{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2012-h2013-belec-p-btext","title":"Georgia Piedmont Technical College, Clarkston, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2013","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, DeKalb County, Clarkston, 33.80955, -84.23964"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2013/2014"],"dcterms_description":["Year ended June 30, 2002-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Fiscal year ended June 30, 2006."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2013-06-30"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Piedmont Technical College--Appropriations and expenditures","Education--Auditing--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Georgia Piedmont Technical College, Clarkston, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2013"],"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-bd42-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2012-h2013-belec-p-btext"],"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":"GEORGIA PIEDMONT TECHNICAL COLLEGE \nCLARKSTON, GEORGIA \nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREEDUPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30, 2013 \nGeorgia Department of Audits and Accounts Greg S. Griffin State Auditor \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE - TABLE OF CONTENTS - \n \nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES \nEXHIBITS \nA SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \nB STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE \nC STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE \n \nPage \n1 2 4 \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 \nDecember 10, 2013 \n \nMembers of the State Board of the Technical College System of Georgia Members of the Local Board of Directors \nand Honorable Jabari Simama, President Georgia Piedmont Technical College \nIndependent Accountant's Report on Applying Agreed-Upon Procedures \nLadies and Gentlemen: \nWe have performed the procedures enumerated below, which were agreed to by the College and the System Office (Oversight Unit) of the Technical College System of Georgia, solely to assist you in assessing the accuracy of the annual financial statement information reported to the System Office by the College for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report, Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source, and the Statement of Changes To Fund Balance By Program and Funding Source which are attached as Exhibits A, B and C, respectively. Georgia Piedmont Technical College's management is responsible for the financial information reported to the System Office of the Technical College System of Georgia. This agreedupon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. \n1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net position). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. \nWe did not note any exceptions as a result of our procedures \n2. Obtain the College's GAAP basis worksheets for Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position (SRECNP) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the College's accounting records. \nWe did not note any exceptions as a result of our procedures. \n \n  3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. \nWe did not note any exceptions as a result of our procedures. \n4. Obtain the College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. \nWe did not note any exceptions as a result of our procedures. \n5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's annual financial statement worksheets. \nWe did not note any exceptions as a result of our procedures. \n6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. \nWe did not note any exceptions as a result of our procedures. \n7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2013. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements. \nWe did not note any exceptions as a result of our procedures. \n8. Verify that the listing of salaries and travel reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the College's financial statements. \nWe did not note any exceptions as a result of our procedures. \n9. Review the year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis Report (Exhibit A), Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source (Exhibit B) and the Statement of Changes To Fund Balance By Program and Funding Source (Exhibit C). Confirm that budget information presented in these statements supports activity reported in the College's accounting records, the legal level of budgetary control (funding source within program) was maintained, and determine if any budget overexpenditures exist. \nWe did not note any exceptions as a result of our procedures. \n10. Obtain documentation for Budget basis reserves reported by the College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. \nWe did not note any exceptions as a result of our procedures. \n \n  11. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. \nWe did not note any exceptions as a result of our procedures. \n12. Review the Schedule of Expenditures of Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records. \nWe did not note any exceptions as a result of our procedures. \n13. Review capital asset records to ensure that (1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. \nWe did not note any exceptions as a result of our procedures. \n14. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner. \nWe did not note any exceptions as a result of our procedures. \nThese agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. \nThis report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully, \n \nGSG:as \n \nGreg S. Griffin State Auditor \n \n  EXHIBITS \n \n  GEORGIA PIEDMONT TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \nYEAR ENDED JUNE 30, 2013 \n \nEXHIBIT \"A\" \n \nREVENUES \nState Appropriation State General Funds \nFederal Funds Other Funds \nTotal Revenues \nADJUSTMENTS AND PROGRAM TRANSFERS \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 the Technical College System of Georgia Year Ended June 30, 2012 \nRefunds to Grantors Federal Financial Assistance Returned to the Technical College System of Georgia Year Ended June 30, 2012 \nPrior Year Reserved Fund Balance Included in Funds Available \nFUND BALANCE JUNE 30 \n \nBUDGET \n \nACTUAL \n \nVARIANCE FAVORABLE (UNFAVORABLE) \n \n$ 13,703,181.04 $ 13,703,181.04 $ \n \n4,254,148.39 \n \n4,106,687.34 \n \n18,614,216.04 \n \n14,924,404.30 \n \n0.00 -147,461.05 -3,689,811.74 \n \n$ 36,571,545.47 $ 32,734,272.68 $ -3,837,272.79 \n \n0.00 \n \n0.00 \n \n0.00 \n \n0.00 \n \n2,374,299.25 \n \n2,374,299.25 \n \n$ 36,571,545.47 $ 35,108,571.93 $ -1,462,973.54 \n \n$ 2,352,399.92 $ 2,242,857.95 $ \n \n1,165,000.00 \n \n604,205.68 \n \n33,054,145.55 \n \n28,772,284.68 \n \n$ 36,571,545.47 $ 31,619,348.31 $ \n \n$ \n \n0.00 $ 3,489,223.62 $ \n \n109,541.97 560,794.32 4,281,860.87 \n4,952,197.16 \n3,489,223.62 \n \n2,906,848.86 3.64 \n \n48,850.39 -172,568.22 \n-3.64 \n \n-515.29 -2,374,299.25 \n$ 3,897,540.11 \n \nSUMMARY OF FUND BALANCE \nReserved Federal Financial Assistance Local Grants and Contracts Sales and Services Live Work Projects Prior Year Local Funds Continuing Education Technology Fees Uncollectible Accounts Receivable Inventories Bookstore Tuition \nTotal Reserved \nUnreserved Surplus \nTotal Fund Balance \n \n$ \n \n104,719.11 \n \n159,121.40 \n \n502,185.28 \n \n63,244.18 \n \n11,591.98 \n \n151,423.02 \n \n1,652,989.67 \n \n167,750.02 \n \n364,759.00 \n \n367,718.07 \n \n349,716.35 \n \n$ 3,895,218.08 \n \n2,322.03 \n \n$ 3,897,540.11 \n \n-1 \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE \nYEAR ENDED JUNE 30, 2013 \n \nAdult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds \nTotal Adult Literacy \nEconomic Development Other Funds \nTechnical Education State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds \nTotal Technical Education \nTotals By Program \n \nOriginal Appropriation \n \nAmended Appropriation \n \nFinal Budget \n \nCurrent Year Revenues \n \n$ \n \n356,000.00 $ \n \n355,999.92 $ \n \n355,999.92 $ \n \n355,999.92 \n \n1,725,000.00 197,000.00 \n \n1,725,000.00 197,000.00 \n \n1,772,400.00 224,000.00 \n \n1,772,400.00 205,108.14 \n \n$ 2,278,000.00 $ 2,277,999.92 $ 2,352,399.92 $ 2,333,508.06 \n \n$ 1,265,000.00 $ 1,265,000.00 $ 1,165,000.00 $ \n \n868,358.56 \n \n$ 14,246,069.00 $ 13,347,181.12 $ 13,347,181.12 $ 13,347,181.12 \n \n2,059,000.00 \n \n2,059,000.00 \n \n1,953,813.39 \n \n1,810,762.21 \n \n0.00 11,700,000.00 \n \n0.00 11,700,000.00 \n \n527,935.00 17,225,216.04 \n \n523,525.13 13,850,937.60 \n \n$ 28,005,069.00 $ 27,106,181.12 $ 33,054,145.55 $ 29,532,406.06 \n \n$ 31,548,069.00 $ 30,649,181.04 $ 36,571,545.47 $ 32,734,272.68 \n \n- 2 - \n \n EXHIBIT \"B\" \n \nPrior Year Carry-Over \n \nFunds Available Compared to Budget \n \nAdjustments and \n \nTotal \n \nProgram Transfers \n \nFunds Available \n \nVariance Positive (Negative) \n \nExpenditures Compared to Budget \n \nVariance \n \nActual \n \nPositive (Negative) \n \nExcess (Deficiency) of Funds Available \nOver/(Under) Expenditures \n \n$ \n \n0.00 $ \n \n515.29 4,809.00 \n \n$ \n \n5,324.29 $ \n \n$ 291,135.40 $ \n \n0.00 $ \n \n355,999.92 $ \n \n0.00 -4,809.00 \n \n1,772,915.29 205,108.14 \n \n-4,809.00 $ 2,334,023.35 $ \n \n0.00 $ 1,159,493.96 $ \n \n0.00 $ \n \n355,999.92 $ \n \n515.29 -18,891.86 \n \n1,706,806.89 180,051.14 \n \n-18,376.57 $ 2,242,857.95 $ \n \n-5,506.04 $ \n \n604,205.68 $ \n \n0.00 $ 65,593.11 43,948.86 109,541.97 $ \n560,794.32 $ \n \n0.00 66,108.40 25,057.00 91,165.40 \n555,288.28 \n \n$ \n \n0.00 $ \n \n24,998.07 \n \n0.00 2,052,841.49 \n \n$ 2,077,839.56 $ \n \n0.00 $ 13,347,181.12 $ \n \n0.00 \n \n1,835,760.28 \n \n0.00 4,809.00 \n \n523,525.13 15,908,588.09 \n \n4,809.00 $ 31,615,054.62 $ \n \n0.00 $ 13,347,181.12 $ \n \n-118,053.11 \n \n1,771,646.60 \n \n-4,409.87 -1,316,627.95 \n \n523,525.13 13,129,931.83 \n \n-1,439,090.93 $ 28,772,284.68 $ \n \n0.00 $ 182,166.79 \n4,409.87 4,095,284.21 4,281,860.87 $ \n \n0.00 64,113.68 \n0.00 2,778,656.26 2,842,769.94 \n \n$ 2,374,299.25 $ \n \n0.00 $ 35,108,571.93 $ \n \n-1,462,973.54 $ 31,619,348.31 $ \n \n4,952,197.16 $ \n \n3,489,223.62 \n \n- 3 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE \nYEAR ENDED JUNE 30, 2013 \n \nAdult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds \nTotal Adult Literacy \nEconomic Development Other Funds \nTechnical Education State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds \nTotal Technical Education \nTotal Operating Activity \nPrior Year Reserves Not Available for Expenditure Inventories Refunds to Grantors Other Reserves \n \nBeginning Fund Balance/(Deficit) \nJuly 1 \n \nFund Balance Carried Over from \nPrior Period as Funds Available \n \nReturn of Fiscal Year 2012 \nSurplus \n \nPrior Period Adjustments \n \n$ \n \n3.64 $ \n \n515.29 4,809.00 \n \n$ \n \n5,327.93 $ \n \n$ \n \n291,135.40 $ \n \n0.00 $ -515.29 -4,809.00 -5,324.29 $ \n-291,135.40 $ \n \n-3.64 $ \n0.00 0.00 \n-3.64 $ \n \n0.00 \n0.00 -60.00 \n-60.00 \n \n0.00 $ -1,209.00 \n \n$ \n \n0.00 $ \n \n24,998.07 \n \n0.00 2,052,841.49 \n \n$ 2,077,839.56 $ \n \n$ 2,374,302.89 $ \n \n0.00 $ -24,998.07 \n0.00 -2,052,841.49 -2,077,839.56 $ -2,374,299.25 $ \n \n0.00 $ \n \n0.00 \n \n0.00 \n \n-24,987.68 \n \n0.00 0.00 \n \n0.00 -97,461.15 \n \n0.00 $ -122,448.83 \n \n-3.64 $ -123,717.83 \n \n364,759.00 40.59 \n167,750.02 \n \n0.00 0.00 0.00 \n \n0.00 0.00 0.00 \n \n0.00 0.00 0.00 \n \nBudget Unit Totals \n \n$ 2,906,852.50 $ \n \n-2,374,299.25 $ \n \n-3.64 $ -123,717.83 \n \n- 4 - \n \n EXHIBIT \"C\" \n \nOther Adjustments \n \nEarly Return of Fiscal Year 2012 \nSurplus \n \nExcess (Deficiency) of Funds Available \nOver/(Under) Expenditures \n \nEnding Fund Balance/(Deficit) \nJune 30 \n \nAnalysis of Ending Fund Balance \n \nReserved \n \nSurplus/(Deficit) \n \nTotal \n \n$ \n \n0.00 $ \n \n-515.29 0.00 \n \n$ \n \n-515.29 $ \n \n$ \n \n0.00 $ \n \n0.00 $ 0.00 0.00 0.00 $ \n0.00 $ \n \n0.00 $ \n66,108.40 25,057.00 \n91,165.40 $ \n \n0.00 $ \n65,593.11 24,997.00 \n90,590.11 $ \n \n0.00 $ \n65,593.11 22,715.56 \n88,308.67 $ \n \n555,288.28 $ \n \n554,079.28 $ \n \n554,079.28 $ \n \n0.00 $ \n0.00 2,281.44 \n2,281.44 $ \n \n0.00 \n65,593.11 24,997.00 \n90,590.11 \n \n0.00 $ \n \n554,079.28 \n \n$ \n \n0.00 $ \n \n0.00 \n \n0.00 40.59 \n \n$ \n \n40.59 $ \n \n$ \n \n-474.70 $ \n \n0.00 $ 0.00 0.00 0.00 0.00 $ 0.00 $ \n \n0.00 $ 64,113.68 \n0.00 2,778,656.26 2,842,769.94 $ 3,489,223.62 $ \n \n0.00 $ \n \n0.00 $ \n \n39,126.00 \n \n39,126.00 \n \n0.00 2,681,235.70 \n \n0.00 2,681,195.11 \n \n2,720,361.70 $ 2,720,321.11 $ \n \n3,365,031.09 $ 3,362,709.06 $ \n \n0.00 $ \n \n0.00 \n \n0.00 \n \n39,126.00 \n \n0.00 40.59 \n \n0.00 2,681,235.70 \n \n40.59 $ 2,720,361.70 \n \n2,322.03 $ 3,365,031.09 \n \n0.00 -40.59 \n0.00 \n \n0.00 0.00 0.00 \n \n0.00 0.00 0.00 \n \n364,759.00 0.00 \n167,750.02 \n \n364,759.00 0.00 \n167,750.02 \n \n0.00 0.00 0.00 \n \n364,759.00 0.00 \n167,750.02 \n \n$ \n \n-515.29 $ \n \n0.00 $ \n \n3,489,223.62 $ 3,897,540.11 $ 3,895,218.08 $ \n \n2,322.03 $ 3,897,540.11 \n \nSummary of Ending Fund Balance Reserved \nFederal Financial Assistance Local Grants and Contracts Sales and Services Live Work Projects Prior Year Local Funds Continuing Education Technology Fees Uncollectible Accounts Receivable Inventories Bookstore Tuition Unreserved Surplus \nTotal Ending Fund Balance - June 30 \n \n$ \n \n104,719.11 \n \n159,121.40 \n \n502,185.28 \n \n63,244.18 \n \n11,591.98 \n \n151,423.02 \n \n1,652,989.67 \n \n167,750.02 \n \n364,759.00 \n \n367,718.07 \n \n349,716.35 \n \n$ \n \n$ 3,895,218.08 $ \n \n$ \n \n104,719.11 \n \n159,121.40 \n \n502,185.28 \n \n63,244.18 \n \n11,591.98 \n \n151,423.02 \n \n1,652,989.67 \n \n167,750.02 \n \n364,759.00 \n \n367,718.07 \n \n349,716.35 \n \n2,322.03 \n \n2,322.03 \n \n2,322.03 $ 3,897,540.11 \n \n- 5 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2011-h2012-belec-p-btext","title":"Georgia Piedmont Technical College, Clarkston, Georgia, management report for fiscal year ended June 30, 2012","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, DeKalb County, Clarkston, 33.80955, -84.23964"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2011/2012"],"dcterms_description":["Year ended June 30, 2002-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Fiscal year ended June 30, 2006."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2012-06-30"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Piedmont Technical College--Appropriations and expenditures","Education--Auditing--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Georgia Piedmont Technical College, Clarkston, Georgia, management report for fiscal year ended June 30, 2012"],"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-bd42-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2011-h2012-belec-p-btext"],"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":"GEORGIA PIEDMONT TECHNICAL COLLEGE \nCLARKSTON, GEORGIA \nMANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2012 \nA Member College of the Technical College System of Georgia \nGeorgia Department of Audits and Accounts Greg S. Griffin State Auditor \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nLETTER OF TRANSMITTAL \nSELECTED FINANCIAL INFORMATION \nEXHIBITS \nA STATEMENT OF NET ASSETS - (GAAP BASIS) \nB STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (GAAP BASIS) \nC STATEMENT OF CASH FLOWS - (GAAP BASIS) \nD 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 \n5 RECONCILIATION OF SALARIES AND TRAVEL \n \nPage \n2 3 5 6 \n20 21 22 24 27 \n \nSECTION II 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 \nSeptember 5, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the State Board of the Technical College System of Georgia Members of the Local Board of Directors \nand Honorable Jabari Simama, President Georgia Piedmont Technical College \nLadies and Gentlemen: \nAs part of our audit of the 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, 2012, we have performed certain audit procedures at Georgia Piedmont Technical College. Accordingly, the financial statements and compliance activities of Georgia Piedmont Technical College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. \nThis Management Report contains information pertinent to the financial and compliance activities of Georgia Piedmont Technical College as of and for the year ended June 30, 2012. Information contained in this report is a by-product of our audit of the basic financial statements of the State of Georgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1, is enumerated in the Table of Contents. \nThis report is intended solely for the information and use of management of Georgia Piedmont 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, \n \nGSG:as \n \nGreg S. Griffin State Auditor \n \n SELECTED FINANCIAL INFORMATION - 1 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE STATEMENT OF NET ASSETS (GAAP BASIS) \nJUNE 30, 2012 \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 Accounts Payable Salaries 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 \nExpendable Unrestricted \nTotal Net Assets \n \nEXHIBIT \"A\" \n \n$ 2,461,180.35 \n568,644.68 1,383,426.85 \n271,180.48 375,430.39 \n$ 5,059,862.75 \n28,733,902.00 \n$ 33,793,764.75 \n \n$ \n \n412,908.30 \n \n335,667.63 \n \n1,138,261.12 \n \n192,002.94 \n \n948,732.73 \n \n$ 3,027,572.72 \n \n719,209.29 $ 3,746,782.01 \n \n$ 28,733,902.00 \n25,553.95 1,287,526.79 \n \n$ 30,046,982.74 \n \n- 2 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS) \nYEAR ENDED JUNE 30, 2012 \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 Local Gifts Interest and Other Investment Income Other Nonoperating Expenses \nNet Nonoperating Revenues \nIncome (Loss) Before Other Revenues, Expenses, Gains, or Losses \nCapital Grants and Gifts State Nongovernmental \nSpecial Items \nTotal Other Revenues, Expenses, Gains, or Losses \nIncrease (Decrease) in Net Assets \nNet Assets - Beginning of Year \n \n$ \n \n9,207,016.94 \n \n-4,994,684.12 \n \n183,616.05 296,453.30 3,674,307.64 \n17,952.18 \n \n$ \n \n8,384,661.99 \n \n$ 17,608,001.37 5,942,123.38 185,796.93 5,372,823.80 1,289,879.61 7,819,868.88 1,478,536.56 \n$ 39,697,030.53 \n$ -31,312,368.54 \n \n$ 14,464,145.27 \n \n14,334,745.83 911,027.49 \n1,234,670.91 1.73 \n-1,234,670.91 \n \n$ 29,709,920.32 \n \n$ \n \n-1,602,448.22 \n \n$ \n \n38,086.47 \n \n20,000.00 \n \n2,689.37 \n \n$ \n \n60,775.84 \n \n$ \n \n-1,541,672.38 \n \n31,588,655.12 \n \nNet Assets - End of Year \n \n$ 30,046,982.74 \n \n- 3 - \n \n (This page left intentionally blank) \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS) \nYEAR ENDED JUNE 30, 2012 \nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments) \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 Earnings 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 \nNONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts \n- 5 - \n \nEXHIBIT \"C\" \n \n$ \n \n4,494,912.55 \n \n525,597.92 \n \n3,674,307.64 \n \n-15,386,680.81 \n \n-17,642,697.37 \n \n-5,372,823.80 \n \n299,720.23 \n \n$ -29,407,663.64 \n \n$ 14,464,145.27 37,059.72 \n16,480,444.23 -1,234,670.91 \n$ 29,746,978.31 \n \n$ -1,060,210.75 \n \n$ \n \n1.73 \n \n$ \n \n-720,894.35 \n \n3,182,074.70 \n \n$ \n \n2,461,180.35 \n \n$ -31,312,368.54 \n1,478,536.56 \n-370,456.19 -80,017.71 -56,408.14 29,831.81 -27,271.41 995,017.79 -64,527.81 \n$ -29,407,663.64 \n \n$ \n \n58,086.47 \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nGeorgia Piedmont Technical College is one of twenty-five (25) 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 Georgia Piedmont Technical College as a separate reporting entity. \nThe Technical College's Local Board of Directors is composed of 12 (twelve) 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 Georgia Piedmont Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Georgia Piedmont Technical College is considered an organizational unit of the Technical College System of Georgia for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \nNET ASSETS \nThe Technical College's net assets are classified as follows: \nInvested in capital assets, net of related debt: This amount represents the Technical College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \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 $25,553.95 due to grantor 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 $3.64. Unexpended state appropriations must be refunded to the Technical College System of Georgia for remittance to the Office of the State Treasurer. \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 \n- 6 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nNOTE 2: DEPOSITS DEPOSITS \n \nThe custodial credit risk for deposits is the risk that in the event of a bank failure, the Technical College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Technical College) cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: \n \n1. Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United \nStates or of the State of Georgia. \n \n2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or \nmunicipalities of the State of Georgia. \n \n3. Bonds of any public authority created by the laws of the State of Georgia, providing that the \nstatute 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 \nState of Georgia. \n \n5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary \ncorporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \n \nAt June 30, 2012, the carrying value of deposits was $2,449,130.35 and the bank balance was $3,545,324.58. Of the Technical College's deposits, $3,295,324.58 were uninsured. Of these uninsured deposits, $3,295,324.58 were collateralized with securities held by the financial institution's trust department or agency, but not in the Technical College's name. \nNOTE 3: ACCOUNTS RECEIVABLE \n \nAccounts receivable at June 30, 2012, consists of the following: \n \nStudent Tuition and Fees \n \n$ \n \nFederal, State and Private Funds \n \nGeorgia State Financing and Investment Commission \n \nOther \n \n369,408.34 568,644.68 \n63,904.08 1,117,930.45 \n \nLess: Allowance for Doubtful Accounts \n \n$ \n \n2,119,887.55 \n \n167,816.02 \n \nNet Accounts Receivable \n \n$ \n \n1,952,071.53 \n \n- 7 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nNOTE 4: CAPITAL ASSETS \n \nFollowing are the changes in capital assets for the year ended June 30, 2012: \n \nB e gi n n i n g Balance July 1, 2011 \n \nSpecial Item Tr a n sfe r \n \nA d d i ti o n s \n \nR e d u cti o n s \n \nEnding Balance June 30, 2012 \n \nCapital Assets, Not B eing Depreciated: Land and Land Improvements Construction Work -In-Progress \n \n$ 1,205,855.00 $ 131,522.63 \n \n0.00 $ 0.00 \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n131,522.63 \n \n1,205,855.00 0.00 \n \nTotal Capital Assets, Not B eing Depreciated $ 1,337,377.63 $ \n \n0.00 $ \n \n0.00 $ 131,522.63 $ \n \n1,205,855.00 \n \nCapital Assets, B eing Depreciated: B uilding and B uilding Improvements Improvements Other Than B uildings Equipment Library Collections \n \n$ 31,127,943.00 $ 1,030,310.00 6,485,603.94 621,330.96 \n \n0.00 $ 0.00 126,239.23 0.00 \n \n904,515.63 $ 0.00 \n309,128.65 36,175.57 \n \n0.00 $ 0.00 96,869.68 20,927.82 \n \n32,032,458.63 1,030,310.00 6,824,102.14 636,578.71 \n \nTotal Assets B eing Depreciated \n \n$ 39,265,187.90 $ 126,239.23 $ 1,249,819.85 $ 117,797.50 $ 40,523,449.48 \n \nLess: Accumulated Depreciation: B uilding and B uilding Improvements Improvements Other Than B uildings Equipment Library Collections \n \n$ 5,430,317.79 $ \n \n0.00 $ \n \n1,030,310.00 \n \n0.00 \n \n4,651,039.70 \n \n123,549.86 \n \n399,446.07 \n \n0.00 \n \n719,293.05 $ 0.00 \n709,316.75 49,926.76 \n \n0.00 $ 0.00 96,869.68 20,927.82 \n \n6,149,610.84 1,030,310.00 5,387,036.63 \n428,445.01 \n \nTotal Accumulated Depreciation \n \n$ 11,511,113.56 $ 123,549.86 $ 1,478,536.56 $ 117,797.50 $ 12,995,402.48 \n \nTotal Capital Assets, B eing Depreciated, Net $ 27,754,074.34 $ \n \n2,689.37 $ -228,716.71 $ \n \n0.00 $ 27,528,047.00 \n \nCapital Assets, Net \n \n$ 29,091,451.97 $ \n \n2,689.37 $ -228,716.71 $ 131,522.63 $ 28,733,902.00 \n \nNOTE 5: DEFERRED REVENUE \n \nDeferred revenue at June 30, 2012, consists of the following: \n \nPrepaid Tuition and Fees \n \n$ \n \n1 ,1 3 8 ,2 6 1 .1 2 \n \nNOTE 6: LONG-TERM LIABILITIES \n \nLong-Term liability activity for the year ended June 30, 2012 was as follows: \n \nOther Liabilities Com pensated Absences \n \nB e gi n n i n g Balance July 1, 2011 \n \nA d d i ti o n s \n \nR eductions \n \nEnding Balance June 30, 2012 \n \n$ \n \n1,732,469.83 $ \n \n1,078,100.47 $ \n \n1,142,628.28 $ \n \n1,667,942.02 $ \n \nCurrent Po r ti o n \n948,732.73 \n \n- 8 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nNOTE 7: NET ASSETS \n \nChanges in Net Asset activity for the year ended June 30, 2012 was as follows: \n \nB eginning B a la nce July 1, 2011 \n \nAdditio ns \n \nR e ductio ns \n \nEnding B ala nce June 30, 2012 \n \nInveste d in Capital Asse ts Ne t o f R e late d De bt \n \n$ 29,091,451.97 $ \n \n-226,027.34 $ \n \n131,522.63 $ 28,733,902.00 \n \nR e stricte d Ne t Assets \n \n29,373.87 \n \n14,518,361.88 \n \n14,522,181.80 \n \n25,553.95 \n \nU nre stricted Ne t Asse ts \n \n2,467,829.28 \n \n24,854,292.56 \n \n26,034,595.05 \n \n1,287,526.79 \n \nTo tal Ne t Asse ts \n \n$ 31,588,655.12 $ 39,146,627.10 $ 40,688,299.48 $ 30,046,982.74 \n \nNOTE 8: LEASE OBLIGATIONS \nOPERATING LEASES \nGeorgia Piedmont Technical College has entered into certain agreements to lease buildings and copiers which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised. \nExpenses for rental of buildings and copiers under operating leases for the year ended June 30, 2012, totaled $1,013,321.64. \nSUMMARY OF LEASE OBLIGATIONS \n \nFuture commitments for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2012, were as follows: \n \nO p e ra tin g Leases \n \nYear Ending June 3 0 : 2013 2014 2015 2016 \n \n$ \n \n1 ,1 6 5 ,1 7 1 .0 8 \n \n2 9 3 ,3 2 3 .1 6 \n \n2 8 2 ,8 5 5 .9 1 \n \n2 7 6 ,8 2 7 .2 8 \n \nTotal M inim um Lease Paym ents \n \n$ \n \n2 ,0 1 8 ,1 7 7 .4 3 \n \nNOTE 9: RETIREMENT PLANS \n \nGeorgia Piedmont Technical College participates in various retirement plans administered by the State of Georgia under two major retirement systems: Employees' Retirement System of Georgia (ERS System) and Teachers' Retirement System of Georgia. These two systems issue separate publicly available financial reports that include the applicable financial statements and required supplementary information. The reports may be obtained from the respective system offices. The significant retirement plans that Georgia Piedmont Technical College participates in are described below. More detailed information can be found in the plan agreements and related legislation. Each plan, including benefit and contribution provisions, was established and can be amended by State law. \n \n- 9 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nThe ERS System is comprised of individual retirement systems and plans covering substantially all employees of the State of Georgia except for teachers and other employees covered by the Teachers' Retirement System of Georgia. One of the ERS System plans, the Employees' Retirement System of Georgia (ERS), is a cost-sharing multiple-employer defined benefit pension plan that was established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. ERS acts pursuant to statutory direction and guidelines, which may be amended prospectively for new hires but for existing members and beneficiaries may be amended in some aspects only subject to potential application of certain constitutional restraints against impairment of contract. \nOn November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of ERS. SRBP-ERS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1, 1998, all members and retired former members in ERS are eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on benefits imposed by IRC Section 415. \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). Members of the GSEPS plan may also participate in the GSEPS 401(k) defined contribution component described below. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to the GSEPS plan. \nUnder 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 of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to members' benefits provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \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, Georgia Piedmont Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Georgia Piedmont Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. Georgia Piedmont Technical College is required to contribute at a specified percentage of active member payroll \n- 10 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nestablished by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Georgia Piedmont Technical College contributions are not at any time refundable to the member or his/her beneficiary. \n \nEmployer contributions required for fiscal year 2012 were based on the June 30, 2009 actuarial valuation as follows: \n \nOld Plan* New Plan GSEPS \n \n11.63% 11.63% \n7.42% \n \n* 6.88% exclusive of contributions paid by the employer on behalf of old plan members \n \nMembers become vested after 10 years of service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA \n \nThe Teachers' Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. \n \nOn October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \n \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \n \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \n \n- 11 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nTRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2012 were 5.53% of annual salary. Employer contributions required for fiscal year 2012 were 10.28% of annual salary as required by the June 30, 2009 actuarial valuation. \n \nThe following table summarizes Georgia Piedmont Technical College contributions by defined benefit plan for the years ending June 30, 2012, June 30, 2011, and June 30, 2010: \n \nFiscal Year \n \nERS \n \nRequired \n \nPercentage \n \nContribution \n \nContributed \n \nTRS \n \nRequired \n \nPercentage \n \nContribution \n \nContributed \n \n2012 2011 2010 \n \n$ 367,003.79 $ 356,691.55 $ 351,178.35 \n \n100% 100% 100% \n \n$ 964,655.38 $ 977,460.32 $ 935,749.77 \n \n100% 100% 100% \n \nGSEPS 401(K) DEFINED CONTRIBUTION COMPONENT \n \nIn addition to the ERS defined benefit pension described above, GSEPS members may also participate in the Peach State Reserves 401(k) defined contribution plan and receive an employer matching contribution. The 401(k) plan is administered by the ERS System and was established by the State of Georgia Employee Benefit Plan Council in accordance with State law and Section 401(k) of the Internal Revenue Code. The GSEPS segment of the 401(k) plan was established by State law effective January 1, 2009. Plan provisions and contribution requirements specific to GSEPS can be amended by State law. Other general 401(k) plan provisions can be amended by the ERS Board of Trustees as required by changes in Federal tax law or for administrative purposes. The State was not required to make significant contributions to the 401(k) plan prior to GSEPS because most members under other segments of the plan either were not State employees or were not eligible to receive an employer match on their contributions. \n \nThe GSEPS plan includes automatic enrollment in the 401(k) plan at a contribution rate of 1% of salary, along with a matching contribution from the State. The State will match 100% of the employee's initial 1% contribution. Employees can elect to contribute up to an additional 4% and the State will match 50% of the additional 4% of salary. Therefore, the State will match 3% against the employee's 5% total savings. Contributions greater than 5% do not receive any matching funds. \n \nGSEPS employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all State service. Vesting is determined based on the following schedule: \n \nLess than 1 year 1 year 2 years 3 years 4 years 5 or more years \n \n0% 20% 40% 60% 80% 100% \n \n- 12 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nEmployee contributions and earnings thereon are 100% vested at all times. The 401(k) plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) plan on approval of the 401(k) plan administrator. Such rollovers are 100% vested at the time of transfer. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle fund based on the participant's date of birth. \nThe participants may receive the value of their vested accounts upon attaining age 59.5, qualifying financial hardship, or retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum. \nIn 2012, Georgia Piedmont Technical College's employer and employee GSEPS contributions were $16,438.84 and $84,033.90, respectively. \nDEFINED CONTRIBUTION PLAN \nPlan Description \nGeorgia Piedmont 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. \nBenefits \nA member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \nThe Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. \nContributions and Vesting \nMember contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Technical College's payroll for the year ended June 30, 2012, for employees covered by GDCP was $3,619,114.94. The Technical College's total payroll for all employees was $17,608,001.37. \nTotal contributions made by employees during fiscal year 2012 amounted to $271,433.62 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \n \n- 13 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nNOTE 10: POST-EMPLOYMENT BENEFITS \n \nGeorgia Piedmont Technical College participates in the following State of Georgia post-employment benefit plans: the Georgia State Employees' Post-employment Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective offices that administer the plans. \n \nGEORGIA STATE EMPLOYEES' POST-EMPLOYMENT HEALTH BENEFIT FUND \n \nThe Georgia State Employees' Post-employment Health Benefit Fund (State OPEB Fund) is a costsharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health for inclusion in the plan. The State OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). \n \nThe contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \n \nThe combined active and retiree contribution rates established by the Board for employers participating in the State OPEB Fund were as follows for the fiscal year ended June 30, 2012: \n \nJune 2011 July  November 2011 December 2011  April 2012 May  June 2012 \n \n22.667% of covered payroll for July 2011 coverage 27.363% of covered payroll for August  December 2011 coverage 34.063% of covered payroll for January  May 2012 coverage 27.363% of covered payroll for June  July 2012 coverage \n \n- 14 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \n \nThe following table summarizes Georgia Piedmont Technical College combined active and retiree contributions to the health insurance plans for the years ending June 30, 2012, June 30, 2011 and June 30, 2010: \n \nFiscal Year \n \nPercentage C o ntrib ute d \n \nRequired C o ntrib utio n \n \n2012 2011 2010 \n \n100% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n3 ,9 8 3 ,93 4 .3 0 3 ,3 5 6 ,11 1 .6 7 2 ,7 0 8 ,80 7 .8 7 \n \nSTATE EMPLOYEES' ASSURANCE DEPARTMENT - OPEB \nState 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 Employees' (ERS), Judicial (JRS), and Legislative (LRS) Retirement Systems. Eligibility was amended to exclude GSEPS members of ERS effective January 1, 2009, and to exclude members of JRS and LRS hired on or after July 1, 2009. Pursuant to Title 47of the OCGA, benefit provisions of the plan were established and can be amended by State statute. \nContributions by plan members are established by the ERS Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The ERS Board of Trustees of establishes employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% of earnable compensation. For the fiscal year ended June 30, 2012, contributions of ERS \"old plan\" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS \"new plan\" members and of members of the Judicial and Legislative Retirement Systems were 0.23% of earnable compensation. \nThe SEAD-OPEB annual required contribution was 0.61% of payroll for fiscal year 2012 based on the actuarial valuation as of June 30, 2009. The ERS Board of Trustees voted and approved that the contribution would be paid from existing assets of the Survivors Benefit Fund (SBF) instead of requiring payment by the employers. The contribution by SBF made on-behalf of Georgia Piedmont Technical College for fiscal year 2012 was estimated to be $14,685.25. There were no required employer contributions for the fiscal years ended June 30, 2011, and 2010. \nNOTE 11: 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 expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although Georgia Piedmont Technical College expects such amounts, if any, to be immaterial to its overall financial position. \nLitigation, claims and assessments filed against Georgia Piedmont Technical College (an organizational unit of the Technical College System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2012. \n \n- 15 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nNOTE 12: AFFILIATED ORGANIZATIONS \nThe Georgia Piedmont Technical College Foundation is a legally separate, tax exempt organization whose activities primarily support Georgia Piedmont Technical College. This affiliated organization is considered 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 of the affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Georgia Piedmont Technical College. \nNOTE 13: SUPPLEMENTARY INFORMATION \nThe supplementary information presented on Schedules 1, 2, 3 and 4 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. The information was derived from, and relates directly to, the same information used to prepare the financial statements. However, the budgetary statutes and regulations of the State of Georgia require reporting of certain information that is not in accordance with generally accepted accounting principles. \nPresented below is a reconciliation of the fund balance of the Budget Fund, as reported on Schedule 1, to Net Assets of business-type activities, as reported on Exhibit A. \n \n- 16 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Budget Fund - Non-GAAP Basis (Schedule \"1\") \n \n$ \n \n2,906,852.50 \n \nAmounts reported for Business-Type Activities in the Statement of Net Assets are different because: \n \nCapital Assets used in Business-Type Activities are not reported in the Budget Fund. \n \n28,733,902.00 \n \nUncollectible accounts receivable are reported as an asset and reserved fund balance in the Budget Fund and as a contra-asset account on the Statement of Net Assets \n \n-167,750.02 \n \nGeorgia State Financing and Investment Commission (GSFIC) projects are not reported as a component of the Budget Fund. Assets Liabilities Total Net Effect of GSFIC Activity \n \n$ 198,986.47 -12,200.00 \n \n186,786.47 \n \nAgency Fund activities are not reported as a component of the Budget Fund. Assets Liabilities Total Net Effect of Agency Fund Activity \n \n$ 258,424.15 -259,906.29 \n \n-1,482.14 \n \nThe budgetary basis of accounting implemented by the State of Georgia recognizes expenditures when encumbered. The following adjustments were made to eliminate this activity for reporting on the Statement of Net Assets. Payables reported in the Budget Fund that are based on encumbrances are eliminated for GAAP reporting. Prepaid items reported in the Budget Fund that are based on encumbrances are eliminated for GAAP reporting. Reimbursement from grantors reported as revenues in the Budget Fund that are for expenditures based on encumbrances are deferred for GAAP reporting. Total Net Effect of Encumbrance Activity \n \n$ 597,661.17 -56,857.31 \n-484,187.91 \n \n56,615.95 \n \nCertain Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the Budget Fund. Compensated Absences Payable \n \n-1,667,942.02 \n \nNet Assets of Business-Type Activities (Exhibit \"A\") \n \n$ 30,046,982.74 \n \n- 17 - \n \n (This page left intentionally blank) \n \n SUPPLEMENTARY INFORMATION - 19 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE BALANCE SHEET (STATUTORY BASIS) BUDGET FUND JUNE 30, 2012 \nASSETS \nCash and Cash Equivalents Accounts Receivable \nFederal Financial Assistance Other Prepaid Expenditures Inventories \nTotal Assets \nLIABILITIES AND FUND EQUITY \nLiabilities Salaries Payable Accounts Payable Encumbrance Payable Deferred Revenue Funds Held for Others \nTotal Liabilities \nFund Balances Reserved Federal Financial Assistance Refunds to Grantors Local Grants and Contracts Sales and Services Live Work Projects Prior Year Local Funds Continuing Education Technology Fees Uncollectible Accounts Receivable Inventories Bookstore Tuition Unreserved Surplus \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nSCHEDULE \"1\" \n \n$ \n \n2,983,046.75 \n \n832,480.20 808,822.71 310,569.79 375,430.39 \n \n$ \n \n5,310,349.84 \n \n$ \n \n335,667.63 \n \n355,899.12 \n \n597,661.17 \n \n1,102,445.12 \n \n11,824.30 \n \n$ \n \n2,403,497.34 \n \n$ \n \n25,513.36 \n \n40.59 \n \n153,591.40 \n \n239,200.81 \n \n49,158.53 \n \n11,591.98 \n \n129,667.08 \n \n1,117,205.23 \n \n167,750.02 \n \n364,759.00 \n \n415,033.68 \n \n233,337.18 \n \n3.64 \n \n$ \n \n2,906,852.50 \n \n$ \n \n5,310,349.84 \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. \n- 20 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) \nBUDGET FUND YEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"2\" \n \nREVENUES \nState Appropriation State General Funds \nFederal Funds Other Funds \nTotal Revenues \nADJUSTMENTS AND PROGRAM TRANSFERS \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 \nFrom the Technical Colleges Year Ended June 30, 2011 \nPrior Year Reserved Fund Balance Included in Funds Available \nFUND BALANCE JUNE 30 \n \nBUDGET \n \nACTUAL \n \nVARIANCE FAVORABLE (UNFAVORABLE) \n \n$ \n \n14,476,165.00 $ \n \n4,630,073.00 \n \n18,557,898.30 \n \n$ \n \n37,664,136.30 $ \n \n0.00 \n \n14,476,165.00 $ 4,409,540.99 \n13,537,676.83 \n32,423,382.82 $ \n0.00 \n \n0.00 -220,532.01 -5,020,221.47 \n-5,240,753.48 \n0.00 \n \n0.00 \n \n$ \n \n37,664,136.30 $ \n \n3,092,253.83 35,515,636.65 $ \n \n3,092,253.83 -2,148,499.65 \n \n$ \n \n2,333,498.00 $ \n \n1,737,242.91 \n \n33,593,395.39 \n \n$ \n \n37,664,136.30 $ \n \n$ \n \n0.00 $ \n \n2,267,474.21 $ 1,103,941.65 29,302,671.67 \n32,674,087.53 $ \n2,841,549.12 $ \n \n66,023.79 633,301.26 4,290,723.72 \n4,990,048.77 \n2,841,549.12 \n \n3,484,301.60 12,019.73 \n \n15,502.56 -342,246.95 \n \n-12,019.73 -3,092,253.83 \n \n$ \n \n2,906,852.50 \n \nSUMMARY OF FUND BALANCE \nReserved Federal Financial Assistance Refund to Grantors Local Grants and Contracts Sales and Services Live Work Projects Prior Year Local Funds Continuing Education Technology Fees Uncollectible Accounts Receivable Inventories Bookstore Tuition \nTotal Reserved \nUnreserved Surplus \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- 21 - \n \n$ \n \n25,513.36 \n \n40.59 \n \n153,591.40 \n \n239,200.81 \n \n49,158.53 \n \n11,591.98 \n \n129,667.08 \n \n1,117,205.23 \n \n167,750.02 \n \n364,759.00 \n \n415,033.68 \n \n233,337.18 \n \n$ \n \n2,906,848.86 \n \n3.64 \n \n$ \n \n2,906,852.50 \n \n GEORGIA PIEDMONT 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, 2012 \n \nAdult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds \nTotal Adult Literacy \nEconomic Development Other Funds \nTechnical Education State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds \nTotal Technical Education \nTotals By Program \n \nOriginal Appropriation \n \nAmended Appropriation \n \nFinal Budget \n \nCurrent Year Revenues \n \n$ \n \n348,531.00 $ \n \n348,531.00 $ \n \n348,531.00 $ \n \n348,531.00 \n \n1,669,200.00 292,000.00 \n \n1,932,620.90 300,000.00 \n \n1,724,067.00 260,900.00 \n \n1,724,065.71 196,834.14 \n \n$ \n \n2,309,731.00 $ \n \n2,581,151.90 $ \n \n2,333,498.00 $ \n \n2,269,430.85 \n \n$ \n \n875,000.00 $ \n \n1,064,521.00 $ \n \n1,737,242.91 $ \n \n888,223.38 \n \n$ 13,631,206.00 $ 13,727,634.00 $ 14,127,634.00 $ 14,127,634.00 \n \n1,600,000.00 \n \n1,617,703.96 \n \n2,046,004.00 \n \n1,844,535.56 \n \n0.00 14,811,119.00 \n \n0.00 14,000,000.00 \n \n860,002.00 16,559,755.39 \n \n840,939.72 12,452,619.31 \n \n$ 30,042,325.00 $ 29,345,337.96 $ 33,593,395.39 $ 29,265,728.59 \n \n$ 33,227,056.00 $ 32,991,010.86 $ 37,664,136.30 $ 32,423,382.82 \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. \n- 22 - \n \n SCHEDULE \"3\" \n \nPrior Year Carry-Over \n \nFunds Available Compared to Budget \n \nAdjustments and \n \nTotal \n \nProgram Transfers \n \nFunds Available \n \nVariance Positive (Negative) \n \nExpenditures Compared to Budget \n \nVariance \n \nActual \n \nPositive (Negative) \n \nExcess (Deficiency) of Funds Available \nOver/(Under) Expenditures \n \n$ \n \n0.00 $ \n \n1,855.23 2,856.00 \n \n$ \n \n4,711.23 $ \n \n$ \n \n518,434.50 $ \n \n0.00 $ \n0.00 0.00 \n0.00 $ \n \n348,531.00 $ \n1,725,920.94 199,690.14 \n2,274,142.08 $ \n \n0.00 $ \n \n1,406,657.88 $ \n \n0.00 $ \n \n348,527.36 $ \n \n1,853.94 -61,209.86 \n \n1,724,065.71 194,881.14 \n \n-59,355.92 $ 2,267,474.21 $ \n \n-330,585.03 $ 1,103,941.65 $ \n \n3.64 $ 1.29 66,018.86 66,023.79 $ \n633,301.26 $ \n \n3.64 1,855.23 4,809.00 6,667.87 \n302,716.23 \n \n$ \n \n0.00 $ \n \n0.00 \n \n27,478.05 2,541,630.05 \n \n$ 2,569,108.10 $ \n \n0.00 $ 14,127,634.00 $ \n \n0.00 \n \n1,844,535.56 \n \n0.00 0.00 \n \n868,417.77 14,994,249.36 \n \n0.00 $ 31,834,836.69 $ \n \n0.00 $ 14,127,634.00 $ \n \n-201,468.44 \n \n1,582,523.89 \n \n8,415.77 -1,565,506.03 \n \n840,939.72 12,751,574.06 \n \n-1,758,558.70 $ 29,302,671.67 $ \n \n0.00 $ 463,480.11 \n19,062.28 3,808,181.33 4,290,723.72 $ \n \n0.00 262,011.67 \n27,478.05 2,242,675.30 2,532,165.02 \n \n$ 3,092,253.83 $ \n \n0.00 $ 35,515,636.65 $ \n \n-2,148,499.65 $ 32,674,087.53 $ \n \n4,990,048.77 $ \n \n2,841,549.12 \n \n- 23 - \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE \n(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2012 \n \nAdult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds \nTotal Adult Literacy \nEconomic Development Other Funds \nTechnical Education State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds \nTotal Technical Education \nTotal Operating Activity \nPrior Year Reserves Not Available for Expenditure Inventories Refunds to Grantors Other Reserves \n \nBeginning Fund Balance/(Deficit) \nJuly 1 \n \nFund Balance Carried Over from \nPrior Period as Funds Available \n \nReturn of Fiscal Year 2011 \nSurplus \n \nPrior Period Adjustments \n \n$ \n \n0.06 $ \n \n1,855.23 2,856.00 \n \n$ \n \n4,711.29 $ \n \n$ \n \n518,434.50 $ \n \n0.00 $ -1,855.23 -2,856.00 -4,711.23 $ \n-518,434.50 $ \n \n-0.06 $ \n0.00 0.00 \n-0.06 $ \n \n0.00 \n-1,339.94 2,284.44 \n944.50 \n \n0.00 $ -11,580.83 \n \n$ \n \n0.00 $ \n \n0.00 \n \n27,478.05 2,553,649.72 \n \n$ \n \n2,581,127.77 $ \n \n$ \n \n3,104,273.56 $ \n \n0.00 $ 0.00 -27,478.05 -2,541,630.05 -2,569,108.10 $ -3,092,253.83 $ \n \n0.00 $ \n \n0.00 \n \n0.00 \n \n-237,013.60 \n \n0.00 -12,019.67 \n \n0.00 -79,094.46 \n \n-12,019.67 $ -316,108.06 \n \n-12,019.73 $ -326,744.39 \n \n295,412.65 40.59 \n96,594.53 \n \n0.00 0.00 0.00 \n \n0.00 0.00 0.00 \n \n0.00 0.00 0.00 \n \nBudget Unit Totals \n \n$ \n \n3,496,321.33 $ \n \n-3,092,253.83 $ \n \n-12,019.73 $ -326,744.39 \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 comprehensive basis of accounting other than generally accepted accounting principles. \n- 24 - \n \n SCHEDULE \"4\" \n \nOther Adjustments \n \nEarly Return of Fiscal Year 2012 \nSurplus \n \nExcess (Deficiency) of Funds Available \nOver/(Under) Expenditures \n \nEnding Fund Balance/(Deficit) \nJune 30 \n \nAnalysis of Ending Fund Balance \n \nReserved \n \nSurplus/(Deficit) \n \nTotal \n \n$ \n \n0.00 $ \n \n0.00 -2,284.44 \n \n$ \n \n-2,284.44 $ \n \n$ \n \n0.00 $ \n \n0.00 $ 0.00 0.00 0.00 $ \n0.00 $ \n \n3.64 $ \n1,855.23 4,809.00 \n6,667.87 $ \n \n3.64 $ \n515.29 4,809.00 \n5,327.93 $ \n \n0.00 $ \n515.29 4,809.00 \n5,324.29 $ \n \n302,716.23 $ \n \n291,135.40 $ 291,135.40 $ \n \n3.64 $ \n0.00 0.00 \n3.64 $ \n \n3.64 \n515.29 4,809.00 \n5,327.93 \n \n0.00 $ \n \n291,135.40 \n \n$ \n \n0.00 $ \n \n0.00 \n \n-27,478.05 -110,739.35 \n \n$ -138,217.40 $ \n \n$ -140,501.84 $ \n \n0.00 $ 0.00 0.00 0.00 0.00 $ 0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n262,011.67 \n \n24,998.07 \n \n24,998.07 \n \n27,478.05 2,242,675.30 \n \n0.00 2,052,841.49 \n \n0.00 2,052,841.49 \n \n2,532,165.02 $ 2,077,839.56 $ 2,077,839.56 $ \n \n2,841,549.12 $ 2,374,302.89 $ 2,374,299.25 $ \n \n0.00 $ \n \n0.00 \n \n0.00 \n \n24,998.07 \n \n0.00 0.00 \n \n0.00 2,052,841.49 \n \n0.00 $ 2,077,839.56 \n \n3.64 $ 2,374,302.89 \n \n69,346.35 0.00 \n71,155.49 \n \n0.00 0.00 0.00 \n \n0.00 0.00 0.00 \n \n364,759.00 40.59 \n167,750.02 \n \n364,759.00 40.59 \n167,750.02 \n \n0.00 0.00 0.00 \n \n364,759.00 40.59 \n167,750.02 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n2,841,549.12 $ 2,906,852.50 $ 2,906,848.86 $ \n \n3.64 $ 2,906,852.50 \n \nSummary of Ending Fund Balance Reserved \nFederal Financial Assistance Refunds to Grantors Local Grants and Contracts Sales and Services Live Work Projects Prior Year Local Funds Continuing Education Technology Fee Uncollectible Accounts Receivable Inventories Bookstore Tuition Unreserved Surplus \nTotal Ending Fund Balance - June 30 \n \n$ \n \n25,513.36 \n \n40.59 \n \n153,591.40 \n \n239,200.81 \n \n49,158.53 \n \n11,591.98 \n \n129,667.08 \n \n1,117,205.23 \n \n167,750.02 \n \n364,759.00 \n \n415,033.68 \n \n233,337.18 \n \n$ \n \n$ 2,906,848.86 $ \n \n$ \n \n25,513.36 \n \n40.59 \n \n153,591.40 \n \n239,200.81 \n \n49,158.53 \n \n11,591.98 \n \n129,667.08 \n \n1,117,205.23 \n \n167,750.02 \n \n364,759.00 \n \n415,033.68 \n \n233,337.18 \n \n3.64 \n \n3.64 \n \n3.64 $ 2,906,852.50 \n \n- 25 - \n \n (This page left intentionally blank) \n \n Totals per Annual Supplement \nAccruals June 30,2012 June 30, 2011 \nCompensated Absences June 30,2012 June 30, 2011 \nLag Salaries June 30,2012 June 30, 2011 \nAgency Funds \n \nGEORGIA PIEDMONT TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"5\" \n \nSALARIES \n \nTRAVEL \n \n$ 17,746,760.32 $ 205,633.26 \n \n335,667.63 -310,150.82 \n \n1,270,996.96 -1,344,949.52 \n \n-311,183.23 252,565.63 \n-31,705.60 \n \n-19,836.33 \n \n$ 17,608,001.37 $ 185,796.93 \n \n- 27 - \n \n SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \n \n GEORGIA PIEDMONT TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2012 \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) No matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2010-h2011","title":"Dekalb Technical College, Clarkston, Georgia, management report for fiscal year ended June 30, 2011","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, DeKalb County, Clarkston, 33.80955, -84.23964"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2010/2011"],"dcterms_description":["Year ended June 30, 2002-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Fiscal year ended June 30, 2006."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2011-06-30"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["DeKalb Technical College--Appropriations and expenditures","Education--Auditing--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Dekalb Technical College, Clarkston, Georgia, management report for fiscal year ended June 30, 2011"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2010-h2011"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2010-h2011"],"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":"DEKALB TECChEi'ICAL COLLEGE \nCLARKSTON, GEORGIA \nMANAGEMENT REPORT \nFOR FISCAL YEAR ENDED \nJUNE 30,2011 \nA Member College of the Technical College System of Georgia \n \n-, . \n \n4 \n \n-.- -r-. \n \n. - Georgia Deparbneat , \n \n. . \n \n DEKALB TECHNlCAL COLLEGE - TABLE OF CONTENTS - \n \nSECTION I FINANCIAL \n \nSELECTED FINANCIAL INFORMATION \n \nEXH IBlTS \n \nA STATEMENT OF NET ASSETS - (GAAP BASIS) \n \nB STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (GAAP BASIS) \n \nC STATEMENT OF CASH FLOWS - (GAAP BASIS) \n \nD SELECTED FINANCIAL NOTES \n \nSUPPLEMENTARY INFORMATION \n \nSCHEDULES \n \n1 BALANCE SHEET - (STATUTORY BASIS) - BUDGET FUND \n \n18 \n \n2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \n \n(STATUTORY BASIS) BUDGET FUND \n \n19 \n \n3 STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET \n \nBY PROGRAM AND FUNDING SOURCE \n \n(STATUTORY BASIS) BUDGET FUND \n \n2 0 \n \n4 STATEMENT OF CHANGES TO FUND BALANCE \n \nBY PROGRAM AND FUNDING SOURCE \n \n(STATUTORY BASIS) BUDGET FUND \n \n2 2 \n \n5 RECONCILIATION OF SALARIES AND TRAVEL \n \n2 5 \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) 666-2174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nNovember 14,2011 \n \nHonorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the State Board of the Technical College System of Georgia Members of the Local Board of Directors \nand Honorable Larry Teems, President DeKalb Technical College \nLadies and Gentlemen: \nAs part of our audit of the basic financial statements of the State of Georgia presented in the State of \nGeorgia Cbmprehensive Annual Financial Report and the issuance of a Slate o f Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2011, we have performed certain audit procedures at DeKalb Technical College. Accordingly, the financial statements and compliance activities of DeKalb Technical College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. \nThis Management Report contains information pertinent to the financial and compliance activities of DeKalb Technical College as of and for the year ended June 30, 2011. Information contained in this report is a by-product of our audit of the basic financial statements of the State of Georgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1, is enumerated in the Table of Contents. \nThis report is intended solely for the information and use of management of DeKalb 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. \n. Respectfully submitted, \nus dell W. Hinton, CPA, CGFM \nState Auditor \n \n SELECTED FlNANClAL INFORMATION \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF NET ASSETS (GAAP BASIS) \nJUNE 30,2011 \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 Accounts Payable Salaries Payable Deferred Revenue Funds Held for Others Compensated Absences \nTotal Current Liabilities \nNoncurrent Liabilities Compensated Absences \nTotal Liabilities \nN mASSETS \nInvested in Capital Assets, Net of Related Debt Restricted \nExpendable Unrestricted \nTotal Net Assets \n \nEXHIBIT \"A\" \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS - (GAAPBASIS) \nYEAR ENDED JUNE 30.2011 \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 Local Gifts Interest and Other Investment Income Other NonoperatingRevenues Other NonoperatingExpenses \nNet NonoperatingRevenues \nIncome (Loss) Before Other Revenues, Expenses, Gains, or Losses \nCapital Grants and Gifts Federal State Nongovernmental \nLoss on Disposal of Capital Assets S ~ e c i aIltems \nTotal Other Revenues, Expenses. Gains, or Losses \nIncrease (Decrease) in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXHIBIT \"5\" \n \n (This page left intentionally blank) \n \n DEKALB TECHNICAL COLLEGE \nSTATEMENT OF CASH FLOWS - (GAAP BASIS) \nYEAR ENDED JUNE 3 0 , 2 0 1 1 \nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments) \nNet Cash Provided (Used) by Operat~ngActivities \nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions G ~ f t sand Grants Received for Other than Capital Purposes Other Nonoperating Receipts \nNet Cash Flows Provided (Used) by Noncapital FinancingActivities \nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received Purchases of Capital Assets \nNet Cash Provided (Used) by Capital and Related FinancingAct~vities \nCASH FLOWS FROM INVESTING ACTIVITIES Earnings on Investments \nNet Increase (Decrease) in Cash \nCash and Cash Equivalents - Beg~nningoYf ear \nCash and Cash Eauivalents - End of Year \nRECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: \nOperating Income (Loss) Adjustments to Reconcile Operating Income t o Net Cash \nProvided (Used) by Operating Activ~ties Depreciation Expense Change in Assets and Liabilities: Accounts Receivable, Net Inventories Prepatd Items Salaries Payable Accounts Payable Deferred Revenue Compensated Absences \nNet Cash Prov~ded(Used) by OperatingActivities \nNONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts \n \nEXHIBIT \"C\" \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30.2011 \n \nEXHIBIT \"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n\u0026!.EPCl;iRFINGE$d'TP\"$Y \nDeKalb Technical College is one of twenty-six (26) State supported member colleges of postsecondary education in Georgia which comprise the Technical College System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of DeKalb Technical College as a separate reporting entity. \nThe Technical College's Local Board of Directors is composed of twelve (12) 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 DeKalb Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, DeKalb Technical College is considered an organizational unit of the Technical College System of Georgia for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \n \nThe Technical College's net assets are classified as follows: \nInvested in capital B e \u0026 , net of related debt' This amount represents the Technical College's total investment in capital assets, net of outstanding debt obligations related t o 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. \n- Restricted net assets expendable: Restricted expendable net assets include resources in which \nthe Technical College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties, except for unexpended grant funds of $29,373.87 due to grantor agencies. \nUnrestricted net assets: Unrestricted net assets represent available resources derived from \nstudent 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 $12,019.73. Unexpended state appropriations must be refunded to the Technical College System of Georgia for remittance to the Office of the State Treasurer. \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. \nNOTE 2: DEPOSITS \n. ,:-P;~f?575 \nThe custodial credit risk for deposits is the risk that in the event of a bank failure, the Technical College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Technical College) cannot be placed in a depository paying interest longer than ten days without the \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 3 0 , 2 0 1 1 \n \nEXHIBlT \"D\" \n \ndepository 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, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia. \n \n2. Bonds, bills, certificates of indebtedness, notes, 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, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National MortgageAssociation. \n \n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \n \nAt June 30, 2011, the carrying value of deposits was $3,170,024.70 and the bank balance was $4,135,932.46. Of the Technical College's deposits, $3,885,932.46 were uninsured. Of these uninsured deposits, $3,885,932.46 were collateralized with securities held by the pledging financial institution, trust department or agency, but not in the Technical College's name. \n \nNOTE 3: ACCOUNTS RECEIVABLE \n \nAccounts receivable at June 30, 2011, consists of the following: \nStudent Tuition and Fees Federal, State and Private Funds Georgia State Financingand Investment Commission Other \n$ Less: Allowance for Doubtful Accounts \n \n110,222.49 460,002.36 1,678,298.00 \n96,682.66 \n \nNet Accounts Receivable \n \n$ \n \n1,581,615.34 \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 3 0 , 2 0 1 1 \n \nEXHIBIT \"D\" \n \nNOTE 4: CAPITAL ASSETS \n \nFollowing are the changes in capital assets for the year ended June 30, 2011: \n \nBeginning Balance \nJuly 1, 2010 \n \nTransfers To/From \nOther Techn~cal Colleges \n \nAdditions \n \nReductions \n \nEnding Balance \nJune 30.2011 \n \nCapital Assets, Not Being Depreciated: Land and Land Improvements Construction Work In Progress \n \n$ 1205.855.00 $ 0.00 \n \n0.00 \n \n$ \n \n$ 131522.63 \n \n0.00 $ l.205.855.00 131.522.63 \n \nTotal Capital Assets. Not Being Depreciated $ 1205.855.00 $ \n \n0.00 $ 13l.522.63 $ \n \n0.00 $ 1337,377.63 \n \nCapital Assets, Being Depreciated: Buildingand Building lmprovements Improvements Other Than Buildings Equipment Library Collections \n \n$ 3L127.943.00 L030,310.00 5,755,79100 $ 246.295.16 $ 555,743.32 \n \n788,876.85 $ 305.359.07 65,587.64 \n \nl,030,310.00 6,485.603.94 \n621330.96 \n \nTotal Assets Being Depreciated \n \n$ 38,469,787.32 $ 246,295.16 $ 854,464.49 $ 305.359.07 $ 39,265.lB7.90 \n \nLess: Accumulated Depreciation: Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \n \n$ 4,729.939.07 \n \n$ \n \nl.030,310.00 \n \n4,003,333.99 $ 246,700.66 \n \n337,312.97 \n \n700.378.72 \n \n$ \n \n699,285.89 $ 298,280.84 62,133.10 \n \n5.430.317.79 1030.310.00 4,652039.70 \n399,446.07 \n \nTotal Accumulated Depreciation \n \n8 10,100.896.03 $ 246.700.66 $ 1,461,797.71$ 298.280.84 $ 11511113.56 \n \nTotal Capital Assets. Be~ngDepreciated. Net \n \nCapital Assets, Net \n \nMOTE 5 : DEFERRED REVENUE \n \nDeferred revenue at June 30, 2011, consists of the following: \n \nPrepaid Tuition and Fees \n \n$ \n \n143,243.33 \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 3 0 , 2 0 1 1 \n \nEXHIBIT \"D\" \n \nNOTE 6: LONG-TERM LIABILITIES \n \nLong-Term liability activity for the year ended June 30, 2 0 1 1was as follows: \n \nOther Liabilities \n \nBeginning Balance July 1,2010 \n \nAdditions \n \nReductions \n \nEnding Balance June 30.2011 \n \nCurrent Portion \n \nNOTE 7: NET ASSETS \n \nChanges in Net Asset activity for the year ended June 3 0 , 2 0 1 1 was as follows: \n \nInvested in Capital Assets Net of Related Debt \n \nBeginning Balance \nJuly 1 2010 \n \nAdditions \n \nReductions \n \nEnding Balance June 30,2011 \n \n$ 29,574,746.29 $ -476,216.09 $ \n \n7,078.23 $ 29,091,451.97 \n \nRestricted Net Assets \n \n40.59 14.m.581.03 14,839,247.75 \n \n29,373.87 \n \nUnrestricted Net Assets \n \n2,286,541.79 29,513,831.67 29,332.544.18 \n \n2,467,829.28 \n \nTotal Net Assets \n \n$ 31611.328.67 $ 43,906,196.61 $ 44,178,870.16 $ 3L588,655.12 \n \nNOTE 8: LEASE OBLIGATIONS \n \nBPERATIBVG LEASES \nDeKalb Technical College has entered into certain agreements to lease buildings and copiers which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised. \nExpenses for rental of buildings and copiers under operating leases for the year ended June 30, 2011, totaled $1,078,234.57. \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 3 0 , 2 0 1 1 \n \nEXHIBIT \"D\" \n \nFuture commitments for noncancellable operating leases having remaining terms in excess of one year as of June 30,2011, were as follows: \n \nOperating \n \nLeases \n \nYear EndingJune 30: \n \n$ \n \n2012 \n \n1,362,211.40 \n \n2013 \n \n296,394.84 \n \n2014 \n \n285,336.66 \n \n2015 \n \n276,827.28 \n \n2016 \n \n276,826.80 \n \nTotal Minimum Lease Payments \n \nNOTE 9: RETIREMENT PLANS \n \nDeKalb Technical College participates in various retirement plans administered by the State of Georgia under two major retirement systems: Employees' Retirement System of Georgia (ERS System) and Teachers Retirement System of Georgia. These two systems issue separate publicly available financial reports that include the applicable financial statements and requiredsupplementary information. The reports may be obtained from the respective system offices. The significant retirement plans that DeKalb Technical College participates in are described below. More detailed information can be found in the plan agreements and related legislation. Each plan, including benefit and contribution provisions, was established and can be amended by State law. \nEn.spfoyeesrRetirement System of Georgia \nThe ERS System is comprised of individual retirement systems and plans covering substantially all employees of the State of Georgia except for teachers and other employees covered by the Teachers Retirement System of Georgia. One of the ERS System plans, the Employees' Retirement System of Georgia (ERS), is a cost-sharing multiple-employer defined benefit pension plan that was established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. ERS acts pursuant to statutory direction and guidelines, which may be amended prospectively for new hires but for existing members and beneficiaries may be amended in some aspects only subject to potential application of certain constitutional restraints against impairment of contract. \nOn November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of ERS. SRBP-ERSwas established as a qualified governmental excess benefit plan in accordance with Section 4 1 5 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1,1998, all members and retired former members in ERS are eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on benefits imposed by IRC Section 415. \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 \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 3 0 , 2 0 1 1 \n \nEXHIBIT \" D \n \nJanuary 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. \nUnder the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 1 0 years of creditable service and attainment of age 6 0 or 3 0 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 of Trustees for such purpose. The formula considers the monthly average of the member's highest 2 4 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. \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, DeKalb Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these DeKalb Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. DeKalb 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 DeKalb Technical College contributions are not at any time refundable to the member or his/her beneficiary. \nEmployer contributions required for fiscal year 2 0 1 1 were based on the June 30, 2008 actuarial valuation for the old and new plans and were set by the Board of Trustees on September 18, 2008 for GSEPS as follows: \nOld Plan* New Plan GSEPS \n* 5.66%exclusive of contributions paid by the employer on behalf of old plan \nmembers \nMembers become vested after 1 0 years of service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \nr4i:sckaa-sRetirement System of Georgia \nThe Teachers Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. \n \n DEKALB TECH NlCAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30,2011 \n \nEXHIBIT \"D\" \n \nOn October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1,1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 3 0 years of creditable service, regardless of age, or after 1 0 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 4 0 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 3 0 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \n \nTRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2 0 1 1 were 5.53% of annual salary. Employer contributions required for fiscal year 2 0 1 1 were 10.28% of annual salary as required by the June 30, 2008 actuarial valuation. \nThe following table summarizes DeKalb Technical College contributions by defined benefit plan for the years ending June 30,2011, June 30,2010, and June 30,2009: \n \nERS \n \nRequired \n \nPercent \n \nContribution \n \nContributed \n \nTRS \n \nRequired \n \nPercent \n \nContribution Contributed \n \nPlan Description DeKalb 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 \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 3 0 . 2 0 1 1 \n \nEXHIBIT \"DM \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. If a member has less than $3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \nThe Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. \nContributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Technical College's payroll for the year ended June 30, 2011, for employees covered by GDCP was $3,968,978.00. The Technical College's total payroll for all employees was $18,203,978.39. \nTotal contributions made by employees during fiscal year 2 0 1 1 amounted to $297,673.35 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \nNOTE 10: POST-EMPLOYMENT BENEFITS \nDeKalb Technical College participates in the following State of Georgia post-employment benefit plans: the Georgia State Employees Post-employment Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices. \nRetiree health benefits were previously funded through the Georgia Retiree Health Benefit Fund (GRHBF). In 2009, the General Assembly revisited the GRHBF and enacted legislation that, effective August 31, 2009, separated the GRHBF into two new funds: the Georgia School Personnel Postemployment Health Benefit Fund and the Georgia State Employees Post-employment Health Benefit Fund. The purpose of this change was to assure employers responsible for planning and funding future retiree health costs that their contributions will be dedicated to their respective retiree populations. Funds in the GRHBF were transferred to the Georgia State Employees Post-employment Health Benefit Fund or the Georgia School Personnel Postemployment Health Benefit Fund as described in the plan financial statements. The statute that created the GRHBF is repealed effective September 1,2010. \nGeorgia State Employees Postemployment Health Benefit Fund The Georgia State Employees Post-employment Health Benefit Fund (State OPEB Fund) is a costsharing multipleemployer defined benefit post-employment healthcare plan that covers eligible former employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health for inclusion in the plan. The State OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30,2011 \n \nEXHIBIT \"D\" \n \nThe contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \n \nThe combined active and retiree contribution rates established by the Board for employers participating in the State OPEB Fund were as follows for the fiscal year ended June 30, 2010: \n \nJune 2010 July 2010 -April 2011 May 2011-June 2011 \n \n22.165% of covered payroll for July coverage 25.586% of covered payroll for August - May coverage 22.667% of covered payroll for June -July coverage \n \nNo additional contribution was required by the Board for fiscal year 2 0 1 1 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \n \nThe following table summarizes DeKalb Technical College combined active and retiree contributions \n \nto the health insurance plans for the years ending June 30, 2011, June 30, 2010 and June 30, \n \n2009: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nContributed \n \nContribution \n \nState Employees'Assurance Department- OPEB \nState Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multipleemployer defined benefit post-employment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of Employees', Judicial (JRS), and Legislative (LRS) Retirement Systems, amended to exclude members of JRS and LRS hired on or after July 1,2009. Pursuant to Title 47 of the OCGA, the authority to establish and amend the benefit provisions of the plan is assigned to the Boards of Trustees of the Employees' and Judicial Retirement Systems. \nContributions by plan members are established by the Boards of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The Boards of Trustees of the Employees' and Judicial Retirement Systems establish employer contribution rates, such rates which, \nwhen added to members' contributions, shall not exceed 1% of earnable compensation. For the \n \n DEKALB TECH NlCAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30,2011 \n \nEXHIBIT \"Dm \n \nfiscal year ended June 30, 2011, contributions of ERS \"old plan\" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS \"new plan\" members and of members of the Judicial and Legislative Retirement Systems were 0.23% of earnable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30,2011, June 30,2010 and June 30,2009. \nNOTE 11: AFFILIATED ORGANIZATIONS \nThe DeKalb Technical Foundation is a legally separate, tax exempt organization whose activities primarily support DeKalb Technical College. This affiliated organization is considered 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 of the affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from DeKalb Technical College. \n \n (This page left intentionally blank) \n \n SUPPLEMENTARY INFORMATION \n \n DEKALB TECHNICAL COLLEGE BALANCE SHEET (STATUTORY BASIS) \nBUDGET FUND JUNE 30.2011 \nASSETS \nCash and Cash Equivalents Accounts Receivable \nFederal Financial Assistance Other Prepaid Expenditures lnventories \nTotal Assets \nLIABILITIESAND FUND EOUITY \nL~abilities Salaries Payable Accounts Payable Encumbrance Payable Deferred Revenue Funds Held for Others \nTotal Liabilities \nFund Balances Reserved Federal Financial Assistance Refundst o Grantors Local Grants and Contracts Sales and Services Live Work Projects Continuing Education Technology Fees Uncollectible Accounts Receivable lnventories Bookstore Tuition \nU nresewed \nSurplus \nTotal Fund Balances \nTotal Liabilities and Fund Balances \nStatutory Basisfinancial 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 comprehensivebasis of accounting other than generally accepted accounting principles. \n \nSCHEDULE \"1\" \n \n DEKALB TECHNICAL COLLEGE SUMMARY BUDGET COMPARISONAND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) \nBUDGET FUND YEAR ENDEDJUNE 30.2011 \n \nREVENUES \nState Appropr~at~on State GeneralFunds \nFederal Funds Other Funds \nTotal Revenues \nADJUSTMFNTSAND P R O W TBANSFFRS \nUWY-OVER FROM PRIOR YEAR \nTransfer from Reserved Fund Balance \nTotal Funds Available \nAdult Llteracy Economic Development Technical Education \nTotal Expenditures \nExcessof FundsAvailable over ExDenditures \nFUND BALANCF JULY 1 \nReserved unreserved \nADJUSTMFNTS \nPrior Year Payables/Expenditures Prior Year Receivables/Revenues UnreservedFund Balance (Surplus)Returned \nFromthe TechnicalColleges Year Ended June 30.2010 \nPrior Year Reserved Fund Balance Included In Funds Available \nFUND BALANCEJUNE 3Q \nSUMMARY OF FUND BALANCF \nReserved FederalFinanc~aAl ssistance Refunds to Grantors Local Grants and Contracts Sales and Services Live Work Projects Continuing Education Technology Fees UncollectibleAccounts Receivable Inventories Bookstore Tuition \nTotal Reserved \nUnreserved surplus \nTotal Fund Balance \nStatutory Basis financial information was preparedon a prescribed basis of accountingthat demonstratescompliancewith budgetaryStatutes and regulations of the State of Georgia, which is a comprenenslve basis of accountrngother than generally acceptedaccounting princ~ples. \n \nBUDGET \n \nACTUAL \n \nSCHEDULE \"2\" \nVARIANCE FAVORABLE (UNFAVORABLE) \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF FUNDS AVAlL4BLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE \n(STATUTORY BASIS) BUDGET FUND YEAR ENDEDJUNE 30.2011 \n \nAdult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identifled Other Funds \nTotal Adult Literacy \nEconomic Development Other Funds \nTechnical Education State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified American Recovery and ReinvestmentAct of 2009 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 \nStatutory Basis financial information was preparedon a prescribedbasis of accounUngthat demonstratescompliancewith budgetary statutes and regulationsof the State of Georgia. which is a comprehensive basis of accountingother than generally accepted accounting principles. \n \n SCHEDULE \"3\" \n \nFunds Available Compared to Budget \n \nPrior Year \n \nAdjustments and \n \nTotal \n \ncarry-over \n \nProgram Transfers \n \nFunds Available \n \nVariance Positive (Negative) \n \nExpenditures Compared to Budget \n \nVariance \n \nActual \n \nPositive (Negative) \n \nExcess (Deficiency) of Funds Available \nOver/(Under) Expendlturffi \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE \n(STATUTORY BASIS) BUDGET FUND YEAR ENDEDJUNE 30.2011 \n \nAdult Literacy State Approprtatton State General Funds Federal Funds Federal Funds Not Specif~callyIdentified Other Funds \nTotal Adult Literacy \nEconomic Development Other Funds \nTechnical Educat~on State Appropr~at~on State General Funds Federal Funds Federal Funds Not Speclflcally ldent~f~ed Amerlcan Recoveryand Reinvestment Act of 2009 Federal Funds Not Spec~ficallyldent~fted Other Funds \nTotal Technical Education \nTotal OperatingActlvlty \nPrlor Year Rese~eS Not Available for Expenditure lnventortes Refundsto Grantors Uncollectible Accounts Receivable \nBudget Unlt Totals \n \nBeginning Fund Balance/(Deficit) \nJuly 1 \n \nFund Balance Carrled Over from \nPrior Period as Funds Available \n \nReturn of Fiscal Year 2010 \nSurplus \n \nPrior Period Adjustments \n \nStatutory Basis financial ~nformationwas preparedon a prescribed baSlS of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia. which is a comprehensive basis of accounting other than generallyaccepted accounting prlnclples. \n \n SCHEDULE \"4\" \n \nOther Adjustments \n \nEarly Return of Fiscal Year 2011 \nSurplus \n \nExcess (Defic~ency) of FundsAvailable \nOver/(Under) Expenditures \n \nEnding Fund Balance/(Defic~t) \nJune 3 0 \n \nAnalysis of Ending Fund Balance \n \nReSeNed \n \nSurplus/(Deficit) \n \nTotal \n \nSummary of Ending Fund Balance Reserved \nFederal FinancialAssistance Refunds to Grantors Local Grants and Contracts Sales and Services Live Work Projects Contlnulng Education Technology Fees Uncollectible Accounts Receivable Inventories Bookstore Tuitlon Unreserved Surolus \nTotal Ending Fund Balance - June 30 \n \n (This page left intentionally blank) \n \n Totals per Annual Supplement \nAccruals June 3 0 , 2 0 1 1 June 3 0 . 2 0 1 0 \nCompensatedAbsences June 3 0 , 2 0 1 1 June 3 0 , 2 0 1 0 \nLag Salaries June 3 0 , 2 0 1 1 June 3 0 , 2 0 1 0 \nAgency Funds \n \nDEKALB TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \nYEAR ENDEDJUNE 3 0 , 2 0 1 1 \n \nSCHEDULE \"5\" \n \nSALARIES \n \nTRAVEL \n \n SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \n \n DEKALB TECH NlCAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONEDCOSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30,2011 \nFINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) No matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2009-h2010","title":"Dekalb Technical College, Clarkston, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, DeKalb County, Clarkston, 33.80955, -84.23964"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2009/2010"],"dcterms_description":["Year ended June 30, 2002-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Fiscal year ended June 30, 2006."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2010-06-30"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["DeKalb Technical College--Appropriations and expenditures","Education--Auditing--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Dekalb Technical College, Clarkston, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010"],"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-bd42-b2009-h2010"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2009-h2010"],"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":"DEKALB TECHNICAL COLLEGE \nCLARKSTON, GEORGIA \nI INDEPENDENT ACCOUNTANT'S \nREPORT ON APPLYING AGREED- \nUPON PROCEDURES \nFOR FISCAL YEAR ENDED \nJUNE 30,2010 \nI \n \nGeorgia Department of Audits ar 1.AwqaXlta \n \n. \nm \n \n**IbL\\!ijhih~1 'd' iIlI,l~\\/ \n \nState \n \nlhd*i , \n \nit A \n \nqi z: \n \nI \n \n1 ; 9 , . ,.., \n \n1 1 \n \n DEKALB TECHNICAL COLLEGE -TABLE OF CONTENTS - \nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS \nA SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING \nSOURCE COMPARED TO BUDGET \n \n RUSSELLW. HINTON \nSTATE AUDITOR \n(404)656-2174 \n \nDEPARTMEONFTAUDITASND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nNovember 24,2010 \n \nMembers of the State Board of Technical and Adult Education Members of the Local Board of Directors \nand Honorable Robin Hoffman, President DeKalb Technical College \nlnde~endenAt ccountant's R e ~ o rotn Ap~lvingAgreed-U~onProcedures \nLadies and Gentlemen: \nWe have performed the procedures enumerated below, which were agreed to by the Technical College and the System Office (Oversight Unit) of the Technical College System of Georgia, solely to assist you in assessing the accuracy of the annual financial statement information reported to the System Office by the Technical College for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and SingleAudit Report; and to assist you in assessingthe accuracy of budget basis information provided in the Summaty Budget Comparison and Surplus Analyst3 Report and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget, which is attached as Exhibits A and B, respectively. DeKalb Technical College's management is responsible for the financial information reported to the System Office of the Technical College System of Georgia. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. \n1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the Technical College's general ledger. \nWe did not note any exceptions as a result of our procedures. \n2. Obtain the Technical College's GAAP basis worksheets for Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the Technical College's accounting records. \nWe did not note any exceptions as a result of our procedures. \n \n 3. Obtain the Technical College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. \nWe did not note any exceptions as a result of our procedures. \n4. Obtain the Technical College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. \nWe did not note any exceptions as a result of our procedures. \n5. Review the Technical College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the Technical College's annual financial statement worksheets. \nWe did not note any exceptions as a result of our procedures. \n6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the Technical College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. \nWe did not note any exceptions as a result of our procedures. \n7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2010. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the Technical College's financial statements. \nWe did not note any exceptions as a result of our procedures. \n8. Verify that the listing of salaries, travel, and professional services reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the Technical College'sfinancial statements. \nWe did not note any exceptions as a result of our procedures. \n9. Review the year end Budgetary Statements including the Summary Budget Comparison and Surplus AnaQsis Report (Exhibit A) and Statement o f Program Revenues and Expendtures by FundingSource Comparedto Budget(Exhibit B). Confirm that budget information presented in these statements supports activity reported in the Technical College's accounting records, the legal level of budgetary control (funding source within program) was maintained, and determine if any budget overexpenditures exist. \nWe did not note any exceptions as a result of our procedures. \n10. Obtain documentation for Budget basis reserves reported by the Technical College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. \nWe did not note any exceptions as a result of our procedures. \n \n 11.Review the H.O.P.E. Scholarship Program reconciliation between the Technical College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the Technical College'sfinancial records. \nWe did not note any exceptions as a result of our procedures. \n12. Review the Schedule of Expenditures of Federal Awards information submitted by the Technical College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the Technical College's accounting records. \nWe did not note any exceptions as a result of our procedures. \n13. Review capital asset records to ensure that (1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. \nWe did not note any exceptions as a result of our procedures. \n14. Review bank reconciliations during the year under review to ensure that management is preparingthem timely and that reconciling items are being addressed by management timely and in an appropriate manner. \nWe did not note any exceptions as a result of our procedures. \nThese agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. \nThis report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, a' \n~ u s \u0026 l lW. Hinton, CPA, CGFM State Auditor \n \n EXHIBITS \n \n DEKALB TECHNiCAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \nYEXR ENDED JUNE 30.2010 \n \nREVENUES \nState Appropriatlon State General Funds \nFederal Funds Other Funds \nTutal Revenues \nCARRYOVER FROM PRIOR YEAR \nTransfer from Reserved Fund Balance \nTotal Funds Available \nEXPENDITURES \nAdult L~teracy Economic Development Technical Education \nTotal Expenditures \nExcess of Funds Available over Expenditures \nFUND BALANCE JULY 1 \nReserved Unreserved \nADJUSTMENTS \nPr~oYr ear PayableS/EXDendltUreS Prior Year Receivables/Revenues UnreservedFund Balance (Sur~lusR) eturned \nFrom the Technical Colleges Year Ended June 30.2009 \nRefundsto Grantors Federal Financial Asslstance Returnedto Technical College System of Georgia Year Ended June 30.2009 \nPrior Year Reserved Fund Balance Included in Funds Available \nFUND BALANCEJUNE 3 0 \nSUMMARY OF FUND BALANCE \nReserved Federal Flnanclal Asslstance Local Grants and Contracts Sales and Sewlces bve Work Projects Pr~oYr ear Local Funds Technology Fees Uncollect~bleAccounts Rece~vable lnventorles Tultlon \nTotal Reserved \nUnreserved Surplus \nTotal Fund Balance \n \nEIUDGEl \n \nACTUAL \n \nVARIANCE - \nFAVORABLE (UNFAVORABLE) \n \n OEKALB TECHNICAL COLLEGE STATEMENTOF PROGRAM RNENUES AND MPENDITURES BY FUNDING SOURCE COMPAREDTO BUDGEI \nYEAR ENDEDJUNE30. 2010 \n \nAdult Llferacy State Appropr~at~on State General Funds Federal Funds Other Funds \nTotal ~ d u lLtiteracy \n \nOr~~nal Appropr~at~on \n \nFinal Budget \n \nCurrent Year Revenues \n \nFunds Available Compared to Budget \n \nPrlor Year Carry Over \n \nTotal Funds Avablable \n \nVar~ance ~mltlve (NegilUVe) \n \nEconornlc D w e l o p m e n t OUler Funds \n \nT ~ ~ h n i cEsdl ucstlon State Appropnatlon State General Funds Federal Funds Amerloan Recovery and Re~nvestrnentAct of 2 0 0 9 Federal Slab#llzstlan Funds Gther Federal Stlmulus Other Federal Funds Other Funds \nTotal Techndcal ducatton \n \nGrand Totals - All Programs \n \n Expendlures Compared to Budget \n \nVariance \n \nPos~t~ve \n \nActual \n \n(Negatve) \n \nActual Funds Avatlable \nDrer/(Under) Expendtrures \n \nPrlor Period Adjustments \n \nOther Ad~uatrnents \n \nProgram Fund \nBalances \n \nTransfers \n \nProgram Fund Balances \n \nReserve \n \nSurplus \n \nTotal Fund bance \n \nUnexpendable Reserves Uncollectlble Accounts Receivable lnventorles \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2006-h2007-bletter","title":"Dekalb Technical College, Clarkston, Georgia, management letter, January 10, 2008","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, DeKalb County, Clarkston, 33.80955, -84.23964"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2008-01-10"],"dcterms_description":["Year ended June 30, 2002-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Fiscal year ended June 30, 2006."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2008-01-10"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["DeKalb Technical College--Appropriations and expenditures","Education--Auditing--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Dekalb Technical College, Clarkston, Georgia, management letter, January 10, 2008"],"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-bd42-b2006-h2007-bletter"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2006-h2007-bletter"],"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":"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 \n \nJanuary 10, 2008 \n \nMembers of the State Board of Technical and Adult Education Members ofthe Local Board ofDirectors \nand Honorable Robin Hoffinan, President DeKalb Technical College \nLadies and Gentlemen: \nIn planning and performing our audit ofthe financial statements of DeKalb Technical College, an organizational unit ofthe State ofGeorgia, as ofand for the year ended June 30, 2007, in accordance with standards generally accepted in the United States ofAmerica, we considered DeKalb Technical College's internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness ofthe Technical College's internal control. Accordingly, we do not express an opinion on the effectiveness of the DeKalb Technical College's internal control. \nOur consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. Any identified deficiencies in internal controls that we consider to be significant deficiencies and/or material weaknesses will be communicated to management and those charged with governance within the findings section ofour report on DeKalb Technical College's basic financial statements dated January 10, 2008. We noted certain other matters involving the internal control and operations ofDeKalb Technical College that are presented in this management letter for your consideration. This letter does not affect our report dated January 10, 2008 on the financial statements of DeKalb Technical College. \nWe will review the status of these comments during our next engagement. Our comments and recommendations, all ofwhich have been discussed with appropriate members ofmanagement, are intended to improve the entity's internal control or result in other operating efficiencies. We will be pleased to discuss these comments in further detail at your convenience. Our comments are summarized as follows: \n \n Disaster Recovery Plan DeKalb Technical College does not have formal written disaster recovery procedures. The time to make contingency plans is before the disaster strikes, so that all personnel will be aware of their responsibilities in the event ofan emergency situation. We suggest that management develop a plan that includes, but is not limited to the following matters: \n Location of, and access to, off site storage  A listing of all data files that would have to be obtained from the off-site storage location  Identification of backup location (name and telephone number) with similar or compatible \nequipment for emergency processing  Responsibilities of various personnel in an emergency  Priority of critical applications and reporting requirements during an emergency period \nAccess Controls Our examination of the Technical College included a review of the access controls related to their financial system. We noted several users that had access rights to information that exceeded their need to complete their assigned job functions. In addition, there were terminated employees who continued to have access at the time of the audit. Management should enhance policies and procedures to ensure that user rights and roles complement the established separation of duties structure and when terminated his/her access is removed. These policies and continued monitoring will assist in mitigating threats that could cause loss, manipulation or corruption ofdata maintained in the financial information system. \nPurchasing Cards During the audit process, it was determined that several receipts and/or other supporting documentation for charges made to DeKalb Technical College's purchasing cards were not maintained. This practice could result in the payment ofunsubstantiated expenses. Furthermore, it was also noted that sales tax was not disputed for several transactions. In addition, there were split transactions and unallowable purchases noted. We recommend that DeKalb Technical College require that supporting receipts be submitted for all charges for which it is practical to obtain a receipt. Also, there should be a review of statements for unallowable purchases, split transactions and improper sales tax payments. \nTravel In our review of travel and other expense activity, we noted the following instances where travel expenses were not being properly reported to the Georgia Department of Audits and Accounts (GDOA), as required by O.C.G.A. 50-6-27: \n Travel amounts paid directly to vendors for hotel bills were not reported to GDOA. These amounts were incorrectly recorded as other operating expenses on the Technical College's general ledger. The Technical College should ensure that all Travel Expenses paid directly to vendors on employees' behalf are reported to GDOA and properly reflected as travel expense on the accounting records. \n Travel expense paid through Agency Funds was not reported to GDOA as required. The Technical College should ensure that Travel for employees paid in the Agency Funds is reported to GDOA. \n \n Per Diem and Fees In our review of Per Diem and Fees expense and other expense activity, we noted the following instances where Per Diem and Fees expense was not being properly reported to the Georgia Department of Audits as required by O.C.G.A. 45-7-71 and 45-7-72: \n Per Diem and Fees amounts paid to temporary staffing services were not reported to GDOA. Numerous temporary staffing service expenses were incorrectly recorded as other operating expenses and not as Per Diem and Fees Expense on the Technical College's general ledger. The Technical College should ensure that all temporary staffing service expenses are properly reported to GDOA. \n The Technical College recorded expenditures for its Agency Funds directly to the liability account, Funds Held for Others. The auditors were unable to determine if there were any expenses in Agency Funds pertaining to Per Diem and Fees. The Technical College should ensure that all expenses in the Agency Funds are properly coded as expenses before the excess of revenues over (under) expenses is transferred to the Funds Held for Others account. \nAccounts Payable Reconciliations We noted immaterial differences between the totals of the accounts payable subsidiary ledger and the total reported in the general ledger. Monthly reconciliations ofthe accounts payable subsidiary ledger and the general ledger should be performed. We recommend that these reconciliations become a standard part of the monthly closing routine performed by the accounts payable clerk. Also, in order to maintain proper control over accounts payable, we suggest that the open invoice file be reconciled with the balance in the accounts payable subsidiary ledger at the end of every month. If any differences exist, they should be investigated and resolved promptly. These procedures will ensure that the balance in the general ledger reflects the accurate accounts payable balance supported by the subsidiary system. \nAccounts Receivable Reconciliations The detail accounts receivable listing was reconciled to the general ledger at year-end as part ofthe audit process by Technical College personnel. The resulting misstatements noted, while not material, were sufficiently large and old enough to indicate that more frequent and regular reconciliations are desirable. We noted that the accounts receivable subsidiary ledger is not routinely reconciled to the general ledger. The detail listing of accounts receivable should be reconciled to the general ledger at the end of each month. Any differences should be investigated and resolved as soon as possible. Monthly aging of accounts receivable should also be prepared to facilitate follow-up on old, uncollected accounts. \nAllowance for Doubtful Accounts The allowance for doubtful accounts at year-end remained the same as the previous two fiscal years. Documentation supporting the amount of the Technical College's allowance for doubtful accounts was not provided to the auditors upon request. Adequate documentation supporting the allowance for doubtful accounts should be maintained by the business office. DeKalb Technical College should review the adequacy of the allowance during the year, make appropriate adjustments and ensure documentation is available to support the allowance amount. \n \n Formal Periodic Review of Student Receivables The majority ofthe year-end student accounts receivable were greater than one year old. A formal periodic review ofthe student receivable subsidiary ledger (Banner) and more formalized collection procedures should be established. In addition, the Technical College should review, update and enforce policies and procedures to prevent subsequent registration of students with unpaid tuition amounts outstanding. The implementation of these recommendations and the monitoring of all aspects of the student accounts receivable, including quarterly reconciliations and collection procedures, are critical elements in a strong system of internal controls. \nBanner Student Registration System Reconciliations No yearly or quarterly reconciliations of the revenue amounts initially recorded on the Banner Student Registration System (BANNER) and the Accounts Receivable Module of the Peoplesoft Financials Accounting System were performed by the Technical College. The BANNER System, a subsidiary receivable and revenue ledger, does not interface directly with the Peoplesoft Financials Accounting System. All revenue and receivable transaction information must be entered separately into Peoplesoft Financials by Technical College personnel. We recommend that the reconciliations between the amounts recorded on these two systems become a standard procedure performed by the accounting manager or director. This procedure will ensure that the balance in the general ledger reflects the accurate revenue and receivable balances supported by the BANNER subsidiary ledger system. \nEmployee Group Meal Policy A review of32 payments to food vendors in the Technical College's group meal policy expenditure account revealed that none of the expenditures meet the requirements of the State Accounting Office's Employee Group Meal Policy. The policy requires prior approval when possible, a meeting agenda, list of employees attending, etc. The Technical College should establish appropriate procedures and controls to ensure that the State Accounting Office's Employee Group Meal Policy is adequately followed and that sufficient documentation is maintained to verify compliance. \nGAAP Basis Journal Entries The Technical College's financial statements prepared for inclusion in the State of Georgia Comprehensive Annual Financial Report (CAFR) and the State of Georgia Single Audit Report included numerous errors. The errors were contained in the GAAP journal entries posted to the Statement of Net Assets and the Statement of Revenues, Expense and Changes in Net Assets (SRNECA) worksheets. The Technical College should implement procedures to ensure that journal entries made to produce GAAP basis financial statement information are correctly prepared and accurately posted to the proper accounts within the financial statements. \nRefunding of Federal Grant Balances: Timely Our audit procedures revealed that there were several instances where unexpended Federal grant funds were not refunded to the appropriate grantor agencies at the end/close of the grant period as required. We strongly recommend that the Technical College institute policies and procedures to ensure that any unexpended Federal funds are refunded to the appropriate grantor agencies at the end/close ofthe grant period. In addition, procedures should be implemented to review all prior year Federal funds remaining on the Technical College's general ledger to determine which balances, if any, should be refunded to the appropriate grantor agencies or what additional action is required by the Technical College. \n \n Preparation of Schedule of Expenditures of Federal Awards The Technical College's Schedule ofExpenditures ofFederal Awards (SEFA), which was prepared for inclusion in the State ofGeorgia's Single Audit Report, failed to include all current year expense activity on prior year Federal grants. Expense adjustments and/or activity for the prior year PELL and FSEOG Grants was not included on the SEFA as submitted to the State Accounting Office. The Technical College should establish appropriate procedures and controls to ensure that the SEFA is accurately completed, properly reconciled and includes all current year activity reported on the Technical College's accounting records. \nIn the normal course ofthe audit process, the auditor is only required to obtain an understanding of internal control sufficient to plan the audit. This, however, does not imply that the auditor must perform any type oftest or other verification ofthe effectiveness ofthe internal control system. As such, we strongly recommend that management evaluate the effectiveness ofthe entity's system of internal controls. This evaluation should reaffirm management's responsibility for establishing and maintaining an adequate system of internal controls and financial reporting. Strong and effective internal controls are the responsibility of management and we believe that this practice, conducted on an annual basis, will be ofsignificant benefit in enhancing internal controls and preventing fraud and abuse. \nWe believe that the implementation of these recommendations will provide DeKalb Technical College with a stronger system ofinternal accounting controls while also making its operations more efficient. This communication is intended solely for the information and use of management and others within the organization and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, .. \n~dton, ~PA, CGFM-State Auditor \ncc: Claire Arnold Lisa Eason, Executive Director of Administrative Services \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2008-h2009","title":"Dekalb Technical College, Clarkston, 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."],"dcterms_spatial":["United States, Georgia, DeKalb County, Clarkston, 33.80955, -84.23964"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2008/2009"],"dcterms_description":["Year ended June 30, 2002-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Fiscal year ended June 30, 2006."],"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":["DeKalb Technical College--Appropriations and expenditures","Education--Auditing--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Dekalb Technical College, Clarkston, 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-bd42-b2008-h2009"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-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":"DEKALB TECHNICAL COLLEGE \nCLARKSTON, GEORGIA \nMANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2009 \nA Member College of the Technical College System of Georgia \nGe orgia Department of Audits and Accounts Russell W. Hinton State Auditor \n \n DEKALB TECHNICAL COLLEGE - TABLE OF CONTENTS - \n \nPage \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 \n5 \n \nD SELECTED FINANCIAL NOTES \n \n6 \n \nSUPPLEMENTARY INFORMATION \n \nSCHEDULES \n \n1 BALANCE SHEET - (STATUTORY BASIS) - BUDGET FUND \n \n18 \n \n2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \n \n(STATUTORY BASIS) BUDGET FUND \n \n19 \n \n3 STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING \n \nSOURCE COMPARED TO BUDGET \n \n(STATUTORY BASIS) BUDGET FUND \n \n20 \n \n4 RECONCILIATION OF SALARIES AND TRAVEL \n \n23 \n \nSECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION III 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 13, 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 Robin Hoffman, President DeKalb Technical College \nLadies and Gentlemen: \nAs part ofour audit ofthe basic financial statements ofthe State ofGeorgia 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 DeKalb Technical College. Accordingly, the financial statements and compliance activities of DeKalb 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 DeKalb Technical College as ofand for the year ended June 30, 2009. Information contained in this report is a by-product ofour 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 DeKalb 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~ Russell W. Hinton, CPA, CGFM State Auditor \nRWH:as \n \n SELECTED FINANCIAL INFORMATION - 1- \n \n DEKALB 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 Accounts Payable Salaries 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 Un restricted \nTotal Net Assets \n \nEXHIBIT\"A\" \n \n$ 1,431,506.54 \n228,337.51 639,614.96 219,037.91 549,937.74 \n$ 3,068,434.66 \n30,240,233.43 \n$ 33,308,668.09 \n \n$ \n \n239,906.83 \n \n191,707.04 \n \n145,539.80 \n \n151,035.50 \n \n893,926.96 \n \n$ 1,622,116.13 \n \n677,057.09 $ 2,299, 173.22 \n \n$ 30,240,233.43 769,261.44 \n \n$ 31,009,494.87 \n \n DEKALB TECHNICAL COLLEGE \n \nEXHIBIT \"B\" \n \nSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS) \n \nYEAR ENDED JUNE 30, 2009 \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 Local Gifts Interest and Other Investment Income Other Nonoperating Expenses \nNet Nonoperating Revenues \nIncome (Loss) Before Other Revenues, Expenses, Gains, or Losses \nCapital Grants and Gifts State Nongovernmental Loss on Disposal of Capital Assets \nTotal Other Revenues, Expenses, Gains, or Losses \nIncrease (Decrease) in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \n$ 7,760,785.93 -600,096.93 \n126,004.83 138,531.85 3,218,519.14 \n35,130.35 \n$ 10,678,875.17 \n \n$ 17,666,868.83 \n3,622,152.20 93,945.29 \n2,878,465.96 1,093,043.39 4,828,039.13 1,684,452.48 \n$ 31,866,967.28 \n$ -21, 188,092.11 \n \n$ 15,762,361.64 \n \n5,906,890.59 108,886.07 568,284.28 12,057.13 -566, 746.11 \n \n$ 21,791,733.60 \n \n$ \n \n603,641.49 \n \n$ \n \n175,989.56 \n \n94,173.37 \n \n-375, 746.48 \n \n$ \n \n-105,583.55 \n \n$ \n \n498,057.94 \n \n30,511,436.93 \n \n$ 31,009,494.87 \n \n-3- \n \n (This page left intentionally blank) \n \n DEKALB 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 of Educational Departments 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 Capital Grants and Gifts Received Purchases of Capital Assets \nNet Cash Provided (Used) by Capital and Related Financing Activities \nCASH FLOWS FROM INVESTING ACTIVITIES Earnings 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 \nNONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts Gifts Reducing Proceeds of Gifts and Grants for Other than Capital Purposes \n-5 - \n \nEXHIBIT\"C\" \n \n$ \n \n6,911,932.55 \n \n132,538.14 \n \n3,120,694.94 \n \n-9,657,776.87 \n \n-17,583,780.77 \n \n-2,878,465.96 \n \n166 674.75 \n \n$ \n \n-19,788,183.22 \n \n$ \n \n15,762,361.64 \n \n-9,363.09 \n \n6,657,438.79 \n \n-340 953.98 \n \n$ \n \n22,069,483.36 \n \n$ \n \n124,959.61 \n \n-1 561 154.22 \n \n$ \n \n-1436194.61 \n \n$ \n \n12 057.13 \n \n$ \n \n857,162.66 \n \n574 343.88 \n \n$ \n \n-21, 188,092.11 \n \n1,684,452.48 \n-314,889.09 -4,801.00 \n-26,283.60 63,348.57 10,487.74 -32, 145.70 19 739.49 \n \n$ ===-1=38='=21=5=.8=8 $ ===-=22=5=7=9=2=.1=3 \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY DeKalb 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 DeKalb Technical College as a separate reporting entity. \nThe Technical College's Local Board of Directors is composed of eleven (11) 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 DeKalb Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, DeKalb 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. \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 $292,229.04. 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 \n-6- \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 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 ofa 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 of Georgia, 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 DeKalb Technical College), the option of exempting demand deposits from the collateral requirements. \nAt June 30, 2009, the carrying value of deposits was $1,429,306.54 and the bank balance was $1,878,936.74. Of the Technical College's deposits, $1,628,936.74 were uninsured. Of these uninsured deposits, $1,628,936.74 were collateralized with securities held by the pledging financial institution's trust department or agent. \n \n-7- \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 3: ACCOUNTS RECEIVABLE \n \nAccounts receivable at June 30, 2009, consists of the following: \n \nStudent Tuition and Fees Federal, State and Private Funds GSFIC Other \n \n$ 687,625.20 228,337.51 177,415.70 272,850.75 \n \n$ 1,366,229.16 \n \nLess: Allowance for Doubtful Accounts Net Accounts Receivable \n \n498,276.69 $ 867~952.47 \n \nNOTE 4: CAPITAL ASSETS \n \nFollowing are the changes in capital assets for the year ended June 30, 2009: \n \nBalance July 1, 2008 \n \nAdditions \n \nReductions \n \nBalance June 30, 2009 \n \nCapital Assets, Not Being Depreciated: \n \nLand and Land Improvements \n \n$ 1,205,855.00 $ \n \n0.00 $ \n \n0.00 $ 1,205,855.00 \n \nCapital Assets, Being Depreciated: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections \n \n$ 31,193,306.00 \n \n$ 65,363.00 $31,127,943.00 \n \n1,030,310.00 \n \n1,030,310.00 \n \n4,658,369.02 $ 1,659,185.51 \n \n1,356,193.40 4,961,361.13 \n \n475,113.60 \n \n40 184.59 \n \n515,298.19 \n \n$ 37,357,098.62 $ 1,699,370.10 $ 1,421,556.40 $37,634,912.32 \n \nLess: Accumulated Depreciation: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections \n \n$ 3,331,360.41 $ 1,030,310.00 3,370,012.11 230,208.81 \n \n698,199.95 \n \n$ 4,029,560.36 \n \n1,030,310.00 \n \n934,722.71 $ 1,045,809.92 3,258,924.90 \n \n51,529.82 \n \n281,738.63 \n \n$ 7,961,891.33 $ 1,684,452.48 $ 1,045,809.92 $ 8,600,533.89 \n \nTotal Capital Assets, Being Depreciated, \n \nNet \n \n$29,395,207.29 $ \n \n14,917.62 $ 375,746.48 $ 29,034,378.43 \n \nCapital Assets, Net \n \n$ 30.601,062.29 $ 14 917 62 $ 375.746.48 $ 30 240 233.43 \n \nNOTE 5: DEFERRED REVENUE \n \nDeferred revenue at June 30, 2009, consists of the following: \n \nPrepaid Tuition and Fees \n \n$ 1452539.80 \n \n-8- \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 6: LONG-TERM LIABILITIES \n \nLong-Term liability activity for the year ended June 30, 2009 was as follows: \n \nOther Liabilities Compensated Absences \n \nBalance \nJuly 1. 2008 \n \nAdditions \n \nReductions \n \nBalance June 30. 2009 \n \nCurrent Portion \n \n$ 1 55124456 $ 1076734 28 $ 1 056 994 79 $ 1 570 984 05 $ 893 926 96 \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 \nUnrestricted Net Assets Total Net Assets \nNOTE 8: LEASE OBLIGATIONS \n \nBalance July 1. 2008 \n \nAdditions \n \nReductions \n \nBalance June 30. 2009 \n \n$30,601,062.29 $ 14,917.62 $ 375,746.48 $ 30,240,233.43 \n \n-89,625.36 33,292.600.19 32,433.713.39 \n \n769,261.44 \n \n$ 301511 A36,93 $ 33 307 517 81 $ 32 809 459.87 $ 31 009 494 87 \n \nOPERATING LEASES DeKalb Technical College has entered into certain agreements to lease office space and equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised. \n \nExpenses for rental ofoffice space and equipment under operating leases for the year ended June 30, 2009, totaled $1,137,951.64. \n \nSUMMARY OF LEASE OBLIGATIONS Future commitments for capital leases (which here and on the Statement ofNet Assets include other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2009, were as follows: \n \n-9 - \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 8: LEASE OBLIGATIONS \n \nSUMMARY OF LEASE OBLIGATIONS \n \nYear Ending June 30 2010 2011 2012 2013 2014 2015 \n \nOperating Leases \n$ 1,187,628.40 1,179,291.60 1,166,032.96 665,528.76 294,823.56 294,823.56 \n \nTotal Minimum Lease Payments \n \n$ 4,7881128.84 \n \nNOTE 9: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nPlan Description DeKalb 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 ofGeorgia. 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 \nFunding Policy Employees of DeKalb Technical College who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. DeKalb 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$ 922,946.25 $ 962,974.14 $ 958,416.17 \n \n- 10 - \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 9: RETIREMENT PLANS \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nPlan Description DeKalb 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. \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. \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. \nUnder 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 $3,182,536.27. The Technical College's total payroll for all employees was $17,666,868.83. \n- 11 - \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 9: RETIREMENT PLANS \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nFunding Policy Member 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$4,200. Under the old plan, the Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The Technical College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Technical College contributions are not at any time refundable to the member or his/her beneficiary. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2009 2008 2007 \n \n100% 100% 100% \n \n$ 354,152.14 $ 328,896.38 $ 266,931.49 \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 DeKalb 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. If a member has less than $3,500.00 credited to his/her account, the Board ofTrustees has \n \n- 12 - \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 9: RETIREMENT PLANS \nGEORGIA DEFINED CONTRIBUTION PLAN \nBenefits the option ofrequiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \nThe Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. \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 $3,264,153.87. The Technical College's total payroll for all employees was $17,666,868.83. \nTotal contributions made by employees during fiscal year 2009 amounted to $244,811.54 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \nNOTE 10: CONTINGENCIES \nAmounts received or receivable from grantor agencies are subject to audit and adjustment by granter agencies. This could result in refunds to the granter agency for any expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although DeKalb Technical College expects such amounts, if any, to be immaterial to its overall financial position. \nLitigation, claims and assessments filed against DeKalb Technical College (an organizational unit of the Department of Technical and Adult Education), 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, 2009. \nNOTE 11: POSTEMPLOYMENT BENEFITS \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 \n- 13 - \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 11: POSTEMPLOYMENT BENEFITS \n \nfinancial 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 ofGeorgia 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 of the 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 \nNo 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$ 1,804,007.45 $ 3,161,802.40 \n \n- 14 ~ \n \n DEKALB TECHNICAL COLLEGE SELECTED FINANCIAL NOTES \nJUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nNOTE 11: POSTEMPLOYMENT BENEFITS \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. \nContributions by plan members are established by the Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable 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% ofearnable compensation. For the fiscal year ended June 30, 2009, contributions of ERS \"old plan\" members were 0.45% of earnable compensation, 0.22% ofwhich was paid by the employer. Contributions of ERS \"new plan\" members were 0.23% of earnable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30, 2009 and June 30, 2008. \nNOTE 13: AFFILIATED ORGANIZATIONS \nThe DeKalb Technical Foundation, Inc. is a legally separate, tax exempt organization whose activities primarily support DeKalb 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 DeKalb Technical College. \n \n- 15 - \n \n (This page left intentionally blank) \n \n SUPPLEMENTARY INFORMATION - 17 - \n \n DEKALB 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 Accounts Payable Encumbrances Payable Deferred Revenue Funds Held for Others \nTotal Liabilities \nFund Balances Reserved Federal Financial Assistance Sales and Services Local Grants and Contracts Live Work Projects Continuing Education Technology Fees Uncollectible Accounts Receivable Prior Year Local Funds Inventories Unreserved Surplus \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nSCHEDULE \"1\" \n \n$ \n \n1,552,758.84 \n \n347,217.82 787,309.78 207,776.91 549,937.74 \n \n$ ====3=,4=45=,00=1=.09= \n \n$ \n \n191,707.04 \n \n169,687.05 \n \n1,030,230.92 \n \n141,617.80 \n \n16,000.31 \n \n$ \n \n1,549,243.12 \n \n$ \n \n2,635.00 \n \n211,068.56 \n \n49,293.61 \n \n25,298.46 \n \n159,752.68 \n \n250,024.67 \n \n484,712.92 \n \n11,591.98 \n \n409,151.05 \n \n292,229.04 \n \n$ \n \n1,895,757.97 \n \n$ ======3,=4=45=,=00=1=.0=9= \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. \n- 18 - \n \n DEKALB 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$ 15,954,695.00 $ 15,954,695.00 $ \n \n2,714,214.40 \n \n2,621,101.74 \n \n1212581988.39 \n \n11 291411.89 \n \n$ 30,927,897.79 $ 29,867,208.63 $ \n \n0.00 -93,112.66 -967 576.50 \n-1,060,689.16 \n \n0.00 \n \n503 027.43 \n \n$ 3019271897.79 $ 3013701236.06 $ \n \n503 027.43 -557 661.73 \n \n$ 2,428,935.00 $ 2,400,738.41 $ \n \n875,000.00 \n \n740,883.86 \n \n27,623,962.79 \n \n26,181,993.40 \n \n$ 3019271897.79 $ 291323,615.67 $ \n \n$ \n \n0.00 $ 1,046,620.39 $ \n \n28,196.59 134,116.14 1 441 969.39 \n11604,282.12 \n1,046,620.39 \n \n1,354,540.53 192,333.36 \n \n1,463.69 -1,457.16 \n-192,333.36 \n \n-2,382.05 -503,027.43 \n$ 1,895,757.97 \n \nSUMMARY OF FUND BALANCE \nReserved Federal Financial Assistance Sales and Services Local Grants and Contracts Live Work Projects Continuing Education Technology Fees Uncollectible Accounts Receivable Prior Year Local Funds Inventories \nTotal Reserved \nUnreserved Surplus \n \n$ \n \n2,635.00 \n \n211,068.56 \n \n49,293.61 \n \n25,298.46 \n \n159,752.68 \n \n250,024.67 \n \n484,712.92 \n \n11,591.98 \n \n409,151.05 \n \n$ 1,603,528.93 \n \n292,229.04 \n \nTotal Fund Balance \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. \n-19- \n \n DEKALB 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 State Appropriation State General Funds Federal Funds Other Funds \nTotal Adult Literacy \n \nOriginal Appropriation \n \nFinal Budget \n \nCurrent Year Revenues \n \nFunds Available Com~ared to Budget \n \nPrior Year Carry-Over \n \nTotal Funds Available \n \nVariance Positive (Negative) \n \n598,602.00 $ 1,505,632.00 \n240,000.00 \n2,344,234.00 \n \n524,822.00 1,604,113.00 \n300 000.00 \n2,428,935 00 \n \n524,822.00 1,599,322.70 \n275 876.68 \n2,400,021.38 \n \n0.00 0.00 6 379.00 \n6,379.00 \n \n524,622.00 1,599,322.70 \n282 255.68 \n2,406,400.38 $ \n \n0.00 -4,790.30 -17 744.32 \n-22,534.62 \n \nEconomic Development Other Funds \n \n774 900.00 $ \n \n875,000.00 $ \n \n729 214.36 $ \n \n179 035.57 $ \n \n908 249.93 $ 33 249.93 \n \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 \nGrand Totals -All Programs \n \n18,286,460.00 $ 15,429,873.00 $ 15,429,873.00 $ \n \n0.00 $ 15,429,873.00 $ \n \n0.00 \n \n0.00 922,662.00 9 635 654.00 \n28 844 776.00 \n \n93,835.00 1,016,266.40 11 083 988.39 \n27,623,962.79 \n \n93,835.00 927,944.04 10 286,320 85 \n26 737 972.89 \n \n0.00 0.00 317 612.86 \n317 612.86 \n \n93,83500 927,944.04 10 603 933.71 \n27 055 585. 75 \n \n0.00 -88,322.36 -480 054.68 \n-568 377.04 \n \n31,963,910.00 $ 30,927,897.79 $ 29,867,208.63 $ \n \n503,027.43 $ 30,370,236.06 $ -557,661. 73 \n \nStatutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budAetarv statutes and reAulations of the State of Geor!:Jia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \n-20- \n \n SCHEDULE \"3\" \n \nExeenditures Compared 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 Balances \n \nReserve \n \nSurplus \n \nTotal Fund Balance \n \n524,763,00 1,601,056.98 \n274 918.43 \n2.400,738.41 \n \n59,00 3,056.02 25 081.57 \n28,196.59 \n \n59.00 $ -1,734,28 7,337.25 \n5,661.97 $ \n \n0,00 1,734.28 .3 758,00 \n2,023.72 \n \n0.00 \n \n59.00 \n \n0.00 \n \n0.00 \n \n0.00 \n \n3 579.25 \n \n0.00 \n \n3,638.25 \n \n0.00 0.00 0.00 \n0.00 $ \n \n0.00 0.00 2 856.00 \n2 856.00 \n \n59,00 \no.oo \n723.25 \n782.25 \n \n59.00 0.00 \n3 579.25 \n3,638.25 \n \n740 883.86 $ 134116.14 $ \n \n167 366.07 $ \n \n-831.46 $ \n \n0.00 $ 166 534.61 $===o=.o=o= $ 166 534.61 $ \n \n0 00 $ ==1;,;6~6..;:5~34~,6~1~ \n \n$ 15,429,873.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n93,835.00 929,404.46 9 728 880.94 \n26 181 993.40 \n \n0.00 86,861.94 1 355, 107,45 \n1 441 969.39 \n \n0.00 -1.460.42 875 052.77 \n873 592.35 \n \n0.00 4,095.42 -1233.71 \n2 861.71 \n \n0.00 0.00 -44 732.92 \n-44 732.92 $ \n \n0.00 2,635.00 829 086.14 \n831 721.14 \n \n0.00 \n \n0.00 \n \n0,00 \n \n0.00 \n \n2,635.00 \n \n0.00 \n \n0.00 \n \n537 639.35 \n \n291 446.79 \n \n000 2,635.00 829 086.14 \n \n0.00 \n \n540 274.35 \n \n291 446.79 $ \n \n831 721.14 \n \n29,323,615.67 $ 1,604,282.12 $ 1,046,620.39 $ \n \n6.53 $ -44,732.92 $ 1 001,894.00 $ \n \no.oo $ 709 664.96 $ 292,229.04 $ 1,001,894.00 \n \nUnexpendable Reserves Uncollectible Accounts Receivable Inventories \n \n484,712.92 409 151.05 \n1 895 757,97 \n \n-21  \n \n (This page left intentionally blank) \n \n DEKALB 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 \nAdjustments \nAgency Funds \nUnreconciled Variance \n \nSALARIES $ 17,620,734.64 $ \n \nTRAVEL 105,380.89 \n \n191,707.04 -128,358.47 \n \n1,270,868.46 -1,248,054.65 \n \n-159,785.98 121,116.97 \n-1,029.20 \n-329.98 \n \n-11,435.60 \n \n$ 17,666,868.83 $==9=3=,9=45=.2=9= \n \n-23- \n \n SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DEKALB TECHNICAL COLLEGE AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2009 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-830-07-02 FS-830-07-05 FS-830-08-01 FS-83 0-08-02 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n SECTION III FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \nYEAR ENDED JUNE 30, 2009 \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. OTHER ITEMS {NOTED FOR MANAGEMENT'S CONSIDERATION) No matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2007-h2008","title":"Dekalb Technical College, Clarkston, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, DeKalb County, Clarkston, 33.80955, -84.23964"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2007/2008"],"dcterms_description":["Year ended June 30, 2002-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Fiscal year ended June 30, 2006."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2008-06-30"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["DeKalb Technical College--Appropriations and expenditures","Education--Auditing--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Dekalb Technical College, Clarkston, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008"],"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-bd42-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2007-h2008"],"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":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \nI \nDEKALB TECHNICAL COLLEGE CLARKSTON, GEORGIA \nREPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nRussell W. Hinton State Auditor \n \n DEKALB TECHNICAL COLLEGE - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \n \nBASIC FINANCIAL STATEMENTS \n \nEXHIBITS \n \nA STATEMENT OF NET ASSETS \n \n2 \n \nB STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \n \n3 \n \nC STATEMENTOFCASHFLOWS \n \n4 \n \nD NOTES TO THE FINANCIAL STATEMENTS \n \n5 \n \nSUPPLEMENTARY INFORMATION \n \nSCHEDULES \n \n1 BALANCE SHEET (NON-GAAP BASIS) BUDGET FUND \n \n20 \n \n2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \n \n(NON-GAAP BASIS) BUDGET FUND \n \n21 \n \n3 STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING \n \nSOURCE COMPARED TO BUDGET \n \n(NON-GAAP BASIS) BUDGET FUND \n \n22 \n \n4 RECONCILIATION OF SALARIES AND TRAVEL \n \n25 \n \nSECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DEKALB TECHNICAL COLLEGE - TABLE OF CONTENTS - \nSECTION III FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \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 \nJanuary 13, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members ofthe Local Board of Directors \nand Honorable Robin Hoffman, President DeKalb Technical College \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \nLadies and Gentlemen: \nWe have audited the accompanying basic financial statements (Exhibits A through D) of DeKalb Technical College, an organizational unit of the State of Georgia as of and for the year ended June 30, 2008. These financial statements are the responsibility ofthe DeKalb Technical College's management. Our responsibility is to express an opinion on these financial statements based on our audit. \nExcept as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1mon. \nThe Technical College did not provide sufficient documentary evidence to support the amounts reported as beginning Net Assets for fiscal year 2008 in the basic financial statements, nor did the Technical College's records provide sufficient information for the application of other auditing procedures to reasonably determine whether beginning net assets were fairly stated. \n \n08ARL-4TC \n \n As discussed in Note I, the financial statements ofDeKalb Technical College are intended to present the financial position and changes in financial position and cash flows of only that portion of the business-type activities of the State of Georgia that is attributable to the transactions of DeKalb Technical College. They do not purport to, and do not, present fairly the financial position and changes in financial position and cash flows ofthe State of Georgia, in conformity with accounting principles generally accepted in the United States of America. \nIn our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to examine documentation supporting beginning Net Assets, the basic financial statements referred to above present fairly, in all material respects, the financial position of DeKalb Technical College as of June 30, 2008, and the respective changes in financial position and cash flows, where applicable, thereof, for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nDeKalb Technical College has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \nOur audit was conducted for the purpose of forming an opinion on the basic financial statements of DeKalb Technical College taken as a whole. The accompanying supplementary information (Schedules 1 through 4) is presented for purposes ofadditional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. \nRespectfully submitted, \nI \n~~~~ \nRussell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 08ARL-4TC \n \n BASIC FINANCIAL STATEMENTS - 1- \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF NET ASSETS \nJUNE 30, 2008 \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 Accounts Payable Salaries 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 Unrestricted (Deficit) \nTotal Net Assets \n \nEXHIBIT\"A\" \n$ 574,343.88 555,003.13 290,242.79 192,754.31 545,136.74 \n$ 2,157,480.85 \n30,601,062.29 $ 32,758,543.14 \n$ 229,419.09 128,358.47 177,685.50 160,398.59 883,052.20 \n$ 1,578,913.85 \n668,192.36 $ 2,247,106.21 \n$ 30,601,062.29 -89,625.36 \n$ 30,511,436.93 \n \nThe notes to the financial statements are an integral part of this statement. -2- \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \nYEAR ENDED JUNE 30, 2008 \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 Local Gifts Interest and Other Investment Income Other Nonoperating Expenses \nNet Nonoperating Revenues \nIncome (Loss) Before Other Revenues, Expenses, Gains, or Losses \nCapital Grants and Gifts State Nongovernmental Gain/Loss on Disposal of Capital Assets \nTotal Other Revenues, Expenses, Gains, or Losses \nIncrease (Decrease) in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \nThe notes to the financial statements are an integral part of this statement. -3- \n \n$ \n \n8,829,511.62 \n \n-432,315.49 \n \n2,397,562.00 28,607.60 \n329,958.78 133,665.03 \n \n$ 11,286,989.54 \n \n$ \n \n17,778,417.73 \n \n5,094,512.80 \n \n216,689.43 \n \n1,835,811.51 \n \n1,040,969.18 \n \n6,966,475.75 \n \n1,361,845.50 \n \n$ 34,294,721.90 \n \n$ -23,007, 732.36 \n \n$ 19,280,605.00 \n \n2,702,893.21 73,463.58 \n2,343,211.37 54,267.47 \n-2,242,364.38 \n \n$ 22,212,076.25 \n \n$ \n \n-795,656.11 \n \n$ 22,154,662.17 \n20,294.87 -3,002.55 \n$ 22,171,954.49 \n$ 21,376,298.38 \n9,135,138.55 \n \n$ 30,511,436.93 \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF CASH FLOWS \nYEAR ENDED JUNE 30, 2008 \nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts \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 \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 Earnings 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 \nNONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts Gift Reducing Proceeds of Gifts and Grants for Other than Capital Purposes \nThe notes to the financial statements are an integral part of this statement. \n-4 - \n \nEXHIBIT\"C\" \n \n$ 8,907,313.57 2, 195,530.12 267,294.82 \n-13,883,295.72 -17,634,876.84 \n-1,835,811.51 80,004.95 \n$ -21,903,840.61 \n \n$ 19,280,605.00 -456,869.58 3,009,103.50 \n$ 21,832,838.92 \n \n$ \n \n-866,312.66 \n \n$ \n \n54,267.47 \n \n$ \n \n-883,046.88 \n \n1,457,390.76 \n \n$ ====5=7.4.,=.34=3=.8===8 \n \n$ -23,007,732.36 \n1,361,845.50 -2,112.58 \n-88,600.05 -88.37 \n-26,001.51 -475,960.14 165,266.50 169,542.40 \n$ -21,903,840.61 \n$ -22, 174,957.04 $ -2,242,364.38 \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY DeKalb Technical College is one of thirty-three (33) State supported member colleges of postsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education, an organizational unit ofthe State of Georgia. The accompanying financial statements reflect the operations of DeKalb Technical College as a separate reporting entity. \nThe Technical College's Local Board of Directors is composed of eleven (11) 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 Georgia Department ofTechnical and Adult Education by the General Assembly ofGeorgia. The Department's Administrative Central Office determines the amount of State appropriations to be received by DeKalb Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, DeKalb Technical College is considered an organizational unit of the Georgia Department ofTechnical and Adult Education for financial reporting purposes because of the significance ofits legal, operational, and financial relationships as defined in Section 2100 ofthe Governmental Accounting Standards Board (GASB) Codification ofGovernmental Accounting and Financial Reporting Standards. \nLegally separate, tax exempt organizations whose activities primarily support member colleges of postsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education (an organizational unit ofthe State ofGeorgia), are considered potential component units of the State. See Note 15 for additional information. \nFINANCIAL STATEMENT PRESENTATION 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 ofthe Technical College's assets, liabilities, net assets, revenues, expenses, changes in net assets, cash flows, and replaces the fund group perspective previously required. \nGAAP requires that the reporting of summer school revenues and expenses be split between fiscal years rather than in one fiscal year. Due to lack of materiality, the Technical Colleges of the Georgia Department ofTechnical and Adult Education will continue to report summer revenues and expenses in the year in which the predominate activity takes place. \nBASIS OF ACCOUNTING For financial reporting purposes, the Technical College is considered a special-purpose government engaged only in business-type activities. Accordingly, the Technical College's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-college transactions have been eliminated. \n-5- \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF ACCOUNTING The Technical College has the option to apply all Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The Technical College has elected to not apply FASB pronouncements issued after the applicable date. \nCASH AND CASH EQUIVALENTS Cash and Cash Equivalents include petty cash, demand deposits and time deposits in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. \nACCOUNTS RECEIVABLE Accounts receivable consist oftuition and fee charges to students, allotments due from the Georgia Department ofTechnical and Adult Education - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. Accounts receivable are recorded net of estimated uncollectible amounts. \nINVENTORIES Resale inventories are valued at cost using the consumption method. \nCAPITAL ASSETS Capital assets are recorded at cost at date of acquisition, or fair market value at the date of capital contribution. The Technical College capitalizes all land and land improvements. For equipment, the Technical College's capitalization policy includes all items with a unit cost of $5,000.00 or more, and an estimated useful life of greater than one year. Buildings and Building Improvements, Improvements Other Than Buildings and Library Collections that exceed $100,000.00 or significantly increase the value or extend the useful life of the asset are capitalized. For infrastructure, the Technical College's capitalization threshold is $1,000,000.00. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives ofthe assets, generally 10 to 40 years for buildings, 15 to 25 years for infrastructure, 15 years for improvements other than buildings, 10 years for library books, and 3 to 10 years for equipment. \nTo fully portray capital assets acquired by the Technical Colleges of the Georgia Department of Technical and Adult Education, it is necessary to look at the activities of the Georgia State Financing and Investment Commission (GSFIC) - an organization that is external to both the Technical College and the Georgia Department of Technical and Adult Education. The GSFIC issues bonds for and on behalf of the State of Georgia, pursuant to powers granted to it in the Constitution of the State of Georgia and the Act creating the GSFIC. The bonds are issued for the purpose of acquiring capital assets and this debt constitutes direct and general obligations of the State of Georgia, to the payment of which the full faith, credit and taxing power of the State are pledged. \n \n-6 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCAPITAL ASSETS For major construction projects, GSFIC records construction in progress on its books throughout the construction period and at project completion transfers the entire project costs to DeKalb Technical College to be recorded as an asset on the Technical College's books. For the year ended June 30, 2008, GSFIC transferred capital additions valued at $22,154,662.17 to DeKalb Technical College. \nDEFERRED REVENUES Deferred revenues include amounts received for tuition and fees and other activities prior to the end of the fiscal year but related to the subsequent accounting period. Deferred revenues also include amounts received from grant and contract sponsors that have not yet been earned. \nCOMPENSATED ABSENCES Employee vacation pay is accrued for financial statement purposes when vested. The liability and expense incurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets, and as a component of compensation and benefit expense in the Statement of Revenues, Expenses and Changes in Net Assets. DeKalb Technical College had an accrued liability for compensated absences in the amount of $1,381,702.16 as of July 1, 2007. For fiscal year 2008, $1,053,194.27 was earned in compensated absences and employees were paid $883,651.87, for a net increase of $169,542.40. The ending balance as of June 30, 2008 in accrued liability for compensated absences was $1,551,244.56. \nNONCURRENT LIABILITIES Noncurrent liabilities include (1) liabilities that will not be paid within the next fiscal year; and (2) other liabilities that, although payable within one year, are to be paid from funds that are classified as noncurrent assets. \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. (The term \"debt obligations\" as used in this definition does not include debt of the GSFIC as discussed above.) \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 $192,333.36. Unexpended state appropriations must be refunded to the Department of Technical and Adult Education for remittance to the Office of Treasury and Fiscal Services. \n-7- \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nNET ASSETS When 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. \nINCOME TAXES DeKalb Technical College, as a political subdivision of the State of Georgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended. \nCLASSIFICATION OF REVENUES The Technical College has classified its revenues as either operating or nonoperating revenues in the Statement of Revenues, Expenses and Changes in Net Assets according to the following criteria: \nOperating revenues: Operating revenues include activities that have the characteristics ofexchange transactions, such as (1) student tuition and fees, net of scholarship allowances, (2) certain Federal, state and local grants and contracts, and (3) sales and services. \nNonoperating revenues: Nonoperating revenues include activities that have the characteristics of nonexchange transactions, such as gifts and contributions, and other revenue sources that are defined as nonoperating revenues by GASB No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary FundAccounting, and GASB No. 34, such as state appropriations and investment income. \nSCHOLARSHIP ALLOWANCES Student tuition and fee revenues, and certain other revenues from students, are reported at gross with a contra revenue account of scholarship allowances in the Statement of Revenues, Expenses and Changes in Net Assets. Scholarship allowances are the difference between the stated charge for goods and services provided by the Technical College, 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 nongovernmental programs, are recorded as either operating or nonoperating revenues in the Technical College's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the Technical College has recorded contra revenue for scholarship allowances. \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 \n \n-8- \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"D\" \n \nNOTE 2: DEPOSITS \nDEPOSITS 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 of Georgia, 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 DeKalb Technical College), the option of exempting demand deposits from the collateral requirements. \nAt June 30, 2008, the carrying value of the deposits was $567,589.88 and the bank balance was $1,824,846.34. Ofthe Technical College's deposits, $1,724,846.34 were uninsured. Ofthis balance $1,724,846.34 were collateralized with securities held by the financial institution's trust department or agent, but not in the Technical College's name. \nNOTE 3: ACCOUNTS RECEIVABLE \nAccounts receivable at June 30, 2008, consists of the following: \n \n-9 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nNOTE 3: ACCOUNTS RECEIVABLE \n \nStudent Tuition and Fees Federal, State and Private Funds Other \n \n$ 490,430.86 567,661.51 260,919.35 \n \n$ 1,319,011.72 \n \nLess: Allowance for Doubtful Accounts \n \n473,765.80 \n \nNet Accounts Receivable \n \n$ 845,245.92 \n \nNOTE 4: INVENTORIES \n \nInventories at June 30, 2008, consists of the following: \n \nBookstore \n \n$ 545,136.74 \n \nNOTE 5: CAPITAL ASSETS \n \nFollowing are the changes in capital assets for the year ended June 30, 2008: \n \nBalance Jul)'. I, 2007 \n \nAdditions \n \nReductions \n \nBalance June 30, 2008 \n \nCapital Assets, Not Being Depreciated: \n \nLand and Land Improvements \n \n$ 1,205,855.00 $ \n \nQ.00 $ \n \n0.00 $ 1,205,855.00 \n \nCapital Assets, Being Depreciated: \n \nBuilding and Building Improvements $ 9,424,670.00 $ 21,768,636.00 \n \n$ 31,193,306.00 \n \nImprovements Other Than Buildings \n \n1,030,310.00 \n \n1,030,310.00 \n \nEquipment \n \n5,896,952.49 1,159,424.70 $ 2,398,008.17 4,658,369.02 \n \nLibrary Collections \n \n361,904.60 \n \n113,209.00 \n \n475,113.60 \n \n$ 16,713,837.09 $ 23,041,269.70 $ 2,398,008.17 $ 37,357,098.62 \n \nLess: Accumulated Depreciation: \n \nBuilding and Building Improvements $ 2,751,562.76 $ \n \nImprovements Other Than Buildings \n \n1,030,310.00 \n \nEquipment \n \n5,030,481.24 \n \nLibrary Collections \n \n182,697.45 \n \n579,797.65 \n734,536.49 $ 47,511.36 \n \n$ 2,395,005.62 \n \n3,331,360.41 1,030,310.00 3,370,012.11 \n230,208.81 \n \n$ 8,995,051.45 $ 1,361,845.50 $ 2,395,005.62 $ 7,961,891.33 \n \nTotal Capital Assets, Being Depreciated, \n \nNet \n \n$ 7,718,785.64 $ 21,679,424.20 $ \n \n3,002.55 $ 29,395,207.29 \n \nCapital Assets, Net \n \n$ 8,224,640.64 $ 21,672 424 20 $ \n \n3,002.55 $ 30 601,062.22 \n \n- 10 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nNOTE 6: DEFERRED REVENUE \n \nDeferred revenue at June 30, 2008, consists ofthe following: \n \nPrepaid Tuition and Fees Other Deferred Revenue \n \n$ 165,898.50 11,787.00 \n \nTotals \n \n$ 177,685.50 \n \nNOTE 7: LONG-TERM LIABILITIES \n \nLong-Term liability activity for the year ended June 30, 2008, was as follows: \n \nOther Liabilities Compensated Absences \n \nBalance \nJuly 1. 2007 \n \nAdditions \n \nReductions \n \nBalance June 30. 2008 \n \nCurrent Portion \n \n$ 1,381 702.16 $ 1,053.194,27 $ 883.651.87 $ I 551 244.56 $ 883.052 20 \n \nNOTE 8: NET ASSETS \n \nChanges in Net Asset activity for the year ended June 30, 2008 was as follows: \n \nInvested in Capital Assets Net of Related Debt \nUnrestricted Net Assets \nTotal Net Assets \n \nBalance July 1. 2007 \n \nAdditions \n \nReductions \n \nBalance June 30, 2008 \n \n$ 8,924,640.64 $21,679,424.20 $ 3,002.55 $30,601,062.29 \n \n210.497.91 28.984.249.81 29.284,373.08 \n \n-89,625.36 \n \n$ 9.135 138,55 $ 50.663.674,0) $ 29 287 375 63 $ 30 5] ] .436,93 \n \nNOTE 9: LEASE OBLIGATIONS \n \nOPERATING LEASES DeKalb Technical College has entered into certain agreements to lease office space and equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised. \n \nExpenses for rental ofoffice space and equipment under operating leases for the year ended June 30, 2008, totaled $1,183,210.75. \n \n- 11 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nNOTE 9: LEASE OBLIGATIONS \n \nSUMMARY OF LEASE OBLIGATIONS Future commitments for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2008, were as follows: \n \nOperating Leases \n \nYear Ending June 30: 2009 2010 2011 2012 2013 2014 through 2015 \n \n$ 1,205,020.76 1,157,628.40 1,149,291.60 654,520.92 655,528.76 589,647.12 \n \nTotal Minimum Lease Payments \n \n$ 5,411,637.56 \n \nNOTE 10: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nPlan Description \nDeKalb 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 ofGeorgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System ofGeorgia issues a separate stand alone financial audit report and a copy can be obtained from the TRS offices or from the Georgia Department ofAudits and Accounts. \n \nFunding Policy \nEmployees of DeKalb Technical College who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. DeKalb 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 2008, 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 \n- 12 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"D\" \n \nNOTE 10: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nFunding Policy Fiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2008 2007 2006 \n \n100% 100% 100% \n \n$ 962,974.14 $ 958,416.17 $ 989,304.19 \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nPlan Description DeKalb Technical College participates in the Employees' Retirement System of Georgia (ERS), a single-employer defined benefit pension plan established by the General Assembly ofGeorgia for the purpose of providing retirement allowances for employees of the State of Georgia. \n \nThe benefit structure of ERS is defined by State statute and was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an \"old plan\" member subject to the plan provisions in effect prior to July 1, 1982. All other members are \"new plan\" members subject to the modified plan provisions. \n \nUnder both the old plan and new plan, members become vested after 10 years ofcreditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 25 years of service regardless of age. \n \nRetirement benefits paid to members are based upon a formula which considers the monthly average ofthe member's highest twenty-four consecutive calendar months ofsalary, the number ofyears of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution ofthe 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. \n \nIn addition, the ERS Board ofTrustees 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 ofSRBP is to provide retirement benefits to employees covered by ERS whose-benefits are otherwise limited by IRC 415. \n \n- 13 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nNOTE 10: RETIREMENT PLANS \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nPlan Description The ERS issues a financial report each fiscal year which may be obtained 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, 2008, for employees covered by ERS was $3,157,959.52. The Technical College's total payroll for all employees was $17,778,417.73. \nUnder the old plan, member contributions consist of 6.5% of annual compensation. Of these member contributions, the employee pays the first 1.5% and the Technical College pays the remainder on behalfofthe employee. Under the new plan, member contributions consist solely of 1.5% of annual compensation paid by employee. The Technical College also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2008, the ERS employer contribution rate for the Technical College amounted to 10.41% ofcovered payroll and included the amounts contributed on behalfof the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. \nTotal contributions to the plan made during fiscal year 2008 amounted to $376,534.54, of which $328,896.38 was made by the Technical College and $47,638.16 was made by employees. These contributions met the requirements of the plan. \nActuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2008, financial report which may be obtained through ERS. \nGEORGIA DEFINED CONTRIBUTION PLAN \nPlan Description DeKalb Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly ofGeorgia 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 \n- 14 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"D\" \n \nNOTE 10: RETIREMENT PLANS \nGEORGIA DEFINED CONTRIBUTION PLAN \nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500.00 credited to his/her account, the Board 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. \nThe Employees' Retirement System ofGeorgia issues a financial report each fiscal year which may be obtained through ERS. \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, 2008, for employees covered by GDCP was $3,083,955.92. The Technical College's total payroll for all employees was $17,778,417.73. \nTotal contributions made by employees during fiscal year 2008 amounted to $231,299.50 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \nNOTE 11: 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 ofGeorgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units ofgovernment participating in the plan, and appropriations made by the General Assembly of Georgia. DCH contracted with United Healthcare to process medical claims. For prescription drug claims, DCH contracted with Express Scripts, Incorporated through December 31, 2007 and contracted with Medco, Incorporated beginning January 1, 2008. All claims are to be processed in accordance with the State Employees' Health Benefit Plan as established by the Department of Community Health. \nOther Risk Management The Department ofAdministrative Services (DOAS) has the responsibility for the State ofGeorgia ofmaking and carrying out decisions that will minimize the adverse effects ofaccidental losses that involve State government assets. The State believes it is more economical to manage its risks \n- 15 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nNOTE 11: RISK MANAGEMENT \nOther Risk Management 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 Technical College, as an organizational unit of the Georgia Department of Technical and Adult Education, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. \nNOTE 12: POSTEMPLOYMENT BENEFITS \nThe Technical College participates in the Georgia Retiree Health Benefit Fund (\"GRHBF\") which is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers retired employees ofthe State of Georgia. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. \nPursuant to Title 45, Chapter 18 of O.C.G.A., the authority to establish and amend the benefit provisions of the plan is assigned to the Board of Community Health (\"Board\"). Financial statements and required supplementary information for GRHBF are included in the publicly available financial report of the Department of Community Health. \nThe Technical College contributes to the fund based upon amounts recommended by the Board and set forth in the Appropriations Act. This contribution rate is established to fund both the active and retired employee components of the health insurance plan based on projected pay-as-you-go financing requirements. The combined rate for the active and retiree components ofthe plan (payas-you-go basis) for the fiscal year ended June 30, 2008, was 18.534% of covered payroll. An additional contribution of4.309% ofcovered payroll was required by the Board for fiscal year 2008; eleven months ofthis additional contribution will be deposited into the OPEB fund to prefund retiree benefits (such additional contribution amounts are determined annually). The Technical College's contribution to the health insurance plan for the fiscal year ended June 30, 2008, was $3,161,802.40, which equaled the required contribution. \nThe Technical College also participates in a program of group term life insurance for retired and vested inactive eligible members of various retirement systems. The State Employees' Assurance Department (\"SEAD-OPEB\") is a single-employer defined benefit postemployment plan. \nPursuant to Title 47 ofthe Official Code ofGeorgia Annotated, the authority to establish and amend the benefit provisions of the plan is assigned to the Boards of Trustees of the Employees' and Judicial Retirement Systems. Financial statements and required supplementary information for SEAD-OPEB are included in the publicly available financial report of the Employees' Retirement System. \n- 16 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nNOTE 12: POSTEMPLOYMENT BENEFITS \nThe Technical College is required to contribute the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters ofGASB Statement 45. The ARC for the year ended June 30, 2008, was zero (0). \nNOTE 13: 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 expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although DeKalb Technical College expects such amounts, if any, to be immaterial to its overall financial position. \nLitigation, claims and assessments filed against DeKalb Technical College (an organizational unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State ofGeorgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2008. \nNOTE 14: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS \nThe Technical College's operating expenses shown at the natural classification on the \"Statement of Revenues, Expenses and Changes in Net Assets\" are all classified as Instruction at the functional classification. \nNOTE 15: AFFILIATED ORGANIZATIONS \nIn accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, an amendment ofGASB Statement No. 14, The Reporting Entity, which became effective for the year ended June 30, 2004, DeKalb Technical Foundation, Inc. has been determined to be a legally separate, tax exempt organization whose activities primarily support DeKalb Technical College, a member college ofpostsecondary education in Georgia whose units comprise the Department ofTechnical and Adult Education (an organizational unit ofthe State ofGeorgia). The State Accounting Office has determined Component Units ofthe State ofGeorgia, as required by GASB Statement No. 39, should be assessed in relation to their significance to the State of Georgia. Accordingly, DeKalb Technical College has not included financial activity for DeKalb Technical Foundation, Inc. in these financial statements. \n \n- 17 - \n \n {This page left intentionally blank) \n \n SUPPLEMENTARY INFORMATION - 19 - \n \n DEKALB TECHNICAL COLLEGE BALANCE SHEET (NON-GAAP) BASIS \nBUDGET FUND JUNE 30, 2008 \n \nSCHEDULE \"1\" \n \nASSETS \nCash and Cash Equivalents Accounts Receivable \nFederal Financial Assistance Other Prepaid Expenditures Inventories \nTotal Assets \nLIABILITIES AND FUND EQUITY \nLiabilities Salaries Payable Accounts Payable Encumbrances Payable Deferred Revenue Funds Held for Others \nTotal Liabilities \nFund Balances Reserved Federal Financial Assistance Live Works Projects Prior Year Local Funds Continuing Education Sales and Services Technology Fees Uncollectible Accounts Receivable Inventories Unreserved Surplus \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ \n \n429,869.75 \n \n600,852.28 751,178.23 192,754.31 545,136.74 \n \n$ =====2,=51=9=7,=9=1.=31= \n \n$ \n \n128,358.47 \n \n229,419.09 \n \n427,583.05 \n \n171,556.50 \n \n16,000.31 \n \n$ \n \n972,917.42 \n \n$ \n \n2,382.05 \n \n18,502.51 \n \n11,591.58 \n \n157,514.63 \n \n150,818.03 \n \n164,600.68 \n \n461,368.55 \n \n387,762.50 \n \n192,333.36 \n \n$ \n \n1,546,873.89 \n \n$ ====2=,=51=9=,=79=1=.=3=1= \n \nActual amounts were 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- 20 - \n \n DEKALB TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (NON-GMP BASIS) \nBUDGET FUND YEAR ENDED JUNE 30, 2008 \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 \nADJUSTMENTS \nPrior Year Payables/Expenditures Prior Year Receivables/Revenues Prior Year Reserved Fund Balance Included in Funds Available \nFUND BALANCE JUNE 30 \nSUMMARY OF FUND BALANCE \nReserved Federal Financial Assistance Live Works Projects Prior Year Local Funds Continuing Education Sales and Services Technology Fees Uncollectible Accounts Receivable Inventories \nTotal Reserved \nUnreserved Surplus \nTotal Fund Balance \n \nBUDGET \n \nACTUAL \n \nVARIANCEFAVORABLE (UNFAVORABLE) \n \n$ \n \n19,280,605.00 $ \n \n19,280,605.00 $ \n \n0.00 \n \n2,917,590.92 \n \n2,764,643.85 \n \n-152,947.07 \n \n11,928,792.83 \n \n9,449,838.99 \n \n-2,478,953.84 \n \n$ \n \n34,126,988.75 $ \n \n31,495,087.84 $ \n \n-2,631,900.91 \n \n0.00 \n \n612113.12 \n \n612113.12 \n \n$ \n \n34,126,988.75 $ \n \n32,107,200.96 $ \n \n-2,019,787.79 \n \n$ \n \n2,452,654.18 $ \n \n2,492,808.47 $ \n \n963,002.00 \n \n566,714.24 \n \n30,711,332.57 \n \n28, 152,464.45 \n \n$ \n \n34,126,988.75 $ \n \n31,211,987.16 $ \n \n$ \n \n0.00 $ \n \n895,213.80 $ \n \n-40,154.29 396,287.76 2,558,868.12 \n2,915,001.59 \n895,213.80 \n \n1,283,825.34 \n \n-86,503.16 66,451.03 -612,113.12 \n \n$ \n \n1,546,873.89 \n \n$ \n \n2,382.05 \n \n18,502.51 \n \n11,591.58 \n \n157,514.63 \n \n150,818.03 \n \n164,600.68 \n \n461,368.55 \n \n387,762.50 \n \n$ \n \n1,354,540.53 \n \n192,333.36 \n \n$ \n \n1,546,873.89 \n \nActual amounts were 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- 21 - \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET \n(NON-GAAP BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2008 \n \nAdult Literacy State Appropriation State General Funds Federal Funds Other Funds \nTotal Adult Literacy \n \nOriginal Appropriation \n \nFinal Budget \n \nCurrent Year Revenues \n \nFunds Available Comeared to Budget \n \nPrior Year Carry-Over \n \nTotal Funds Available \n \nVariance Positive (Negative) \n \n$ \n \n520,132.00 $ \n \n615,968.00 $ \n \n615,968.00 $ \n \n1,556,105.00 \n \n1,586,686.18 \n \n1,582,618.31 \n \n155 000.00 \n \n250,000.00 \n \n245 536.27 \n \n$ \n \n2,231,237.00 $ \n \n2.452,654.18 $ \n \n2,444 122.58 $ \n \n66.77 $ 4,707.88 6 379.00 \n11,153.65 $ \n \n616,034.77 $ 1,587,326.19 \n251 915.27 \n2,455,276.23 $ \n \n66.77 640.01 1915.27 \n2,622.05 \n \nEconomic Development Other Funds \n \n$ \n \n1047902.00 $ \n \n963 002.00 $ \n \n667 864.59 $ \n \n77 885.22 $ \n \n745 749.81 $ -217 252.19 \n \nTechnical EducaUon State Appropriation State General Funds Federal Funds Other Funds \nTotal Technical Education \n \n$ \n \n18,637,513.00 $ \n \n18,664,637.00 $ \n \n18,664,637.00 $ \n \n889,453.00 \n \n1,330,904.74 \n \n1,182,025.54 \n \n7 967 865.00 \n \n10,715,790.83 \n \n8,536,438.13 \n \n$ \n \n27,494,831.00 $ \n \n30. 711,332.57 $ \n \n28 383 100.67 $ \n \n0.00 $ 214,129.15 308 945.10 \n523 074.25 $ \n \n18,664,637.00 $ 1,396,154.69 8 845 383.23 \n \n0.00 65,249.95 -1,870 407 .60 \n \n28.906 174.92 $ -1.805,157.65 \n \nGrand Totals - All Programs \n \n$ \n \n30,773,970.00 $ \n \n34,126,988.75 $ \n \n31,495,087.84 $ \n \n612,113.12 $ \n \n32,107,200.96 $ -2,019,787.79 \n \nActual amounts were 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 \n-22- \n \n SCHEDULE \"3\" \n \n~ndltures 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 Balances \n \nReserve \n \nSurplus \n \nTotal Fund Balance \n \n$ \n \n615,816.87 $ \n \n151.13 $ \n \n1,631,462.33 \n \n-44,776.15 \n \n245,529.27 \n \n4 470.73 \n \n$ \n \n2,492,808.47 $ -40,154.29 $ \n \n217.90 $ -44,136.14 \n6 386.00 \n-37,532.24 $ \n \n0.00 $ 51,970.76 \n-7.00 \n51,963.76 $ \n \n0.00 $ -4,707.58 \n0.00 \n-4,707.58 $ \n \n217.90 $ 3,127.04 6 379.00 \n9,723.94 $ \n \n0.00 $ 0.00 0.00 \n0.00 $ \n \n0.00 $ 3,127.04 6 379.00 \n9,506.04 $ \n \n217.90 $ 0.00 0.00 \n217.90 $ \n \n217.90 3,127.04 6 379.00 \n9 723.94 \n \n$ \n \n566,714.24 $ 396,287.76 $ \n \n179,035.57 $ \n \n0.00 $ \n \n0.00 $ 179,035.57 $ \n \n0.00 $ 179,035.57 $ \n \n0.00 $ 179,035.57 \n \n$ 18,664,637.00 $ \n \n0.00 $ \n \n1,172,101.86 \n \n158,802.88 \n \n8,315,725.59 \n \n2,400,065.24 \n \n$ 28.152 464.45 $ 2,558 868.12 $ \n \n0.00 $ 224,052.83 529,657.64 \n753 710.47 $ \n \n0.00 $ \n \n2.82 $ \n \n-86,496.16 \n \n-138,301.66 \n \n14 480.27 \n \n-34 412.41 \n \n-72 015.89 $ -172 711.25 $ \n \n2.82 $ -744.99 509 725.50 \n508 983.33 $ \n \n0.00 $ \n \n0.00 $ \n \n2.82 $ \n \n0.00 \n \n-744.99 \n \n0.00 \n \n0.00 \n \n317 612.86 \n \n192112.64 \n \n0.00 $ 316,867.87 $ 192115.46 $ \n \n2.82 -744.99 509,725.50 \n508,983.33 \n \n$ 31,211,987.16 $ 2,915,001.59 $ \n \n895,213.80 $ -20,052.13 $ -177 418.83 $ 697,742.84 $ \n \n0.00 $ 505,409.48 $ 192,333.36 $ 697,742.84 \n \nUnexpendable Reserves Uncollectible Accounts Receivable Inventories \n \n461,368.55 387 762.50 \n$ 1.546 873.89 \n \n-23- \n \n (This page left intentionally blank) \n \n DEKALB TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nTotals per Annual Supplement \nAccruals June 30, 2008 June 30, 2007 \nCompensated Absences June 30, 2008 June 30, 2007 \nLag Salaries June 30, 2008 June 30, 2007 \nAgency Funds \n \nSALARIES $ 17,702,699.87 $ \n \nTRAVEL 226,032.41 \n \n128,358.47 -154,359.98 \n \n1,248,054.65 -1,169,318.79 \n \n-121,116.97 144,100.48 \n \n-91342.98 \n \n$ 17,778,417.73 $====2..1.6.=16=8=9=.4=3 \n \n- 25 - \n \n SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DEKALB TECHNICAL COLLEGE AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-830-05-01 FS-830-05-02 FS-830-05-03 FS-830-07-01 FS-830-07-02 FS-830-07-03 FS-830-07-04 FS-830-07-05 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS Inadequate Internal Controls Finding Control Number: FS-830-07-02 \n \nAll prior year bank reconciliation items noted in fiscal year 2007 were cleared and corrected in fiscal year 2008. A detailed Outstanding Check listing with the required information ofcheck number, check amount and check date was prepared for all accounts. Payroll and General Operating outstanding checks that met the criteria were either moved to Funds Held for Others or returned to the Georgia Department ofRevenue's Unclaimed Property Division. The outstanding check listing for the HOPE, Federal, and Refund accounts have been identified and properly listed as noted above. However, these checks have not been moved to Funds Held for Others. These listings are being analyzed so the proper unclaimed property procedures can be followed in fiscal year 2009. All accounts will be in compliance at the end of fiscal year 2009. \n \nCAPITAL ASSETS Inadequate Control over Capital Assets Finding Control Number: FS-830-07-05 \n \nA complete physical inventory was performed in fiscal year 2008 by the Property and Supply Supervisor. DeKalb Technical College is working to make appropriate corrections resulting from the findings of the physical inventory. Monthly reconciliations are being performed between the General Ledger and Asset Management Module. A Year-End reconciliation will be performed between the General Ledger, Asset Management Module, and Physical Inventory Listing in fiscal year 2009. \n \n SECTION III FINDINGS AND QUESTIONED COSTS \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-830-08-01 \n \nCondition: \n \nThe accounting procedures of the Technical College were insufficient to provide for adequate controls over accounts payable and expense. \n \nCriteria: \n \nThe Technical College's management is responsible for designing and maintaining internal controls that provide reasonable assurance that all financial activity is properly approved, documented, processed, and reported within the accounting records in accordance with generally accepted accounting principles. \n \nQuestioned Cost: NIA \n \nInformation: \n \nA review of subsequent period activity on the College's accounting records, revealed expenses for goods and/or services that were expensed during fiscal year 2009 when the goods and/or services were actually rendered during fiscal year 2008. It appears that the College did not have proper cutoff procedures in place to ensure that expenses and the associated accounts payable were reported within the appropriate fiscal year. \n \nCause: \n \nTechnical College management failed to implement adequate internal controls to ensure that all of its expense and accounts payable were accurately reported in the correct fiscal year. \n \nEffect: \n \nWithout satisfactory accounting policies and procedures in place, the Technical College's reporting of its financial position and results of operations could be adversely affected. \n \nRecommendation: \n \nThe Technical College should establish appropriate procedures and controls to ensure that all expense and accounts payable activity is recorded in the proper period for reporting purposes. \n \n- 1- \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCAPITAL ASSETS Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-830-08-02 \n \nCondition: \n \nThe accounting procedures of the Technical College were insufficient to provide for adequate internal controls over Capital Assets. \n \nCriteria: \n \nThe State Accounting Office's Accounting Procedures Manual for the State ofGeorgia states that, \"assets purchased, constructed or donated that meet or exceed the State's established capitalization thresholds or minimum reporting requirements must be uniformly classified in conformity with the Accounting Procedures Manual\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe following weaknesses/deficiencies were noted relating to Capital Assets: \n \n1) The Technical College did not fully conduct a physical inventory of capital assets. a) The College did not provide adequate supporting documentation of the results of its physical inventory. b) The capital asset listing used by the Technical College to perform the physical inventory did not agree with the records found in the Technical College's asset management module or its general ledger. c) The following deficiencies noted in a sample of thirty-six (36) equipment items tested: 1) Three items could not be located by the entity. 2) One asset appeared on the listing twice and was assigned two different tag numbers. 3) Two items had inaccurate locations noted in the asset management module. 4) Four items had no location noted in the asset management module. 5) Asset tags were not visible for seven of the items selected for testing. \n \n2) The College did not perform a year-end reconciliation between the financial statements, general ledger, asset management module, the listing used to perform its physical inventory, or other related subsidiary records. \n \n-2- \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCAPITAL ASSETS Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-830-08-02 \n \n3) Other weaknesses/deficiencies noted during audit procedures included: a) The College overstated current year depreciation by $56,280 for assets that were added and deleted, during the current year. b) Donated Assets were not properly capitalized resulting in an understatement of equipment of $164,708 and depreciation expense of$4,854. c) A modular building with a cost under $100,000 was misclassified as buildings instead of equipment as required by the College's capital asset policy. This misclassification also resulted in a depreciation expense overstatement of$1 l,672 due to the difference in estimated useful life. \n \nCause: \n \nThe Technical College's management failed to implement appropriate internal controls and procedures necessary to properly record, maintain and track capital assets. \n \nEffect: \n \nWithout proper accounting controls and procedures in place, the Technical College could place itself in a position where potential misappropriation of assets could occur. In addition, the lack ofcontrols could impact reporting of its financial position and results of operations. \n \nRecommendation: \n \nThe Technical College should establish appropriate procedures and controls to ensure that reconciliations are performed for the Capital Assets Module and the related subsidiary records. In addition, policies and procedures should be established to ensure that an accurate physical inventory of equipment is performed and that all capital assets listed on the capital assets inventory records can be identified by decal number, description and location. \n \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n-3- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2006-h2007","title":"Dekalb Technical College, Clarkston, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, DeKalb County, Clarkston, 33.80955, -84.23964"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2006/2007"],"dcterms_description":["Year ended June 30, 2002-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Fiscal year ended June 30, 2006."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2007-06-30"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["DeKalb Technical College--Appropriations and expenditures","Education--Auditing--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Dekalb Technical College, Clarkston, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007"],"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-bd42-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2006-h2007"],"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":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \nI \nDEKALB TECHNICAL COLLEGE CLARKSTON, GEORGIA \nREPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nRussell W. Hinton State Auditor \n \n DEKALB TECHNICAL COLLEGE - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \n \nBASIC FINANCIAL STATEMENTS \n \nEXHIBITS \n \nA STATEMENT OF NET ASSETS \n \n2 \n \nB STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \n \n3 \n \nC STATEMENT OF CASH FLOWS \n \n5 \n \nD NOTES TO THE FINANCIAL STATEMENTS \n \n6 \n \nSUPPLEMENTARY INFORMATION \n \nSCHEDULES \n \n1 BALANCE SHEET (NON-GAAP BASIS) BUDGET FUND \n \n20 \n \n2 BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \n \n(NON-GAAP BASIS) BUDGET FUND \n \n21 \n \n3 RECONCILIATION OF SALARIES AND TRAVEL \n \n23 \n \nSECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION III FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \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 \nJanuary 10, 2008 \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 Robin Hoffman, President DeKalb Technical College \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \nLadies and Gentlemen: \nWe were engaged to audit the accompanying basic financial statements (Exhibits A through D) of DeKalb Technical College, an organizational unit of the State of Georgia. These financial statements are the responsibility of the Technical College's management. Our responsibility is to express an opinion on these financial statements based on our audit. \nDeKalb Technical College did not provide adequate supporting documentation or authorization for employee compensation nor, in our opinion, is the system of internal control adequate to provide safeguards of assets and assume proper recording of salary transactions. Accordingly, it was impracticable to extend our procedures sufficiently to determine the extent to which the financial statements might have been affected by these conditions. \nThe Technical College was unable to perform a reconciliation between its' capital asset records and the amount reported on the financial statements. The Technical College's June 30, 2007 financial statements reported capital assets at $8,924,640.64. Additionally, the Technical College's records did not provide sufficient information for the application of other auditing procedures to ascertain whether amounts reported for capital assets are fairly stated. \nBecause the Technical College was unable to perform reconciliation procedures for capital assets and did not provide appropriate supporting information for employee compensation reported in the financial statements, and because we were unable to apply other auditing procedures to satisfy ourselves as to the accuracy of the balances reported, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on the basic financial statements. \n07ARL-65X \n \n As discussed in Note 1, the financial statements ofDeKalb Technical College are intended to present the financial position and changes in financial position and cash flows of only that portion of the business-type activities of the State of Georgia that is attributable to the transactions of DeKalb Technical College. They do not purport to, and do not, present fairly the financial position and changes in financial position and cash flows ofthe State ofGeorgia, in conformity with accounting principles generally accepted in the United States of America. \nDeKalb Technical College has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \nThe accompanying supplementary information (Schedules 1 through 3) is presented for purposes of additional analysis and is not a required part ofthe basic financial statements ofDeKalb Technical College. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of this supplementary information. However, we did not audit this information, and express no opinion on it. \nRespectfully submitted, \n.m. Q p , ----\"'~'- \n~l~ell W. Hinton, CPA, CGFM State Auditor \nRWH:as 07ARL-65X \n \n BASIC FINANCIAL STATEMENTS - 1- \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF NET ASSETS \nJUNE 30, 2007 \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 Accounts Payable Salaries 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 Unrestricted \nTotal Net Assets \n \nEXHIBIT\"A\" \n \n$ 1,457,390.76 204,977.14 743,502.02 192,665.94 456,536.69 \n$ 3,055,072.55 \n8,924,640.64 \n$ 11,979,713.19 \n \n$ \n \n705,379.23 \n \n154,359.98 \n \n12,209.10 \n \n590,924.17 \n \n782,157.12 \n \n$ 2,245,029.60 \n \n599,545.04 $ 2,844,574.64 \n \n$ 8,924,640.64 210 497.91 \n \n$ ==9=1,=35='=13=8=.5=5 \n \nThe notes to the financial statements are an integral part of this statement. -2- \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \nYEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"B\" \n \nOPERATING REVENUES \nStudent Tuition and Fees Less: Scholarship Allowances \nGrants and Contracts Federal \nSales 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 Local Expenses Gifts Interest and Other Investment Income Other Nonoperating Expenses \nNet Nonoperating Revenues \nIncome (Loss) Before Other Revenues, Expenses, Gains, or Loss \nCapital Grants and Gifts Loss on Disposal of Capital Assets \nIncrease (Decrease) in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \n$ 7,642,322.02 -301,576.03 \n2,190,333.64 755,023.13 8 457.40 \n$ 10,294,560.16 \n \n$ 16,880,352.66 4,042,474.97 131,840.46 1,735,652.61 1,093,707.75 7,468,636.56 923,686.00 \n$ 32,276,351.01 \n$ -21,981,790.85 \n \n$ 17,606,836.95 \n \n3,383,425.60 4,274, 114.07 -4,320, 138.93 \n208,847.69 46,543.55 \n-500.00 \n \n$ 21,199,128.93 \n \n$ \n \n-782,661.92 \n \n-385,355.06 $ -1, 168,016.98 \n10,303,155.53 \n \n$ 9,135,138.55 \n \nThe notes to the financial statements are an integral part of this statement. -3- \n \n (This page left intentionally blank) \n \n DEKALB TECHNICAL COLLEGE STATEMENT OF CASH FLOWS \nYEAR ENDED JUNE 30, 2007 \nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services Payments to Scholarships and Fellowships Payments to Suppliers Payments to Employees 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 Earnings 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: Receivable, Net Inventories Prepaid Items Accounts Payable Salaries Payable Deferred Revenue Capital Leases Compensated Absences \nNet Cash Provided (Used) by Operating Activities \nNONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts \nThe notes to the financial statements are an integral part of this statement. \n-5- \n \nEXHIBIT\"C\" \n \n$ 7,251,416.07 2,131,514.05 763,722.37 -1, 735,652.61 \n-12, 148,450.22 -16,638,130.02 \n8457.40 \n$ -20,367, 122.96 \n \n$ 17,611,713.28 4,563.14 \n3,758,217.14 -500.00 \n$ 21,373,993.56 \n \n$ \n \n-178 484.10 \n \n$ \n \n46 543.55 \n \n$ \n \n874,930.05 \n \n582,460.71 \n \n$ -21,981,790.85 \n923,686.00 -46,009.58 104,026.23 \n-4,822.42 483,421.78 \n2,060.51 -93,440.69 \n5,583.93 240,162.13 \n$ ======-2=4=0=0.=64= \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY DeKalb Technical College is one of thirty-four (34) State supported member colleges of postsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education, an organizational unit ofthe State of Georgia. The accompanying financial statements reflect the operations of DeKalb Technical College as a separate reporting entity. \nThe Technical College's Local Board of Directors is composed of eleven (11) 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 Georgia Department ofTechnical and Adult Education by the General Assembly ofGeorgia. The Department's Administrative Central Office determines the amount of State appropriations to be received by DeKalb Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, DeKalb Technical College is considered an organizational unit of the Georgia Department ofTechnical and Adult Education for financial reporting purposes because of the significance ofits legal, operational, and financial relationships as defined in Section 2100 ofthe Governmental Accounting Standards Board (GASB) Codification ofGovernmental Accounting and Financial Reporting Standards. \nLegally separate, tax exempt organizations whose activities primarily support member colleges of postsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education (an organizational unit ofthe State ofGeorgia), are considered potential component units of the State. See Note 14 for additional information. \nFINANCIAL STATEMENT PRESENTATION 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 ofthe Technical College's assets, liabilities, net assets, revenues, expenses, changes in net assets, cash flows, and replaces the fund group perspective previously required. \nGAAP requires that the reporting of summer school revenues and expenses be split between fiscal years rather than in one fiscal year. Due to lack of materiality, the Technical Colleges of the Georgia Department ofTechnical and Adult Education will continue to report summer revenues and expenses in the year in which the predominate activity takes place. \nBASIS OF ACCOUNTING For financial reporting purposes, the Technical College is considered a special-purpose government engaged only in business-type activities. Accordingly, the Technical College's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-college transactions have been eliminated. \n-6- \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF ACCOUNTING The Technical College has the option to apply all Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The Technical College has elected to not apply FASB pronouncements issued after the applicable date. \nCASH AND CASH EQUIVALENTS Cash and Cash Equivalents include petty cash, demand deposits and time deposits in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. This includes the State Investment Pool. \nACCOUNTS RECEIVABLE Accounts receivable consist oftuition and fee charges to students, allotments due from the Georgia Department ofTechnical and Adult Education - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. Accounts receivable are recorded net of estimated uncollectible amounts. \nINVENTORIES Resale inventories are valued at cost using the consumption method. \nCAPITAL ASSETS Capital assets are recorded at cost at date of acquisition, or fair market value at the date of capital contribution. The Technical College capitalizes all land and land improvements. For equipment, the Technical College's capitalization policy includes all items with a unit cost of $5,000.00 or more, and an estimated useful life of greater than one year. Buildings and Building Improvements, Improvements Other Than Buildings and Library Collections that exceed $100,000.00 or significantly increase the value or extend the useful life of the asset are capitalized. For infrastructure, the Technical College's capitalization threshold is $1,000,000.00. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives ofthe assets, generally 10 to 40 years for buildings, 15 to 25 years for infrastructure, 15 years for improvements other than buildings, 10 years for library books, and 3 to 10 years for equipment. \nTo fully portray capital assets acquired by the Technical Colleges of the Georgia Department of Technical and Adult Education, it is necessary to look at the activities of the Georgia State Financing and Investment Commission (GSFIC) - an organization that is external to both the Technical College and the Georgia Department of Technical and Adult Education. The GSFIC issues bonds for and on behalf of the State of Georgia, pursuant to powers granted to it in the Constitution ofthe State of Georgia and the Act creating the GSFIC. The bonds are issued for the purpose of acquiring capital assets and this debt constitutes direct and general obligations of the State of Georgia, to the payment of which the full faith, credit and taxing power of the State are pledged. \n \n-7- \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCAPITAL ASSETS For major construction projects, GSFIC records construction in progress on its books throughout the construction period and at project completion transfers the entire project costs to DeKalb Technical College to be recorded as an asset on the Technical College's books. For the year ended June 30, 2007, GSFIC did not transfer any capital additions to DeKalb Technical College. \nDEFERRED REVENUES Deferred revenues include amounts received for tuition and fees and other activities prior to the end of the fiscal year but related to the subsequent accounting period. Deferred revenues also include amounts received from grant and contract sponsors that have not yet been earned. \nCOMPENSATED ABSENCES Employee vacation pay is accrued for financial statement purposes when vested. The liability and expense incurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets, and as a component of compensation and benefit expense in the Statement of Revenues, Expenses and Changes in Net Assets. DeKalb Technical College had an accrued liability for compensated absences in the amount of $1,141,540.03 as of July 1, 2006. For fiscal year 2007, $1,050,382.43 was earned in compensated absences and employees were paid $810,220.30, for a net increase of $240,162.13. The ending balance as of June 30, 2007 in accrued liability for compensated absences was $1,381,702.16. \nNONCURRENT LIABILITIES Noncurrent liabilities include (1) liabilities that will not be paid within the next fiscal year; and (2) other liabilities that, although payable within one year, are to be paid from funds that are classified as noncurrent assets. \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. (The term \"debt obligations\" as used in this definition does not include debt of the GSFIC as discussed above.) \n \n-8- \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nNET ASSETS Unrestricted 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). Unexpended state appropriations must be refunded to the Department of Technical and Adult Education for remittance to the Office ofTreasury and Fiscal Services. At June 30, 2007, there was no surplus to be refunded. \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. \nINCOME TAXES DeKalb Technical College, as a political subdivision of the State of Georgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended. \nCLASSIFICATION OF REVENUES The Technical College has classified its revenues as either operating or nonoperating revenues in the Statement of Revenues, Expenses and Changes in Net Assets according to the following criteria: \nOperating revenues: Operating revenues include activities that have the characteristics ofexchange transactions, such as (1) student tuition and fees, net ofscholarship allowances, (2) certain Federal, state and local grants and contracts, and (3) sales and services. \nNonoperating revenues: Nonoperating revenues include activities that have the characteristics of nonexchange transactions, such as gifts and contributions, and other revenue sources that are defined as nonoperating revenues by GASB No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary FundAccounting, and GASB No. 34, such as state appropriations and investment income. \nSCHOLARSIDP ALLOWANCES Student tuition and fee revenues, and certain other revenues from students, are reported at gross with a contra revenue account of scholarship allowances in the Statement of Revenues, Expenses and Changes in Net Assets. Scholarship allowances are the difference between the stated charge for goods and services provided by the Technical College, 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 nongovernmental programs, are recorded as either operating or nonoperating revenues in the Technical College's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the Technical College has recorded contra revenue for scholarship allowances. \n-9- \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \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 ofa 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 ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. \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 DeKalb Technical College), the option of exempting demand deposits from the collateral requirements. \nAt June 30, 2007, DeKalb Technical College's bank balance was $2,169,867.54. Of this balance $2,169,867.54 was collateralized with securities held by the financial institution, its' trust department or agent, but not in the Technical College's name. \n \n- 10- \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nNOTE 3: ACCOUNTS RECEIVABLE \n \nAccounts receivable at June 30, 2007, consists of the following: \n \nStudent Tuition and Fees Federal, State and Private Funds Other \n \n$ 545,516.14 204,977.14 606,618.96 \n \n$ 1,357,112.24 \n \nLess: Allowance for Doubtful Accounts \n \n408,633.08 \n \nNet Accounts Receivable \n \n$ 948,479.16 \n \nNOTE 4: INVENTORIES \n \nInventories at June 30, 2007, consists ofthe following: \n \nBookstore \n \n$ 456,536.69 \n \nNOTE 5: CAPITAL ASSETS \n \nFollowing are the changes in capital assets for the year ended June 30, 2007: \n \nBalance July l, 2006 \n \nAdditions \n \nReductions \n \nBalance June 30, 2007 \n \nCapital Assets, Not Being Depreciated: \n \nLand and Land Improvements \n \n$ 1,205,855.00 $ \n \n0.00 $ \n \n0.00 $ 1,205,855.00 \n \nCapital Assets, Being Depreciated: Building and Building Improvements $ Improvements Other Than Buildings Capital Leases Equipment Library Collections \n \n9,359,307.00 $ 1,030,310.00 \n221,508.04 6,814,052.62 \n304,994.49 \n \n65,363.00 \n$ 45,386.00 70,135.74 \n \n$ \n221,508.04 962,486.13 \n13,225.63 \n \n9,424,670.00 1,030,310.00 \n0.00 5,896,952.49 \n361,904.60 \n \n$ 17,730,172.15 $ 180,884.74 $ 1,197,219.80 $ 16,713,837.09 \n \nLess: Accumulated Depreciation: Building and Building Improvements $ Improvements Other Than Buildings Capital Leases Equipment Library Collections \n \n2,540,667.10 $ 1,030,310.00 \n59,661.19 4,942,752.97 \n147,992.08 \n \n210,895.66 \n$ 676,302.86 \n36,487.48 \n \n$ \n59,661.19 588,574.59 \n1,782.11 \n \n2,751,562.76 1,030,310.00 \n0.00 5,030,481.24 \n182,697.45 \n \n$ 8,721,383.34 $ 923,686.00 $ 650,017.89 $ 8,995,051.45 \n \nTotal Capital Assets, Being Depreciated, \n \nNet \n \n$ 9,008,788.81 $ -742,801.26 $ 547,201.91 $ 7,718,785.64 \n \nCapital Assets, Net \n \n$ IQ 214,643.81 $ -142,801.26 $ 541201.21 $ 8 224 640.64 \n \n- 11 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nNOTE 6: DEFERRED REVENUE \n \nDeferred revenue at June 30, 2007, consists of the following: \n \nPrepaid Tuition and Fees Federal Grants and Contracts \n \n$ 12,209.00 0.10 \n \nTotals NOTE 7: LONG-TERM LIABILITIES \n \n$======1==2-=20==9==l.==O \n \nLong-Term liability activity for the year ended June 30, 2007, was as follows: \n \nLeases Lease Obligations \nOther Liabilities Compensated Absences \nTotal Long-Term Liabilities \n \nBalance Jul:t 1, 2006 \n \nAdditions \n \nReductions \n \nBalance June 30, 2007 \n \n$ 156,262.92 \n \n$ 156,262.92 $ \n \n0.00 $ \n \n1,141,540.03 $ 1,050,382.43 $ 1.297,802 95 $ l 050.382.43 $ \n \n810,220.30 \n \n1,381,702.16 \n \n966,483.22 $ 1,381.702 16 $ \n \nCurrent Portion \n0.00 \n782,157.12 782 157 12 \n \nNOTE 8: LEASE OBLIGATIONS \n \nOPERATING LEASES \nDeKalb Technical College has entered into certain agreements to lease office space and equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term ofthe lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised. \n \nExpenses for rental ofoffice space and equipment under operating leases for the year ended June 30, 2007, totaled $1,223,546.37. \n \nNOTE 9: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nPlan Description \nDeKalb Technical College participates in the Teachers Retirement System ofGeorgia (TRS), a costsharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State ofGeorgia. TRS provides service retirement, disability retirement, and survivor's benefits for \n \n- 12 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nNOTE 9: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nPlan Description \nits members in accordance with State statute. The Teachers Retirement System ofGeorgia issues a separate stand alone financial audit report and a copy can be obtained from the TRS offices or from the Georgia Department of Audits and Accounts. \n \nFunding Policy \nEmployees ofDeKalb Technical College who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. DeKalb Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2007, the employer contribution rate was 9.28% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2007 2006 2005 \n \n100% 100% 100% \n \n$ 958,416.17 $ 989,304.19 $ 1,033,212.97 \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nPlan Description \nDeKalb 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 ofproviding retirement allowances for employees ofthe State of Georgia. \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nPlan Description \nThe benefit structure of ERS is defined by State statute and was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an \"old plan\" member subject to the plan provisions in effect prior to July 1, 1982. All other members are \"new plan\" members subject to the modified plan provisions. \n \n- 13 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"D\" \n \nNOTE 9: RETIREMENT PLANS \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nPlan Description Under both the old plan and new plan, members become vested after 10 years ofcreditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 25 years of service regardless of age. \nRetirement benefits paid to members are based upon a formula which considers the monthly average ofthe member's highest twenty-four consecutive calendar months ofsalary, the number ofyears of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution ofthe 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. \nIn addition, the ERS Board ofTrustees 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 ofSRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. \nThe ERS issues a financial report each fiscal year which may be obtained 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, 2007, for employees covered by ERS was $2,628,062.95. The Technical College's total payroll for all employees was $16,880,352.66. \nUnder the old plan, member contributions consist of 7.16% of annual compensation. Of these member contributions, the employee pays the first 1.5% and the Technical College pays the remainder on behalfofthe employee. Under the new plan, member contributions consist solely of 1.5% of annual compensation paid by employee. The Technical College also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2007, the ERS employer contribution rate for the Technical College amounted to 10.16% ofcovered payroll and included the amounts contributed on behalfof the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. \n \n- 14 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nNOTE 9: RETIREMENT PLANS \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFunding Policy Total contributions to the plan made during fiscal year 2007 amounted to $299,782.68, of which $266,931.49 was made by the Technical College and $32,851.19 was made by employees. These contributions met the requirements of the plan. \nActuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2007, financial report which may be obtained through ERS. \nGEORGIA DEFINED CONTRIBUTION PLAN \nPlan Description DeKalb Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly ofGeorgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members ofa public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \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. \nThe Employees' Retirement System ofGeorgia issues a financial report each fiscal year which may be obtained through ERS. \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, 2007, for employees covered by GDCP was $2,889,008.74. The Technical College's total payroll for all employees was $16,880,352.66. \nTotal contributions made by employees during fiscal year 2007 amounted to $216,677.93 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \n- 15 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nNOTE 10: 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 ofGeorgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units ofgovernment participating in the plan, and appropriations made by the General Assembly of Georgia. The Department ofCommunity Health contracted with United Healthcare to process medical claims and Express Scripts, Incorporated to process prescription drug claims in accordance with the State Employees' Health Benefit Plan as established by the Department of Community Health. \nOther Risk Management The Department ofAdministrative Services (DOAS) has the responsibility for the State ofGeorgia ofmaking and carrying out decisions that will minimize the adverse effects ofaccidental 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 Technical College, as an organizational unit of the Georgia Department of Technical and Adult Education, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. \nNOTE 11: 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 expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although DeKalb Technical College expects such amounts, if any, to be immaterial to its overall financial position. \nLitigation, claims and assessments filed against DeKalb Technical College (an organizational unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State ofGeorgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2007. \n \n- 16 - \n \n DEKALB TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"D\" \n \nNOTE 12: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS \nThe Technical College's operating expenses shown at the natural classification on the \"Statement of Revenues, Expenses and Changes in Net Assets\" are all classified as Instruction at the functional classification. \nNOTE 13: AFFILIATED ORGANIZATIONS \nIn accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, an amendment ofGASB Statement No. 14, The Reporting Entity, which became effective for the year ended June 30, 2004, DeKalb Technical Foundation, Inc. has been determined to be a legally separate, tax exempt organization whose activities primarily support DeKalb Technical College, a member college ofpostsecondary education in Georgia whose units comprise the Department ofTechnical and Adult Education (an organizational unit ofthe State of Georgia). The State Accounting Office has determined Component Units ofthe State of Georgia, as required by GASB Statement No. 39, should be assessed in relation to their significance to the State of Georgia. Accordingly, DeKalb Technical College has not included financial activity for DeKalb Technical Foundation, Inc. in these financial statements. \n \n- 17 - \n \n (This page left intentionally blank) \n \n SUPPLEMENTARY INFORMATION - 19 - \n \n DEKALB TECHNICAL COLLEGE BALANCE SHEET (NON-GAAP BASIS) \nBUDGET FUND JUNE 30, 2007 \nASSETS \nCash and Cash Equivalents Accounts Receivable \nFederal Financial Assistance Other Prepaid Expenditures Inventories \nTotal Assets \nLIABILITIES AND FUND EQUITY \nLiabilities Salaries Payable Accounts Payable Deferred Revenue Funds Held for Others \nTotal Liabilities \nFund Balances Reserved Federal Financial Assistance Live Works Projects Prior Year Local Funds Continuing Education Sales and Services Technology Fees Uncollectible Accounts Receivable Inventories \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nSCHEDULE \"1\" \n \n$ \n \n963,345.03 \n \n160,881.22 1,307,003.58 \n192,665.94 456,536.69 \n \n$ ======3,=0=80=,4=3=2=.4=6 \n \n$ \n \n137,166.61 \n \n1,598,839.39 \n \n11,772.97 \n \n48,828.15 \n \n$ 1,796,607.12 \n \n$ \n \n218,837.03 \n \n100,026.22 \n \n6,571.19 \n \n34,933.87 \n \n96,614.10 \n \n155,130.71 \n \n335,034.44 \n \n336,677.78 \n \n$ 1,283,825.34 \n \n$ ==3=,0=8=0'=43=2=.4=6 \n \nActual amounts were 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-20- \n \n DEKALB TECHNICAL COLLEGE BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (NON-GAAP BASIS) \nBUDGET FUND YEAR ENDED JUNE 30, 2007 \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/Revenue Unreserved Fund Balance (Surplus) Returned \nto Department of Technical and Adult Education Year Ended June 30, 2006 \nRefunds to Grantors Federal Financial Assistance Returned to Georgia Department of Technical and Adult Education \nPrior Year Reserved Fund Balance Included in Funds Available \nFUND BALANCE JUNE 30 \n \nBUDGET \n \nACTUAL \n \nVARIANCEFAVORABLE (UNFAVORABLE) \n \n$ 17,607,558.21 $ 17,607,558.21 $ \n \n4,078,957.69 \n \n3,617,578.17 \n \n11,063,429.85 \n \n8,576,978.14 \n \n$ 32,749,945.75 $ 29,802,114.52 $ \n \n0.00 -461,379.52 -2 486 451.71 \n-2,947,831.23 \n \n0.00 \n \n249,758.52 \n \n$ 32,749,945.75 $ 30,051,873.04 $ \n \n249 758.52 -2,698,072.71 \n \n$ 2,402,993.62 $ 2,337,238.45 $ \n \n1,910,895.85 \n \n1,216,897.10 \n \n28,436,056.28 \n \n25,834,941.74 \n \n$ 32,749,945.75 $ 29,389,077.29 $ \n \n$ \n \n0.00 $ 662,795.75 $ \n \n65,755.17 693,998.75 2 601 114.54 \n3,360,868.46 \n662 795.75 \n \n891,459.24 721.26 \n \n21,716.05 -3,875.14 \n-721.26 \n-38,512.04 -249,758.52 $ 1,283,825.34 \n \nSUMMARY OF FUND BALANCE \nReserved Federal Financial Assistance Live Works Projects Prior Year Local Funds Continuing Education Sales and Services Technology Fees Uncollectible Accounts Receivable Inventories \n \n$ 218,837.03 100,026.22 6,571.19 34,933.87 96,614.10 155,130.71 335,034.44 336,677.78 \n \nTotal Fund Balance \nActual amounts were 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- 21 - \n \n$ 1,283,825.34 \n \n (This page left intentionally blank) \n \n DEKALB TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"3\" \n \nTotals per Annual Supplement \nAccruals June 30, 2007 June 30, 2006 \nCompensated Absences June 30, 2007 June 30, 2006 \nLag Salaries June 30, 2007 June 30, 2006 \nUnidentified Variance \n \nSALARIES \n \nTRAVEL \n \n$ 16,825,480.34 $ \n \n131,840.46 \n \n154,359.98 -152,299.47 \n \n1,169,318.79 -1, 125,224.28 \n \n-144, 100.48 160,071.55 \n-7 253.77 \n \n$ 16,880,352.66 $ ===1=31=,8=4=0=.4=6 \n \n- 23 - \n \n SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DEKALB TECHNICAL COLLEGE AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-830-04-01 FS-830-05-01 FS-830-05-02 FS-830-05-03 \n \nFurther Action Not Warranted Partially Resolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nGENERAL LEDGER Failure to Correctly Prepare Financial Statements Finding Control Number: FS-830-05-01 \n \nFor fiscal year 2006 there were 31 incorrect GAAP related items noted in the Agreed Upon Procedures Report related to journal entries as well as the Statement ofNet Assets and the Statement of Revenues, Expenses and Changes in Net Assets. For fiscal year 2007, DeKalb Technical College did not remove agency funds in converting the statements, and included the revenue and expense in nonoperating activity. DeKalb Technical College will continue to work to ensure the required year-end manipulation of the financial statements in order to convert to GAAP statements are completed for the purpose of the State Accounting Office producing a state-wide Consolidated Annual Financial Report (CAFR) is perfected. \n \nGENERAL LEDGER Deficiencies in Maintaining Account Balances Finding Control Number: FS-830-05-02 \n \nThe fiscal year 2005 Management Report noted incorrectly reported balances in the following accounts: 160001 Advances to Other Funds, 171001 Buildings, 200050 Deferred Revenue, 262001 Funds Held for Others, 296001 Clearing Accounting, 125010 Accounts Receivable Banner, and 337080 DTAE Fund Equity. For fiscal year2007 all of these accounts had the correct balances and activity with the exception of 262001. For fiscal year 2007, DeKalb Technical College incorrectly recorded all revenue and expenses in 262001 instead ofusing identifiable revenue and expense accounts. While the 262001 ending balance was correct, the incorrect use of the account during the year prohibited actual revenue and expense accounts to be detailed and identified related to trust and agency funds. DeKalb Technical College also incorrectly used 627049 Other Operating Expense in the recording of food purchases, certain per diem and travel and consultant fees. DeKalb Technical College has instituted monthly balancing and review procedures to be overseen by the VP Administrative Services to ensure the proper General Ledger and other account balances are maintained correctly. \n \n- 1- \n \n DEKALB TECHNICAL COLLEGE AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Finding Control Number: FS-830-05-03 \n \nAs ofthe close of fiscal year 2007 this issue was unresolved, except that all reconciliation items were identified and no items were listed only as \"unreconciled\". All items prior to fiscal year 2007 have been reconciled as of October 2007 (fiscal year 2008). All fiscal year 2007 items will be reconciled as ofDecember 2007. All bank reconciliations are now reviewed by the VP Administrative Services and all prior month reconciliation items will be corrected before the close ofthe following monthly accounting period. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-830-05-01 \n \nPreviously Reported Corrective Action Implemented \n \n-2- \n \n SECTION III FINDINGS AND QUESTIONED COSTS \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nACCOUNTING CONTROLS (OVERALL) Inadequate Internal Control/Risk Assessments Material Weakness Finding Control Number: FS-830-07-01 \n \nCondition: \n \nThe Technical College was unable to provide sufficient evidence that management had adequately accessed and documented the Technical College's system of internal controls including the design, implementation and monitoring of internal controls. \n \nCriteria: \n \nThe State Accounting Office's Accounting Procedures Manual for the State of Georgia, Section V, Pages 5-1-1 and 5-1-2 state in part, \"Each State organization is responsible for adopting an internal control framework that is suitable for the type ofservices they provide.... Each State organization has a responsibility to assess their internal control system and use this information to design, implement, and monitor internal controls that are suitable for their organization\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nOur examination and testing for the year under review revealed the following deficiencies: \n \n1) The Technical College could not provide sufficient documentation to support policies and procedures established by management. \n2) The Technical College could not provide evidence that management had formally identified, evaluated and prioritized risks that affect the Technical College. \n3) The Technical College could not provide evidence that management had taken action related to identified risks oftheir organization and determined the necessary action to reduce the potential occurrence and significance. \n4) The Technical College could not provide evidence that management monitored conditions to remain aware ofchanging circumstances to ensure that systems or processes were accurately capturing, processing and reporting data. \n \nCause: \n \nThe Technical College's management failed to design, implement and monitor satisfactory internal controls to provide reasonable assurance that the following entity objectives are being met: (1) effective and efficient operations, (2) reliability of financial reporting, (3) compliance with applicable laws and regulations, and (4) safeguarding of assets. \n \n- 1- \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nACCOUNTING CONTROLS (OVERALL) Inadequate Internal Control/Risk Assessments Material Weakness Finding Control Number: FS-830-07-01 \n \nEffect: \n \nWithout satisfactory accounting controls and procedures in place, the Technical College could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of controls could impact the reporting ofits financial position and results ofoperations. \n \nRecommendation: \n \nThe Technical College should review its internal controls. It should ensure that these policies and procedures are adequate and should then determine whether or not they are properly documented, placed in operation and operating effectively. In areas where deficiencies exist, the Technical College should design and implement additional control procedures to provide reasonable assurance that the controls provide (1) effective and efficient operations, (2) reliable financial reporting, (3) compliance with applicable laws and regulations, and (4) safeguarding of assets. \n \nCASH AND CASH EQUIVALENTS Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-830-07-02 \n \nCondition: \n \nThe accounting procedures of the Technical College were insufficient to provide for adequate internal controls over cash and cash equivalents. This deficiency was previously reported in finding FS-830-05-03 from fiscal year ended June 30, 2005. \n \nCriteria: \n \nAn adequate system of internal controls dictate that bank reconciliations be performed on a monthly basis, and include the following: (1) adequate supporting documentation, (2) reconciling items correctly identified by description, (3) adjustments which are needed are identified and made in a timely manner, and (4) evidence of an effective supervisory review and approval function. \n \nQuestioned Cost: NIA \n \n-2- \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-830-07-02 \n \nInformation: \n \nA review ofthe bank reconciliations for the Operating account revealed the following: \n \n1) The Technical College failed to post receipts and disbursements in a timely manner to the financial records for items that had cleared the bank. Reconciling items were carried on the bank reconciliation for an unreasonable amount oftime. At June 30, 2007, over 56 different items totaling $231,091.37 (net) had not been posted to the general ledger. These items included unrecorded deposits dating back to February 2006, numerous unrecorded wire transfers, deposits recorded twice, voided checks, interest earned, etc. \n \n2) The Technical College failed to adequately review and maintain an outstanding check listing. Outstanding checks were included on the bank reconciliation dating back to August 1998. In some instances the outstanding check list included items that could not be identified by check number, date issued and amount for checks issued prior to December 2005. Additionally, there was no evidence that unclaimed property procedures had been performed related to these outstanding checks. \n \nCause: \n \nThe Technical College's management failed to implement satisfactory controls to ensure that bank reconciliations were performed on a monthly basis and reconciling items were properly identified and corrected within a reasonable amount of time. \n \nEffect: \n \nWithout satisfactory accounting controls and procedures in place, the Technical College could place itself in a position where potential misappropriation of assets could occur. The lack of controls could impact reporting of its financial position. In addition, the Technical College was noncompliant with provisions of the \"Disposition of Unclaimed Property\" Act. \n \n-3- \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-830-07-02 \n \nRecommendation: \n \nManagement should monitor accounting controls and procedures currently in place, identify weaknesses and implement procedures to strengthen the internal controls over the bank reconciliation process. The Technical College should prepare an accurate outstanding check list, including check dates, for each account and review the lists periodically on a timely basis. In addition, the Technical College should also ensure that proper procedures are implemented to follow the \"Disposition ofUnclaimed Property\" Act (OCGA 44-12-190 through 44-12-235) which requires that unclaimed property be reported and remitted to Georgia Department ofRevenue on an annual basis after a defined holding period has expired. \n \nEMPLOYEE COMPENSATION Inadequate Internal Controls Material Weakness Finding Control Number: FS-830-07-03 \n \nCondition: \n \nThe accounting procedures ofDeKalb Technical College were insufficient to provide for adequate internal controls over employee compensation. \n \nCriteria: \n \nThe Technical College's management is responsible for designing and implementing internal controls that provide reasonable assurance that employees are properly compensated and that supporting documentation related to employee compensation is maintained, processed and reported within its accounting records. The Department of Technical and Adult Education's policy and procedures manual states, \"The President ofTechnical Colleges shall determine the salary to be paid to each employee and approve all personnel actions (employment, promotions, disciplinary actions, dismissals, etc).\" \n \nQuestioned Cost: NIA \n \n-4- \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nEMPLOYEE COMPENSATION Inadequate Internal Controls Material Weakness Finding Control Number: FS-830-07-03 \n \nInformation: \n \nTest of controls of 25 personnel files revealed the following deficiencies: \n \n1) 16 instances of unapproved personnel actions 2) 5 unapproved adjunct employee pay amounts 3) 1 personnel action form approved after the employee was paid 4) 7 instances where the earnings paid did not agree to the personnel \naction form \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning related to employee compensation. \n \nEffect: \n \nWithout satisfactory controls and procedures in place, the Technical College could place itself in a position where potential misappropriation of assets could occur. Additionally, due to the condition of the employee compensation supporting documentation the auditors were unable to determine ifsalary transactions were properly recorded within the accounting records. \n \nRecommendation: \n \nManagement should establish policies and procedures to ensure that all employee compensation is approved, properly calculated, well documented, and reported accurately. \n \nGENERAL LEDGER Failure to Correctly Maintain Agency Funds Significant Deficiency Finding Control Number: FS-830-07-04 \n \nCondition: \n \nThe accounting procedures of the Technical College were insufficient to provide adequate controls over general ledger account balances related to Agency Funds. \n \nCriteria: \n \nThe Technical College's management is responsible for designing and maintaining internal controls that provide reasonable assurance that receipts and disbursements are properly documented, processed and reported within its accounting records. \n \n-5- \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nGENERAL LEDGER Failure to Correctly Maintain Agency Funds Significant Deficiency Finding Control Number: FS-830-07-04 \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe following weaknesses/deficiencies relating to agency funds were noted: \n \n1) The Technical College is not adequately reconciling their Agency Funds for the PELL, FSEOG, and HOPE Grants. \n2) Balances remain on numerous Grants dating back to 1997 containing both positive and negative fund balance amounts. \n \nCause: \n \nThese deficiencies were the result of management's failure to properly monitor, reconcile, and maintain the Agency Funds. \n \nEffect: \n \nWithout satisfactory controls in place, potential errors in the financial statements and reporting to grantors could occur. \n \nRecommendation: \n \nManagement should implement policies and procedures to ensure Agency Funds are reconciled monthly and that uncorrected items are identified and corrected in a timely manner. \n \nCAPITAL ASSETS Inadequate Control over Capital Assets Material Weakness Finding Control Number: FS-830-07-05 \n \nCondition: \n \nThe Technical College failed to maintain accurate capital asset records. \n \nCriteria: \n \nThe State Accounting Office's Accounting Procedures Manual for the State ofGeorgia states that, \"assets purchased, constructed or donated that meet or exceed the State's established capitalization thresholds or minimum reporting requirements must be uniformly classified in conformity with the Accounting Procedures Manual\". \n \n-6- \n \n DEKALB TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCAPITAL ASSETS Inadequate Control over Capital Assets Material Weakness Finding Control Number: FS-830-07-05 \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe following weaknesses/deficiencies were noted relating to Capital Assets: \n \n The Technical College did not perform a complete physical inventory count ofcapitalized equipment. The last known physical inventory count was performed in fiscal year 2002. \n Additions to capital assets were not being reconciled to capital outlay expense recorded in the general ledger. \n \nCause: \n \nThe Technical College's management failed to implement appropriate internal controls and procedures necessary to properly record, maintain and track capital assets. \n \nEffect: \n \nWithout satisfactory accounting controls and procedures in place, the Technical College could place itself in a position where potential misappropriation of assets could occur. The lack of controls could impact reporting of its financial position and results of operations. \n \nRecommendation: \n \nThe Technical College should perform a complete physical inventory of all capital assets. In addition, the Technical College should implement procedures to reconcile current year capital asset additions to current year capital outlay expense on a periodic basis. Finally, the Technical College should establish appropriate procedures and controls to ensure that capital asset records are correctly maintained. \n \nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n-7- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2005-h2006","title":"Dekalb Technical College, Clarkston, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2006","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, DeKalb County, Clarkston, 33.80955, -84.23964"],"dcterms_creator":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd42-b2005-h2006"],"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":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \nI \nDEKALB TECHNICAL COLLEGE CLARKSTON, GEORGIA \nINDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES \nFOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nRussell W. Hinton State Auditor \n \n DEKALB TECHNICAL COLLEGE - TABLE OF CONTENTS - \nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBIT \nA BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \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 27, 2006 \n \nMembers of the State Board Technical and Adult Education Members of the Local Board of Directors \nand Honorable Robin Hoffman, President DeKalb Technical College \nIndependent Accountant's Report on Applying Agreed-Upon Procedures \nLadies and Gentlemen: \nWe have performed the procedures enumerated below, which were agreed to by the College and the Administrative Central Office (Oversight Unit) ofthe Department ofTechnical and Adult Education, solely to assist you in assessing the accuracy ofthe annual financial statement information reported to the Administrative Central Office by the College for inclusion in the State's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of budget basis information provided in the Budget Comparison and Surplus Analysis Report, which is attached as Exhibit A. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency ofthese procedures is solely the responsibility ofthe parties specified in this report. Consequently, we make no representation regarding the sufficiency ofthe procedures described below either for the purpose for which this report has been requested or for any other purpose. \n1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. \nCash was not properly reconciled to amounts reported on the financial statements. A variance of $157,174.40 was noted between the reconciliations and the amounts reported on the annual financial statement worksheets. \nAccounts payable was shown on the annual financial statements with a deficit balance of$1,521,000.31. Actual accounts payable should have been reported at $415,015.63, thus causing an understatement to accounts payable of \n \n $1,936,015.94. A review of the subsidiary payables listing identified invalid payables of$-193,058.18. Additionally, an incorrect GAAP encumbrance entry reduced payables by $1,742,957.76. \nPrepaid expenditures reported on the financial statements of $187,843.52 did not properly reconcile to the subsidiary listing totaling $190,243.52. This variance of $2,400.00 was due to a prior year adjustment made to current year revenue in error. \nInventories reported on the AFR of $560,562.92 did not reconcile to subsidiary detailed listing for inventories totaling $559,677.61 resulting in an unidentified variance of $885.31. \nCapital Assets and Accumulated Depreciation, reported on the AFR, were not reconciled to the asset management module subsidiary ledger. Capital Assets on the Statement of Net Assets were overstated by $100,298.75. \nCapital Leases liability, as reported on the Statement of Net Assets, did not agree with subsidiary capital lease payment schedules resulting in an understatement in liabilities of $223,614.96. Additionally, these liability amounts were not included in the calculation of Investment in Capital Assets, Net of Related Debt. \nInvested in Capital Assets, Net of Related Debt, reported on the Statement of Net Assets, was overstated by $470,044.24. \nCompensated Absences liability, totaling $1,133,726.65 on the Statement of Net Assets, did not reconcile to leave liability reports. Actual compensated absences liability should have been reported as $1,151,977.35 resulting in an understatement of liabilities of $18,250.70. \n2. Obtain the College's GAAP basis worksheets for Statement ofNet Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the College's accounting records. \nWe were unable to tie to the revenues reported on the DTAE confirmation. Per the confirmation DTAE revenues totaled $21,799,932.28 as opposed to $21,806,839.92 reported on the accounting records of the College, resulting in an unidentified variance of $6,907.64. \nRevenue and expense activity was incorrectly reported on the SRECNA information submitted. Numerous errors related to GAAP entries were identified, resulting in material misstatements. See item number 4 for a detailed analysis of GAAP entries. \n \n 3. Obtain the College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. \nThe bank balances of $1,697,194.49, reported on the Cash note disclosure information, did not tie to the actual bank balances total of $1,597,194.49, resulting in a variance of $100,000.00. \nNet accounts receivable of $1,408,916.74, as reported on the Accounts Receivable note disclosure information, did not tie to the net receivable of $1,234,520.06 reported on the Statement of Net Assets. This resulted in a variance of $174,396.68. Additionally, the State Appropriations receivable of $4,876.33 was erroneously included in the Other receivable category. \nThe Capital Assets note disclosure information was not properly reported and did not tie to the Statement of Net Assets. Beginning capital asset balances did not agree with either the prior year ending note balances of $10,137,231.68 or prior year ending AFR balances of$10,044,344.38. Current year additions did not include on-behalf capital gifts totaling $161,650.00. Ending Capital Assets, Net was reported as $9,865,394.25 in the note disclosure information; however, ending Capital Assets (Net) were reported on the Statement of Net Assets as $9,888,325.17, resulting in an improper variance of $22,930.92 in the financial statement note disclosure information. \nThe Long-Term Liabilities note disclosure for Lease Obligations was not properly reported. The following problems were identified: \n Beginning balances for Lease Obligations reported in the note disclosure of $222,959.13 do not agree with prior year lease liability note ending amounts of $282,133.37 or prior year Statement of Net Assets current and noncurrent lease liability of $167,688.75. No determination could be made as to which amount was correct. \n No current year activity was reported for either additions or reductions related to lease obligation activity. \n Lease Obligations outstanding at year end were reported in the note disclosure as $222,959.13; however, the Statement of Net Assets reflects capital lease liability at $7,411.45. Supporting documentation provided for review, identified capital lease liability at June 30, 2006 of $231,026.41. \nThe Long-Term Liabilities note disclosure for Compensated Absences was not properly reported. The following problems were identified: \n \n  Beginning balances for Compensated Absences reported in the note disclosure of $1,258,668.72 did not agree with prior year lease liability note ending amounts of $1,259,251.02 or prior year Statement of Net Assets current and noncurrent compensated absence liability of $1,276,919.40. The amount reported on the prior year Statement of Net Assets is believed to be the correct beginning amount. \n No current year additions were reported in the note. Current year reductions of $177,532.76 did not reconcile to supporting documentation provided for audit review. Supporting documentation identified earned leave additions of $845,829.20 and used leave reductions of $970,771.27. \n Compensated Absences outstanding at year end were reported in the note disclosure as $1,081,135.96; however, the Statement of Net Assets reflects compensated absence liability of $1,133,726.65. Supporting documentation identified compensated absence liability at June 30, 2006 as $1,151,977.35. \nThree programs totaling $265,565.97 were omitted from the Schedule of Expenditures of Federal Awards (SEFA) in error. Additionally, prior year grants crossing fiscal years were not included and no adjustments had been made for prior year or current year encumbrances for a net variance of $-233,084.51. \n4. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's annual financial statement worksheets. \nThe GAAP entry to adjust beginning net assets and record expenses for prior year encumbrances resulted in a material reduction in beginning net assets and overstatement of current year Federal revenue. Beginning net assets, as reported on SRECNA, are understated $11,258,819.83; Federal Nonoperating grant revenues are overstated $11,253,041.31; Operating Expenditures are overstated $880,094.29 and Accounts Payable are understated $874,315.77. \nThe GAAP entry to remove current year encumbrances resulted in a variance of $868,641.99 due to the adjustment being made using prior year encumbrances in error. This resulted in an understatement in Accounts Payable, as reported on the Statement of Net Assets, and Operating Expenditures, as reported on SRECNA, of $868,461.99. \nNo GAAP adjustment was made to defer revenues associated with current year encumbrances which resulted in an overstatement of $86,838.05 in Nonoperating Federal revenue and overstatement of $186,413.80 in Nonoperating Gifts revenue on the SRECNA. Likewise an understatement of $273,251.85 in deferred revenue on the Statement of Net Assets also resulted. \n \n The GAAP adjustment made to remove deferred revenue from associated accounts receivables for accounts associated with current year encumbrances resulted in an overstatement of $58,875.11 in deferred revenue, an overstatement of $60,582.99 in Federal accounts receivable and an understatement of $1,707.88 in other accounts receivable as reported on the Statement of Net Assets. \nA GAAP adjustment was made to record current year Pell and FSEOG activity in the amount of $1,894,853.00 to Operating Expenses - Scholarships and Grants and Federal Operating Grants and Contracts. This was incorrect because the Pell and FSEOG activity was already included in the preliminary column on the GAAP statement worksheet. Both Operating Expenses and Federal Operating Grants and Contracts are overstated on the SRECNA. \nA GAAP adjustment was made to reclassify current year College Work-Study activity in the amount of $244,867.04. This entry was incorrect since the College Work-Study activity was already included on the SRECNA. Other Nonoperating revenue is understated and Federal Operating Grants and Contracts are overstated. \nNo GAAP entry was made to reclassify current year Pell, FSEOG and FCWS activity. This results in an understatement to Operating Revenues - Grants and Contracts - Federal and overstatement in Nonoperating Revenues- Grants and Contracts - Federal in the amount of $2,160,229.17. Operating Expenses Scholarships and Fellowships are understated by $1,803,304.61, Operating Revenues - Student Tuition and Fees are overstated by $234,491.04 and Nonoperating Expenses - Grants and Contracts - Expenses are overstated by $2,037,795.65. \nThe GAAP entry recording the prior year beginning allowance for doubtful accounts amount of $337,177.95 was incorrect. The amount recorded did not include Agency Fund activity and results in an understatement of Other Accounts Receivable - Allowance for Doubtful Accounts, reported on the Statement of Net Assets, and an overstatement of Beginning Net Assets, reported on SRECNA, in the amount of $13,949.63. \nThe GAAP entry to remove principal lease payments from current year expense activity and reclassify interest expense activity was incorrect. Current year principal payments of $82,174.94 were not removed from Operating Expenses Supplies and Other Services reported on SRECNA or from Capital Leases reported on the Statement of Net Assets. This results in an overstatement of operating expenses and capital lease liability in the amount of $82,174.94. Additionally the entry to reclassify interest expense of $18,202.54 should have been for $27,812.64. This results in Nonoperating Expenses - Interest Expense being understated by $9,610.10. Operating Expense - Supplies and Other Services are overstated in the same amount. \n \n 5. Confirm that State Appropriation revenues, receivables and remittances ofprior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. \nWe did not note any exceptions as a result of our procedures. \n6. Obtain listing ofwrite-offrequests for accounts receivable less than $3,000.00 for fiscal year 2006. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements. \nWe did not note any exceptions as a result of our procedures. \n7. Verify that the listing of salaries, travel, and per diem and fees reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the College's financial statements. \nWe did not note any exceptions as a result of our procedures. \n8. Review the year end Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that budget information presented in this Report supports activity reported in the College's accounting records and determine if any budget overexpenditures exist. \nThe College's budget comparison reflected an overexpenditure of$404,708.91 in the Economic Development category. \nIn the Fund Balance Adjustments section of Exhibit A, there is a line item \"Other Additions\" in the amount of $-116,310.19. During a review of budget worksheets prepared by the College, the auditor identified an adjusting entry to the Budget statements to reclassify $116,310.19 out of the Unidentified-Must be Reclassified account into this \"Other Additions\" category. This journal entry could not be substantiated by supporting documentation. \n9. Obtain documentation for Budget basis reserves reported by the College on the Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. \nWe did not note any exceptions as a result of our procedures. \n10. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. \n \n The College's H.O.P.E. Scholarship Program reconciliation did not reconcile to the College's accounting records as follows: \n \nReport Item \n \nPer Hope Reconciliation \n \nPer Accounting Records \n \nUnreconciled Difference \n \nCash disbursed \n \nto school \n \n$5,494,119.13 \n \n$5,494,122.31 \n \n$ \n \n3.18 \n \nAmount Awarded \n \nto Students \n \n$5,019,659.38 \n \n$5,019,269.53 \n \n$ 389.85 \n \nThese agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective ofwhich is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. \n \nThis report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. \n \nRespectfully submitted, \n~~~ \nRu sell W. Hinton, CPA, CGFM State Auditor \n \nRWH:as \n \n EXHIBIT \n \n DEKALB TECHNICAL COLLEGE BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \nYEAR ENDED JUNE 30, 2006 \n \nEXHIBIT\"A\" \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 \nADJUSTMENTS \nPrior Year Payables/Expenditures Prior Year Receivables/Revenue Refund to Grantors \nFederal Financial Assistance Returned to Georgia Department of Technical and Adult Education \nPrior Year Reserved Fund Balance Included in Funds Available Other \nFUND BALANCE JUNE 30 \nSUMMARY OF FUND BALANCE \nReserved Federal Financial Assistance Live Works Projects Prior Year Local Funds Sales and Services Technology Fees Uncollectible Accounts Receivable Inventories \nTotal Reserved \nUnreserved Surplus \nTotal Fund Balance \n \nBUDGET \n \nACTUAL \n \nVARIANCEFAVORABLE (UNFAVORABLE) \n \n$ 17,982,805.57 $ 17,982,805.57 $ \n \n4,131,827.62 \n \n3,478,710.87 \n \n10,074,517.99 \n \n8,888,355.68 \n \n$ 32,189,151.18 $ 30,349,872.12 $ \n \n0.00 -653, 116.75 -1 186 162.31 \n-1,839,279.06 \n \n0.00 \n \n75 509.84 \n \n$ 32,189,151.18 $ 30,425,381.96 $ \n \n75 509.84 -1,763,769.22 \n \n$ 2,406,421.96 $ 2,390,233.34 $ \n \n517,955.00 \n \n922,663.91 \n \n29,264,774.22 \n \n26,784,086.89 \n \n$ 32,189,151.18 $ 30,096,984.14 $ \n \n$ \n \n0.00 $ \n \n328,397.82 $ \n \n16,188.62 -404,708.91 2,480,687.33 \n2,092,167.04 \n328,397.82 \n \n846,261.70 \n \n110,217.06 -115,217.03 \n-85,659.02 -75,509.84 -116 310.19 \n \n$ \n \n892,180.50 \n \n$ \n \n70,173.03 \n \n79,235.93 \n \n11,401.58 \n \n121,125.44 \n \n6,334.58 \n \n337,177.95 \n \n266 010.73 \n \n$ \n \n891,459.24 \n \n721.26 \n \n$ \n \n892,180.50 \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bv6-bd4-b2004-h2005","title":"Management report, DeKalb Technical College, Clarkston, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2005","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. 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