{"response":{"docs":[{"id":"dlg_ggpd_1397020789-2019-02-25","title":"Atlanta Technical College, Atlanta, Georgia, management report for fiscal year ended 2018 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2019-02-25"],"dcterms_description":["Began with: Fiscal year ended June 30, 2009.","Report year covers fiscal year.","For some years, report may be released instead called: Atlanta Technical College, Atlanta, Georgia, report on audit of the financial statements for the fiscal year ended ... or: Atlanta Technical College, Atlanta, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended ...","Fiscal year ended June 30, 2009 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed September 13, 2023).","Fiscal year ended June 30, 2009 (online surrogate); (Georgia Government Publications database, viewed September 13, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Georgia : Georgia Department of Audits and Accounts, [2009]-"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Atlanta Technical College--Appropriations and expenditures--Periodicals.","Technical education--Georgia--Auditing--Periodicals.","Technical education--Georgia--Finance--Statistics--Periodicals.","Enseignement technique--Géorgie (État)--Finances--Statistiques--Périodiques.","Georgia Government Documents--Serial"],"dcterms_title":["Atlanta Technical College, Atlanta, Georgia, management report for fiscal year ended 2018 June 30"],"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_1397020789-2019-02-25"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1397020789-2019-02-25"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ATLANTA TECHNICAL COLLEGE \nATLANTA, GEORGIA \nMANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2018 \nA Member Institution of the Technical College System of Georgia \n \n ATLANTA TECHNICAL COLLEGE - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nLETTER OF TRANSMITTAL \nSELECTED FINANCIAL INFORMATION \nEXHIBITS \nA STATEMENT OF NET POSITION - (GAAP BASIS) B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - \n(GAAP BASIS) C STATEMENT OF CASH FLOWS - (GAAP BASIS) D SELECTED FINANCIAL NOTES \nSUPPLEMENTARY INFORMATION \nSCHEDULES \n1 BALANCE SHEET - (STATUTORY BASIS) - BUDGET FUND 2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \n(STATUTORY BASIS) BUDGET FUND 3 STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET \nBY PROGRAM AND FUNDING SOURCE (STATUTORY BASIS) BUDGET FUND \n4 STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (STATUTORY BASIS) BUDGET FUND \n \nPage \n2 3 4 5 \n25 26 28 30 \n \nSECTION II ENTITY'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSSTS \n \nSECTION III FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \n \n SECTION I FINANCIAL \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 25, 2019 \n \nHonorable Brian P. Kemp, 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 \nand Dr. Victoria Seals, President Atlanta Technical College \nLadies and Gentlemen: \nThis Management Report contains information pertinent to the Atlanta Technical College's compliance with the requirements of the Southern Association of Colleges and Schools Commission on Colleges (COC) Standard 13.2 (Financial resources) as of and for the year ended June 30, 2018. Additionally, we audited Atlanta Technical College's Federal Student Aid programs for the year ended June 30, 2018 to meet the requirements of COC Standard 13.6. Included in this report is a section on findings and other items for any matters that came to our attention during our engagement, including results of our audit of the Federal Student Aid programs. The other information contained in this report is the representation of management. Accordingly, we do not express an opinion or any form of assurance on it. \nAdditionally, we have performed certain procedures at Atlanta Technical College to support the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2018. \nThis report is intended solely for the information and use of the management of Atlanta Technical College, members of the State Board of the Technical College System of Georgia, 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. \nRespectfully, \n \nGreg S. Griffin State Auditor \n \n SELECTED FINANCIAL INFORMATION - 1 - \n \n ATLANTA TECHNICAL COLLEGE STATEMENT OF NET POSITION (GAAP BASIS) \nJUNE 30, 2018 \nASSETS \nCurrent Assets Cash and Cash Equivalents Accounts Receivable, Net Receivables - Federal Financial Assistance Receivables - Other Prepaid Items Inventories Other Assets \nTotal Current Assets \nNoncurrent Assets Net OPEB Asset Capital Assets, Net \nTotal Noncurrent Assets \nTotal Assets \nDeferred Outflows of Resources Related to Defined Benefit Pension Plans and OPEB \nLIABILITIES \nCurrent Liabilities Accounts Payable Salaries Payable Unearned Revenue (Including Tuition and Fees) Deposits Held for Other Organizations Compensated Absences \nTotal Current Liabilities \nNoncurrent Liabilities Compensated Absences Net OPEB Liability Net Pension Liability \nTotal Noncurrent Liabilities \nTotal Liabilities \nDeferred Inflows of Resources Related to Defined Benefit Pension Plans and OPEB \nNET POSITION \nNet Investment in Capital Assets Restricted \nExpendable Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \n$ \n \n1,671,304.25 \n \n741,602.80 2,788,924.22 \n166,467.28 943,445.55 \n3,591.91 \n \n6,315,336.01 \n \n299,691.00 34,180,774.63 \n34,480,465.63 \n40,795,801.64 \n \n5,307,099.62 \n \n269,856.04 187,125.54 2,315,667.00 416,388.47 580,736.45 \n3,769,773.50 \n580,646.65 17,903,769.00 18,761,252.00 \n37,245,667.65 \n41,015,441.15 \n3,334,566.00 \n \n34,180,774.63 \n299,691.00 (32,727,571.52) \n \n$ \n \n1,752,894.11 \n \n- 2 - \n \n ATLANTA TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION (GAAP BASIS) \nYEAR ENDED JUNE 30, 2018 \n \nEXHIBIT \"B\" \n \nOPERATING REVENUES \nStudent Tuition and Fees (Net) Grants and Contracts \nFederal Sales and Services Other Operating Revenues \nTotal Operating Revenues \nOPERATING EXPENSES \nSalaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \nTotal Operating Expenses \nOperating Loss \nNONOPERATING REVENUES (EXPENSES) \nState Appropriations Grants and Contracts \nFederal State Gifts Investment Income Other Nonoperating Revenues (Expenses) \nNet Nonoperating Revenues \nIncome Before Other Revenues, Expenses, Gains, or Losses \nCapital Grants and Gifts State Loss on Disposal of Capital Assets \nTotal Other Revenues, Expenses, Gains, or Losses \nIncrease in Net Position \nNet Position - Beginning of Year, Restated \nNet Position - End of Year \n \n$ 5,483,590.82 70,108.93 \n1,645,856.07 2,730.00 \n7,202,285.82 \n15,382,786.67 4,462,782.08 113,907.83 7,600,535.15 1,027,976.63 5,206,784.55 2,339,098.96 \n36,133,871.87 (28,931,586.05) \n13,391,276.25 16,566,330.89 \n125,362.40 217,106.18 \n8,350.81 (105,736.38) 30,202,690.15 1,271,104.10 \n433,646.99 (81,250.01) 352,396.98 1,623,501.08 129,393.03 \n$ 1,752,894.11 \n \n- 3 - \n \n ATLANTA TECHNICAL COLLEGE STATEMENT OF CASH FLOWS (GAAP BASIS) \nYEAR ENDED JUNE 30, 2018 \nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts (Exchange) Sales and Services Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts \nNet Cash Used by Operating Activities \nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Noncapital Financing Receipts \nNet Cash Flows Provided by Noncapital Financing Activities \nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received Purchases of Capital Assets \nNet Cash Used by Capital and Related Financing Activities \nCASH FLOWS FROM INVESTING ACTIVITIES Investment Income \nNet Increase in Cash \nCash and Cash Equivalents - Beginning of Year \nCash and Cash Equivalents - End of Year \nRECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES: \nOperating Loss Adjustments to Reconcile Operating Income to Net Cash \nUsed by Operating Activities Depreciation Expense Change in Assets and Liabilities: Accounts Receivable, Net Prepaid Items Inventories Other Assets Net OPEB Asset Salaries Payable Accounts Payable Unearned Revenue (Including Tuition and Fees) Compensated Absences Net Pension Liability Net OPEB Liability Change in Deferred Inflows/Outflows of Resources Deferred Inflows of Resources Deferred Outflows of Resources \nNet Cash Used by Operating Activities \n- 4 - \n \nEXHIBIT \"C\" \n \n$ \n \n5,310,623.09 \n \n177,957.17 \n \n1,645,856.07 \n \n(13,710,248.33) \n \n(15,179,508.54) \n \n(7,600,535.15) \n \n2,730.00 \n \n(29,353,125.69) \n \n13,391,276.25 5,851.94 \n16,649,611.98 (105,736.38) \n29,941,003.79 \n \n433,646.99 (1,006,538.08) \n(572,891.09) \n \n8,350.81 23,337.82 1,647,966.43 \n \n$ \n \n1,671,304.25 \n \n$ (28,931,586.05) \n2,339,098.96 \n(183,282.59) (109,068.02) \n(90,722.94) (3,591.91) \n(23,212.00) 155,469.79 (145,209.34) 118,163.10 \n47,808.34 (3,362,911.00) (2,967,771.00) \n1,538,597.00 2,265,091.97 \n$ (29,353,125.69) \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY Atlanta Technical College (the Institution) is one of twenty-two (22) State supported member Institutions 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 Atlanta Technical College as a separate reporting entity. \nThe Technical College's Local Board of Directors is composed of nine (9) 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 the Institution. The Institution does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Institution 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 Reporting Standards. \nThe accompanying basic financial statements represent the financial position, changes in financial position and cash flows of only that portion of the business-type activities of the State that are attributable to the transactions of the Institution. They do not purport to, and do not, present fairly the financial position of the State as of June 30, 2018, the changes in its financial position or its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nThe accompanying basic financial statements should be read in conjunction with the State's CAFR. The most recent State of Georgia CAFR can be obtained through the State Accounting Office, 200 Piedmont Avenue, Suite 1604 (West Tower), Atlanta, Georgia 30334 or found at https://sao.georgia.gov/comprehensive-annual-financial-reports. \nBASIS OF ACCOUNTING AND FINANCIAL STATEMENT PREPARATION The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the Institution's assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues, expenses, changes in net position and cash flows. \nThe Institution's business-type activities financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. Grants and similar items are recognized as revenues in the fiscal year in which eligibility requirements imposed by the provider have been met. All significant intra-college transactions have been eliminated. \nNEW ACCOUNTING PRONOUNCEMENTS For fiscal year 2018, the Institution adopted Governmental Accounting Standards Board (GASB) Statement No. 86, Certain Debt Extinguishment Issues. This statement addresses accounting and financial reporting issues regarding in-substance defeasance of debt. The adoption of this statement does not have a significant impact on the Institution's financial statements. \n \n- 5 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nFor fiscal year 2018, the Institution adopted Governmental Accounting Standards Board (GASB) Statement No. 85, Omnibus 2017. This statement addresses practice issues identified during implementation and application of certain other GASB Statements. This statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurements and application, and postemployment benefits. The adoption of this statement does not have a significant impact on the Institution's financial statements. \nFor fiscal year 2018, the Institution adopted GASB Statement No. 81, Irrevocable Split-Interest Agreements. The objective of this statement is to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is beneficiary of the agreement. The adoption of this statement does not have a significant impact on the Institution's financial statements. \nFor fiscal year 2018, the Institution adopted GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pensions. This statement replaces GASB Statements No. 45, Accounting and Financial Reporting by Employees for Postemployment Benefit Plans Other Than Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. The objective of this statement is to improve the usefulness of information about postemployment benefits other than pensions. The adoption of this statement resulted in the recognition of the Institution's proportionate share of the net other post-employment benefit (OPEB) liability/asset for the Georgia State Employees Post-employment Health Benefit Fund (State OPEB Fund and SEAD-OPEB Fund), changes to the related OPEB note disclosure, additional OPEB required supplemental information, and the restatement of the July 1, 2017 net position balance. \nNET POSITION The Institution's net position is classified as follows: \nNet Investment in Capital Assets: This represents the Institution's total investment in capital assets, net of accumulated amortization/depreciation and reduced by outstanding debt obligations related to those capital assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction or improvement of capital assets or related debt are included in Net Investment in Capital Assets. If there are significant unspent related debt proceeds or deferred inflows of resources at the end of the reporting period, the portion of the debt or deferred inflows of resources attributable to the unspent amount are not included in Net Investment in Capital Assets. \nRestricted: expendable: Includes resources in which the Institution is legally or contractually obligated to spend resources in accordance with restrictions by external third parties. \nUnrestricted: Unrestricted represents resources derived from student tuition and fees, state appropriations, and sales and services of educational departments. These resources are used for transactions relating to the educational and general operations of the Institution, and may be used at the discretion of the Institution to meet current expenses for those purposes, except for unexpended state appropriations (surplus) in the amount of $10,389.10. Unexpended state appropriations must be refunded to the Office of the State Treasurer. \nSCHOLARSHIP ALLOWANCES Scholarship allowances are the differences between the stated charge for goods and services provided by the Institution, and the amount that is paid by students and/or third parties making payments on the students' behalf. Certain governmental grants, such as Pell grants, and other Federal, state or non-governmental programs are recorded as either operating or non-operating revenues in the \n- 6 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nInstitution's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the Institution has recorded contra revenue for scholarship allowances. Sponsored and Unsponsored Scholarship Allowances totaled $6,067,465.72 for the year ending June 30, 2018. \nRESTATEMENT NOTE DISCLOSURE The Institution made the following restatements related to business-type activities: \n \nNet Position, Beginning of Year, As Originally Reported $ 18,535,146.03 \n \nChange in accounting principles \n \n(18,405,753.00) \n \nNet Position, Beginning of Year, Restated \n \n$ \n \n129,393.03 \n \nFor fiscal year 2018, the Institution made prior period adjustments due to the adoption of GASB Statement No. 75, which required the restatement of the June 30, 2017, net position. The result is a decrease in net position at July 1, 2017 of $18,405,753.00 of which $20,871,540.00 is represented in Net OPEB Liability, $2,189,308.00 is represented in deferred outflow, and $276,479.00 is represented in Net OPEB Asset. This change is in accordance with generally accepted accounting principles. \n \nNOTE 2: DEPOSITS \n \nDEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the Institution's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Institution) 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: \n \n1. Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia. \n \n2. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia. \n \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. \n \n4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. \n \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 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. \n \n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \n \n- 7 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nAt June 30, 2018, the carrying value of deposits was $1,670,086.25 and the bank balance was $2,340,744.36. Of the Institution's deposits, $2,090,744.36 were uninsured. Of these uninsured deposits, $2,090,744.36 were collateralized with securities held by the financial institution's trust department or agent in the Institution's name. \n \nNOTE 3: ACCOUNTS RECEIVABLE \n \nAccounts receivable consisted of the following at June 30, 2018: \n \nStudent Tuition and Fees Federal Financial Assistance Other \n \n$ 2,602,452.72 741,602.80 686,737.52 \n \nLess Allowance for Doubtful Accounts \n \n4,030,793.04 500,266.02 \n \nNet Accounts Receivable \n \n$ 3,530,527.02 \n \nNOTE 4: CAPITAL ASSETS \n \nFollowing are the changes in capital assets for the year ended June 30, 2018: \n \nCapital Assets, Not Being Depreciated: Land \n \nBeginning Balance July 1, 2017 \n \nAdditions \n \nReductions \n \nEnding Balance June 30, 2018 \n \n$ 1,405,553.00 $ \n \n- $ \n \n- $ 1,405,553.00 \n \nCapital Assets, Being Depreciated: Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \n \n38,031,967.04 7,240,805.17 \n11,167,994.05 288,183.98 \n \n353,798.22 - \n652,698.06 41.80 \n \n346,420.43 17,960.68 \n \n38,385,765.26 7,240,805.17 \n11,474,271.68 270,265.10 \n \nTotal Assets Being Depreciated \n \n56,728,950.24 \n \n1,006,538.08 \n \n364,381.11 \n \n57,371,107.21 \n \nLess: Accumulated Depreciation: Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \n \n10,176,496.74 3,491,246.29 8,731,313.69 140,861.00 \n \n1,120,242.66 219,158.49 970,815.98 28,881.83 \n \n265,170.42 17,960.68 \n \n11,296,739.40 3,710,404.78 9,436,959.25 151,782.15 \n \nTotal Accumulated Depreciation \n \n22,539,917.72 \n \n2,339,098.96 \n \n283,131.10 \n \n24,595,885.58 \n \nTotal Capital Assets, Being Depreciated, Net \n \n34,189,032.52 \n \n(1,332,560.88) \n \n81,250.01 \n \n32,775,221.63 \n \nCapital Assets, Net \n \n$ 35,594,585.52 $ (1,332,560.88) $ 81,250.01 $ 34,180,774.63 \n \n- 8 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nA comparison of depreciation expense for the last three fiscal years is as follows: \n \nFiscal Year \n \nDepreciation Expense \n \n2018 2017 2016 \n \n$ 2,339,098.96 $ 2,342,842.66 $ 2,555,379.15 \n \nNOTE 5: UNEARNED REVENUE (INCLUDING TUITION AND FEES) \n \nUnearned Revenue (Including Tuitions and Fees) consisted of the following at June 30, 2018: \n \nPrepaid Tuition and Fees \n \nCurrent Liabilities \n$ 2,315,667.00 \n \nNOTE 6: LONG-TERM LIABILITIES \n \nThe Institution's long-term liability activity for the year ended June 30, 2018 was as follows: \n \n(Restated) Beginning Balance July 1, 2017 \n \nAdditions \n \nReductions \n \nEnding Balance June 30, 2018 \n \nCurrent Portion \n \nOther Liabilities \n \nCompensated Absences \n \n$ 1,113,574.76 $ \n \nNet Pension Liability \n \n22,124,163.00 \n \nNet Other Post Employement \n \nBenefits Liability \n \n20,871,540.00 \n \n1,046,480.01 $ - \n- \n \n998,671.67 $ 3,362,911.00 \n2,967,771.00 \n \n1,161,383.10 $ 18,761,252.00 \n17,903,769.00 \n \n580,736.45 - \n- \n \nTotal Long-Term Obligations $ 44,109,277.76 $ 1,046,480.01 $ 7,329,353.67 $ 37,826,404.10 $ 580,736.45 \n \nNOTE 7: NET POSITION \n \nChanges in Net Position for the year ended June 30, 2018 are as follows: \n \n(Restated) Beginning Balance July 1, 2017 \n \nAdditions \n \nReductions \n \nEnding Balance June 30, 2018 \n \nNet Investment in Capital Assets $ 35,594,585.52 $ 1,006,538.08 $ 2,420,348.97 $ 34,180,774.63 \n \nRestricted Net Position \n \n897.89 \n \n16,936,130.82 \n \n16,637,337.71 \n \n299,691.00 \n \nUnrestricted Net Position \n \n(35,466,090.38) 20,001,147.73 \n \n17,262,628.87 \n \n(32,727,571.52) \n \nTotal Net Position \n \n$ \n \n129,393.03 $ 37,943,816.63 $ 36,320,315.55 $ 1,752,894.11 \n \n- 9 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nNOTE 8: RETIREMENT PLANS \nThe Institution participates in various retirement plans administered by the State of Georgia under two major retirement systems: Teachers Retirement System of Georgia (TRS) and Employees' Retirement System of Georgia (ERS). 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 administrative offices. \nThe significant retirement plans that the Institution 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. \nTeachers Retirement System of Georgia and Employees' Retirement System of Georgia \nSummary of Significant Accounting Policies \nPensions: For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teachers Retirement System of Georgia (TRS) and Employees' Retirement System (ERS), additions to/deductions for TRS's and ERS's fiduciary net position have been determined on the same basis as they are reported by TRS and ERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nGeneral Information about the Teachers Retirement System \nPlan description:  All teachers of the Institution as defined in 47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. TRS issues a publicly available financial report that can be obtained at www.trsga.com/publications. \nBenefits provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00 % of their annual pay during fiscal year 2018. The Institution's contractually required contribution rate for the year ended June 30, 2018 was 16.81% of annual Institution payroll. Institution contributions to TRS were $887,109.33 for the year ended June 30, 2018. \n \n- 10 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nGeneral Information about the Employees' Retirement System \nPlan description:  ERS is a cost-sharing multiple-employer defined benefit pension plan 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. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to 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 modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 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. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also 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. \nContributions: 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, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state 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 contributions under the new plan and GSEPS are 1.25% of annual compensation. The Institution's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2018 was 24.81% of annual covered payroll for old and new plan members and 21.78% for GSEPS members. The rates include the annual actuarially determined employer contribution rate of 24.69% of annual covered payroll for old and new plan members and 21.69% for GSEPS members, plus a 0.12% adjustment for the HB751 one-time benefit adjustment of 3% to retired state employees. The Institution's contributions to ERS totaled $1,501,448.29 for the year ended June 30, 2018. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2018, the Institution reported a liability for its proportionate share of the net pension liability for TRS and ERS totaling $18,761,252.00. The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was \n- 11 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \ndetermined using standard roll-forward techniques. The Institution's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2017. At June 30 2017, the Institution's TRS proportion was 0.051031%, which was a decrease of 0.000998 % from its proportion measured as of June 30, 2016. At June 30, 2017, the Institution's ERS proportion was 0.228422%, which was a decrease of 0.012360% from its proportion measured as of June 30, 2016. \n \nFor the year ended June 30, 2018, the Institution recognized pension expense of $509,385.00 for TRS and $776,7707.00 for ERS. At June 30, 2018, the Institution reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nDifferences between expected and actual experience \nChanges of assumptions \nNet difference between projected and actual earnings on pension plan investments \n \nTRS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nERS \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \n$ 354,770.00 $ 207,907.00 \n \n35,793.00 $ - \n \n101,652.00 $ 21,120.00 \n \n73.00 - \n \n- \n \n65,268.00 \n \n- \n \n23,100.00 \n \nChanges in proportion and differences between Institution contributions and proportionate share of contributions \nInstutution contributions subsequent to the measurement date \n \n887,109.33 \n \n1,315,995.00 \n \n24,584.00 \n \n- \n \n1,501,448.29 \n \n321,004.00 - \n \nTotal \n \n$ 1,449,786.33 $ 1,417,056.00 $ 1,648,804.29 $ 344,177.00 \n \nThe Institution contributions subsequent to the measurement date of $887,109.33 for TRS and $1,501,448.29 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2019 2020 2021 2022 2023 \n \n$ (591,032.00) \n \n$ 23,453.00 \n \n$ 17,861.00 \n \n$ (307,015.00) \n \n$ \n \n2,354.00 \n \n$ (284,942.00) \n \n$ 247,016.00 \n \n$ 104,142.00 \n \n$ (263,037.00) \n \n$ \n \n- \n \n- 12 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nActuarial assumptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions, applied to all periods included in the measurement: \nTeachers Retirement System: \n \nInflation Salary increases Investment rate of return \n \n2.75% 3.25  9.00%, average, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward on year for males) for service retirements and dependent beneficiaries. The RP-2000 Disability Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \nEmployees' Retirement System \n \nInflation Salary increases Investment rate of return \n \n2.75% \n3.25  7.00%, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \n- 13 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nThe long-term expected rate of return on TRS and ERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \nTotal \n* Rates shown are net of the 2.75% assumed rate of inflation \n \nTRS Target allocation \n30.00% 39.80% \n3.70% 1.50% 19.40% 5.60% \n- \n100.00% \n \nERS Target allocation \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n100.00% \n \nLong-term expected real rate of return* \n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \n \nDiscount rate: The discount rate used to measure the total TRS and ERS pension liability was 7.50 %. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and ERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the Institution's proportionate share of the net pension liability to changes in the discount rate: The following presents the Institution's proportionate share of the net pension liability calculated \nusing the discount rate of 7.50 %, as well as what the Institution's proportionate share of the net \npension liability would be if it were calculated using a discount rate that is 1-percentage-point \nlower (6.50 %) or 1-percentage-point higher (8.50 %) than the current rate: \n \nTeachers Retirement System: \nInstitution's proportionate share of the net pension liability \n \n1% Decrease (6.50%) \n \nCurrent discount rate \n(7.50%) \n \n1% Increase (8.50%) \n \n$ 15,564,797.00 $ 9,484,269.00 $ 4,475,279.00 \n \nEmployees' Retirement System: \nInstitution's proportionate share of the net pension liability \n \n1% Decrease (6.50%) \n \nCurrent discount rate \n(7.50%) \n \n1% Increase (8.50%) \n \n$ 13,093,999.00 $ 9,276,983.00 $ 6,020,950.00 \n \n- 14 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and ERS financial reports which are publically available at www.trsga.com/publications and www.ers.ga.gov/formspubs/formspubs, respectively. \nNOTE 9: RISK MANAGEMENT \nPublic Entity Risk Pool The Department of Community Health administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia, units of county governments, and local education agencies located with the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan. \nOther Risk Management The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Institution, as an organizational unit of the Technical College System of Georgia, 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. \nNOTE 10: CONTINGENCIES \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 expenditure disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Institution expects such amounts, if any, to be immaterial to its overall financial position. \nLitigation, claims and assessments filed against the Institution (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, 2018. \nNOTE 11: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \nGeorgia State Employees Post-Employment Health Benefit Fund (State OPEB Fund) \nGeneral Information about the State OPEB Fund \nPlan description: - Employees of State organizations as defined in 45-18-25 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the State OPEB Fund - a cost-sharing multipleemployer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 45 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \n- 15 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nBenefits provided: The State OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for employees of State organizations (including technical colleges) and other entities authorized by law to contract with Department of Community Health (DCH) for inclusion in the plan. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The State OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the State OPEB Fund is permitted. \nContributions: As established by the Board, the State OPEB Fund is substantially funded on a pay-asyou-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the State OPEB Fund from the Institution were $2,098,302.00 for the year ended June 30, 2018. Active employees are not required to contribute to the State OPEB Fund. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \nAt June 30, 2018, the Institution reported a liability of $17,903,769.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2017. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2016. An expected total OPEB liability as of June 30, 2017 was determined using standard roll-forward techniques. The Institution's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2017. At June 30, 2017, the Institution's proportion was 0.439442%, which was a decrease of 0.006419% from its proportion measured as of June 30, 2016. \n \n- 16 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nFor the year ended June 30, 2018, the Institution recognized OPEB expense of $672,389.00. At June 30, 2018, the Institution reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nChanges of assumptions \n \n$ \n \nNet difference between projected and actual earnings on pension plan investments \n \n- $ 1,296,613.00 \n \n76,689.00 \n \n- \n \nChanges in proportion and differences between Institution contributions and proportionate share of contributions \n \n- \n \n230,928.00 \n \nInstitution contributions subsequent to the \n \nmeasurement date \n \n2,098,302.00 \n \n- \n \nTotal \n \n$ 2,174,991.00 $ 1,527,541.00 \n \nThe Institution's contributions subsequent to the measurement date of $2,098,302.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \nYear Ended June 30: \n \n2019 2020 2021 2022 \n \n$ (440,931.00) $ (440,931.00) $ (440,931.00) $ (128,059.00) \n \n- 17 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nActuarial assumptions: The total OPEB liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2017: \n \nInflation rate Salary increases \nERS JRS LRS TRS PSERS Long-term expected rate of return \nHealthcare cost trend rate Pre-Medicare Eligible Medicare Eligible \nUltimate trend rate Pre-Medicare Eligible Medicare Eligible \nYear of Ultimate trend rate \n \n2.75% \n3.25% - 7.00%, including inflation 4.5%, including inflation None 2.75 percent N/A 3.88%, compounded annually, net of investment expense, and including inflation \n7.75% 5.75% \n5.00% 5.00% \n2022 \n \nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \n For ERS, JRS and LRS members: The RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection scale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \n \n- 18 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \n \nAdditionally, there was a change that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the State OPEB Fund is based on their current or last employer payroll location. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are allocated to the State OPEB Fund irrespective of retirement system affiliation. \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class Local Government Investment Pool \n \nTarget Allocation 100.00% \n \nLong-Term Expected Real Rate of Return * \n1.13% \n \n* Rate shown is net of the 2.75% assumed rate of inflation. \n \nDiscount rate: The discount rate has changed since the prior measurement date from 3.09% to 3.60%. In order to measure the total OPEB liability for the State OPEB Fund, a single equivalent interest rate of 3.60% was used as the discount rate. This is comprised mainly of the yield or index rate for twentyyear tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the calculated discount rate of 3.60% was applied to all periods of projected benefit payments to determine the total OPEB liability. \n \n- 19 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nSensitivity of the Institution's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the Institution's proportionate share of the net OPEB liability calculated using the discount rate of 3.60%, as well as what the Institution's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.60%) or 1-percentage-point higher (4.60%) than the current discount rate: \n \n1% Decrease 2.60% \n \nCurrent Rate 3.60% \n \n1% Increase 4.60% \n \nNet OPEB Liability \n \n$ 21,411,246.00 $ \n \n17,903,769.00 $ 15,104,632.00 \n \nSensitivity of the Institution's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the Institution's proportionate share of the net OPEB liability, \nas well as what the Institution's proportionate share of the net OPEB liability would be if it were \ncalculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point \nhigher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Rate \n \n1% Increase \n \nNet OPEB Liability \n \n$ \n \n14,797,931.00 $ \n \n17,903,769.00 $ \n \n21,835,109.00 \n \nOPEB plan fiduciary net position \nDetailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensiveannual-financial-reports. \n \nPostemployment Benefits Other Than Pensions (SEAD  OPEB) \nGeneral Information about the SEAD-OPEB Fund \nPlan Description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of the Employees' Retirement System of Georgia (ERS), the Legislative Retirement System (LRS), and the Georgia Judicial Retirement System (GJRS). The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans other than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments. \nBenefits Provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nContributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of one percent of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2018. \n- 20 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \n \nAt June 30, 2018, the Institution reported an asset of $299,691.00 for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2017. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2016. An expected total OPEB asset as of June 30, 2017 was determined using standard roll-forward techniques. The Institution's proportion of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2017. At June 30, 2017, the Institution's proportion was 0.115308%, which was a decrease of 0.025629 % from its proportion measured as of June 30, 2016. \n \nFor the year ended June 30, 2018, the Institution recognized a credit to OPEB expense of $10,938.00. At June 30, 2018, the Institution reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nNet difference between projected and actual earnings \n \non OPEB plan investments \n \n$ \n \nChanges in proportion and differences between contributions and proportionate share of contributions \n \n- $ 33,518.00 \n \n45,792.00 - \n \nTotal \n \n$ \n \n33,518.00 $ \n \n45,792.00 \n \nAmounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \n2019 2020 2021 2022 \n \n$ \n \n5,311.00 \n \n$ \n \n5,311.00 \n \n$ (11,448.00) \n \n$ (11,448.00) \n \n- 21 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nActuarial assumptions: The total OPEB asset as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement: \n \nInflation rate Salary increases \nERS GJRS LRS Investment rate of return \nHealthcare cost trend rate \n \n2.75% \n3.25% - 7.00%, including inflation 4.50%, including inflation N/A 7.50%, net of OPEB plan investment expense, and including inflation N/A \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward two years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nTarget allocation \n \nLong-term expected real rate of return* \n \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \n \n30.00% 37.20 \n3.40 1.40 17.80 5.20 5.00 \n \n(0.50)% 9.00 \n12.00 13.50 \n8.00 12.00 10.50 \n \nTotal \n \n100.00% \n \n* Rates shown are net of inflation \nDiscount rate: The discount rate used to measure the total OPEB liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to \n \n- 22 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nmake all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. \nSensitivity of the Institution's proportionate share of the net OPEB asset to changes in the discount rate: The following presents the Institution's proportionate share of the net OPEB asset calculated using the discount rate of 7.50%, as well as what the Institution's proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is one-percentage-point lower (6.50%) or one-percentage-point higher (8.50%) than the current rate: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate \n(7.50%) \n \n1% Increase (8.50%) \n \nNet OPEB Asset \n \n$ \n \n164,034.00 $ \n \nOPEB plan fiduciary net position \n \n299,691.00 $ \n \n410,868.00 \n \nDetailed information about the OPEB plan's fiduciary net position is available in the separately issued ERS comprehensive annual financial report which is publicly available at www.ers.ga.gov/financials. \n \n- 23 - \n \n SUPPLEMENTARY INFORMATION - 24 - \n \n ASSETS \nCash and Cash Equivalents Accounts Receivable \nFederal Financial Assistance Other Prepaid Expenditures Inventories Other Assets \n \nATLANTA TECHNICAL COLLEGE BALANCE SHEET (STATUTORY BASIS) \nBUDGET FUND JUNE 30, 2018 \n \nTotal Assets \n \nLIABILITIES AND FUND EQUITY \nLiabilities Accrued Payroll Encumbrance Payable Accounts Payable Unearned Revenue Funds Held for Others \nTotal Liabilities \nFund Balances Reserved Sales and Services Live Work Projects Continuing Education Technology Fees Uncollectible Accounts Receivable Inventories Bookstore Tuition Unreserved Surplus \nTotal Fund Balances \n \nTotal Liabilities and Fund Balances \n \nSCHEDULE \"1\" \n \n$ \n \n1,975,736.82 \n \n922,399.96 2,932,396.39 \n166,467.28 943,445.55 \n3,550.11 \n \n$ \n \n6,943,996.11 \n \n$ \n \n187,125.54 \n \n1,175,490.40 \n \n132,295.02 \n \n2,256,966.00 \n \n28,751.56 \n \n3,780,628.52 \n \n62,630.86 29,908.19 31,102.64 272,783.64 500,266.02 222,928.97 894,606.48 1,138,751.69 \n10,389.10 \n3,163,367.59 \n \n$ \n \n6,943,996.11 \n \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 special purpose framework. \n- 25 - \n \n ATLANTA TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON SURPLUS ANALYSIS REPORT (STATUTORY BASIS) \nBUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"2\" \n \nREVENUES \nState Appropriation State General Funds \nFederal Funds Other Funds \nTotal Revenues \nCARRY-OVER FROM PRIOR YEAR \nTransfer from Reserved Fund Balance \nTotal Funds Available \nEXPENDITURES \nAdult Literacy Economic Development Technical Education \nTotal Expenditures \n \nBUDGET \n \nACTUAL \n \nVARIANCE FAVORABLE (UNFAVORABLE) \n \n$ \n \n13,391,276.25 $ 13,391,276.25 $ \n \n- \n \n5,240,034.98 \n \n2,935,686.32 \n \n(2,304,348.66) \n \n16,659,579.16 \n \n15,695,288.42 \n \n(964,290.74) \n \n35,290,890.39 \n \n32,022,250.99 \n \n(3,268,639.40) \n \n35,290,890.39 \n \n2,050,675.45 34,072,926.44 \n \n2,050,675.45 (1,217,963.95) \n \n859,700.00 41,000.00 \n34,390,190.39 \n35,290,890.39 \n \n678,847.46 31,537.80 \n30,781,287.24 \n31,491,672.50 \n \n180,852.54 9,462.20 \n3,608,903.15 \n3,799,217.89 \n \nExcess of Funds Available over Expenditures \nFUND BALANCE JULY 1 \nReserved ADJUSTMENTS \nPrior Year Payables/Expenditures Prior Year Receivables/Revenues Prior Year Reserved Fund Balance Included in Funds Available \n \n$ \n \n- \n \n2,581,253.94 $ \n \n2,581,253.94 \n \n2,698,542.49 \n \n20,387.34 (86,140.73) (2,050,675.45) \n \nFUND BALANCE JUNE 30 \nSUMMARY OF FUND BALANCE \nReserved Sales and Services Live Work Projects Continuing Education Technology Fees Uncollectible Accounts Receivable Inventories Bookstore Tuition \nTotal Reserved \nUnreserved Surplus \n \n$ \n \n3,163,367.59 \n \n$ \n \n62,630.86 \n \n29,908.19 \n \n31,102.64 \n \n272,783.64 \n \n500,266.02 \n \n222,928.97 \n \n894,606.48 \n \n1,138,751.69 \n \n3,152,978.49 \n \n10,389.10 \n \nTotal Fund Balance \n \n$ \n \n3,163,367.59 \n \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 special purpose framework. \n- 26 - \n \n (This page left intentionally blank) \n \n ATLANTA TECHNICAL COLLEGE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE \n(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2018 \n \nAdult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified \nTotal Adult Literacy \nEconomic Development Other Funds \nTechnical Education State Appropriations State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds \nTotal Technical Education \nTotals by Program \n \nOriginal Appropriation \n \nAmended Appropriation \n \nFinal Budget \n \nCurrent Year Revenues \n \n$ \n \n346,100.00 $ \n \n493,517.00 \n \n839,617.00 \n \n127,266.00 \n \n346,100.00 $ 493,517.00 839,617.00 \n41,000.00 \n \n346,100.00 $ 513,600.00 859,700.00 \n41,000.00 \n \n346,100.00 342,238.67 688,338.67 \n28,370.45 \n \n13,029,508.00 \n8,115,821.00 20,682,701.38 \n41,828,030.38 \n \n13,045,176.25 \n8,115,821.00 20,682,701.38 \n41,843,698.63 \n \n13,045,176.25 \n4,726,434.98 16,618,579.16 \n34,390,190.39 \n \n13,045,176.25 \n2,593,447.65 15,666,917.97 \n31,305,541.87 \n \n$ 42,794,913.38 $ 42,724,315.63 $ 35,290,890.39 $ 32,022,250.99 \n \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 special purpose framework. \n- 28 - \n \n SCHEDULE \"3\" \n \nFunds Available Compared to Budget \n \nPrior Year Carry-Over \n \nAdjustments and Program Transfers \n \nTotal Funds Available \n \nVariance Positive (Negative) \n \nExpenditures Compared to Budget \n \nActual \n \nVariance Positive \n \nExcess of Funds Available \nOver Expenditures \n \n$ \n \n- $ \n \n897.89 \n \n897.89 \n \n3,167.35 \n \n- \n2,046,610.21 \n2,046,610.21 \n \n$ 2,050,675.45 $ \n \n- $ - \n \n346,100.00 $ 343,136.56 689,236.56 \n \n- $ (170,463.44) (170,463.44) \n \n335,710.90 $ 343,136.56 678,847.46 \n \n10,389.10 $ 170,463.44 180,852.54 \n \n- \n \n31,537.80 \n \n(9,462.20) \n \n31,537.80 \n \n9,462.20 \n \n10,389.10 - \n10,389.10 \n- \n \n- \n \n13,045,176.25 \n \n- \n \n13,045,176.25 \n \n- \n \n- \n \n2,593,447.65 \n \n(2,132,987.33) \n \n2,593,447.65 \n \n2,132,987.33 \n \n- \n \n17,713,528.18 \n \n1,094,949.02 \n \n15,142,663.34 \n \n1,475,915.82 \n \n- \n \n33,352,152.08 \n \n(1,038,038.31) \n \n30,781,287.24 \n \n3,608,903.15 \n \n- \n2,570,864.84 \n2,570,864.84 \n \n- $ 34,072,926.44 $ (1,217,963.95) $ 31,491,672.50 $ 3,799,217.89 $ \n \n2,581,253.94 \n \n- 29 - \n \n ATLANTA TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE \n(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2018 \n \nAdult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified \nTotal Adult Literacy \nEconomic Development Other Funds \nTechnical Education Other Funds \nTotal Operating Activity \nPrior Year Reserves Not Available for Expenditure Inventories Uncollectible Accounts Receivable \n \nBeginning Fund Balance July 1 \n \nFund Balance Carried Over from \nPrior Period as Funds Available \n \nReturn of Fiscal Year 2017 \nSurplus \n \nPrior Period Adjustments \n \n$ \n \n- $ \n \n897.89 \n \n897.89 \n \n- $ (897.89) (897.89) \n \n3,167.35 \n \n(3,167.35) \n \n2,046,610.21 2,050,675.45 \n \n(2,046,610.21) (2,050,675.45) \n \n- $ \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n(65,753.39) \n \n- \n \n(65,753.39) \n \n222,928.97 424,938.07 \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \nTotals by Program \n \n$ 2,698,542.49 $ \n \n(2,050,675.45) $ \n \n- $ \n \n(65,753.39) \n \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 special purpose \n- 30 - \n \n SCHEDULE \"4\" \n \nOther Adjustments \n \nEarly Return of Fiscal Year 2018 \nSurplus \n \nExcess of Funds Available \nOver Expenditures \n \nEnding Fund Balance June 30 \n \nAnalysis of Ending Fund Balance \n \nFiscal Year 2018 \n \nReserved \n \nSurplus \n \nTotal \n \n$ \n \n- $ \n \n- \n \n- \n \n- \n \n(75,327.95) (75,327.95) \n \n- $ - \n- \n- \n \n10,389.10 $ - \n10,389.10 \n \n10,389.10 $ - \n10,389.10 \n \n- $ - \n \n10,389.10 $ - \n10,389.10 \n \n10,389.10 - \n10,389.10 \n \n- \n \n- \n \n- \n \n- \n \n- \n \n2,570,864.84 2,581,253.94 \n \n2,429,783.50 2,440,172.60 \n \n2,429,783.50 2,429,783.50 \n \n10,389.10 \n \n2,429,783.50 2,440,172.60 \n \n- \n \n- \n \n75,327.95 \n \n- \n \n- \n \n222,928.97 \n \n222,928.97 \n \n- \n \n500,266.02 \n \n500,266.02 \n \n- \n \n222,928.97 \n \n- \n \n500,266.02 \n \n$ \n \n- $ \n \n- $ \n \n2,581,253.94 $ 3,163,367.59 $ 3,152,978.49 $ \n \n10,389.10 $ 3,163,367.59 \n \nSummary of Ending Fund Balance Reserved \nSales and Services Live Work Projects Continuing Education Technology Fees Uncollectible Accounts Receivable Inventories Bookstore Tuition Unreserved Surplus \nTotal Ending Fund Balance - June 30 \n \n$ 62,630.86 29,908.19 31,102.64 \n272,783.64 500,266.02 222,928.97 894,606.48 1,138,751.69 \n- $ \n$ 3,152,978.49 $ \n \n$ \n10,389.10 10,389.10 $ \n \n62,630.86 29,908.19 31,102.64 272,783.64 500,266.02 222,928.97 894,606.48 1,138,751.69 \n10,389.10 \n3,163,367.59 \n \n- 31 - \n \n SECTION II ENTITY'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n ATLANTA TECHNICAL COLLEGE ENTITY'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n \n SECTION III FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \n \n ATLANTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2018 \n \nCOMMUNICATION OF INTERNAL CONTROL DEFICIENCIES \n \nThe auditor is required to communicate to management and those charged with governance control deficiencies identified during the course of the financial statement audit that, in the auditor's judgment, constitute significant deficiencies or material weakness. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \n \nInternal control deficiencies identified during the course of this engagement that were considered to be significant deficiencies and/or material weaknesses are presented below: \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA-2018-001 Strengthen Controls over the Awarding Process \n \nCompliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Numbers and Titles: \nFederal Award Numbers: \nQuestioned Costs: \n \nEligibility Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education None 84.007  Federal Supplemental Educational Opportunity Grants 84.033  Federal Work-Study Program 84.063  Federal Pell Grant Program 84.268  Federal Direct Student Loans Program P007A170959 (Year: 2018), P033A170959 (Year: 2018), P063P173089 (Year: 2018), P268K183089 (Year: 2018) $3,793.00 \n \nDescription: The Institution's Student Financial Assistance Office improperly determined the financial need of eligible students. \n \nCriteria: Provisions included in 34 CFR 668 provide general provisions for administering Student Financial Assistance (SFA) programs and 34 CFR 675, 676, 685, and 690 provide eligibility and other related program requirements that are specific to the Federal Work-Study Program, Federal Supplemental Educational Opportunity Grant (FSEOG) Program, Federal Direct Loan Program, and Federal Pell Grant Program, respectively. \n \n- 1 - \n \n ATLANTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2018 \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCondition: A sample of 40 financial assistance files was selected to determine if financial assistance was properly calculated and disbursed to eligible students. The following deficiencies were noted: \n1. One student in the sample received Direct Unsubsidized Student Loans before the Subsidized need-based loan limit was reached. \n2. Two students in the sample received Direct Subsidized Student Loans when the student had no calculated financial need. This resulted in an over disbursement of $1,757.00. \n3. Two students in the sample were awarded based upon the incorrect cost of attendance budget. \n4. Three students in the sample were not in compliance with the Institution's published satisfactory academic progress (SAP) policies. Federal regulations (34 CFR 668.32 and 668.34) state that a student is eligible to receive financial assistance under Title IV programs if satisfactory academic progress is maintained. One student should have been placed on financial aid warning as they did not meet quantitative or qualitative requirements of SAP. Two additional students should have been placed on financial aid suspension as they did not meet the quantitative or qualitative requirements of SAP, which resulted in SFA over disbursements totaling $2,036.00. \nQuestioned Cost: Questioned costs of $3,793.00, with likely questioned costs of $423,630.21, were identified for the students who received student financial assistance in excess of their eligibility. The following CFDA numbers are affected by the known and likely questioned costs: 84.063 and 84.268. \nCause: In discussing these deficiencies with management, they stated that Direct Unsubsidized and Subsidized Student Loan errors occurred as a result of awarding and disbursement rules errors within the student information system. In addition, students were awarded based upon the incorrect cost of attendance budgets due to an oversight in the current SFA packaging philosophy. Furthermore, inaccuracies in the configuration of SAP calculations within the student information system did not alert SFA Office staff appropriately when students should have been placed on financial aid warning and/or suspension. \nEffect or Potential Effect: The Institution was not in compliance with Federal regulations concerning awarding of SFA funds to students. In addition, the Institution awarded students funds in excess of eligibility. \nRecommendation: The Institution should review its processes and procedures for determining each student's financial aid eligibility, including the current configurations within the student information system. Where vulnerable, the Institution should develop and/or modify its policies and procedures to ensure that correct amounts will be awarded to students in conformity with financial need requirements. Additionally, the Institution should develop and implement a monitoring process to ensure that controls are properly implemented. The Institution should also contact the U.S. Department of Education regarding resolution of this finding. \n- 2 - \n \n ATLANTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2018 \n \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The Institution will work with staff from the Technical College System of Georgia to address all deficiencies noted. The awarding and disbursement rules within the student information system will be reviewed and modified to ensure that students are awarded and disbursed the appropriate Direct Student Loan funds. In addition, an improved process for assigning cost of attendance budgets within the student information system will be developed. Furthermore, the SAP module within the student information system will be reviewed to ensure that calculations are accurate and SAP statuses are assigned appropriately. \n \nEstimated Completion Date: June 30, 2019 \n \nContact Person: Lamario Primas, Financial Aid Director \n \nTelephone: \n \n(404) 225-4714 \n \nEmail: \n \nlprimas@atlantatech.edu \n \nFA-2018-002 Strengthen Controls over Matching Requirements \n \nCompliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Numbers and Titles: Federal Award Numbers: Questioned Costs: \n \nSpecial Tests and Provisions Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education None 84.033  Federal Work-Study Program P033A170959 (Year: 2018) $17,495.00 \n \nDescription: The Institution did not meet matching requirements associated with the Federal Work-Study (FWS) Program. \n \nCriteria: Provisions included in 34 CFR 675.26 and 675.27 provide the compliance requirements for the FWS institutional share necessary. Specifically, provisions included in 34 CFR 675.26(a)(1) state that \"the Federal share of FWS compensation paid to a student employed other than by a private-for-profit organization...may not exceed 75 percent unless the Secretary approves a higher share.\" \n \nCondition: Our review of expenditures related to the FWS program revealed that the proper amount was not expended from institutional funds. The total FWS compensation paid to students employed other than by a private for-profit organization was $69,980.00. The Institution should have expended $17,495.00 from institutional funds to be in compliance with Federal regulations. However, no institutional funds were expended for FWS compensation. \n \nQuestioned Costs: Questioned costs of $17,495.00 were identified for FWS compensation that should have been expended from institutional funds. The following CFDA number is affected by the known questioned costs: 84.033. \n \n- 3 - \n \n ATLANTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2018 \n \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nCause: In discussing these deficiencies with management, they stated that there was a vacancy in the Grants Coordinator position during the year under review and the Institution did not submit a waiver request as had been done in previous award years. \n \nEffect or Potential Effect: The Institution was not in compliance with Federal regulations concerning the use of FWS program funds. In addition, Federal funds were expended for activities that should have been paid with institutional funds. \n \nRecommendation: The Institution should strengthen procedures to ensure that the proper amount of institutional funds is expended for compensation to FWS students or that a waiver for the matching requirement is obtained appropriately. Additionally, the Institution should develop and implement a monitoring process to ensure that controls are properly implemented. The Institution should also contact the U.S. Department of Education regarding resolution of this finding. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The Institution has hired a Grants Coordinator who will ensure that a waiver for the matching requirement is obtained each award year. The Institution has already been approved for a waiver for the matching requirement for the 2019-2020 award year. \n \nEstimated Completion Date: July 1, 2019 \n \nContact Person: Lamario Primas, Financial Aid Director \n \nTelephone: \n \n(404) 225-4714 \n \nEmail: \n \nlprimas@atlantatech.edu \n \nFA-2018-003 Improve Controls over the Verification Process \n \nCompliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Numbers and Titles: \nFederal Award Numbers: \nQuestioned Costs: \n \nSpecial Tests and Provisions Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education None 84.007  Federal Supplemental Educational Opportunity Grants 84.033  Federal Work-Study Program 84.063  Federal Pell Grant Program 84.268  Federal Direct Student Loans Program P007A170959 (Year: 2018), P033A170959 (Year: 2018), P063P173089 (Year: 2018), P268K183089 (Year: 2018) $734.00 \n \nDescription: The Institution's Student Financial Assistance Office did not meet student verification requirements. \n \n- 4 - \n \n ATLANTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2018 \n \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nCriteria: Provisions included in 34 CFR 668 provide the compliance requirements for the verification process that the Institution should follow for students who receive financial aid and identify what documentation is acceptable. \n \nCondition: A sample of 25 students who were selected for verification by the U.S. Department of Education was reviewed by the auditor. Testing revealed that verification procedures were not completed for one student. \n \nQuestioned Cost: Questioned costs of $734.00, with likely questioned cost of $124,924.92, were identified for the students who received student financial assistance in excess of their eligibility. The following CFDA number is affected by the known and likely questioned costs: 84.063. \n \nCause: In discussing these deficiencies with management, they stated physical documentation for verification was misplaced due to staffing changes within the Financial Aid Office. \n \nEffect or Potential Effect: Without properly verifying the information in the selected student files, the Institution is in noncompliance with program provisions. In addition, the Institution awarded students funds in excess of eligibility. \n \nRecommendation: The Institution should develop and implement procedures to ensure that verification requirements are met and that appropriate documentation is maintained on file. The Institution should also contact the U.S. Department of Education regarding resolution of this finding. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The Institution will be contracting with CampusLogic, Inc. to assist with streamlining the verification process. In addition, the Institution will be transitioning all verification forms to an electronic format. \n \nEstimated Completion Date: July 1, 2019 \n \nContact Person: Lamario Primas, Financial Aid Director \n \nTelephone: \n \n(404) 225-4714 \n \nEmail: \n \nlprimas@atlantatech.edu \n \n- 5 - \n \n ATLANTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2018 \n \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA-2018-004 Improve Controls over the Return of Title IV Funds Process \n \nCompliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Numbers and Titles: \nFederal Award Numbers: \nQuestioned Costs: \n \nSpecial Tests and Provisions Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education None 84.007  Federal Supplemental Educational Opportunity Grants 84.033  Federal Work-Study Program 84.063  Federal Pell Grant Program 84.268  Federal Direct Student Loans Program P007A170959 (Year: 2018), P033A170959 (Year: 2018), P063P173089 (Year: 2018), P268K183089 (Year: 2018) $1,107.84 \n \nDescription: The Institution did not properly perform the refund process to ensure that unearned Title IV funds were returned in a timely manner. \n \nCriteria: The provisions in 34 CFR 668.22 provides requirements over the treatment of Title IV funds when a student withdraws. The Institution is required to determine the amount of Title IV grant that the student earned as of the student's withdrawal date when a recipient of a Title IV grant withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance. A refund must be returned to Title IV programs when the total amount of Title IV grant or loan assistance, or both, that the student earned is less than the amount of the Title IV grant or loan assistance that was disbursed to the student as of the withdrawal date. \n \nCondition: Twenty-five students who received Federal financial assistance for the Fall 2017 and Spring 2018 semesters and withdrew from the Institution were selected to determine if refunds were calculated and returned in the correct amount to the proper funding agency and/or student in a timely manner. Our examination revealed the following deficiencies: \n \n1. The refund calculations for two students who withdrew during the Fall 2017 semester were calculated incorrectly due the use of the improper withdrawal dates. These students were requested to return $1,107.84 less than the required amount to various SFA programs. \n \n2. Funds were not returned to the appropriate grantor programs within the required time frame for 18 of the withdrawn students tested. \n \nQuestioned Cost: Questioned costs of $1,107.84, with likely questioned costs of $44,405.50, were identified for refunds calculated incorrectly. The following CFDA number is affected by the known and likely questioned costs: 84.063. \n \n- 6 - \n \n ATLANTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2018 \n \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nCause: In discussing these deficiencies with management, they stated that the last date of attendance reported by instructors was utilized as the withdrawal date within the Return of Title IV calculations rather than the date on which the student initiated an official withdrawal. In addition, funds were not returned within the required time frame as a result of turnover within the various positions associated with this process. \n \nEffect or Potential Effect: The Student Financial Assistance Office did not calculate the correct amount of refunds for the Title IV Federal program and did not apply the SFA refunds to the Title IV Federal programs in a timely manner. \n \nRecommendation: The Institution should revise and implement procedures to ensure that student financial aid refunds are properly calculated and that unearned funds are correctly returned to the appropriate accounts in a timely manner in accordance with the Higher Education Amendments 1998, Public Law 105-244. The Institution should also contact the U.S. Department of Education regarding resolution of this finding. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The Institution has implemented a policy to ensure that the withdrawal date utilized within Return of Title IV calculations associated with official withdrawals is the date in which the student initiates the withdrawal process. In addition, the Institution has assigned responsibility for the Return of Title IV calculations and implemented procedures to submit refunds in a timely manner. \n \nEstimated Completion Date: July 1, 2019 \n \nContact Person: Lamario Primas, Financial Aid Director \n \nTelephone: \n \n(404) 225-4714 \n \nEmail: \n \nlprimas@atlantatech.edu \n \nOTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) \nExcessive Cash Balances Observation: Upon review of cash drawdowns and disbursements related to the Federal Direct Student Loans program and the Federal Pell Grant program, excessive cash balances were noted for up to 31 days within each program in the fiscal year. Provisions included in 34 CFR 668.166(a) state, \"The Secretary considers excess cash to be any amount of Title IV, HEA program funds, other than Federal Perkins Loan Program funds, that an institution does not disburse to students or parents by the end of the third business day following the date the institution received those funds from the Secretary.\" \nRecommendation: The Institution should enhance procedures to ensure that Federal Direct Student Loan and Federal Pell Grant funds are disbursed within three business days of the receipt of such funds. The Institution should only request Federal Direct Loan and Pell grant funds when the amounts are immediately needed to disburse funds to students or parents. Additionally, the Institution should develop and implement a monitoring process to ensure that controls are properly implemented. \n \n- 7 - \n \n ATLANTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2018 \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS Unofficial Withdrawals Observation: Our review of a sample of 23 students to test the Institution's compliance with 34 CFR 668.22, which is related to the return of Title IV funds, revealed that refunds were not calculated for two students who unofficially withdrew. Based upon last date of attendance documentation, Title IV aid totaling $1,559.75 should have been returned to the U.S. Department of Education. Recommendation: We recommend that the Institution review its policies and procedures to ensure that students who unofficially withdrew and received Title IV funds are identified and the required refund calculation is performed. National Student Loan Data System Reporting Observation: Our testing of 40 students revealed that 27 of the students' enrollment statuses were not updated in a timely manner for their enrollment level (i.e., half-time, full-time, etc.) and/or reflected the incorrect effective date per the National Student Loan Data System (NSLDS). In addition, the NSLDS Transfer Student Monitoring process was not completed prior to the disbursement of funds for three students. Recommendation: The Institution should implement policies and procedures to ensure that information reported to the NSLDS is correct and performed in a timely manner. In addition, the Transfer Student Monitoring process should be completed appropriately for all transfer students. \n- 8 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-ba852-b2015-belec-p-btext","title":"Atlanta Technical College, Atlanta, Georgia, management report for fiscal year ended 2015 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2015-12-11"],"dcterms_description":["Annual financial report for Atlanta Technical College."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Atlanta Technical College--Appropriations and expenditures--Periodicals","Technical education--Georgia--Auditing--Periodicals","Technical education--Georgia--Finance--Statistics--Periodicals"],"dcterms_title":["Atlanta Technical College, Atlanta, Georgia, management report for fiscal year ended 2015 June 30"],"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-bv6-ba852-b2015-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-ba852-b2015-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":null},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-ba852-b2008-h2009","title":"Atlanta Technical College, Atlanta, Georgia, management report for fiscal year ended June 30, 2009","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Fulton County, Atlanta, 33.749, -84.38798"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2008/2009"],"dcterms_description":["Began with: Fiscal year ended June 30, 2009.","Report year covers fiscal year.","For some years, report may be released instead called: Atlanta Technical College, Atlanta, Georgia, report on audit of the financial statements for the fiscal year ended ... or: Atlanta Technical College, Atlanta, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended ...","Fiscal year ended June 30, 2009 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed September 13, 2023).","Fiscal year ended June 30, 2009 (online surrogate); (Georgia Government Publications database, viewed September 13, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2009-06-30"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Atlanta Technical College--Appropriations and expenditures","Education--Auditing--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Atlanta Technical College, Atlanta, Georgia, management report for fiscal year ended June 30, 2009"],"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-bv6-ba852-b2008-h2009"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-ba852-b2008-h2009"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ATLANTA TECHNICAL COLLEGE \nATLANTA, GEORGIA. \nMANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2009 \nA Member College of the Technical College System of Georgia \nGeorgia Department of Audits and Accounts Russell W. Hinton State Auditor \n \n ATLANTA TECHNICAL COLLEGE - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nLETTER OF TRANSMITTAL \n \nSELECTED FINANCIAL INFORMATION \n \nEXHIBITS \n \nA STATEMENT OF NET ASSETS - (GAAP BASIS) \n \n2 \n \nB STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - \n \n(GAAP BASIS) \n \n3 \n \nC STATEMENT OF CASH FLOWS - (GAAP BASIS) \n \n4 \n \nD SELECTED FINANCIAL NOTES \n \n5 \n \nSUPPLEMENTARY INFORMATION \n \nSCHEDULES \n \nBALANCE SHEET-(STATUTORY BASIS)- BUDGET FUND \n \n16 \n \n2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \n \n(STATUTORY BASIS) BUDGET FUND \n \n17 \n \n3 STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING \n \nSOURCE COMPARED TO BUDGET \n \n(STATUTORY BASIS) BUDGET FUND \n \n18 \n \n4 RECONCILIATION OF SALARIES AND TRAVEL \n \n21 \n \nSECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 29, 2009 \n \nHonorable Sonny Perdue, 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 \nand Honorable Alvetta Thomas, President Atlanta Technical College \nLadies and Gentlemen: \nAs part ofour audit ofthe basic financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2009, we have performed certain audit procedures at Atlanta Technical College. Accordingly, the financial statements and compliance activities of Atlanta Technical College were examined to the extent considered necessary in order to express an 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. \nThis Management Report contains information pertinent to the financial and compliance activities of Atlanta Technical College as of and for the year ended June 30, 2009. Information contained in this report is a by-product of our audit ofthe basic financial statements ofthe State ofGeorgia 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. \n \n This report is intended solely for the information and use of management of Atlanta 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. \nRespectfully submitted, \n~w.~ \nRussell W. Hinton, CPA, CGFM State Auditor \nRWH:as \n \n SELECTED FINANCIAL INFORMATION - 1- \n \n ATLANTA TECHNICAL COLLEGE STATEMENT OF NET ASSETS - (GAAP BASIS) \nJUNE 30, 2009 \nASSETS \nCurrent Assets Cash and Cash Equivalents Accounts Receivable, Net Federal Financial Assistance Other Prepaid Items Inventories \nTotal Current Assets \nNoncurrent Assets Capital Assets, Net \nTotal Assets \nLIABILITIES \nCurrent Liabilities Salaries Payable Accounts Payable Deferred Revenue Funds Held for Others Compensated Absences \nTotal Current Liabilities \nNoncurrent Liabilities Compensated Absences \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for: \nExpendable Unrestricted \nTotal Net Assets \n \nEXHIBIT \"A\" \n \n$ 1,224,598.16 \n240,876.06 746,352.71 \n22,884.49 565,117.26 \n$ 2,799,828.68 \n12,889,069.82 \n$ 15,688,898.50 \n \n$ \n \n71,270.93 \n \n335,337.59 \n \n51,279.05 \n \n251,404.43 \n \n525,828.62 \n \n$ 1,235, 120.62 \n \n534,808.06 \n$ 1,769,928.68 \n \n$ 12,889,069.82 \n17,781.94 1,012, 118.06 \n \n$ 13,918,969.82 \n \n-2 - \n \n ATLANTA TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS) \nYEAR ENDED JUNE 30, 2009 \n \nEXHIBIT \"B\" \n \nOPERATING REVENUES \nStudent Tuition and Fees Less: Scholarship Allowances \nGrants and Contracts Federal \nRents and Royalties Sales and Services Other Operating Revenues \nTotal Operating Revenues \nOPERATING EXPENSES \nSalaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \nTotal Operating Expenses \nOperating Income (Loss) \nNONOPERATING REVENUES (EXPENSES) \nState Appropriations Grants and Contracts \nFederal Gifts Interest and Other Investment Income Other Nonoperating Expenses \nNet Nonoperating Revenues \nIncrease (Decrease) in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \n$ 5,876,473.79 -825,873.42 \n89,111.17 106,694.16 2,131,226.57 251577.63 \n$ 714031209.90 \n \n$ 12,495,032.07 \n2,862,048.29 35,148.57 \n3,360,827.45 852,486.02 \n6,379,290.02 9481076.57 \n$ 2619321908.99 \n$ -191529,699.09 \n \n$ 12,388,244.61 \n \n6,248,676.72 526,068.88 8,267.78 -1591187.80 \n \n$ 19,012,070.19 \n \n$ \n \n-517,628.90 \n \n14,436,598.72 \n \n$ 13,9181969.82 \n \n-3- \n \n ATLANTA TECHNICAL COLLEGE STATEMENT OF CASH FLOWS - {GAAP BASIS) \nYEAR ENDED JUNE 30, 2009 \nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments) \nNet Cash Provided (Used) by Operating Activities \nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts \nNet Cash Flows Provided (Used) by Noncapital Financing Activities \nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of Capital Assets \nCASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments \nNet Increase (Decrease) in Cash \nCash and Cash Equivalents - Beginning of Year \nCash and Cash Equivalents - End of Year \nRECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: \nOperating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash \nProvided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Accounts Receivable, Net Inventories Prepaid Items Salaries Payable Accounts Payable Deferred Revenue Compensated Absences \nNet Cash Provided (Used) by Operating Activities \n \nEXHIBIT\"C\" \n \n$ 4,974,322.62 28,796.69 \n2,216,338.06 -11,581,432.16 -12,510,762.94 \n-3,360,827.45 1321271.79 \n$ -20, 101,293.39 \n \n$ 12,388,244.61 -15,152.61 \n6,666,064.87 -1451890.60 \n$ 18,893,266.27 \n \n$ \n \n-352,341.95 \n \n$ \n \n8,267.78 \n \n$ -1,552, 101.29 \n \n2,776,699.45 \n \n$ -19,529,699.09 \n948,076.57 \n-33,664.14 -62,113.99 -10,045.99 -21,738.06 -1,379,586.38 -17,816.60 \n5 294.29 \n$ -201101 ,293.39 \n \n-4 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY Atlanta Technical College is one of thirty-three (33) 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 Atlanta Technical College as a separate reporting entity. \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 ofTechnical and Adult Education. 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 Atlanta Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Atlanta Technical College is considered an organizational unit of the Technical College System of Georgia for financial reporting purposes because ofthe 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 Reporting Standards. \nNET ASSETS The Technical College's net assets are classified as follows: \nInvested in capital assets, net ofrelated 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. \nRestricted net assets - expendable: Restricted expendable net assets include resources in which the 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 $17,781.94 due to granter agencies. \nUnrestricted net assets: 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 $2,089.39. Unexpended state appropriations must be refunded to the Technical College System of Georgia for remittance to the Office of Treasury and Fiscal Services. \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. \n- 5- \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 2: DEPOSITS \nDEPOSITS The 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: \n1. Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia. \n2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. \n3. Bonds of any 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. \n4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. \n5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n6. Guarantee or insurance ofaccounts provided by the Federal Deposit Insurance Corporation. \nAs authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies, which allows agencies of the State of Georgia (and thus Atlanta Technical College), the option of exempting demand deposits from the collateral requirements. \nAt June 30, 2009, the carrying value of deposits was $1,223,180.16 and the bank balance was $1,784,745.56. Of the Technical College's deposits, $1,534,745.56 were uninsured. Of these uninsured deposits, $1,534,745.56 were uncollateralized. \n \n-6- \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 3: ACCOUNTS RECEIVABLE \n \nAccounts receivable at June 30, 2009, consists of the following: \n \nStudent Tuition and Fees Federal, State and Private Funds GSFIC Other \n \n$ 311,885.58 319,364.91 181,110.51 195,190.34 \n \n$ 1,007,551.34 \n \nLess: Allowance for Doubtful Accounts \n \n20,322.57 \n \nNet Accounts Receivable \n \n$ 987~228.77 \n \nNOTE 4: CAPITAL ASSETS \n \nFollowing are the changes in capital assets for the year ended June 30, 2009: \n \nBalance July I, 2008 \n \nAdditions \n \nReductions \n \nBalance June 30, 2009 \n \nCapital Assets, Not Being Depreciated: \n \nLand and Land Improvements \n \n$ 1,405,553.00 $ \n \n0.00 $ \n \n0.00 $ 1,405,553.00 \n \nCapital Assets, Being Depreciated: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections \n \n$ 12,855,234.27 2,640,272.11 3,647,059.80 $ 383,440.54 \n \n327,183.71 $ 25,158.24 \n \n14,247.00 32,876.82 \n \n$ 12,855,234.27 2,640,272.11 3,959,996.51 \n \n$19,526,006.72 $ \n \n$ 47,123.82 $ 19,831,224.85 \n \nLess: Accumulated Depreciation: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections \n \n$ 2,734,723.27 $ 1,830,224.34 2,613,197.61 255,312.86 \n \n354,750.75 117,451.26 443,937.22 $ 31,937.34 \n \n949.80 32,876.82 \n \n$ 3,089,474.02 1,947,675.60 3,056,185.03 254,373.38 \n \n$ 7,433,458.08 \n \n$ 33,826.62 $ 8,347,708.03 \n \nTotal Capital Assets, Being Depreciated, \n \nNet \n \n$ 12,092,548.64 $ -595,734.62 $ \n \n13,297.20 $11,483,516.82 \n \nCapital Assets, Net \n \n$ 13,498,101.64 $ -525 134 62 $ 13,221.20 $ 12 882 Q62 82 \n \n-7- \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 5: DEFERRED REVENUE \n \nDeferred revenue at June 30, 2009, consists of the following: \n \nPrepaid Tuition and Fees Federal Grants and Contracts \n \n$ 46,684.80 4,594.25 \n \nTotals NOTE 6: LONG-TERM LIABILITIES \n \n$==5=1=,2=79::::::::0.===5 \n \nLong-Term liability activity for the year ended June 30, 2009 was as follows: \n \nBalance \n \nAdditions \n \nReductions \n \nBalance June 30. 2009 \n \nCurrent Portion \n \nOther Liabilities Compensated Absences \n \n$ I 055 342.39 $ ] 065 062 IO $ I 059.767 81 $ 1,060 636.68 $ 525.828 62 \n \nNOTE 7: NET ASSETS \n \nChanges in Net Asset activity for the year ended June 30, 2009 was as follows: \n \nInvested in Capital Assets Net of Related Debt \nRestricted Net Assets \nUnrestricted Net Assets \nTotal Net Assets \n \nBalance Jull'. I. 2008 \n \nAdditions \n \nReductions \n \nBalance June 30, 2009 \n \n$ 13,498, IO 1.64 $ -595,734.62 $ 13,297.20 $ 12,889,069.82 \n \n4,125.59 \n \n6,248,676.72 \n \n6,235,020.37 \n \n17,781.94 \n \n934,371.49 20.179.900.57 20.102, 154.00 \n \n1,012,118.06 \n \n$ 25 832 842 6.7 $ 26 350 471 51 \n \nNOTE 8: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nPlan Description Atlanta Technical College participates in the Teachers Retirement System ofGeorgia (TRS), a costsharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n-8- \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 8: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nFunding Policy Employees of Atlanta Technical College who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. Atlanta Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2009, the employer contribution rate was 9.28% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2009 2008 2007 \n \n100% 100% 100% \n \n$ 591,676.25 $ 617,508.77 $ 595,573.62 \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nPlan Description Atlanta Technical College 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 of providing retirement allowances for employees of the State of Georgia. \n \nThe ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 ofthe Internal Revenue Code (IRC) as a portion ofERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. \n \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. \n \n-9- \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 8: RETIREMENT PLANS \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nPlan Description Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 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. \nRetirement benefits paid to members are based upon a formula adopted by the Board ofTrustees 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. \nFunding Policy As established by State statute, all full-time employees of the 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. The Technical College's payroll for the year ended June 30, 2009, for employees covered by ERS was $4,021,983.72. The Technical College's total payroll for all employees was $12,495,032.07. \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$4,200. Under the old plan, the Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' eamable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The Technical College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Technical College contributions are not at any time refundable to the member or his/her beneficiary. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \n- IO - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 8: RETIREMENT PLANS \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nFunding Policy Fiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2009 2008 2007 \n \n100% 100% 100% \n \n$ 417,318.50 $ 382,423.23 $ 341,644.17 \n \nActuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2009 financial report, which may be obtained through ERS. \n \nGEORGIA DEFINED CONTRIBUTION PLAN \n \nPlan Description Atlanta 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. \n \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. Ifa member has less than $3,500.00 credited to his/her account, the Board ofTrustees 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 beneficiary. Benefit provisions are established by State statute. \n \nThe Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. \n \nContributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross 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, 2009, for employees covered by GDCP was $1,467,865.45. The Technical College's total payroll for all employees was $12,495,032.07. \n \n- 11 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 8: RETIREMENT PLANS \n \nGEORGIA DEFINED CONTRIBUTION PLAN \n \nContributions and Vesting Total contributions made by employees during fiscal year 2009 amounted to $109,995.26 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \n \nNOTE 9: POSTEMPLOYMENT BENEFITS \n \nThe Technical College participates in two State of Georgia postemployment benefit plans, the Georgia Retiree 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. \n \nGeorgia Retiree Health Benefit Fund The Georgia Retiree Health Benefit Fund (GRHBF) is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers retired employees of the State including all departments, agencies and local school systems. GRHBF provides health insurance benefits to eligible retirees 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 ofthe employees' health insurance plan (including benefits for retirees) to the Board of Community Health (Board). \n \nThe contribution requirements ofthe 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 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. \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected \"pay-as-you-go\" financing requirements. The combined rates for the active and retiree plans for the fiscal year ended June 30, 2009, were as follows: \n \nJuly 2008 - January 2009 February 2009 March 2009 - June 2009 \n \n22.165% of covered payroll for August - February Coverage 1.926% of covered payroll for March Coverage 0.000% of covered payroll for April - July Coverage \n \n- 12 - \n \n ATLANTA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 9: POSTEMPLOYMENT BENEFITS \n \nGeorgia Retiree Health Benefit Fund No additional contribution was required by the Board for fiscal year 2009 nor contributed to GRHBF to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation. \n \nThe following table summarizes the Technical College's contributions to the health insurance plans for the years ending June 30, 2009 and June 30, 2008, (dollars in thousands): \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2009 2008 \n \n100% 100% \n \n$ 1,386,750.14 $ 2,382,730.96 \n \nState Employees' Assurance Department - OPEB State Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multiple-employer defined benefit postemployment 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 the Employees' Retirement System. \n \nContributions by plan members are established by the Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of eamable compensation). The Board of Trustees of the Employees' Retirement System establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% ofeamable compensation. For the fiscal year ended June 30, 2009, contributions of ERS \"old plan\" members were 0.45% of eamable compensation, 0.22% ofwhich was paid by the employer. Contributions ofERS \"new plan\" members were 0.23% of eamable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30, 2009 and June 30, 2008. \n \nNOTE 10: AFFILIATED ORGANIZATIONS \n \nThe Atlanta Technical College Foundation, Inc., is a legally separate, tax exempt organization whose activities primarily support Atlanta Technical College. This affiliated organization is considered to be a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units. Therefore, the financial statements ofthis affiliated organization are not included in these financial statements. Copies ofthe financial statements for the affiliated organization may be obtained from Atlanta Technical College. \n \n- 13 - \n \n (This page left intentionally blank) \n \n SUPPLEMENTARY INFORMATION \n \n ATLANTA TECHNICAL COLLEGE BALANCE SHEET (STATUTORY BASIS) \nBUDGET FUND JUNE 30, 2009 \nASSETS \nCash and Cash Equivalents Accounts Receivable \nFederal Financial Assistance Other Prepaid Expenditures Inventories \nTotal Assets \nLIABILITIES AND FUND EQUITY \nLiabilities Salaries Payable Payroll Withholdings Accounts Payable Encumbrances Payable Deferred Revenue Funds Held for Others \nTotal Liabilities \nFund Balances Reserved Departmental Sales and Services Federal Financial Assistance Live Work Projects Uncollectible Accounts Receivable Inventories Unreserved Surplus \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nSCHEDULE \"1\" \n \n$ \n \n1,293, 136.42 \n \n444,514.35 601,900.04 \n24,733.49 565,117.26 \n \n$ ====2=,9=29=,4=01=.5=6 \n \n$ \n \n71,270.93 \n \n117,264.70 \n \n218,072.89 \n \n1,862,619.77 \n \n43,533.80 \n \n24,846.71 \n \n$ \n \n2,337,608.80 \n \n$ \n \n2,182.67 \n \n17,781.94 \n \n26,487.22 \n \n20,322.57 \n \n522,928.97 \n \n2,089.39 \n \n$ \n \n591,792.76 \n \n$ ===2=,9=29=,4=0=1=5=6 \n \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. \n16 - \n \n ATLANTA TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) \nBUDGET FUND YEAR ENDED JUNE 30, 2009 \n \nSCHEDULE \"2\" \n \nREVENUES \nState Appropriation State General Funds \nFederal Funds Other Funds \nTotal Revenues \nCARRY-OVER FROM PRIOR YEAR \nTransfer from Reserved Fund Balance \nTotal Funds Available \nEXPENDITURES \nAdult Literacy Economic Development Technical Education \nTotal Expenditures \nExcess of Funds Available over Expenditures \nFUND BALANCE JULY 1 \nReserved Unreserved \nADJUSTMENTS \nPrior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned \nto Technical College System of Georgia Year Ended June 30, 2008 \nRefunds to Grantors Federal Financial Assistance Returned to Technical College System of Georgia Year Ended June 30, 2008 \nPrior Year Reserved Fund Balance Included in Funds Available \nFUND BALANCE JUNE 30 \n \nBUDGET \n \nACTUAL \n \nVARIANCE FAVORABLE (UNFAVORABLE) \n \n$ 12,399,911.00 $ 2,836,100.33 8,497,354.00 \n$ 23,733,365.33 $ \n \n12,399,911.00 $ 2,049,390.27 8,263,235.13 \n22,712,536.40 $ \n \n0.00 -786,710.06 -234 118.87 \n-1,020,828.93 \n \n0.00 $ 23. 733,365.33 $ \n \n142,026.24 22,854,562.64 $ \n \n142,026.24 -878,802.69 \n \n$ \n \n42,916.00 $ \n \n24,490.00 \n \n23,665,959.33 \n \n$ 23,733,365.33 $ \n \n$ \n \n0.00 $ \n \n42,451.04 $ 24,050.00 22,582,936.63 \n22,649,437.67 $ \n205,124.97 \n \n464.96 440.00 1,083,022.70 \n1,083,927.66 \n \n600,391.96 11,666.39 \n \n68,997.96 -136,570.30 \n-11,666.39 \n \n-4, 125.59 -142 026.24 \n \nSUMMARY OF FUND BALANCE \nReserved Departmental Sales and Services Federal Financial Assistance Live Work Projects Uncollectible Accounts Receivable Inventories \nTotal Reserved \nUnreserved Surplus \n \n$ \n \n2,182.67 \n \n17,781.94 \n \n26,487.22 \n \n20,322.57 \n \n522,928.97 \n \n$ \n \n589,703.37 \n \n2,089.39 \n \nTotal Fund Balance \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. \n-17 - \n \n$ ===5==9==1,!,:J==9==2.==76== \n \n ATLANTA TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET \n(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2009 \n \nAdult Literacy Federal Funds Other Funds \nTotal Adult Literacy \n \nOriginal Appropriation \n8,455.00 10,000.00 18,455.00 \n \nFinal Budget \n \nCurrent Year Revenues \n \nFunds Available Com12ared to Budget \n \nPrior Year Carry-Over \n \nTotal Funds Available \n \nVariance Positive /Negative) \n \n9,778.00 33 138.00 \n42,916 00 \n \n9,496.97 33 138.00 \n42,634.97 \n \n0.00 \n \n9,496.97 $ \n \n281,03 \n \n0.00 \n \n33,138.00 \n \n0.00 \n \n0.00 \n \n42,634.97 \n \n-281,03 \n \nEconomic Development Other Funds \nTechnical Education State Appropriation State General Funds Federal Funds American Recovery and Reinvestment Act of 2009 Federal Stabilization Funds Other Federal Funds Other Funds \nTotal Technical Education \n \n24 000.00 $ ==,,;,2.,,4,,.,4.,,.9.,.0..,,.00.,,,. \n \n24 050.00 $ \n \n0.00 $ \n \n24 050.00 $ -===-4=40=,0=0= \n \n14,517,125.00 $ 12,399,911.00 $ 12,399,911.00 $ \n \n000 $ 12,399,911.00 $ \n \n0,00 \n \n0.00 1,373,732.00 6 709 650.00 \n \n87,618.00 2,738,704.33 8 439 726.00 \n \n87,618.00 1,952,275.30 8 206 047.13 \n \n000 0.00 142 026.24 \n \n$ 22 600 507.00 $ 23 665 959.33 $ 22 645 851.43 $ 142 026.24 \n \n87,618.00 1,952,275.30 8 348 073.37 \n22 787 877.67 \n \n0.00 -786,429.03 \n-91 652.63 \n-878 081.66 \n \nGrand Totals - All Programs \n \n22,642,962.00 $ 23,733,365.33 $ 22,712,536.40 $ 142,026.24 $ 22,854,562.64 $ \n \n-878,802.69 \n \nStatutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budQetarv statutes and reQulations of the State of GeorQia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \n- 18  \n \n SCHEDULE \"3\" \n \nExeenditures Comeared to Budget \n \nVariance \n \nPositive \n \nActual \n \n(Negative) \n \nActual Funds Available \nOver/(Under) Expenditures \n \nPrior Period Adjustments \n \nOther Adjustments \n \nProgram Fund \nBalances \n \nTransfers \n \nProgram Fund Bahmces \n \nReserve \n \n~ \n \nTotal Fund Balance \n \n9,313.04 33 138.00 \n42,451.04 \n \n464.96 $ 0.00 \n464.96 \n \n183.93 0.00 \n183.93 \n \n0.00 $ 170.00 \n170.00 \n \n0.00 \n \n183.93 \n \n0.00 $ \n \n183.93 $ \n \n0.00 $ \n \n183.93 \n \n000 \n \n17000 ------MQ_ \n \n0.00 ----11.Q.,.Q.Q_ \n \n170.00 \n \n0.00 \n \n353.93 $ \n \n0.00 $ \n \n183.93 $ ~ $ \n \n353.93 \n \n24 050.00 $ \n \n44000 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ ~ $ \n \n0.00 $ ~ $ \n \n0.00 \n \n12,399,911.00 $ \n \n0.00 $ \n \n0.00 $ 1,057.30 $ \n \n0.00 $ 1,057.30 $ \n \n000 $ \n \n000 $ 1,057.30 $ \n \n1,057.30 \n \n87,618.00 1,952,412.88 8 142 994.75 \n22 582,936.63 \n \n0.00 786,291.45 296,731.25 \n1 083 022.70 \n \n0.00 -137.58 205 078.62 \n \n0.00 17,735.59 -86 535.23 \n \n204,941.04 $ -67 742.34 \n \n0.00 0.00 -89011.41 \n-89 011.41 \n \n0.00 17,598.01 29 531.98 \n \n0.00 0.00 __Q_QQ_ \n \n000 17,598 01 28 669.89 \n \n0.00 0.00 ~ \n \n48 187.29 $ \n \n000 $ 46,267.90 $ ~ $ \n \n0.00 17,598.01 29 531.98 \n48 187.29 \n \n22,649,437.67 \n \n1,083,927.66 $ \n \n205,124.97 $ -67,572.34 $ -69,011.41 $ 48,541.22 \n \n0.00 $ 46.451.83 $ 2,089.39 $ 48,541.22 \n \nUnexpendable Reserves Uncollectible Accounts Receivable Inventories \n \n20,322 57 522 928.97 \n591 792.76 \n \n-19- \n \n (This page left intentionally blank) \n \n ATLANTA TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30, 2009 \n \nSCHEDULE \"4\" \n \nTotals per Annual Supplement \nAccruals June 30, 2009 June 30, 2008 \nCompensated Absences June 30, 2009 June 30, 2008 \nLag Salaries June 30, 2009 June 30, 2008 \nAgency Funds \n \nSALARIES \n \n$ \n \n12,518,111.85 $ \n \nTRAVEL 46,093.27 \n \n71,270.93 -93,008.99 \n \n858,016.17 -849,076.29 \n \n-56,305.98 46,024.38 \n \n-10,944.70 \n \n$ \n \n12,495,032.07 $======35='=14:::::::8:::::::.5=7 \n \n- 21 - \n \n SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \n \n ATLANTA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2009 \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \nOTHER ITEMS \nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) Errors were noted in the expenditure amounts reported on the Schedule of Expenditures and Federal Awards (SEFA) submitted by Atlanta Technical College to the State Accounting Office for inclusion in the State of Georgia's Single Audit Report. The SEFA was corrected to reflect the correct fiscal year expenditures for all Federal activity. Management should ensure that the submitted information for the SEFA is complete and accurate to reflect all Federal assistance administered by the Technical College. \nCAPITAL ASSETS While conducting our engagement, we noted several instances where capital asset items were not reported correctly in the financial statements. Based on documentation provided, equipment was overstated by $181,630.72 and buildings were overstated by $4,139.50. Management should ensure that capital assets are supported by adequate subsidiary documentation and properly reported in the College's financial statements. \n \n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":3,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":3}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits and Accounts","hits":2}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Atlanta Technical College--Appropriations and expenditures","hits":1},{"value":"Atlanta Technical College--Appropriations and expenditures--Periodicals","hits":1},{"value":"Atlanta Technical College--Appropriations and expenditures--Periodicals.","hits":1},{"value":"Auditors' reports--Georgia","hits":1},{"value":"Education--Auditing--Georgia","hits":1},{"value":"Enseignement technique--Géorgie (État)--Finances--Statistiques--Périodiques.","hits":1},{"value":"Georgia Government Documents--Serial","hits":1},{"value":"Technical education--Georgia--Auditing--Periodicals","hits":1},{"value":"Technical education--Georgia--Auditing--Periodicals.","hits":1},{"value":"Technical education--Georgia--Finance--Statistics--Periodicals","hits":1},{"value":"Technical education--Georgia--Finance--Statistics--Periodicals.","hits":1}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"location_facet","items":[{"value":"United States, Georgia, 32.75042, -83.50018","hits":2},{"value":"United States, Georgia, Fulton County, Atlanta, 33.749, -84.38798","hits":1}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"counties_facet","items":[{"value":"Fulton","hits":1}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"year_facet","items":[{"value":"2008","hits":1},{"value":"2009","hits":1},{"value":"2015","hits":1},{"value":"2019","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null},"min":"2008","max":"2019","count":4,"missing":0},{"name":"medium_facet","items":[{"value":"state government records","hits":3},{"value":"financial records","hits":1},{"value":"financial statements","hits":1}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"fulltext_present_b","items":[{"value":"true","hits":2},{"value":"false","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"rights_facet","items":[{"value":"http://rightsstatements.org/vocab/InC/1.0/","hits":3}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"collection_titles_sms","items":[{"value":"Georgia Government Publications","hits":3}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"serial_titles_sms","items":[{"value":"Atlanta Technical College, Atlanta, Georgia, management report for fiscal year ended ...","hits":3}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"provenance_facet","items":[{"value":"University of Georgia. Map and Government Information Library","hits":3}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"call_numbers_sms","items":[{"value":"A800 .R1 V6 A852","hits":3},{"value":"A800 .R1 V6 A852 2008-2009","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"class_name","items":[{"value":"Item","hits":3}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"geojson","items":[{"value":"{\"type\":\"Feature\",\"geometry\":{\"type\":\"Point\",\"coordinates\":[-83.50018, 32.75042]},\"properties\":{\"placename\":\"United States, Georgia\"}}","hits":2},{"value":"{\"type\":\"Feature\",\"geometry\":{\"type\":\"Point\",\"coordinates\":[-84.38798, 33.749]},\"properties\":{\"placename\":\"United States, Georgia, Fulton County, Atlanta\"}}","hits":1}],"options":{"sort":"index","limit":-2,"offset":0,"prefix":null}},{"name":"placename","items":[{"value":"United States, Georgia","hits":2},{"value":"United States, Georgia, Fulton County, Atlanta","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}}]}}