00 $ 10,691.49 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ 101,026.27 $ \r\n \r\n8,116.79 $ 109,143.06 \r\n \r\n============= ============= ============= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 24 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS) \r\nBUDGET FUND YEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFUND BALANCE - JULY 1 \r\n--------------------- \r\nReserved Unreserved \r\nDesignated Surplus \r\nADDITIONS \r\n--------- \r\nAdjustments to Prior Year's Accounts Payable \r\nExcess of Funds Available over Expenditures Exhibit \"J\" \r\nDEDUCTIONS \r\n---------- \r\nUnreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and \r\nAdult Education - Administrative Central Office \r\nYear Ended June 30, 1993 Adjustments to Prior Year's \r\nAccounts Receivable Reserved Fund Balance Carried Over from \r\nPrior Year as Funds Available \r\nFUND BALANCE - JUNE 30 \r\n---------------------- \r\n(To Exhibit \"H\") \r\n \r\n\"A\" \r\nDEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n------------- \r\n \r\n\"8\" LOTTERY FOR \r\nEDUCATION \r\n----------- \r\n \r\nTOTAL \r\n------------- \r\n \r\n$ 6,987.39 \r\n \r\n$ 6,987.39 \r\n \r\n190.35 $ \r\n \r\n0.00 \r\n \r\n190.35 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ 7,177.74 $ \r\n \r\n0.00 $ 7,177.74 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ \r\n \r\n500.73 \r\n \r\n$ \r\n \r\n500.73 \r\n \r\n12,834.73 $ \r\n \r\n0.00 \r\n \r\n12,834.73 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ 13,335.46 $ \r\n \r\n0.00 $ 13,335.46 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ \r\n \r\n190.35 $ \r\n \r\n0.00 $ \r\n \r\n190.35 \r\n \r\n2,643.97 \r\n \r\n2,643.97 \r\n \r\n6,987.39 \r\n \r\n6,987.39 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ 9,821.71 $ \r\n \r\n0.00 $ 9,821.71 \r\n \r\n------------- ------------- ------------- \r\n \r\n$ 10,691.49 $ \r\n \r\n0.00 $ 10,691.49 \r\n \r\n============= ============= ============= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 25 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30. 1994 \r\n \r\nEXHIBIT \"J\" Page 1 \r\n \r\nFUNDS AVAILABLE \r\nREVENUES \r\nSTATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office \r\nFEDERAL REVENUES \r\nOTHER REVENUES RETAINED Contracts Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Fees Application Registration/Continuing Education Testing Other Reimbursements From Various Sources Sales and Services (Net) Tuition Other Sources \r\nTotal Other Revenues Retained \r\nTotal Revenues \r\nCARRY-OVER FROM PRIOR YEAR \r\nTransfer from Reserved Fund Balance Live Work Projects \r\n \r\n\"A\" \r\nDEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" \r\nLOTTERY FOR EDUCATION \r\n \r\nTOTAL \r\n \r\n$4,691,645.38$ 160,511.00$ 4,852,156.38 \r\n \r\n$ 788,975.93 \r\n \r\n$ 788,975.93 \r\n \r\n$ 19,248.41 \r\n \r\n$ 19,248.41 \r\n \r\n13,021.96 \r\n \r\n13,021.96 \r\n \r\n13,480.00 158,318.69 25,605.00 \r\n22,888.83 \r\n \r\n13,480.00 158,318.69 25,605.00 \r\n22,888.83 \r\n \r\n53,166.00 283,982.14 423,833.97 \r\n2,022.56 \r\n \r\n53,166.00 283,982.14 423,833.97 \r\n2,022.56 \r\n \r\n$ 1,015,567.56 \r\n \r\n$ 1,015,567.56 \r\n \r\n$ 6,496,188.87 $ 160,511.00 $ 6,656,699.87 \r\n \r\n 6,987.39 - - - - - \r\n \r\n6,987.39 \r\n \r\nTotal Funds Available \r\n \r\n$6,503,176.26$ 160,511.00 $ 6.663.687.26 \r\n \r\nEXPENDITURES \r\n \r\nPERSONAL SERVICES-INSTITUTIONS \r\n \r\nSalaries and Wages Employer's Contributions for: \r\nF.I.C.A. Retirement Health Insurance \r\n \r\n$ 3,491,669.62 \r\n187,046.21 468,453.52 378,175.56 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n \r\n- 26 - \r\n \r\n$ 3,491,669.62 \r\n187,046.21 468,453.52 378,175.56 \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT \"J\" Page 2 \r\n \r\nEXPENDITURES \r\nPERSONAL SERVICES-INSTITUTIONS \r\nEmployer's Contributions for: Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Merit System Assessments \r\nOPERATING EXPENSES-INSTITUTIONS \r\nOther Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing \r\nTravel Motor Vehicle Purchases Equipment \r\nEquipment Purchases Computer Charges \r\nOther Costs Supplies and Materials Repairs and Maintenance \r\nSoftware Equipment \r\nEquipment Purchases Telecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees Contracts \r\nQUICK START PROGRAM \r\nPersonal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\n\"B\" LOTTERY FOR \r\nEDUCATION \r\n \r\nTOTAL \r\n \r\n$ 13,716.00 2,677.00 \r\n74,230.00 4 561.84 \r\n$ 4,620,529.75 \r\n$ 26,126.34 412,198.71 139,430.62 350,800.89 5,846.63 7,870.00 88,297.71 29,028.00 36,195.55 16,250.00 \r\n138,487.81 \r\n15,150.63 15,317.78 16,317.26 \r\n133,124.03 37,044.06 \r\n21,149.72 315.00 \r\n$ 1,488,950.74 \r\n$ 16,244.64 \r\n241. 57 1,972.80 2,088.00 \r\n127.00 \r\n \r\n$ 13,716.00 2,677.00 74,230.00 4,561.84 \r\n$ 4,620,529.75 \r\n$ 26,126.34 412,198.71 139,430.62 350,800.89 5,846.63 7,870.00 88,297.71 29,028.00 36,195.55 16,250.00 \r\n138,487.81 \r\n15,150.63 15,317.78 16,317.26 \r\n133,124.03 37,044.06 \r\n21,149.72 315.00 \r\n$ 1,488,950.74 \r\n$ 16,244.64 \r\n241.57 1,972.80 2,088.00 \r\n127.00 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 27 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT \"J\" Page 3 \r\n \r\nEXPENDITURES \r\nQUICK START PROGRAM \r\nPersonal Services Employer's Contributions for: Unemployment Compensation Insurance Workers' Compensation Insurance \r\nOther Costs Supplies and Materials Repairs and Maintenance Utilities Other Operating Expenses \r\nTravel Equipment \r\nEquipment Purchases Telecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees \r\nADULT LITERACY GRANTS \r\nPersonal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance \r\nOther Costs Supplies and Materials Other Operating Expenses Publications and Printing \r\nTravel Equipment \r\nEquipment Purchases Computer Charges \r\nSoftware Equipment \r\nEquipment Purchases Telecommunications Per Diem, Fees and Contracts \r\nPer Diem and Fees \r\n \r\n\"A\" DEPARTMENT OF \r\nTECHNICAL AND ADULT EDUCATION \r\n \r\nnan \r\nLOTTERY FOR EDUCATION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n27.00 \r\n \r\n750.00 \r\n \r\n522.19 1,843.04 3,745.76 3,750.00 2,769.18 \r\n \r\n391. 94 649.26 \r\n \r\n140.00 \r\n \r\n$ 35,262.38 \r\n \r\n$ 249,523.64 \r\n3,573.55 6,585.60 6,970.56 \r\n254.00 54.00 1,500.00 \r\n33,397.50 9,951.77 794.50 10,848.56 \r\n3,444.91 \r\n1,276.75 \r\n4,721.64 2,348.79 \r\n250.00 \r\n$ 335,495.77 \r\n \r\n$ \r\n \r\n27.00 \r\n \r\n750.00 \r\n \r\n522.19 1,843.04 3,745.76 3,750.00 2,769.18 \r\n \r\n391. 94 649.26 \r\n \r\n140.00 \r\n \r\n$ 35,262.38 \r\n \r\n$ 249,523.64 \r\n3,573.55 6,585.60 6,970.56 \r\n254.00 54.00 \r\n1,500.00 \r\n33,397.50 9,951.77 794.50 10,848.56 \r\n3,444.91 \r\n1,276.75 \r\n4,721.64 2,348.79 \r\n250.00 \r\n$ 335,495.77 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 28 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES \r\nBUDGET FUND YEAR ENDED JUNE 30, 1994 \r\n \r\nEXHIBIT \"J\" Page 4 \r\n \r\nEXPENDITURES \r\nJOB TRAINING PARTNERSHIP ACT \r\nPersonal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance \r\nEQUIPMENT - STATE SCHOOLS \r\nEquipment Equipment Purchases \r\nTota1 Expenditures \r\nExcess of Funds Available over Expenditures \r\n \r\n\"A\" \r\nDEPARTMENT OF TECHNICAL AND ADULT EDUCATION \r\n \r\n\"8\" LOTTERY FOR \r\nEDUCATION \r\n \r\nTOTAL \r\n \r\n$ 8,076.36 \r\n108.88 908.05 1,009.60 \r\n$ 10,102.89 \r\n \r\n$ 8,076.36 \r\n108.88 908.05 1,009.60 \r\n$ 10,102.89 \r\n \r\n$ 160,511.00 $ 160 I 511. 00 \r\n \r\n$ 6,490,341.53 $ 160,511.00 $ 6,650,852.53 \r\n \r\n12,834.73 \r\n \r\n0.00 \r\n \r\n12,834.73 \r\n \r\n$ 6,503,176.26 $ 160,511.00$ 6,663,687.26 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 29 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIQUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1994 \r\n \r\nEXHIBIT \"K\" \r\n \r\nFUND \r\nAthens Regional Medical Center MLT Scholarship Fund \r\nBerry, R. Roger, Scholarship Fund Clary, William C., Scholarship Fund Georgia Electrification Council \r\nEducational Loan Fund HOPE Program Knittle Scholarship Fund Mount Vernon Mills Scholarship Fund Pell Grant Program Private Scholarship Fund Supplemental Educational Opportunity \r\nGrants Student Activities Fund \r\n \r\nASSETS/ LIABILITIES JULY l, 1993 \r\n \r\nADDITIONS \r\n \r\nDELETIONS \r\n \r\nASSETS/ LIABILITIES JUNE 30, 1994 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,100.00$ \r\n \r\n1,100.00 $ \r\n \r\n0.00 \r\n \r\n300.00 \r\n \r\n300.00 \r\n \r\n105.13 \r\n \r\n276.97 \r\n \r\n380.00 \r\n \r\n2.10 \r\n \r\n11,337.11 0.00 0.00 \r\n200.00 0.00 \r\n176.92 \r\n \r\n108.34 171,606.00 \r\n1,000.00 200.00 \r\n509,133.00 47.98 \r\n \r\n4.71 171,606.00 \r\n1,000.00 300.00 \r\n509,133.00 150.00 \r\n \r\n11,440.74 0.00 0.00 \r\n100.00 0.00 74.90 \r\n \r\n0.00 65,272.80 \r\n \r\n30,000.00 87,110.84 \r\n \r\n30,000.00 98,468.61 \r\n \r\n0.00 53,915.03 \r\n \r\n$ 77,391.96$ 800,583.13 $ 812,142.32 $ 65,832.77 \r\n============= ============= ============= ============= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 30 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE 30. 1994 \r\n \r\nSCHEDULE \"l\" \r\n \r\nNONINTEREST BEARING ACCOUNTS \r\nHabersham Bank, Cornelia, Georgia \r\nINTEREST BEARING ACCOUNTS \r\nCommunity Bank and Trust, Cornelia, Georgia \r\nMoney Market Account Habersham Bank, Cornelia, Georgia \r\nMoney Market Accounts \r\nOTHER \r\nPetty Cash \r\n \r\n$ 75,906.45 \r\n \r\n$ \r\n \r\n3,400.74 \r\n \r\n52,584.24 \r\n \r\n55,984.98 \r\n \r\n2,000.00 $ 133,891.43 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 31 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE INVESTMENTS \r\nJUNE 30, 1994 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNONEXPENDABLE TRUST FUND \r\n------------------------ \r\nSarling, Lenora M., Scholarship Fund U. S. Treasury Securities Holdings Account No. 2000-007-9925 912827J78 912827M25 \r\n \r\nPURCHASE DATE \r\n------------- \r\n \r\nINTEREST RATE \r\n------------- \r\n \r\nMATURITY DATE \r\n------------- \r\n \r\nAMOUNT \r\n \r\nMay 17, 1993 August 31, 1993 \r\n \r\n6.25% 4.75% \r\n \r\nFebruary 15, 2003 $ 15,000.00 \r\n \r\nAugust 31, 1998 \r\n \r\n20,000.00 \r\n \r\n------------- \r\n \r\n$ 35,000.00 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Infonnation. \r\n- 32 - \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30, 1994 \r\n \r\nBUDGET FUND \r\nAppalachian Regional Commission Appalachian Regional Development Direct \r\nEducation, U. S. Department of Adult Education - State Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office \r\nCollege Work-Study Program Direct \r\nVocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office \r\nRehabilitation Services - Basic Support Through Georgia Department of Human Resources \r\nVocational Education - Community Based Organizations Through Georgia Department of Technical and Adult Education - Administ~ative Central Office \r\nTech-Prep Education Through Franklin County Board of Education Through Habersham County Board of Education Through Towns County Board of Education \r\nEnergy, U. S. Department of State Energy Conservation Stripper Well Oil Violation Funds Through Georgia Department of Technical and Adult Education - Administrative Central Office \r\nHealth and Human Services, U. S. Department of Job Opportunities and Basic Skills Training Through Georgia Department of Human Resources Various Offices of Department of Family and Children Services \r\nState Legalization Impact Assistance Grants Through Georgia Department of Technical and Adult Education - Administrative Central Office \r\nLabor, U. S. Department of Job Training Partnership Act Through Georgia Department of Technical and Adult Education - Administrative Central Office Through Georgia Mountains Regional Development Center \r\nVeterans Affairs, U. S. Department of Vocational Rehabilitation for Disabled Veterans Direct \r\n \r\nCFDA NUMBER \r\n23.001 \r\n84.002 84.033 84.048 84.126 84. 17 4 84.243 84.243 84.243 \r\n81. 041 \r\n93.561 93.565 \r\n17.250 17.250 64. 116 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 33 - \r\n \r\nSCHEDULE \"3\" \r\nAMOUNT \r\n$ 19,200.00 \r\n151,968.53 80,268.00 364,257.09 31,405.39 \r\n9,918.76 2,000.00 30,000.00 2,000.00 \r\n18,259.27 \r\n23,006.00 16,500.00 \r\n10,102.89 25,868.00 \r\n4,222.00 \r\n$ 788,975.93 \r\n============= \r\n \r\n SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1994 \r\n \r\nSTATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\nThe status offindings disclosed in the review report for the year ended June 30, 1993, is summarized below: \r\n \r\nAudit Control Number \r\n \r\nStatus of Finding \r\n \r\n838-93-01 838-93-02 838-93-03 838-93-04 838-93-05 838-93-06 838-93-07 838-93-08 \r\n \r\nCorrective Action Implemented See Audit Control Number 83 8-94-02 Corrective Action Implemented See Audit Control Number 838-94-03 See Audit Control Number 838-94-01 Corrective Action Implemented No Corrective Action Implemented Corrective Action Implemented \r\n \r\nPRIOR YEAR/CURRENT YEAR \r\n \r\nREVENUE/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures Subsidiary Accounts Receivable Listing for Tuition and Fees Financial Statements Audit Control Number 838-94-01 \r\n \r\nThe review report for the year ended June 30, 1993, disclosed that a detailed accounting of student tuition and fees activity was not maintained in the formal accounting records for the Governmental Fund Type - Budget Fund in accordance with the Policy Manual of the State Board of Technical and Adult Education. Instead, a detail of activity was maintained in subsidiary ledgers with collections posted to the Fiscal Accounting and Control System as cash was received. As a result, no accounts receivable were included on the formal accounting records for those tuition and fees guaranteed by financial aid. For the year under review, this deficiency continued to exist. \r\n \r\nThe Institute should follow established procedures to ensure that accounts receivable for tuition and fees guaranteed by financial aid are recorded on the Fiscal Accounting and Control System as required by State Board policy. \r\n \r\nGENERAL LEDGER Agency Funds - Inadequate Accounting Records Financial Statements Audit Control Number 838-94-02 \r\n \r\nThe review report for the year ended June 30, 1993, disclosed that North Georgia Technical Institute maintains a student loan program funded by the Georgia Electrification Council. As of June 30, 1994, this Agency Fund had a cash balance of$3,400.74 and student notes receivable of$8,040.00 that were included on the Combined Balance Sheet (Statutory Basis) ofthe Institute. Of the $8,040.00 balance outstanding, $7,535.00 represents student notes which are in default. \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1994 \r\n \r\nPRIOR YEAR/CURRENT YEAR \r\n \r\nGENERAL LEDGER Agency Funds - Inadequate Accounting Records Financial Statements Audit Control Number 838-94-02 \r\n \r\nDuring the year ended June 30, 1993, it was also noted that a loan was improperly made to a student in excess ofthe $250.00 per quarter per student stipulation in the Georgia Electrification Council agreement. No new loans were made during the year under review. \r\n \r\nNorth Georgia Technical Institute's decision effective June 30, 1992, to discontinue the loan program was accepted by the Georgia Electrification Council with the stipulation that the Institute return the original principal of$10,000.00 less a deceased student's loan of$500.00 to the Council. As of the date of this report, a final disposition of the principal balance had not been made. \r\n \r\nGENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Equipment Inventory Records Audit Control Number 838-94-03 \r\n \r\nThe review report for the year ended June 30, 1993, disclosed that the equipment inventory records for the Institute's general fixed assets were deficient in that equipment additions were not adequately reconciled to the general ledger expenditure accounts. For the year under review, this deficiency continued to exist and affected the following Federal financial assistance programs: \r\n \r\n23.001 81.041 84.048 84.126 84.243 93.565 \r\n \r\nAppalachian Regional Development State Energy Conservation - Stripper Well Oil Violations Fund Vocational Education - Basic Grants to States Rehabilitation Services - Basic Support Tech-Prep Education State Legalization Impact Assistance Grants \r\n \r\nNorth Georgia Technical Institute should follow established procedures to ensure that equipment inventories are maintained in accordance with provisions of the State Property System Manual and/or applicable Federal regulations. \r\n \r\n NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1994 \r\nCURRENT YEAR \r\nEXPENDITURES/LIABILITIES/DISBURSEMENTS Agency Fund Overpayments Financial Statements Amount: $100.00 Audit Control Number 838-94-04 \r\nIn the year under review, two students receiving scholarships from the Athens Regional Medical Center MLT Scholarship Fund were overawarded $50.00 each for one month. Under the terms of the agreement, students are allowed $100.00 per month during their clinical phase of training. For the month of February, 1994, two students received $150.00 each. \r\nReimbursement should be secured for refund to the Athens Regional Medical Center and the Institute should implement proper internal controls to ensure that the purpose and terms of the agreement are followed. \r\n \r\n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":8,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":8}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits. Education Division","hits":5},{"value":"Georgia. Department of Audits and Accounts. 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