Tri-C TeChniCal College Comprehensive a FinanCial …...Tri-CounTy TeChniCal College Comprehensive annual FinanCial reporT A Component Unit of the State of South Carolina For the Two

Tri-CounTy TeChniCal College

Comprehensive annual

FinanCial reporT

A Component Unit of the State of South Carolina

For the Two Years Ended June 30, 2016 And June 30, 2015

Tri-CounTy TeChniCal College

Comprehensive annual

FinanCial reporT



Prepared byThe Division of Business Affairs

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COMPREHENSIVE ANNUAL FINANCIAL REPORT TRI-COUNTY TECHNICAL COLLEGE For the Two Years Ended June 30, 2016 and 2015 Table of Contents i Introductory Section Commission Members-Administrative Staff-Service Area iii Summary Organizational Chart iv Letter of Transmittal v Certificate of Achievement for Excellence in Financial Reporting xx Financial Section Independent Auditors’ Report 1 Management’s Discussion and Analysis (unaudited) 4 Basic Financial Statements: Statement of Net Position 14 Statement of Revenues, Expenses, and Changes in Net Position 15 Statement of Cash Flows 16 Component Unit-Consolidated Statements of Financial Position 18 Component Unit-Consolidated Statements of Activities 19 Notes to the Basic Financial Statements 20 Required Supplemental Information 60 Schedule of Proportionate Share of the Net Pension Liability SC Retirement System and Police Officer’s Retirement System Required Supplemental Information 61 Schedule of College Contributions SC Retirement System and Police Officer’s Retirement System Statistical Section (Not covered by the Independent Auditors’ Report)

Statistical Section Content Explanation 62 Financial Trends:

Schedule of Net Position and Changes in Net Position 63 Schedule of Expenses by Function 64

Schedule of Expenses by Use 65 Revenue Capacity: Schedule of Revenues by Source 66 Annual Tuition and Fees-South Carolina Public Two Year Institutions 68 Admissions Statistics 69 Opening Fall Enrollment Demographics and Degree Statistics 70 Graph: Selected Opening Fall Enrollment Demographics-Last Ten Fiscal Years 71

Corporate and Community Education Division Statistics 72 Debt Capacity:

Schedule of Outstanding Debt and Ratios 73 Schedule of Bond Coverage 74 Demographic and Economic Information: Economic Indicators for the College Service Area 75 Principal Employers by County 76 Operating Information: Faculty and Staff Statistics 77 Space Utilization 78 Other (non-required) Information: Schedule of Current Unrestricted Expenses 79 Accreditation Information 80 Policy on Discrimination 81

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Single Audit Section: Separate Table of Contents Other Information Independent Auditors’ Report on State Lottery Tuition Assistance


inTroduCTion

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COMMISSION MEMBERS – ADMINISTRATIVE STAFF – SERVICE AREA TRI-COUNTY TECHNICAL COLLEGE For the Year Ended June 30, 2016 AREA COMMISSION MEMBERS COUNTY TERM*

Mr. Pruitt Martin Anderson 04/15 – 04/18 Mr. J. Allard Young Anderson 04/16 – 04/19 Mr. Leon Harris, III, Chair Anderson 05/14 – 05/17 Ms. Helen Rosemond-Saunders Oconee 04/97 - Mr. John Powell Oconee 01/10 - Mr. William H. Hudson Oconee 04/01 - Mr. John Thomas Hendricks Pickens 04/15 – 04/18 Mr. Milton Ponder, II Pickens 04/13 – 04/16 Dr. Valerie R. Ramsey Pickens 04/14 – 04/17

* Ending term is to be determined by Legislature. KEY ADMINISTRATIVE STAFF Dr. Ronnie L. Booth President Mr. Galen Dehay Senior Vice President Vacant Assistant Vice President for Curriculum & Instruction Ms. Sharon Colcolough Assistant Vice President for Human Resources Ms. Cara Hamilton Vice President for Business Affairs Ms. Linda Jameison Assistant Vice President for Student Support & Engagement Mr. Grayson Kelly Executive Director for Foundation Mr. Daniel Cooper Director of Economic Development & Government Relations Ms. Rebecca Eidson Director of Public Relations & Communications Ms. Tracy Wactor Director of Fiscal Affairs Ms. Jenni Creamer Dean of College Transition Programs AREA SERVED BY THE COMMISSION Anderson County Oconee County Pickens County COUNTIES PROVIDING FINANCIAL SUPPORT Anderson County Oconee County Pickens County

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Area Commission

President

Vice President Business Affairs

Administrative Assistant

Sr. Vice President

Executive Director Foundation

Director Public Relations &

Communication

Asst. VP Human Resources

TRI-COUNTY TECHNICAL COLLEGE

SUMMARY ORGANIZATIONAL CHART

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September 13, 2016 To the Members of the Area Commission for Tri-County Technical College: It is our pleasure to present the Comprehensive Annual Financial Report of Tri-County Technical College for the two years ended June 30, 2016 and 2015. The report of our independent public accountants, Cline, Brandt, Kochenower Co. P.A., expresses an unmodified opinion on the basic financial statements. The management of the College assumes responsibility for the accuracy, completeness, and fairness of the data presented, including all disclosures. To the best of our knowledge and belief, the information presented is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the College at the end of that fiscal year. This Comprehensive Annual Financial Report is presented in four sections: The Introductory Section includes the transmittal letter, the Certificate of Achievement for Excellence in Financial Reporting for the fiscal year ended June 30, 2015, a listing of the members of the College’s governing board and principal officials, and an organizational chart that outlines the structure of the College. The Financial Section includes the independent auditors’ report, Management’s Discussion and Analysis (MD&A) section, the basic financial statements, notes to the financial statements, and additional financial schedules. The MD&A provides a narrative overview and analysis of financial activities of the College for fiscal year ended June 30, 2016 with comparison to fiscal years ended June 30, 2015 and 2014. Basic financial statements are prepared in accordance with generally accepted accounting principles for public colleges and universities, as defined by the Governmental Accounting Standards Board (GASB), and the National Association of College and University Business Officers in College and University Business Administration. These statements allow for reasonable comparisons of the College’s financial position as well as revenues, expenses, transfers, and other changes in net position with peer institutions. The Statistical Section provides financial, economic, and demographic information relating to the College on a multi-year basis. This information is intended to present to readers a broad overview of trends in the financial affairs of the College. The Single Audit Section includes the Schedule of Expenditures of Federal Awards, the independent auditors’ report on compliance and internal control over financial reporting performed in accordance with Government Auditing Standards and the independent auditors’ report on compliance for each major program and on internal control over compliance required by the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

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Entity Tri-County Technical College is one of sixteen technical colleges in South Carolina which make up the Technical Education System. The State Board for Technical and Comprehensive Education (SBTCE) have statewide governance authority for the Technical Education System. Tri-County is a comprehensive, public two-year college serving the citizens of Anderson, Oconee, and Pickens counties. The College is considered a part of the State of South Carolina financial reporting entity and is included as a discretely presented component unit in the comprehensive annual financial report of the State, as explained below. The College complies with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units. This Statement amends GASB Statement No. 14, The Financial Reporting Entity, to provide additional guidance to determine whether certain organizations for which the College is not financially accountable should be reported as component units based on the nature and significance of their relationship with the College. During fiscal year 2012-13, the State of South Carolina implemented GASB Statement No. 61, The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34. As a result of this implementation, the College is now reported as a discretely presented component unit in the State of South Carolina’s Comprehensive Annual Financial Report. Discrete presentation entails reporting component unit financial data in one or more columns separate from the financial data of the primary government instead of blending the College’s financial information into the State’s financial information. The financial reporting entity, as defined by GASB consists of the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion could cause the financial statements to be misleading or incomplete. Accordingly, the financial statements include the accounts of Tri-County Technical College, as the primary government, and the accounts of Tri-County Technical College Foundation (the “Foundation”), its component unit. Based on the nature and significance of the Foundation’s relationship with the State of South Carolina, the Foundation is not a component unit of the State of South Carolina.

History Over fifty years ago Tri-County Technical College became the first multi-county technical institute in South Carolina. In early 1960, then Governor Ernest F. Hollings initiated a State Educational System, motivated by the idea that if South Carolina could offer a well-trained work force, then the State would attract more business and industry. This training was to be provided by a system of thirteen (currently sixteen) technical colleges. In 1961, the South Carolina General Assembly passed Act 323, providing for the appointment of an advisory committee to study the feasibility of establishing a network of centers for technical training in strategic locations throughout the State. The purpose of these centers was “to prepare individuals for entry into or progressing in employment in industrial and technical pursuits or designed to improve conditions which result in improved citizenship.” These centers would be located at points readily accessible to a large majority of the State’s population. The Anderson-Oconee-Pickens Technical Education and Training Commission was created on April 7, 1962, when Governor Hollings approved the enabling legislation, Act 905. The Commission was created to control and manage the Anderson-Oconee-Pickens Technical Education and Training District. The Act further provided that the local operating costs would be borne by the College’s service area as follows: Anderson County, fifty percent; Oconee County, twenty-five percent; and Pickens County, twenty-five percent.

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History - continued In the fall of 1963, Tri-County Technical College opened as a Technical Education Center. The 42,000 square foot classroom/laboratory/administration building was located on a twenty-three acre tract of land, donated by Clemson University, four miles from Clemson on Highway 76, near Pendleton, SC. Clemson University has donated a total of fifty-seven acres to the College. On April 10, 1974, the SBTCE approved the request of the Anderson-Oconee-Pickens Technical Education and Training Commission (The Area Commission) to change the name of the institution from Tri-County Technical Education Center to Tri-County Technical College. This change allowed the addition of associate degree programs in the Arts and Sciences to complement the technical and vocational training, developmental programs in adult education, manpower developmental training act programs, and more than 2,300 non-credit courses, seminars, and workshops in continuing education. In the past five decades enrollment has increased from 918 in credit and non-credit programs to over 20,000 students. The College has expanded its teaching methods from the traditional classroom and lab setting to on-line learning for credit and non-credit courses. The main campus at Pendleton has grown from one building to fourteen buildings and has gained a national reputation for excellence. The College experienced another “first” in March 2007 when the first Community campus opened in Anderson County offering both credit and non-credit courses. In September 2007, the College opened an Oconee Campus at the Hamilton Career Center in Seneca and in spring 2009, the Watkins Community Center in Honea Path was renovated to include four classrooms to be used for community and corporate education. In 2009, land was purchased in Pickens County in preparation for a new campus in Easley. A new “QuickJobs” center was opened in Seneca, SC in May of 2010. The center is owned by Oconee County and operated by the College. It delivers targeted skills training for unemployed and underemployed workers. During fiscal year 2011, the Easley campus was completed and classes began in January 2011. In addition, the Pickens County Quickjobs Center opened in October 2010. It is located on the Easley campus. The center is owned by Pickens County and operated by the College. On March 9, 2012, a groundbreaking ceremony was held for the Anderson QuickJobs Development Center. The 5,720 square-foot facility includes three classrooms, offices, and a lab/shop area. The grand opening occurred October 11, 2013. The center is owned by Anderson County and operated by the College. The College’s 43,000-square-foot Industrial Technology Center (ITC) in Sandy Springs opened January 14, 2013 for spring semester classes. A dedication ceremony for the building was held March 8, 2013. The state-of-the-art facility houses Welding Technology and Heating, Ventilation, and Air Conditioning Programing and Operations. Plans are underway to realign, remodel and relocate industrial programs to optimize the utilization of ITC and provide better student/education experience with student focused designed spaces. Economic Condition and Outlook A primary mission of the South Carolina technical colleges is to support economic development through education and training for the citizens of South Carolina. Tri-County Technical College’s financial health is closely linked to the economic conditions of the State and the local communities served by the College, and the funding priorities established by the General Assembly and our local governmental bodies. An ongoing challenge and risk to the College’s fiscal stability is State and local funding.

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Economic Condition and Outlook - continued Over the last decade the College experienced significant declines in State funding; however, in the last few years State funding has provided slight increases while local funding has remained relatively flat or provided low single-digit increases. Increases in funding are attributable to improving economic conditions and recognition by our legislative delegations of the value the College delivers to the State and local government within its service area. Enrollment decreased by 3.5% in FY 2016 compared to a decrease of 4.1% in FY 2015 over FY 2014. Enrollment saw a slight increase of 1.8% in FY 2014 but was down 2.7% and 4.3% for FY 2013 and FY2012, respectively, from the peak reached in FY2011 after a four-year period of explosive enrollment growth of 32.9%. Continued enrollment growth is a struggle due to the strengthening economy, a reduction in the number of graduating high school students, and increased competition of alternative educational opportunities including, but not limited to, on-line options. The pressure on enrollment numbers is being experienced across most of the South Carolina Technical College system. Tri-County is addressing this trend by developing strategies and marketing programs to engage prospective students earlier and to more clearly communicate the College’s value proposition. Tri-County changed its matriculation process to emphasize student success in equal proportion to student access. The College imposed admissions deadlines in an effort to provide more time for assessing, advising, and preparing incoming students for transition to college. While the College believes these changes are necessary to achieve sustained enrollment growth and improve student success, it may take several years to fully operationalize the changes and yield consistent favorable results. The College administration budgets conservatively and correctly forecast these changes in enrollment. As a result of deliberate planning, strong budget management, and a stabilization of State support, the College continues to operate on a fiscally sound basis. Mission, Vision & Values Mission Tri-County Technical College, a public community college, focuses on teaching, learning, and helping students reach their goals. The College supports economic development for Anderson, Oconee, and Pickens counties in South Carolina by preparing a highly-skilled workforce. Vision Passionate people transforming lives and building strong communities one student at a time. Values Tri-County Technical College is committed to the following values:

• Integrity – To be our ideal selves, doing right, and upholding and demonstrating high ethical standards at all times.

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Mission, Vision & Values – continued Values – continued

• Respect – An understanding that everyone is important and is valued. To be open to accepting

and balancing the different views of yourself and others. To preserve dignity in ourselves and others and to interact in a manner that promotes trust, openness, and understanding.

• Community-Minded – To be good citizens within the College community, upholding policies

and procedures and taking responsibility for making the working and learning environment better for all. To go above and beyond the boundaries of our position descriptions, departments, or divisions and work for the overall good of the College.

• Commitment to Excellence – The desire or drive to make improvements each and every day in ourselves and our environment.

Role and Scope An open-door institution of higher education, the College offers affordable, accessible, collaborative, and learner-centered instruction. Offerings include university transfer associate degree programs and applied technical associate degrees, diplomas, and certificates in more than 70 majors associated with business, health, public service, and industrial and engineering technologies. The College also offers developmental courses for students who need to improve their basic academic skills. The College promotes economic development in the region through customized education and training for local businesses and industries through credit and continuing education offerings and a variety of workforce training programs. The College has campuses located in Pendleton, Anderson, Easley, and Seneca, as well as learning centers in Honea Path and Sandy Springs. The College also offers online classes and a variety of academic and support services. Major Initiatives for Fiscal Year 2016 In fiscal year 2014, Tri-County Technical College developed the concept of what it means to create a “Transformative Student Experience (TSE)” with the ultimate goal of giving our students the “TCTC EDGE”. The Transformative Student Experience (TSE) ignites student transformation by creating a challenging, caring, and supportive learning environment where everyone embraces personal responsibility for 1) maintaining high standards, 2) investing in each other, 3) engaging in authentic and open communication, and 4) cultivating a sense of belonging. Our ultimate goal is student success, realizing that the idea of student success is unique to each of our students. Our role is to give our students an EDGE for whatever their unique goal might be.

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Major Initiatives for Fiscal Year 2016 - continued We want students to leave Tri-County Technical College with a clear advantage, having been exposed to:

• Work based learning, both in and out of the classroom; • Life skills and soft skills based on effective advising to help them meet their educational

goals; and • Opportunities for engagement to help them feel a sense of community and to learn how

they can be a part of something great. We call this advantage the TCTC EDGE, with EDGE standing for:

• Employable; • Dedicated; • Goal-oriented; and • Empowered.

In order to create a Transformative Student Experience and give our student the TCTC Edge, Tri-County Technical College must deliver on key strategic initiatives. Key Strategic Initiatives (Excerpt from FY 2015 – 2017 Three Year Strategic Plan) • PEOPLE – Driving Organizational Success Through Our People

Develop a competency framework for attracting, developing, and retaining employees Create and deliver a college-wide development program to deliver the “Commitment to

Excellence” value Develop an approach to cyber security, identify existing gaps and project outcomes, including

an IT applications roadmap Create and deliver a leadership skills development program

• PROGRAMS – Adapt Our Offerings to Changing Realities Create an academic master plan for college programs Create a student recruitment framework Develop a curriculum development process Complete an Oconee County Economic Development Center master plan

• STUDENT SUCCESS – Positioning and Equipping Students for Success Obtain Phase II approval for the Student Success Center project Implement a student loan default management plan Implement the Technical Skills for Success project Develop and implement a One-Stop Student Services model

• STUDENT LEARNING – Embracing Personal Accountability for Students’ Learning Develop a comprehensive student engagement strategy Create a High Impact Practices (HIPs) implementation plan

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Major Achievements Fiscal Year 2016: Academics: The College’s Technical Career Pathways (TCP) program, an initiative designed to increase the number of skilled technicians for high-paying jobs in local industries, allows students to earn a college credential in a technical program before graduating from high school. Many students do not have the means, money, or motivation to start a technical career path while in high school, but the Technical Career Pathways program breaks down these barriers. The curricula has been carefully mapped out by high school and Tri-County officials, and students are carefully counseled and mentored through the process. The cost of participating is paid for fully by a special proviso approved by the S.C. General Assembly. This program has grown from 7 to 166 students in three short years. For the first time, students from four high schools were enrolled in a basic Welding class taught in Fall 2015 at our Industrial Technology Center (ITC) in Sandy Springs. Ten students were enrolled in Welding 111 through the TCP program, which allows participants to graduate with a college certificate as high school seniors and transition directly into the associate degree program at the College or enter the workforce. Thirty high-performing students were accepted into the College’s new Honors Experience for the 2015-16 Academic Year. To participate, students must be enrolled in the Associate of Arts or Associate of Science degree program and meet specific eligibility requirements tied to GPA, SAT/ACT scores and high school class rank. Continuing students who wish to enroll must have a 3.5 GPA and twelve credit hours in university transfer classes. Honors courses offered in the fall included Astronomy 101, English 101, History 202, Sociology 101, Biology 101 and Chemistry 110. Classes are capped at 15 students to ensure a highly interactive experience. Students will take one or two honors classes each semester and one to two colloquia per year as part of their regular schedule. More than 200 area residents have been given scholarships to enroll in short-term job training programs through our Corporate and Community Education (CCE) Division, funded by scholarship money provided by the S.C. General Assembly. The S.C. General Assembly allotted the State’s 16 technical colleges funding to award these scholarships. Tri-County received $335,000 earmarked for in-demand, QuickJobs training in the areas of manufacturing, health care, transportation and logistics, IT, computer, business, and highway construction. The funding assisted individuals who were unemployed and underemployed to prepare for in-demand jobs that lead to a sustainable wage. Scholarships of up to $2,000 per student were granted to successful applicants. The first Community Paramedic Training program in the State was developed and offered by Tri-County Technical College in spring 2016 at the Easley Campus. The 300-hour program exceeds the 225-hour minimum required by State guidelines, which calls for 100 instructive and 125 clinical hours of training. Tri-County’s program offers 100 hours of classroom training, 150 clinical hours, and an additional 50 lab hours. The College’s Community Paramedic Program (CPP) was approved by the Emergency Medical Services (EMS) Advisory Board of the S.C. Department of Health and Environmental Control. A new course, STEM College and Career Readiness (COL 120) and branded “Smart Start Over,” was designed and implemented specifically for under-resourced adults who have a high school credential and want to gain a solid career direction, but need help getting started. The course is offered at no cost to the student with funding provided by a State proviso approved by the SC General Assembly as well as support from the Duke Endowment. Participants are introduced to technology-based career opportunities in the

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Academics: continued region, learn 21st century work skills, develop college-readiness skills, and earn an industry-recognized certification—OSHA General Industry Standards—which is appropriate for any type of employment. Officials from Tri-County Technical College and Columbia College signed a formal agreement that will enable Tri-County graduates to complete their bachelor's degree through Columbia College in the evenings on Tri-County's Pendleton campus at a significantly discounted tuition rate. The agreement allows Tri-County graduates to earn a bachelor's degree in Health Communications in two years. This is the first time Tri-County has signed a partnership agreement of this type with a private college. The agreement creates pathways that will allow associate degree graduates to earn a bachelor's degree without loss of time, credits, or money. Senior General Engineering Technology (GET) students built a six-legged walking machine (Hexapod) powered by pneumatics and controlled by a PLC. Representatives from Automation Direct, the online industrial supplier of the materials, were so impressed by the project that they offered to donate parts for students to build another unit to be used for public outreach. The Company also requested that the GET students assist with creating a pneumatics solution and project manual for the Company’s customers. Six Tri-County students were among the graduates of BMW Manufacturing’s fifth class of BMW scholars. All 30 graduates were hired as full-time production, automotive, logistics, and equipment service associates. Twelve students were selected by Häring USA, a leading global manufacturer of precision components and subassemblies for the automotive industry, to train for three years at the Company’s Bubsheim, Germany facility. The students moved to Germany, where they attend an academy with students from other colleges and universities, and study as trainees, along with attending daily classes while immersing themselves in the German culture. They are training to be team or group leaders at the Company’s new U.S. facility set to open in Hartwell, Georgia, in 2017. The U.S. Department of Labor (DOL) awarded the S.C. Technical College System a $5 million grant to expand apprenticeships in the State, with Tri-County receiving $163,000 to train 65 individuals in the areas of manufacturing, information technology, and professional services. The College was awarded $148,200 from the SC Department of Employment and Workforce to train 72 ex-offenders in the area of highway construction. The College was approved to be an AARP Foundation partner college and received a $50,000 grant to train 20 individuals, predominantly females, age 50 and above, in Corporate and Community Education programs such as medical office, administrative office, web design, computer support, and Microsoft specialist. In partnership with local industries, the College received a $360,000 EvolveSC grant from the SC Department of Employment and Workforce to train current and future associates to advance their skills in manufacturing and logistics.

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Capital Projects: Construction is now complete on the new $1.5 million Veterinary Technology Expanded Housing and Learning Facility. The facility is designed to better prepare students and contribute to their future success in the veterinary workplace. The facility has 33 indoor/outdoor canine runs and the capability to house 28 cats, food storage, bathing areas, and laundry and storage rooms. The highlight of this facility is an isolation ward that met AVMA accreditation standards. Tri-County and its partners from Oconee County and the School District of Oconee County commissioned a design study for the future Oconee County Workforce Development Center, which will co-locate an Oconee Campus of Tri-County Technical College, a new Career Center for high school students, adult education, and County economic development offices. The College is now in the final stages of schematic design of the new Student Success Center on the Pendleton Campus. Next steps include detailed design/engineering construction design, demolition, and site development. Tri-County broke ground on the project in early July 2016. The center will include a new building with learning commons, flex meeting space, computer labs, group study space, supplemental instruction, tutoring, café, campus store, print shop, lounge, and shipping/receiving. The project also includes the complete refurbishment of Ruby Hicks Hall to house a One-Stop Enrollment Center (admissions, student records, cashier, financial aid, assessment, advising/success coaches, career services, student support services, academic support services, administration, and conference/training). A central chiller plant and loop that will eventually serve the needs of the entire Campus core is also included in the project. Recognitions: For the 16th consecutive year, the Business Affairs Division earned the highest form of recognition in the area of governmental accounting and financial reporting. The Government Finance Officers Association of the United States and Canada (GFOA) awarded the College a Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report for the fiscal year ending June 30, 2015. The Aspen Institute College Excellence Program named Tri-County Technical College as one of the nation's top 150 community colleges, making it eligible to compete for the 2017 Aspen Prize (the nation’s preeminent recognition of high achievement and performance in America’s community colleges), $1 million dollars in prize funds, and Siemens Technical Scholars Program student scholarships. Tri-County was selected from more than 1,000 community colleges across the nation to compete for this honor. Later this year, the field will be narrowed down to ten finalists, and the winner will be named early in 2017. The Association of Community College Trustees (ACCT) chose Dr. Ronnie L. Booth as the recipient of the ACCT 2015 Southern Regional Chief Executive Officer award. The award was presented to him at the Regional Awards Luncheon during the 46th Annual ACCT Leadership Congress. Among the achievements cited in his nomination are College programs and services, such as Bridge to Clemson, Connect to College, career pathways, and stackable credentials, and our community campuses. In addition, the College’s student success rate is the highest among the 16 technical colleges in the State. A service learning project that pairs Early Childhood Development (ECD) students with at-risk kindergarteners to improve the children’s language development skills won the S.C. Commission on Higher Education’s Commendation of Excellence in Service Learning. The program, called Meeting Early Needs through Oral Reading (MENTOR), involves a partnership with La France Elementary School where

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Recognitions: continued each ECD 131 Language Arts student is paired with a kindergartener, or a buddy, who is at risk in his or her language development skills. The MENTOR program was piloted in the Fall of 2014 and was repeated in Fall 2015. It will become an embedded High Impact Practice as part of the ECD program’s fulfillment of the College’s QEP for SACSCOS. The ECD students are tasked with creating activities to engage these “at-risk” children using strategies that have been introduced and studied during the lecture portion of the ECD 131 class. Associate Degree Nursing (ADN) students’ scores on the National Council Licensing Exam (NCLEX-RN) exceeded both State and national averages. NCLEX-RN reports the College’s ADN program obtained a 94.67 percent pass rate for first-time exam takers between the period of December 2014 and June 2015. The College had approximately 100 graduates who took the exam and became licensed during that period. The ADN program reported a 90.91 percent pass rate for first-time licensure exam takers between the period of January 1 and December 20, 2015. The State average is 89.27 percent, and the national average is 84.51 percent. Practical Nursing graduates scored a 92.54 percent pass rate on the NCLEX-PN exam, with the State average being 91.79 percent, and the national average 81.89 percent. Recent completers of the College’s Electrocardiogram (ECG), also known as EKG, certificate class scored a 100 percent pass rate on the national Certified EKG Technicians exam. All eight graduates of the 10-week course passed the National Healthcare Association (NHA)-administered online exam and now are designated as Certified Electrocardiograph Technicians. John Woodson, program coordinator for Media Arts Production (MAP), was honored with the Presidential Medallion for Instructional Excellence, the highest award presented to the faculty. College Transitions Dean Jenni Creamer was honored with the Presidential Medallion for Staff Excellence. Jan Gibbs, an adjunct instructor/lecturer in the Medical Assisting program, received the College’s 2016 Adjunct Faculty Presidential Award. Helen Rosemond-Saunders, a member of the College Commission, was selected to serve as Chair of the Diversity Committee of the Association of Community College Trustees (ACCT). She also serves as Secretary for the S.C. Association of Technical College Commissioners. Ande Johnson, a 2016 Associate Degree Nursing graduate, is the recipient of one of the 2016 Palmetto Gold Scholarships. This scholarship recognizes the student’s caring commitment to patients, families, and colleagues; leadership; assistance to others’ growth and development; positive promotion of the nursing profession; and high level of academic success. Ande received a $1,000 scholarship from the Palmetto Gold Scholarship Fund and was honored at the 15th Annual Palmetto Gold Gala. Ande plans to pursue a BSN, but her immediate goal is to pass the NCLEX and to get a job at a hospital. Welding students garnered six awards, including three first-place recognitions, at the 34th Annual South Carolina Technical College State-wide Welding Competition. Hailey Thrasher, an Associate in Arts major, was selected for the South Carolina 2016 Phi Theta Kappa All-State Academic Team and honored at a luncheon in Columbia.

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Recognitions: continued Ashley Brady, department head for the Veterinary Technology program, was named Licensed Veterinary Technician of the Year at the South Carolina Association of Veterinarians Southeast Veterinary Conference. The College's Educators of the Year recognized at the South Carolina Technical Education Association (SCTEA) annual conference were: Cara Hamilton, Vice President for Business Affairs, outstanding administrator; Ashley Brady, Veterinary Technology department head, outstanding instructor; and, Melinda Zeigler, administrative assistant for the Business and Public Services Division, outstanding staff member. Social Sciences department head Penny Edwards was selected from faculty across the country to serve on the American Association of Community Colleges’ (AACC) 10-member Faculty Advisory Council. Spanish instructor Timeko McFadden was selected to participate in the American Council on the Teaching of Foreign Languages (ACTFL) Languages and Literacy Collaboration Initiative. Croslena Johnson, manager of student development and wellness programs, was the recipient of the very first Student Advocate Award at the College. She was chosen by the Student Government Association in recognition and appreciation of her outstanding vision, commitment to excellence, and dedication to student success at Tri-County. Frances Wilson received the Outstanding Continuing Education Support Staff Member Award from the South Carolina Association for Higher Continuing Education (SCAHCE). Two veteran student affairs professionals were honored by the South Carolina College Personnel Association. Director of Career Services Glenn Hellenga received the Clarice W. Johnson Outstanding Professional Award. Career Services Career Counselor Lynn Smith received the Art Hartzog Award for Programming at a Two-Year Institution or Technical College. Director of Campus Safety Jonathan Finch was a finalist for the Campus Safety Director of the Year Award. Each year Campus Safety Magazine selects 10 directors from campuses across the United States and highlights their accomplishments in its monthly online publication. Tri-County students swept the top prizes at the 2016 South Carolina Speech and Theatre Association’s Annual College Festival Competition, taking home the overall college championship, the overall individual student award, and placing in seven different events. Colleges and universities from around the State competed at Claflin University. Chelsea Adams, an Associate of Science major, took the event’s highest individual award. She won the Triathlon Award for best overall performance by an individual. Chelsea placed first in Prose Interpretation, first in Audition Monologues, and second in Persuasive Speaking. Other: General Engineering Technology (GET) students participated in New Prospect Elementary School’s STEM Day by conducting workshops and presenting demonstrations of STEM projects designed to stimulate students’ interest in science, technology, engineering, and mathematics. Students demonstrated their class project, such as building an LED flashlight, creating an Operation game, and creating an electric air-propelled car, to third, fourth, and fifth graders. After a group presentation, GET students taught a STEM lesson to small groups.

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Other: continued Technical Career Pathways, STEM-related careers, and State proviso funding were the topics discussed during the three-county Business and Education Forum II, organized by Tri-County Technical College. Other partners included the Clemson Center for Workforce Development, Partnership for Academic and Career Education, Tri-County Regional Education Center, and the S.C. Department of Commerce. Thousands of middle and high school students from area schools participated in the annual Business and Industry Showcase for Anderson, Oconee, and Pickens Counties. Tri-County was a major partner in the event which showcased College programs and services via a large interactive booth highlighting health, business, manufacturing, and public services majors. Designed to help young people understand the decisions they need to make now in order to thrive in their future careers, the annual Showcase gives students the opportunity to interact with company representatives from a wide variety of industries to learn more about the pathways they need to take to gain the skills and knowledge needed for specific career clusters. The Engineering and Industrial Technology Division hosted the Seventh Annual Tri-County Technical College FIRST LEGO League (FLL) Regional Qualifying Tournament. FLL is a program created by the FIRST organization. This event was made possible through a generous donation from Robert Bosch LLC. Fifteen teams, representing students from Upstate public middle schools, home schools, and private schools competed in a regional qualifying event for FLL teams. The program introduces younger students to real-world engineering challenges by building LEGO-based robots to complete tasks on a thematic playing surface. FLL teams, guided by their imaginations and adult coaches, discover exciting career possibilities and, through the process, learn to make positive contributions to society. High school students experienced the exciting STEM-related opportunities Tri-County has to offer at Imagine TCTC, a Campus Visit Experience. Around 200 sophomores, juniors, and seniors from area high schools attended the event on the Pendleton Campus. Participants engaged with all four of Tri-County’s academic divisions by taking part in hands-on STEM-related activities. In addition, Tri-County’s financial aid staff provided financial literacy information, and members of the student support and engagement staff gave an interactive overview of student services. Imagine TCTC was held in conjunction with Imagine Upstate, an annual celebration and showcase around STEM, innovation, creative, and entrepreneurial activity in the Upstate. Faculty, staff, and students from all campuses responded to a request from the Student Development and Bridge to Clemson offices for donations of water and other non-perishable food items for individuals impacted by the storm that brought massive flooding and devastating road damage to the lower part of our State. The College’s replica of a Rosenwald School House, located on the Anderson Campus, was the scene of recent filming for a documentary based on the life of Jane Edna Hunter (an African-American social worker born near Pendleton) who, in 1911, established the Working Girls Association in Cleveland, Ohio (later known as the Phillis Wheatley Association of Cleveland). Local youth donned costumes to play the role of school children in the early 1900s. The College’s Rosenwald School House is the first full-scale reproduction of a one-teacher Rosenwald School. Rosenwald Schools were the primary facilities for the education of African-American children in the South from around 1912 through desegregation. Tri-County students enrolled in Building Construction built the full-scale, one-room, 900-square-foot reproduction in 2014.

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Other: continued Student veterans reached out to fellow veteran Jeff Morton and his family after learning about their financial struggle and health setbacks associated with a car accident that injured son, Christopher, and his service dog, Buddy. The Student Veterans Association (SVA) chapter, Campus Safety officers, and faculty and staff collected toys to help Christopher, who was diagnosed with autism and mitochondrial disease at age three. The group also obtained pet supplies, including medication for Buddy. The 4 C-Able Futures summer camp was held June 26 – July 1 for children living in foster care or privately placed in group homes. Fourteen children from around the state attended the week-long camp whose primary focus was to develop career and personal goals, confidence, and self-esteem for this group of high-risk students. Gayle Arries, marketing director, organized and led the camp held at Southern Wesleyan University. Honors Program students Lucas Anderson and Nathan Silver partnered with Pendleton Pride in Motion (PPIM), a group of concerned citizens committed to making Pendleton a healthier place to live, to complete the initial phase of a 0.08 mile-long Tri-County Nature Trail located at the northern end of Perimeter Road. In the 2014 - 2015 Upward Bound Annual Performance Report, 17 seniors were eligible for graduation. Of those 17 students, 100% graduated from high school, and 100% of the program objectives were met. 89% of the students completed the year with a 2.5 GPA or greater, and 100% of seniors achieved at the proficient level on the State assessments. Fourteen faculty and staff participated in the first Leadership Development class associated with the College’s new Talent Management program. Talent Management is one of the initiatives aligned with the College’s strategic direction to “Drive Organizational Change through our People” as published in the Tri-County Technical College Strategic Plan. The group met weekly over several months. The majority of the program instructors were members of the Executive Staff. The College initiated a project to address cyber security priorities using the National Institute for Standards and Technology (NIST) Cyber Security Framework. The project will identify the risks that need to be mitigated, current state in regards to risk, best practices, and approximate cost of implementation of controls. This data will be analyzed and vetted through the NIST framework, third party consulting, and a cross-sectional team of employees and Executive Staff. The inaugural LC 101 class for new staff began in January. LC 101 is designed to provide staff with an opportunity to integrate into the TCTC culture, discover their role in helping students to reach their goals, and learn College processes, procedures, and other information that will help them to be successful employees. The staff component will integrate with the LC 101 faculty component to cover common topics throughout each semester. Two College-wide professional development days were held in FY16. Sessions included emergency preparedness, Office 360, High Impact Practices, communication, and more. The morning included sessions for all employees, and the afternoon was used for division-specific development activities. A large crowd of student veterans and current members of the military attended the Backpacks for the Brave event in Patriots’ Place in Anderson Hall on the Pendleton Campus. Dr. Booth handed out free backpacks filled with school supplies, brochures, resources, and other information from local veteran organizations and the Tri-County community.

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Internal Control Structure and Budgetary Control The management of the College is responsible for establishing and maintaining an effective system of internal control. The system of internal control is designed to ensure that certain organizational objectives are met. Accordingly, organizational structure, policies, and procedures have been established to safeguard assets, ensure the reliability of accounting data, promote efficient operations, and ensure compliance with established governmental laws, regulations and policies, College policies, and other requirements of sponsors to whom the College is accountable. The internal accounting control structure is designed to provide reasonable but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and 2) the evaluation of costs and benefits requires estimates and judgments by management. As a recipient of federal financial funds, the College is responsible for ensuring compliance with all applicable laws and regulations relating to such assistance. A combination of State and College policies and procedures, integrated with the College’s system of internal controls, provides for this compliance. The College undergoes an annual examination of its federal financial assistance programs in accordance with the Single Audit Act Amendments of 1996 and the Uniform Guidance. The College maintains budgetary controls in the form of line-item budgets and budget transfer restrictions. The objective of these budgetary controls is to ensure compliance with the annual budget adopted by the College Commission. The College maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Open encumbrances are reported as appropriated fund balance at year-end. As demonstrated by the financial statements and schedules included in the financial section of this report, management of the College continues to meet its responsibility for sound financial management. Independent Audit Cline, Brandt, Kochenower & Co. P.A. has audited the financial statements. The Independent Auditors’ Report is included in the financial section of this report and reflects an unmodified opinion on the basic financial statements. The College complies with the requirements of the Single Audit Act and the Uniform Guidance for which separate reports are issued. Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Tri-County Technical College for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2015. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA.

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FinanCial

Post Office Box 848, 1225 West Floyd Baker Boulevard, Gaffney, SC 29342-0848, (864) 489-7121 Fax (864) 489-7123 Post Office Box 161300, 145 Rogers Commerce Boulevard, Boiling Springs, SC 29316-1300, (864) 541-0218 Fax (864) 541-0221

Internet Address: www.cbkpa.com

Members Albert B. Cline, CPA (1923-2013)

American Institute of CPAS Raymond H. Brandt, CPA

Private Companies Practice Section Ben D. Kochenower, CPA, CFE, CVA, CICA, CGMA

Timothy S. Blake, CPA, PFS

South Carolina Association of CPAS Brandon A. Blake, CPA

Governmental Audit Quality Center

Independent Auditors' Report Tri-County Technical College Pendleton, South Carolina Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities of Tri-County Technical College, a discretely presented component unit of the State of South Carolina, as of and for the years ended June 30, 2016 and June 30, 2015, and the related notes to the financial statements, which collectively comprise the College’s basic financial statements as listed in the table of contents. We did not audit the financial statements of Tri-County Technical College Foundation, Inc and Subsidiary (a discretely presented component unit). The Tri-County Technical College Foundation, Inc and Subsidiary reflects 100% of total assets, 100% of net assets, and 100% of total revenues of the discretely presented component unit. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of Tri-County Technical College Foundation, Inc. and Subsidiary, which represent 100% of total assets, 100% of net assets, and 100% of total revenue of the discretely presented component unit. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Tri-County Technical College Foundation, Inc. and Subsidiary, is based solely on the report of other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The financial statements of theTri-County Technical College Foundation, Inc and Subsidiary were not audited in accordance with Government Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal control. Accordingly, we express no such, opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

1

CLINE BRANDT KOCHENOWER

& CO., P.A.

Certified Public Accountants

Established 1950

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Tri-County Technical College Pendleton, South Carolina Page Two

Opinion In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and the discretely presented component unit (Tri-County Technical College Foundation, Inc. and Subsidiary) of Tri-County Technical College as of June 30, 2016 and June 30, 2015, and the respective changes in financial position, and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of the College’s proportionate share of the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS) net pension liabilities, and the schedule of College’s contributions to the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS) as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Tri-County Technical College’s basic financial statements. The introductory section and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is not a required part of the basic financial statements. The schedule of expenditures of federal awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

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Tri-County Technical College Pendleton, South Carolina Page Three Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 13, 2016, on our consideration of Tri-County Technical College's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the College’s internal control over financial reporting and compliance. Report on State Lottery Assistance Program We have also issued our report dated September 13, 2016 on our consideration of Tri-County Technical College’s administration of the State Lottery Assistance Program and on our tests of its compliance with certain provisions of State law and policy 3-2-307 and Procedure 3-2-307.1 of the State Board for Technical and Comprehensive Education.

Gaffney, SC September 13, 2016


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MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) TRI-COUNTY TECHNICAL COLLEGE June 30, 2016 As management of Tri-County Technical College, (“the College”) we offer readers of the College’s financial statements this narrative overview and analysis of the financial activities of the College for the fiscal year ended June 30, 2016. This discussion should be read in conjunction with the financial statements and the notes thereto, which follow this section. Financial Highlights

• The assets of Tri-County Technical College exceeded its liabilities at June 30, 2016 by $46,778,439 (net position). This amount increased $5,509,674 primarily as a result of current year operations. Of this amount, $7,803,823 (unrestricted net position) may be used to meet the College’s ongoing obligations and ($30,861,704) (unrestricted net position) represents the impact of GASB required pension reporting. See Note 7 – Pensions for additional information.

• The College experienced an operating loss of ($18,652,422) as reported in the Statement of Revenues, Expenses, and Changes in Net Position. The operating loss decreased by $169,160 from fiscal year 2015 due to an increase in operating revenues of $441,322 net of an increase in operating expenses of $272,162.

• The operating loss was offset by non-operating revenues from State appropriations of $9,076,724 local appropriations of $2,596,162, State grants and contracts of $29,903, Federal grants and contracts of $9,025,665, other non-operating revenues of $1,036,480, and capital appropriations of $2,501,787 for total non-operating revenues of $24,263,763.

Overview of the Financial Statements The College is engaged only in Business-Type Activities (BTA) that are financed in part by fees charged to students for educational services. Accordingly, its activities are reported using the three financial statements required for proprietary funds: Statement of Net Position; Statement of Revenues, Expenses, and Changes in Net Position; and Statement of Cash Flows. The Statement of Net Position presents the financial position of the College at the end of the fiscal year and classifies assets and liabilities into current and non-current. The difference between total assets and total liabilities is net position, which is displayed in three broad categories: invested in capital assets (net of related debt), restricted, and unrestricted. Net position is one indicator of the current financial condition of the College, while the change in net position is an indicator of whether the overall financial condition has improved or worsened during the year. The Statement of Revenues, Expenses, and Changes in Net Position is basically a statement of net income that replaces the fund perspective with the entity-wide perspective. Revenues and expenses are categorized by operating and non-operating, and expenses are reported by object type. The Statement of Cash Flows will aid readers in identifying the sources and uses of cash by the major categories of operating, capital and related financing, non-capital financing, and investing activities. This statement also emphasizes the College’s dependence on State and county appropriations by separating them from operating cash flows.

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MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) - Continued TRI-COUNTY TECHNICAL COLLEGE Financial Analysis Statement of Net Position: Net position may serve over time as a useful indicator of an entity’s financial position. In the case of the College, assets exceeded liabilities by $46,778,439 at the close of fiscal year 2016, by $41,268,765 at the close of fiscal year 2015, and by $67,103,510 at the close of fiscal year 2014. Excluding the impact of GASB No. 68, net position would be $77,640,143 and $71,737,755 as of the close of fiscal years 2016 and 2015, respectively. Net investment in capital assets of $34,414,032 (44.33%) reflects the College’s investment in land, buildings, machinery, and equipment less any related debt used to acquire those assets that is still outstanding. The College uses these capital assets to provide services to students; consequently, these assets are not available for future spending. Although the College’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Unrestricted net position of $7,803,823 (10.05%) may be used to meet the College’s ongoing obligations offset by the Unrestricted net position of ($30,861,704) related to the recording of GASB No. 68 transactions netting to a total of ($23,057,881) as reflected in these financial statements for the year ended June 30, 2016. Restricted net assets of $35,422,288 (45.62%) will be used to meet the College’s capital project needs to provide academic and student support space and long-term maintenance needs of the facilities. The following schedule is prepared from the College’s statement of net assets which is presented on an accrual basis of accounting whereby assets are capitalized and depreciated. Note that assets substantially exceed liabilities denoting a sound financial condition for the College.

Net Position As of June 30, 2016, June 30, 2015 and June 30, 2014

(In millions)

30-Jun 30-Jun Increase 30-Jun Increase 2016 2015 (Decrease) 2014 (Decrease)

ASSETS 2015 to 2016 2014 to 2015 Current Assets $54.56 $49.30 $5.26 $41.10 $8.20

Non-current Assets $0.00 $0.00 $0.00 $0.00 $0.00 Capital Assets, Net of Depreciation $38.98 $37.36 $1.62 $38.98 ($1.62) TOTAL ASSETS $93.54 $86.66 $6.88 $80.08 $6.58 DEFERRED OUTFLOWS $2.73 $2.65 $0.08 $0.00 $2.65 LIABILITIES Current Liabilities $10.62 $9.25 $1.37 $6.83 $2.42 Non-current Liabilities $38.36 $36.21 $2.15 $6.15 $30.06 TOTAL LIABILITIES $48.98 $45.46 $3.52 $12.98 $32.48 DEFERRED INFLOWS $0.51 $2.58 ($2.07) $0.00 $2.58 NET POSITION Investment in Capital Assets $34.41 $32.39 $2.02 $33.23 ($0.84) Restricted $35.42 $32.14 $3.28 $27.12 $5.02 Unrestricted ($23.05) ($23.26) $0.21 $6.75 ($30.01)

TOTAL NET POSITION $46.78 $41.27 $5.51 $67.10 ($25.83)

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MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) - Continued TRI-COUNTY TECHNICAL COLLEGE Statement of Net Position - Continued Overall total assets increased $6.88 million or 7.9% from June 30, 2015 to June 30, 2016, compared to an increase of $6.58 million or 8.2% from June 30, 2014 to June 30, 2015. The changes related to the fiscal year ended June 30, 2016 as compared to June 30, 2015 are as follows:

• Current assets increased $5.26 million or 10.7% primarily due to the increase in cash and cash equivalents available to fund future capital expansions and renovations.

• Capital assets increased $1.62 million or 4.3% primarily related to current year additions for the Vet Tech Kennel (placed in service during the year) and ongoing construction in process for the Student Success Center and the Engineering Industrial Technology (EIT)/ Industrial Technology Center (ITC) renovations.

The changes related to the fiscal year ended June 30, 2015 as compared to June 30, 2014 are as follows:

• Current assets increased $8.20 million or 20.0% primarily due to the increase in cash and cash equivalents available to fund future capital expansions and renovations.

• Capital assets decreased $1.62 million or 4.2% primarily related to current year depreciation.

Deferred Outflows from Resources increased by $71,000 or 2.7%, from June 30, 2015 to June 30, 2016, compared to an increase of $2.65 million or 100.00% from June 30, 2014 to June 30, 2015.

• Changes from year to year are related to changes in expected versus actual experience of actuarial assumptions used in the calculation of the net pension liability. Contribution amounts made subsequent to the measurement date are also a component of deferred outflows.

• At June 30, 2015, deferred outflows from resources was a new reporting category resulting from the implementation of GASB No. 68.

• See Note 7- Pensions for additional information. Overall total liabilities increased $3.52 million or 0.08% from June 30, 2015 to June 30, 2016, compared to an increase of $32.48 million or 250.2% from June 30, 2014 to June 30, 2015. The changes related to the fiscal year ended June 30, 2016 as compared to June 30, 2015 are as follows:

• Current liabilities increased $1.37 million or 14.8% due primarily to the increase in accounts payable of $1.94 million related to on-going construction contracts net of a decrease of $0.60 million in unearned revenue related to State of SC funding Provisos.

• Noncurrent liabilities increased by $2.15 million or 5.9% related to the change in the College’s proportionate share of the Net Pension Liability. (See Note 7 - Pensions for additional information.)

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MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) - Continued TRI-COUNTY TECHNICAL COLLEGE Statement of Net Position - Continued The changes related to the fiscal year ended June 30, 2015 as compared to June 30, 2014 are as follows:

• Current liabilities increased $2.42 million or 35.4% due primarily to the increase in unearned revenue related to a State of SC funding proviso.

• Noncurrent liabilities increased by $30.06 million or 488.8% related to the addition of a new noncurrent liability category called Net Pension Liability related to GASB No. 68 reporting requirements (See Note 7 - Pensions for additional information.)

Deferred Inflows from Resources decreased by $2.07 or 80.2%, from June 30, 2015 to June 30, 2016, compared to an increase of $2.58 million or 100.0% from June 30, 2014 to June 30, 2015.

• Changes from year to year are related to changes in expected versus actual experience of actuarial assumptions used in the calculation of the net pension liability.

• At June 30, 2015, deferred inflows from resources was a new reporting category resulting from the implementation of GASB No. 68.

• See Note 7- Pensions for additional information. Overall net position increased by $5.51 million or 13.4% from June 30, 2015 to June 30, 2016, compared to a decrease of $25.83 million or 38.5% from June 30, 2014 to June 30, 2015. The changes related to the fiscal year ended June 30, 2016 as compared to June 30, 2015 are as follows:

• Net Investment in Capital Assets increased $2.02 million or 6.2% due to the completion of the Vet Tech Kennel Project and on-going construction in process on the Student Success Center and the EIT/ITC renovations net of depreciation expense and payments made on the capital lease.

• Restricted Capital Projects increased $3.28 million or 10.2% due primarily to an increase in restricted funds to meet the College’s future maintenance and capital improvement needs.


• Restricted Capital Projects increased $5.02 million or 18.5% due primarily to an increase in restricted funds to meet the College’s future maintenance and capital improvement needs.

• Unrestricted Net Position decreased by $30.01 million or 444.6% primarily related to the implementation of GASB No. 68 (See Note 7 – Pensions for additional information.)

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MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) - Continued TRI-COUNTY TECHNICAL COLLEGE Statement of Revenues, Expenses, and Changes in Net Position: The “Statement of Revenues, Expenses and Changes in Net Position” presents and categorizes revenues earned and expenses incurred during the year into operating and non-operating. Generally, operating revenues and expenses are those received for services rendered and used to carry out the mission of the College; however, the College depends heavily on financial support from the state and counties for which it provides services. This support is categorized as non-operating revenue based on governmental accounting standards; therefore, the College will always reflect an operating deficit and its dependence on state and local funding. Non-operating revenues net of expenses offset the operating deficit and result in an overall increase in net assets for the year. State and local capital appropriations and capital grants and gifts are considered neither operating nor non-operating revenues and are reported below “Net Revenues over Expenses before Capital Contributions”. Summary of Revenue

As of June 30, 2016, June 30, 2015 and June 30, 2014 (In millions)

30-Jun 30-Jun Incr(Decr) 30-Jun Incr(Decr) 2016 2015 2015 2014 2014 To 2016 To 2015 Operating Revenue Tuition and Fees(net of scholarship allow) $16.29 $16.84 ($0.55) $16.87 ($0.03) Grants, Contracts and other $16.04 $15.03 $1.01 $14.46 $0.57 Auxiliary(net of book allowance) $2.63 $2.65 ($0.02) $2.65 $0.00 Total Operating Revenue $34.96 $34.52 $0.44 $33.98 $0.54 Less Operating Expenses $53.61 $53.34 $0.27 $55.13 ($1.79) Net Operating Loss ($18.65) ($18.82) $0.17 ($21.15) $2.33 Non-Operating Revenue State Appropriations $9.07 $7.42 $1.65 $6.76 $0.66 Local Appropriations $2.60 $3.00 ($0.40) $3.00 $0.00 Other Grants and Contracts $10.04 $11.28 ($1.24) $12.46 ($1.18) Investment Income $0.05 $0.04 $0.01 $0.08 ($0.04) Total Non-Operating Revenue $21.76 $21.74 $0.02 $22.30 ($0.56) Less Interest on Capital Debt $0.10 $0.21 ($0.11) $0.22 ($0.01)

Net Revenues over Expenses before Capital Contributions $3.01 $2.71 $0.30 $0.93 $1.78 Capital Appropriations, Grants and Contracts, Gains/Losses $2.50 $1.57 $0.93 $1.48 $0.09 Increase in Net Position $5.51 $4.28 $1.23 $2.41 $1.87 Net Position, Beginning of Year $41.27 $67.10 ($25.83) $64.69 $2.41 Net Position, Beginning Year Restatement $0.00 ($30.11) $30.11 $0.00 ($30.11) Net Position, End of Year $46.78 $41.27 $5.51 $67.10 ($25.83) Total Revenues $59.22 $57.83 $1.39 $57.76 $0.07

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MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) - Continued TRI-COUNTY TECHNICAL COLLEGE

Statement of Revenues, Expenses, and Changes in Net Position – Continued Total revenue increased by $1.39 million or 2.4% between fiscal years 2015 and 2016 and increased $0.07 million or 0.10% between fiscal years 2014 and 2015. Operating revenue increased $0.44 million or 1.3% from June 30, 2015 to June 30, 2016, compared to an increase of $.054 million or 1.6% from June 30, 2014 to June 30, 2015. The changes related to the fiscal year ended June 30, 2016 as compared to June 30, 2015 are as follows:

• Grants and contracts increased $1.01 million or 6.7% due to increases in SC Life Scholarship financial aid funding and slight increases in various federal grants received including Upward Bound, SCDOT, Title III, and Perkins IV Grant Programs.

• Student tuition decreased $0.55 million or 3.3% due to a reduction in enrollment related to strong employment numbers in the College’s service area.


• Grants and contracts increased $0.57 million or 3.9% due to increases in SC Lottery and Life Scholarship financial aid funding.

Overall total non-operating revenue increased $0.02 million or 0.0% from June 30, 2015 to June 30, 2016, compared to a decrease of $0.57 million or 2.5% from June 30, 2014 to June 30, 2015. The changes related to the fiscal year ended June 30, 2016 as compared to June 30, 2015 are as follows:

• State appropriations increased $1.65 million or 22.24% based on current year State budgetary allowances.

• Federal Grants decreased $1.22 million or 11.9% based on current year Pell grants awarded.


• State appropriations increased $0.66 million or 9.8% based on current year State budgetary allowances.

• Federal Grants decreased $1.06 million or 9.4% based on current year Pell grants awarded.

10

MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) - Continued TRI-COUNTY TECHNICAL COLLEGE Statement of Revenues, Expenses, and Changes in Net Position – Continued

Summary of Expenses

As of June 30, 2016, June 30, 2015 and June 30, 2014 (In millions)

30-Jun 30-Jun Incr(Decr) 30-Jun Incr(Decr) 2016 2015 2015 2014 2014 To 2016 To 2015 Operating Expenses

Salaries $21.22 $20.64 $0.58 $20.65 ($0.01) Benefits $7.24 $6.89 $0.35 $6.25 $0.64 Scholarships $5.95 $6.57 ($0.62) $7.27 ($0.70) Utilities $1.11 $1.07 $0.04 $1.04 $0.03 Supplies and Other Services $12.01 $11.61 $0.40 $13.31 ($1.70) Auxiliary $3.15 $3.63 ($0.48) $3.75 ($0.12) Depreciation $2.93 $2.93 $0.00 $2.86 $0.07 Total Operating Expenses $53.61 $53.34 $0.27 $55.13 ($1.79) Total all Expenses $53.72 $53.55 $0.17 $55.35 ($1.81)

Overall total operating expense increased $0.27 million or 0.5% from June 30, 2015 to June 30, 2016, compared to a decrease of $1.79 million or 3.2% from June 30, 2014 to June 30, 2015. The changes related to the fiscal year ended June 30, 2016 as compared to June 30, 2015 are as follows:

• Salaries and benefits increased due to filling numerous vacant key positions during the year as well as the addition of full-time armed security positions.


• Supplies and other services decreased due to the lack of costs associated with water damage repairs which occurred in fiscal year 2014 and a reduction of repairs and maintenance performed by third party contractors.

Statement of Cash Flows: The “Statement of Cash Flows” is concerned solely with the flows of cash in and out of the College. Consequently, only transactions that affect the College’s cash account are reported in this statement.

11

MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) - Continued TRI-COUNTY TECHNICAL COLLEGE

Statement of Cash Flows – Continued Summary of Cash Flows As of June 30, 2016, June 30, 2015 and June 30, 2014

(In millions)

30-Jun 30-Jun Difference 30-Jun Difference

2016 2015 2015 2014 2014

To 2016 To 2015

Net cash used by operating activities ($13.34) ($13.37) $0.03 ($17.32) $3.95 Net cash flows from non-capital financing activities $22.25 $21.70 $0.55 $22.49 ($0.79) Net cash flows used by capital and related financing activities ($2.70) ($0.17) ($2.53) ($0.82) $0.65 Net cash flows from investing activities $0.05 $0.04 $0.01 $0.08 ($0.04) Net increase(decrease) in cash $6.26 $8.20 ($1.94) $4.43 $3.77

In fiscal year 2016, cash increased $6.26 million. The net cash flows from operating activities increased by $0.03 million. There were slight increases in tuition and fees received, state grants and contracts, and other receipts. Amounts paid to students for scholarships decreased by approximately $0.63 million. These increases in cash were offset by increases in amounts paid to employees. Cash for fiscal year 2015 increased $8.20 million. The net cash flows from operating activities increased by $3.95 million primarily related to a decrease in payments to vendors and a decrease in scholarship payments. Cash flows from non-capital financing activities in fiscal year 2016 increased $0.55 million primarily as a result of decreases in Pell federal grants offset by increases in State Appropriations. In fiscal year 2015 cash flows from non-capital financing activities decreased $0.79 million primarily as a result of decreases in Pell Federal Grants offset with increase in state appropriations. Cash flows used in capital and related financing activities decreased $2.53 million in fiscal year 2016 primarily due to the increase in capital assets acquisitions related to on-going construction. The increase of $0.65 million in fiscal year 2015 is due to the decrease in capital assets purchases. Cash flows from investing activity remained relatively flat decreasing $0.01 million in fiscal year 2016.

12

MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) – Continued TRI-COUNTY TECHNICAL COLLEGE

13

MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) - Continued TRI-COUNTY TECHNICAL COLLEGE Capital Asset and Debt Administration The College’s capital assets total $38,979,032, a 4.32% increase over fiscal year 2016. During the year, the College began construction on the Student Success Center. The project is estimated to cost $42 million to complete and includes renovation of the Ruby Hicks Administration building. The first phase of the project is expected to be completed in fiscal year 2018. More detailed information on capital asset activity can be found in notes 1, 6, and 10 following the basic financial statements. As of June 30, 2016 the only long term debt for the College is a capital lease payable of $4,565,000. More detailed information on long-term debt activity can be found in notes 6 and 10 following the basic financial statements. The Student Success Center Project will be funded partially through current College reserves and County support with any residual amounts funded with the addition of a capital lease payable to the TCTC Foundation, LLC. Economic Factors The economic condition of the College is dependent to a large degree on that of the state and local governments. Due to improving economic conditions, the state of South Carolina was able to increase current funding levels 22.39% this year over the previous year. Local government funding support for ongoing maintenance and plant operations was basically flat year over year based on the College’s focus on operational efficiencies and fiscal stewardship. In addition to state and local funding, the College is also dependent on tuition revenues to operate the college, equip our facilities and reinvest in infrastructure. Consequently, the College increased tuition 2.1% during the current year which represents the increase in the Higher Education Price Index (HEPI) for the same period. In the next fiscal year, the College will begin construction on another campus located in Oconee County. The Oconee County Workforce Development Center will be funded using College reserves, Oconee County support and funding from the State Appropriations Capital Reserve Fund. As demonstrated by the financial statements and schedules included in the financial section of this report, the College continues to operate on a fiscally sound basis including only modest tuition increases and as a result of deliberate fiscal planning, stringent budget management, and the stabilization of State support.


BasiC FinanCial sTaTemenTs


14

Statement of Net PositionTri-County Technical CollegeJune 30, 2016 and June 30, 2015

ASSETS FY16 FY15Current assets:

Cash and cash equivalents--Note 3 $ 49,817,479 $ 43,550,563Accounts receivable, net of allowance--Note 4 3,048,364 4,026,322Inventories 687,395 525,558Prepaid expenses - other assets 1,012,287 1,192,833

Total Current Assets 54,565,525 49,295,276

Noncurrent assets:Restricted cash and cash equivalents--Note 3 418 413Capital assets, net of accumulated depreciation--Note 6 38,979,032 37,365,607

Total Noncurrent Assets 38,979,450 37,366,020

TOTAL ASSETS $ 93,544,975 $ 86,661,296

DEFERRED OUTFLOWS OF RESOURCES--Note 7 $ 2,725,545 $ 2,654,025

LIABILITIESCurrent liabilities

Accounts payable--Note 5 $ 3,946,841 $ 2,002,084Accrued liabilities 74,356 74,719Accrued annual leave-current portion--Note 11 127,453 123,177Unearned Revenue 6,044,102 6,639,968Capital lease payable-current portion--Note 10 430,000 410,000

Total Current Liabilities $ 10,622,752 $ 9,249,948

Noncurrent LiabilitiesAccrued annual leave--Note 12 $ 1,147,080 $ 1,108,593Net pension liability 33,075,343 30,540,959Capital lease payable--Note 10 4,135,000 4,565,000

Total Noncurrent Liabilities 38,357,423 36,214,552

TOTAL LIABILITIES $ 48,980,175 $ 45,464,500

DEFERRED INFLOWS OF RESOURCES--Note 7 $ 511,906 $ 2,582,056

NET POSITION

Net investment in Capital Assets $ 34,414,032 $ 32,390,604Restricted for:

Expendable:Capital Projects 35,422,288 32,144,475

Unrestricted (23,057,881) (23,266,314)

Total Net Position $ 46,778,439 $ 41,268,765

See accompanying notes to financial statements.

15

Statement of Revenues, Expenses, and Changes in Net PositionTri-County Technical CollegeFor the years ended June 30, 2016 and June 30, 2015

REVENUES FY16 FY15Operating Revenues:

Student tuition and fees (net of $14,086,279 scholarship allowances) $ 16,288,993 $ 16,839,354 Federal grants and contracts 2,596,359 2,304,878 State grants and contracts 11,854,528 11,225,569 Non-governmental contracts 1,449,164 1,404,762 Auxiliary enterprises(net of $1,727,109 scholarship book allowance) 2,625,575 2,654,973 Other operating revenues 144,496 88,257

TOTAL OPERATING REVENUES 34,959,115 34,517,793 EXPENSESOperating Expenses

Salaries 21,223,285 20,634,882 Benefits 7,244,132 6,890,799 Scholarships 5,945,172 6,572,600 Utilities 1,107,954 1,070,323 Supplies and other services 12,012,182 11,611,351 Auxiliary resale costs 3,150,042 3,627,065 Depreciation 2,928,770 2,932,355

TOTAL OPERATING EXPENSES 53,611,537 53,339,375

OPERATING LOSS (18,652,422) (18,821,582)

NONOPERATING REVENUES (EXPENSES)State appropriations 9,074,269 7,414,368 State appropriations-CHE 2,455 2,615 Local appropriations 2,596,162 3,000,000 Federal grants and contracts 9,025,665 10,248,357 State grants and contracts 29,903 57,846 Other nonoperating revenues 981,694 978,757 Interest income 54,786 43,489 Gain(Loss) on disposal of assets (2,958) - Interest on capital asset-related debt (101,667) (211,038)

NET NONOPERATING REVENUES 21,660,309 21,534,394

3,007,887 2,712,812

State appropriations - Lottery Technology (Equipment) 580,815 253,522 State Capital reserve - State Appropriations Surplus - 65,851 State Capital reserve - State Appropriations 736,633 - State Capital reserve - Manufacturing Certification 20,339 82,536 Local capital appropriations 1,164,000 1,164,000

TOTAL OTHER 2,501,787 1,565,909

INCREASE IN NET POSITION 5,509,674 4,278,721

NET POSITION41,268,765 67,103,510

- (30,113,466) $ 46,778,439 $ 41,268,765


NET POSITION - END OF THE YEAR

INCOME BEFORE OTHER REVENUE,EXPENSESAND GAINS OR LOSSES

NET POSITION - BEGINNING OF THE YEARNET POSITION - BEGINNING OF YEAR RESTATED

16

Statement of Cash FlowsTri-County Technical CollegeFor the years ended June 30, 2016 and June 30, 2015

FY16 FY15

CASH FLOWS FROM OPERATING ACTIVITIESTuition and fees $ 17,296,074 $ 16,807,978Federal grants & contracts 2,408,708 3,441,469State grants & contracts 13,083,105 12,641,216Non governmental grants & contracts 1,329,076 1,305,172Auxiliary Enterprise (686,304) (896,153)Payments to suppliers (12,939,590) (12,927,044)Payments to employees (28,425,017) (27,613,549)Payments applied as scholarships to student accounts (5,945,172) (6,572,600)Other receipts 537,210 443,780

NET CASH USED BY OPERATING ACTIVITIES (13,341,910) (13,369,731)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESState appropriations 9,076,724 7,416,983Local appropriations 3,143,654 3,000,000Federal grants and contracts 9,025,665 10,248,357State grants and contracts 29,903 57,846Other grants and contracts 981,694 978,756

NET CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES 22,257,640 21,701,942

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESCounty appropriations for capital 1,164,000 1,164,000State lottery technology 580,815 253,522State capital reserve - deferred maintenance 736,633 82,536State capital reserve - Manufacturing Certification 20,339 65,851Purchases of capital assets (4,600,767) (1,135,247)Principle paid on capital debt (410,000) (395,000)Interest paid on capital debt (194,615) (211,038)

NET CASH (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (2,703,595) (175,376)

CASH FLOWS FROM INVESTING ACTIVITIESInterest on investments 54,786 43,489

NET CASH FLOWS FROM INVESTING ACTIVITIES 54,786 43,489

NET INCREASE IN CASH 6,266,921 8,200,324CASH - BEGINNING OF THE YEAR 43,550,976 35,350,652

CASH - END OF YEAR $ 49,817,897 $ 43,550,976


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Statement of Cash FlowsTri-County Technical CollegeFor the years ended June 30, 2016 and June 30, 2015

FY16 FY15RECONCILIATION OF NET OPERATING REVENUES (EXPENSES) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES:Operating expenses over revenues $ (18,652,422) $ (18,821,582)Depreciation expense 2,928,770 2,932,355

CHANGES IN ASSETS AND LIABILITIES1,107,254 173,456(161,837) 75,939180,546 (245,370)

1,416,531 566,136(595,866) 1,681,679

Accrued liabilities (363) (8,060)Compensated absences 42,763 (79,808)Net pension liability & Deferred Inflows & Outflows 392,714 355,524

NET CASH (USED) BY OPERATING ACTIVITIES $ (13,341,910) $ (13,369,731)


Accounts receivableInventoryPrepaid expensesAccounts payableUnearned revenue

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Component Unit ofTri-County Technical College

2016 2015

Cash and Cash Equivalents 2,374,180$ 1,193,805$ Board-designated Cash 23,058 15,015 Pledges Receivable, Net 294,909 305,724 Accrued Interest Receivable 92,948 65,824 Investments 19,830,172 21,145,073 Property, Plant and Equipment, Net 7,214,932 7,376,547 Bond Issue Costs, Net 217,004 32,251

TOTAL ASSETS 30,047,203$ 30,134,239$

Accounts Payable 225,539$ 141,385$ Bonds Payable 4,765,000 4,975,000

Total Liabilities 4,990,539 5,116,385

Net AssetsUnrestricted 1,643,786 1,499,357 Unrestricted, Board-designated 2,308,389 2,050,080 Temporarily Restricted 7,770,929 8,370,950 Permanently Restricted 13,333,560 13,097,467

Total Net Assets 25,056,664 25,017,854

TOTAL LIABILITIES AND NET ASSETS 30,047,203$ 30,134,239$

See accompanying notes to financial statements

TRI-COUNTY TECHNICAL COLLEGE FOUNDATION, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

ASSETS

LIABILITIES AND NET ASSETS

JUNE 30,

19

Component Unit ofTri-County Technical College

2015TEMPORARILY PERMANENTLY COMBINED COMBINED

UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL

Contributions 193,095$ 457,798$ 261,130$ 912,023$ 753,879$ Investment Income - 416,175 - 416,175 478,735 Net Realized Gains on Investments - 4,086,572 - 4,086,572 1,781,412 Net Unrealized Gains (Losses) on Investments - (4,365,917) - (4,365,917) (1,474,857) Partnership Income (Loss) - (12,112) - (12,112) (5,261) Rental Income 555,963 - - 555,963 650,335 Interest Income 5,676 - - 5,676 5,400 Other Income 50,000 33,129 - 83,129 54,157

Net assets released from restrictions 1,105,668 (1,105,668) - - -

Total Revenues, Gains, and Other Support 1,910,402 (490,023) 261,130 1,681,509 2,243,800

Program ServicesScholarships 456,261 - - 456,261 416,206 Educational Support 653,214 - - 653,214 640,330 Pledge Discount 14,893 - - 14,893 4,267 Depreciation and Amortization 168,761 - - 168,761 164,766

Management and General 201,817 - - 201,817 189,708 Interest Expense 122,835 - - 122,835 233,100 Fundraising 24,918 - - 24,918 75,980

Total Expenses 1,642,699 - - 1,642,699 1,724,357

Change in Net Assets from Operations 267,703 (490,023) 261,130 38,810 519,443

3,549,437 8,370,950 13,097,467 25,017,854 24,498,411

Non-operating reclassification of net assets 135,035 (109,998) (25,037) - -

3,952,175$ 7,770,929$ 13,333,560$ 25,056,664$ 25,017,854$


NET ASSETS, BEGINNING OF YEAR

TRI-COUNTY TECHNICAL COLLEGE FOUNDATION, INC. AND SUBSIDIARYCONSOLIDATED STATEMENT OF ACTIVITIES

REVENUES, GAINS, AND OTHER SUPPORT

YEAR ENDED JUNE 30,2016

EXPENSES

NET ASSETS, END OF YEAR

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NOTES TO THE FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE June 30, 2016 and June 30, 2015 NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations: Tri-County Technical College (“the College”), a member institution of the South Carolina Technical College System, provides a range of educational programs to meet the needs of the adult population of Anderson, Oconee, and Pickens counties. Included in this range of programs are technical and occupational associate degree, diploma, and certificate curricula that are consistent with the needs of employers in the College’s service area. As an integral part of this mission, the College provides a program of continuing education designed to satisfy the occupational demands of employers through retraining and upgrading the skills of individual employees. The College also provides a variety of developmental education programs, support services, and offerings to assist students in meeting their personal and professional educational objectives. Reporting Entity: The financial reporting entity, as defined by the Governmental Accounting Standards Board (GASB) Codification Section 2100, Defining the Financial Reporting Entity, consists of the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion could cause the financial statements to be misleading or incomplete. GASB Codification Section 2600, Reporting Entity and Component Unit Presentation and Disclosure, provides criteria for determining whether certain organizations should be reported as component units based on the nature and significance of their relationship with the primary government and classifies reporting requirements for those organizations. The College is reported as a discretely presented component unit on the State of South Carolina’s Comprehensive Annual Financial Report. Discrete presentation entails reporting component unit financial data in one or more columns separate from the financial data of the primary government instead of blending the College’s financial information into the State’s financial information. The financial statements include the accounts of Tri-County Technical College, as the primary government, and the accounts of Tri-County Technical College Foundation (the “Foundation”), its component unit. However, based on the nature and significance of the Foundation’s relationship with the State of South Carolina, the Foundation is not a component unit of the State of South Carolina. The Foundation is a legally separate, tax-exempt component unit of the College. The Foundation acts primarily as a fund-raising organization to supplement the resources that are available to the College in support of its programs. The 39 member board of the Foundation is self-perpetuating and consists of graduates and friends of the College. Although the College does not control the timing or amount of receipts from the Foundation, the majority of resources, or income thereon that the Foundation holds and invests are restricted to the activities of the College by the donors. Because these restricted resources held by the Foundation can only be used by, or for the benefit of, the College, the Foundation is considered a component unit of the College. The Foundation is reported in separate financial statements because of the difference in its reporting model, as further described below. The Foundation is a private not-for-profit organization that reports its financial results under Financial Accounting Standards Board (FASB) Statements. Most significant to the Foundation’s operations and reporting model are FASB Statement No. 116, Accounting for Contributions Received and Contributions Made, and FASB Statement No. 117, Financial Reporting for Not-for-Profit Organizations. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. Because it is considered impractical to reformat the nongovernmental data into the governmental format, no modifications have been made to the Foundation’s financial information in the College’s financial reporting entity for these differences. However, significant note disclosures to the Foundation’s financial statements have been incorporated into the College’s notes to the financial statements. (See the Component Unit Section within this Summary of Significant Accounting Policies and Notes 12 and 16.) .

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NOTES TO THE FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Financial statements for the Foundation can be obtained by mailing a request to Tri-County Technical College Foundation, P.O. Box 587, Pendleton, SC 29670. Financial Statements: The financial statement presentation for the College meets the requirements of GASB Codifications Sections 2100-2900, Financial Reporting Entity and Co5, Colleges and Universities. The financial statement presentation provides a comprehensive, entity-wide perspective of the College’s assets, liabilities, net position, revenues, expenses, and changes in net position and cash flows. The financial statements are presented within the College’s Comprehensive Annual Financial Report (CAFR). The CAFR also includes an introductory section and statistical section. The College’s CAFR meets the requirements of GASB Statement No. 44 on the Statistical Section. Basis of Accounting: For financial reporting purposes, the College is considered a special-purpose government engaged only in business-type activities. Accordingly, the College’s financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. Student tuition and fees are presented net of scholarships and fellowships applied to student accounts, while stipends and other payments made directly are presented as scholarship expenses. All significant intra-institutional transactions have been eliminated. Cash and Cash Equivalents: For purposes of the statement of cash flows, the College considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Funds invested through the State of South Carolina State Treasurer’s Office are considered cash equivalents. Investments: Deposits and investments for the College are governed by the South Carolina Code of Laws, Section 11-9-660, “Investments of Funds”. The college accounts for its investments at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Changes in unrealized gain (loss) on the fair value of investments are reported as a component of investment income in the statement of revenues, expenses, and changes in net position. Accounts Receivable: Accounts receivable consists of tuition and fee charges to students and auxiliary enterprise services provided to students, faculty and staff. Accounts receivable also include amounts due from the Federal government, state and local governments, or private sources in connection with reimbursement of allowable expenditures made pursuant to the College’s grants and contracts. Accounts receivable are recorded net of estimated uncollectible amounts. Details for accounts receivable are discussed in Note 4. Allowances for losses for student accounts receivable are established based upon actual losses experienced in prior years and evaluations of the current account portfolio. At June 30, 2016, the allowance for uncollectible student accounts is $300,000. At June 30, 2015, the allowance for uncollectible student accounts was $350,000. Inventories: Inventories for internal use are valued at cost. Inventories for resale are carried at the lower of cost or market on the first-in, first-out ("FIFO") basis.

22

NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Capital Assets: Capital assets are recorded at cost at the date of acquisition or fair market value at the date of donation in the case of gifts. The College follows capitalization guidelines established by the State of South Carolina. All land is capitalized, regardless of cost. Qualifying improvements that rest in or on the land itself are recorded as depreciable land improvements. Major additions and renovations and other improvements that add to the usable space, prepare existing buildings for new uses, or extend the useful life of an existing building are capitalized. The College capitalizes movable personal property with a unit value in excess of $5,000 and a useful life in excess of two years and depreciable land improvements, buildings and improvements, and intangible assets costing in excess of $100,000. Routine repairs and maintenance and library materials, except individual items costing in excess of $5,000, are charged to operating expenses in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 15 to 50 years for buildings and improvements and land improvements, and 2 to 25 years for machinery, equipment, and vehicles. Until fiscal year 2012, a full year of depreciation was taken the year the asset was placed in service and no depreciation was taken in the year of disposition. However, a memorandum from the South Carolina Office of Comptroller General was received on April 5, 2012 issuing a depreciation method change. “Effective July 1, 2011 (FY12), all new purchases for capital assets should utilize a monthly depreciation convention for the straight-line method.” During fiscal year end 2014, Tri-County Technical College was a sub-recipient of a U.S. Department of Labor Trade Adjustment Act Community College Training Grant (TAACT). Within the terms of the grant, equipment was purchased in the amount of $5,190 and $414,111 as of June 30, 2015 and June 30, 2014, respectively. No purchases were made in the year ended June 30, 2016. In accordance with grant guidelines and U.S. Department of Labor directive, the College is not the owner of the equipment and, therefore, the equipment was neither capitalized nor depreciated. The equipment is in use by the College and as the custodian of the equipment, the College is tracking it in our fixed assets system. Unearned Revenues and Deposits: Unearned revenues include amounts received for tuition and fees and certain auxiliary activities prior to the end of the fiscal year but related to the subsequent accounting period. Unearned revenues also include amounts received from grant and contract sponsors that have not yet been earned. During fiscal year end 2014, the College received $2,000,000 in non-recurring SC Education Lottery funding to partially fund a satellite location in Oconee County. The funding stipulates a one-for-one (50%) non-state funded match. In addition, the state has awarded $750,000 in non-recurring State Capital Reserve Appropriations funds in support of the same purpose which also requires a one-for-one non-state match. Neither match has been provided for as of year-end. Both of these amounts are shown as unearned revenue for the periods ended June 30, 2016 and June 30, 2015, and the amount from the state which was not received before year-end is included in receivables on the Statement of Net Position as of June 30, 2016 and June 30, 2015. At June 30, 2016, unearned revenue for tuition and fees totaled $1,599,857 and other unearned revenue totaled $4,444,245. At June 30, 2015, unearned revenue for tuition and fees totaled $1,316,843 and other unearned revenue totaled $5,323,125.

23

NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Compensated Absences: Employee vacation pay expense is accrued at year-end for financial statement purposes. The liability and expense incurred are recorded at year-end as a component of long-term liabilities in the statement of net position and as a component of benefit expenses in the statement of revenues, expenses, and changes in net position. At June 30, 2016, accumulated unpaid vacation time amounted to $1,274,533. At June 30, 2015, accumulated unpaid vacation time amounted to $1,231,770. Net Pension Liability: For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of the South Carolina Retirement System (SCRS) and the South Carolina Police Officers Retirement System (PORS) and additions to/deductions from SCRS’s and PORS’s fiduciary net position have been determined on the same basis as they are reported by SCRS or PORS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Deferred Outflows of Resources and Deferred Inflows of Resources: Deferred outflows of resources represent consumption of net position applicable to a future period. Deferred inflows of resources represent acquisition of net position applicable to a future period. Changes in net pension liability not included in pension expense are reported as deferred outflows of resources or deferred inflows of resources. Employer contributions subsequent to the measurement date of the net pension liability are reported as deferred outflows of resources. Net Position: The College’s net position is classified as follows:

Net Investment in Capital Assets: This represents the 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.

Restricted net assets - expendable: Restricted expendable net assets include resources for which the College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties.

Restricted net assets – non-expendable: Non-expendable restricted net assets consist of endowment and

similar type funds for which donors or other outside sources have stipulated, as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose of producing present and future income, which may either be expended or added to principal.

Unrestricted net assets: Unrestricted net assets represent resources derived from student tuition and

fees, appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College, and may be used at the discretion of the governing board to meet current expenses for any purpose. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty, and staff.

The College policy for applying expenses that can use both restricted and unrestricted resources is delegated to the departmental administrative level. General practice is to first apply the expense to restricted resources and then to unrestricted resources.

24

NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Income Taxes: The College is exempt from income taxes under the Internal Revenue Code. Classification of Revenues and Expenses: The College has classified its revenues as either operating or non-operating revenues according to the following criteria: Operating Revenues and Expenses: Operating revenues generally result from exchange transactions to

provide goods or services related to the College’s principal ongoing operations. These revenues include (1) student tuition and fees received in exchange for providing educational services, housing, and other related services to students; (2) receipts for scholarships where the provider has identified the student recipients; (3) fees received from organizations and individuals in exchange for miscellaneous goods and services provided by the College; and (4) grants and contracts that are essentially the same as contracts for services that finance programs the College would not otherwise undertake.

Non-operating Revenues and Expenses: Non-operating revenues include activities that have the characteristics of non-exchange transactions. These revenues include gifts and contributions, appropriations, investment income, and any grants and contracts that are not classified as operating revenue or restricted by the grantor to be used exclusively for capital purposes.

Auxiliary Enterprises and Internal Service Activities: Auxiliary enterprise revenues primarily represent revenues generated by bookstore, café, and printing services. Revenues of internal service and auxiliary enterprise activities and the related expenses of college departments have been eliminated. Scholarship Discounts and Allowances: Student tuition and fee revenues, and certain other revenues from students, are reported net of scholarship discounts and allowances in the statement of revenues, expenses, and changes in net position. Scholarship discounts and allowances are the difference between the stated charge for goods and services provided by the College, and the amount that is paid by students and/or third parties making payments on the students’ behalf. Certain governmental grants, and other federal, state, or non-governmental programs, are recorded as operating revenues in the College’s financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the College has recorded a scholarship discount and allowance. The prescribed method of calculating the scholarship allowance is defined in the NACUBO (National Association of College and University Business Officers) Advisory Report 2000-05 and approved by the State of South Carolina Office of the Comptroller General. The College calculated the scholarship allowance accordingly.

25

NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 2 -- STATE APPROPRIATIONS State funds for operations for the South Carolina Technical College System are appropriated to the State Board for Technical and Comprehensive Education (the Board), and the Board allocates funds budgeted for the colleges in a uniform and equitable manner. The following is a detailed schedule of State appropriations revenue reported in the financial statements for the fiscal year ended June 30, 2016: NON-CAPITAL APPROPRIATIONS Appropriations per Annual Appropriations Act ........................................................................... $ 9,074,269 From Commission on Higher Education: Academic Endowment ....................................................................................................... 2,455 Total Non-Capital Appropriations Recorded as Current Year Revenue $ 9,076,724 CAPITAL APPROPRIATIONS State Lottery Technology Appropriations............................................................................. 580,815 State Capital Reserves Appropriations ……………………………………………………. 736,633 State Capital Reserves Appropriations – Manufacturing Certification ................................ 20,339 Total Capital Appropriations Recorded as Current Year Revenue $ 1,337,787

The following is a detailed schedule of State appropriations revenue reported in the financial statements for the fiscal year ended June 30, 2015: NON-CAPITAL APPROPRIATIONS Appropriations per Annual Appropriations Act ........................................................................... $ 7,414,368 From Commission on Higher Education: Academic Endowment ....................................................................................................... 2,615 Total Non-Capital Appropriations Recorded as Current Year Revenue $ 7,416,983 CAPITAL APPROPRIATIONS State Lottery Technology Appropriations............................................................................. 253,522 State Capital Reserves Appropriations ……………………………………………………. 82,536 State Appropriations Surplus................................................................................................. 65,851 Total Capital Appropriations Recorded as Current Year Revenue $ 401,909

26

NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 3 -- CASH, DEPOSITS, AND INVESTMENTS Deposits: The College complies with Section 11-13-30 of the South Carolina Code of Laws and Attorney General's opinion, which permit only the State Treasurer to invest funds of State agencies. It is permitted to place cash reserves (fund balances) of the College in a bank with insured deposits under FDIC. A cash management plan of the bank that includes overnight purchase of U. S. Treasury notes is used to maximize earnings that become available on deposits. Under State statute, all deposits in excess of FDIC limits must be backed by the bank with satisfactory collateral assigned to the College and placed in escrow. Custodial Credit Risk: Custodial credit risk for deposits is the risk that a government will not be able to recover deposits if the depository financial institution fails to recover the value of collateral securities that are in the possession of an outside party if the counterparty to the deposit transaction fails. Each night the College’s deposits are transferred to an over-night repurchase agreement leaving a minimal amount in the actual bank account. The over-night repurchase investments include the total amount of cash in the bank prior to application of outstanding checks. As a result of this cash management policy, the College’s deposits at June 30, 2016 were ($797,109) which represents checks written by the College that had not cleared the payment process. Bank deposits are entirely covered by federal depository insurance or by collateral held by the College’s custodial bank in the College's name. Deposits include cash and cash equivalents on deposit in banks and held by the State Treasurer. At June 30, 2016, the State Treasurer held $418 in its pooled cash in accounting funds in the College’s name. State law requires full collateralization of all State Treasurer bank balances. The State Treasurer must correct any deficiencies in collateral within seven days. At June 30, 2016, all State Treasurer bank balances were fully insured or collateralized with securities held by the State or by agents in the State’s name. Fiscal year 2016 information: Statement of Net Position: Cash and cash equivalents $ 49,817,479 Restricted cash and cash equivalents: Capital Projects 418 Total Statement of Net Position $ 49,817,897 Deposit and Investments Note: Petty cash on hand $ 4,865 Bank accounts ($397,386) Investments 50,210,000 Held by State Treasurer 418 Total Deposits and Investments Note $ 49,817,897

27

NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 3 -- CASH, DEPOSITS, AND INVESTMENTS – Continued Fiscal year 2015 information: As a result of this cash management policy, the College’s deposits at June 30, 2015 were ($864,374) which represents checks written by the College that had not cleared the payment process. Bank deposits are entirely covered by federal depository insurance or by collateral held by the College’s custodial bank in the College's name. Deposits include cash and cash equivalents on deposit in banks and held by the State Treasurer. At June 30, 2015, the State Treasurer held $413 in its pooled cash in accounting funds in the College’s name. State law requires full collateralization of all State Treasurer bank balances. The State Treasurer must correct any deficiencies in collateral within seven days. At June 30, 2015, all State Treasurer bank balances were fully insured or collateralized with securities held by the State or by agents in the State’s name. Fiscal year 2015 information: Statement of Net Position: Cash and cash equivalents $ 43,550,563 Restricted cash and cash equivalents: Capital Projects 413 Total Statement of Net Position $ 43,550,976 Deposit and Investments Note: Petty cash on hand $ 4,985 Bank accounts ($494,322) Investments 44,039,900 Held by State Treasurer 413 Total Deposits and Investments Note $ 43,550,976 Foreign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment. The College does not maintain deposits that are denominated in a currency other than the United States dollar; therefore, the College is not exposed to this risk. Investments: The College is authorized, by the South Carolina Code of Laws, Section 11-9-660, to invest in obligations of the United States and its agencies, obligations of the State of South Carolina and its political subdivisions, collateralized or federally insured certificates of deposit, and collateralized repurchase agreements. The College’s investments at June 30, 2016, that are not with the State Treasurer’s Office are presented below. All investments are presented by investment type and debt securities are presented by maturity. Investment Maturities (in years) Fair Value Less Investment Type Amount Than 1 1 – 5 6 – 10 Debt Securities Repurchase agreements......... $50,210,000 X

28

NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 3 -- CASH, DEPOSITS, AND INVESTMENTS – Continued The College’s investments at June 30, 2015, that were not with the State Treasurer’s Office are presented below. All investments are presented by investment type and debt securities are presented by maturity. Investment Maturities (in years) Fair Value Less Investment Type Amount Than 1 1 – 5 6 – 10 Debt Securities Repurchase agreements......... $44,039,900 X NOTE 4 -- ACCOUNTS RECEIVABLE Receivables at June 30, 2016: Student Accounts $ 1,335,131 Other Accounts 92,948 Due from Federal and Other Grantors 1,920,285 Gross Receivables $ 3,348,364 Less: Allowance for Uncollectible Accounts: Student Accounts $ 300,000 Net Receivables $ 3,048,364

Receivables at June 30, 2015: Student Accounts $ 2,095,055 Due from Federal and Other Grantors 2,281,267 Gross Receivables $ 4,376,322 Less: Allowance for Uncollectible Accounts: Student Accounts $ 350,000 Net Receivables $ 4,026,322 NOTE 5 -- ACCOUNTS PAYABLE Accounts payable as of June 30, 2016, is summarized as follows: Operations-Accounts Payable $ 1,494,288 Due to Federal and Other Grantors 1,024,548 Other 1,428,005 Total Accounts Payable $ 3,946,841

Accounts payable as of June 30, 2015, is summarized as follows: Operations-Accounts Payable $ 1,530,842 Due to Federal and Other Grantors 84,597 Other 386,645 Total Accounts Payable $ 2,002,084

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 6 -- CAPITAL ASSETS The activity in the College’s capital assets for the fiscal year ended June 30, 2016 is as follows:

Beginning

Ending

Balance

Balance

30-Jun-15 Increases Decreases 30-Jun-16

Capital Assets not being depreciated:

Land $2,281,246 $ - $ - $2,281,246 Construction in Progress 641,410 1,926,423 641,410 1,926,423 Assets held by third parties - 997,502 - 997,502 Total Capital Assets not being depreciated 2,922,656 2,923,925 641,410 5,205,171

Other Capital Assets: Buildings 32,672,187 - - 32,672,187 Depreciable Building Improvements

13,658,198 1,593,604 - 15,251,802

Depreciable Land Improvements 4,364,517 - - 4,364,517 Machinery, equipment, other 9,335,583 653,834 689,339 9,300,078 Vehicles 571,642 15,200 9,323 577,519 Capital Lease Assets 8,000,000 - - 8,000,000 Capital Leasehold Improvement 3,265,370 - - 3,265,370 Total Other Capital Assets at Historical Costs 71,867,497 2,262,638 698,662 73,431,473

Less Accumulated Depreciation for: Buildings -16,373,922 -783,180 - -17,157,102 Depreciable Building Improvements

-5,123,941 -562,628 - -5,686,569

Depreciable Land Improvements -2,546,903 -192,831 - -2,739,734 Machinery, equipment, and other -7,528,337 -630,981 686,381 -7,472,937 Vehicles -471,300 -34,531 9,323 -496,508 Capital Lease Assets -3,789,471 -421,053 - -4,210,524 Capital Leasehold Improvements -1,590,672 -303,566 - -1,894,238 Total Accumulated Depreciation -37,424,546 -2,928,770 695,704 -39,657,612 Other Capital Assets, net 34,442,951 (666,132) 2,958 33,773,861

Capital Assets, Net

$37,365,607 2,257,793 644,368 $38,979,032

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 6 -- CAPITAL ASSETS – Continued The activity in the College’s capital assets for the fiscal year ended June 30, 2015 is as follows:

Beginning

Ending

Balance

Balance

30-Jun-14 Increases Decreases 30-Jun-15

Capital Assets not being depreciated: Land 2,281,246 - - 2,281,246

Construction in Progress - 641,410 - 641,410 Total Capital Assets not

being depreciated 2,281,246 641,410 - 2,922,656

Other Capital Assets:

Buildings 32,672,187 - - 32,672,187

Depreciable Building Improvements 13,658,198 - - 13,658,198 Depreciable Land Improvements 4,364,517 - - 4,364,517 Machinery, equipment, other 8,887,933 633,522 185,872 9,335,583 Vehicles 534,984 36,658 - 571,642 Capital Lease Assets 8,000,000 - - 8,000,000 Capital Leasehold Improvement 3,265,370 - - 3,265,370 Total Other Capital Assets

at Historical Costs 71,383,189 670,180 185,872 71,867,497

Less Accumulated Depreciation for:

Buildings -15,590,742 -783,180 - -16,373,922

Depreciable Building Improvements -4,577,613 -546,328 - -5,123,941 Depreciable Land Improvements -2,354,073 -192,830 - -2,546,903 Machinery, equipment, and other -7,066,533 -647,676 185,872 -7,528,337 Vehicles -433,575 -37,725 - -471,300 Capital Lease Assets -3,368,418 -421,053 - -3,789,471 Capital Leasehold Improvements -1,287,109 -303,563 - -1,590,672 Total Accumulated Depreciation -34,678,063 -2,932,355 185,872 -37,424,546 Other Capital Assets, net 36,705,126 -2,262,175 - 34,442,951

Capital Assets, Net $38,986,372 -1,620,765 - $37,365,607

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE

NOTE 7 -- PENSION PLAN(S)

The GASB issued Statement No. 68 entitled Accounting and Financial Reporting for Pension Plans in June 2012, effective for fiscal periods beginning after June 15, 2014. This statement affects employers covered by the South Carolina Retirement Systems (The Systems).

Plan Administration

The South Carolina Retirement Systems represent the collective retirement funds that are held in a group trust for the plans and are protected by the State’s constitution. The South Carolina Public Employee Benefit Authority (PEBA), which was created as a separate agency and governing body July 1, 2012, administers the various retirement systems and retirement programs managed by its Retirement Division. PEBA has an 11-member Board of Directors, appointed by the Governor and General Assembly leadership, which serves as co-trustee and co-fiduciary of the Systems and the trust funds. By law, the State Fiscal Accountability Authority, which consists of five elected officials, also reviews certain PEBA Board decisions regarding the funding of the Systems and serves as a co-trustee of the Systems in conducting that review. This function was previously performed by the Budget and Control Board, which ceased operations effective July 1, 2015.

For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Systems and additions to/deductions from the Systems fiduciary net position have been determined on the accrual basis of accounting as they are reported by the Systems in accordance with generally accepted accounting principles (GAAP). For this purpose, revenues are recognized when earned and expenses are recognized when incurred. Benefit and refund expenses are recognized when due and payable in accordance with the terms of the plan. Investment are reported at fair value.

PEBA issues a Comprehensive Annual Financial Report (CAFR) containing financial statements and required supplementary information for the South Carolina Retirement Systems’ Pension Trust Funds. The CAFR is publicly available on the Retirement Benefits’ link on PEBA’s website at www.peba.sc.gov, or a copy may be obtained by submitting a request to PEBA, PO Box 11960, Columbia, SC 29211-1960. PEBA is considered a division of the primary government of the state of South Carolina and, therefore, retirement trust fund financial information is also included in the comprehensive annual financial report of the State.

Plan Description

The South Carolina Retirement System (SCRS), a cost–sharing multiple-employer defined benefit pension plan, was established effective July 1, 1945, pursuant to the provisions of Section 9-1-20 of the South Carolina Code of Laws for the purpose of providing retirement allowances and other benefits for employees of the State, its public school districts, and political subdivisions.

The State Optional Retirement Program (ORP) is a defined contribution plan that is offered as an alternative to certain newly hired state, public school, and higher education employees. State ORP participants direct the investment of their funds into a plan administered by one of four investment providers.

http://www.peba.sc.gov/

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NOTE 7 -- PENSION PLAN(S) – Continued

Plan Description, (continued)

The South Carolina Police Officers Retirement System (PORS), a cost–sharing multiple-employer defined benefit pension plan, was established effective July 1, 1962, pursuant to the provisions of Section 9-11-20 of the South Carolina Code of Laws for the purpose of providing retirement allowances and other benefits for police officers and firemen of the state and its political subdivisions.

Membership Membership requirements are prescribed in Title 9 of the South Carolina Code of Laws. A brief summary of the requirements under each system is presented below.

• SCRS - Generally, all employees of covered employers are required to participate in and

contribute to the system as a condition of employment. This plan covers general employees and teachers and individuals newly elected to the South Carolina General Assembly beginning with the November 2012 general election. An employee member of the system with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee member of the system with an effective date of membership on or after July 1, 2012, is a Class Three member.

• State ORP - As an alternative to membership in SCRS, newly hired state, public school, and higher education employees and individuals newly elected to the S.C. General Assembly, beginning with the November 2012 general election, have the option to participate in the State Optional Retirement Program (State ORP), which is a defined contribution plan. State ORP participants direct the investment of their funds into a plan administered by one of four investment providers. PEBA assumes no liability for State ORP benefits. Rather, the benefits are the liability of the investment providers. For this reason, State ORP programs are not considered part of the retirement systems for financial statement purposes. Employee and Employer contributions to the State ORP are at the same rates as SCRS. A direct remittance is required from the employers to the member’s account with investment providers for the employee contribution (8.16 percent) and a portion of the employer contribution (5 percent). A direct remittance is also required to SCRS for the remaining portion of the employer contribution (5.91 percent) and an incidental death benefit contribution (0.15 percent), if applicable, which is retained by SCRS.

• PORS - To be eligible for PORS membership, an employee must be required by the terms of

his employment, by election or appointment, to preserve public order, protect life and property, and detect crimes in the state; to prevent and control property destruction by fire; or to serve as a peace officer employed by the Department of Corrections, the Department of Juvenile Justice, or the Department of Mental Health. Probate judges and coroners may elect membership in PORS. Magistrates are required to participate in PORS for service as a magistrate. PORS members, other than magistrates and probate judges, must also earn at least $2,000 per year and devote at least 1,600 hours per year to this work, unless exempted by statute. An employee member of the system with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee member of the system with an effective date of membership on or after July 1, 2012, is a Class Three member.

33



Benefits Benefit terms are prescribed in Title 9 of the South Carolina Code of Laws. PEBA does not have the authority to establish or amend benefit terms without a legislative change in the code of laws. Key elements of the benefit calculation include the benefit multiplier, years of service, and average final compensation. A brief summary of benefit terms for each system is presented below.

• SCRS - A Class Two member who has separated from service with at least five or more years of earned service is eligible for a monthly pension at age 65 or with 28 years credited service regardless of age. A member may elect early retirement with reduced pension benefits payable at age 55 with 25 years of service credit. A Class Three member who has separated from service with at least eight or more years of earned service is eligible for a monthly pension upon satisfying the Rule of 90 requirement that the total of the member’s age and the member’s creditable service equals at least 90 years. Both Class Two and Class Three members are eligible to receive a reduced deferred annuity at age 60 if they satisfy the five- or eight-year earned service requirement, respectively. An incidental death benefit is also available to beneficiaries of active and retired members of employers who participate in the death benefit program. The annual retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of one percent or five hundred dollars every July 1. Only those annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase. Members who retire under the early retirement provisions at age 55 with 25 years of service are not eligible for the benefit adjustment until the second July 1 after reaching age 60 or the second July 1 after the date they would have had 28 years of service credit had they not retired.

• PORS - A Class Two member who has separated from service with at least five or more years of earned service is eligible for a monthly pension at age 55 or with 25 years of service regardless of age. A Class Three member who has separated from service with at least eight or more years of earned service is eligible for a monthly pension at age 55 or with 27 years of service regardless of age. Both Class Two and Class Three members are eligible to receive a deferred annuity at age 55 with five or eight years of earned service, respectively. An incidental death benefit is also available to beneficiaries of active and retired members of employers who participate in the death benefit program. Accidental death benefits are also provided upon the death of an active member working for a covered employer whose death was a natural and proximate result of an injury incurred while in the performance of duty.

The retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of one percent or five hundred dollars every July 1. Only those annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase.

Contributions Article X, Section 16 of the South Carolina Constitution requires that all State-operated retirement plans be funded on a sound actuarial basis. Contributions are prescribed in Title 9 of the South Carolina Code of Laws. Upon recommendation by the actuary in the annual actuarial valuation, the PEBA Board may adopt and present to the State Fiscal Accountability Authority for approval an increase in the SCRS and PORS employer and employee contribution rates, but any such increase may not result in a differential between the employee and total employer rate that exceeds 2.9 percent

34


NOTE 7 -- PENSION PLAN(S) – Continued of earnable compensation for SCRS and 5 percent for PORS. An increase in the contribution rates adopted by the Board may not provide for an increase of more than one-half of one percent in any one year. If the scheduled employee and employer contributions provided in statute or the rates last adopted by the Board are insufficient to maintain a thirty year amortization schedule of the unfunded liabilities of the plans, the Board shall increase the contribution rates in equal percentage amounts for the employer and employee as necessary to maintain the thirty-year amortization period; and, this increase is not limited to one-half of one percent per year.

Required employee contribution rates for fiscal year 2015-2016 are as follows:

SCRS Employee Class Two Employee Class Three

8.16% of earnable compensation 8.16% of earnable compensation

State ORP Employee PORS Employee Class One

8.16% of earnable compensation $21 per month

Employee Class Two Employee Class Three

8.74% of earnable compensation 8.74% of earnable compensation

Required actuarially-determined employer contribution rates, expressed as a percentages of compensation, for fiscal year 2015-2016 are as follows:

SCRS Employer Class Two 10.91% of earnable compensation Employer Class Three 10.91% of earnable compensation Employer Incidental Death Benefit 0.15% of earnable compensation

State ORP1 Employer Contribution 10.91% of earnable compensation1 Employer Incidental Death Benefit 0.15% of earnable compensation PORS Employer Class One 7.80% of earnable compensation Employer Class Two 13.34% of earnable compensation Employer Class Three 13.34% of earnable compensation Employer Incidental Death Benefit 0.20% of earnable compensation Employer Accidental Death Program 0.20% of earnable compensation

1 Of this employer contribution of 10.91% of earnable compensation, 5% of earnable compensation must be remitted by the employer directly to the ORP vendor to be allocated to the member’s account with the remainder of the employer contribution remitted to SCRS. Contributions to SCRS and PORS from the College were $1,843,512 and $36,164 respectively, for the year ended June 30, 2016.

35



Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2016, the College reported $32,764,198 and $311,145 for its proportionate shares of the net pension liabilities of SCRS and PORS, respectively. The net pension liability of each defined benefit pension plan was determined based on the July 1, 2014 actuarial valuations, using membership data as of July 1, 2014, projected forward to June 30, 2015, and financial information of the pension trust funds as of June 30, 2015, using generally accepted actuarial procedures. The College’s proportion of the net pension liability was based on the College’s share of contributions to the pension plan relative to the contributions of all participating entities. At June 30, 2015, the College’s SCRS proportion was 0.173 percent. The College’s PORS proportion of the net pension liability at June 30, 2015 was 0.014 percent. At June 30, 2015, the College reported $30,307,219 and $232,794 for its proportionate shares of the net pension liabilities of SCRS and PORS, respectively. The net pension liability of each defined benefit pension plan was determined based on the July 1, 2013 actuarial valuations, using membership data as of July 1, 2013, projected forward to June 30, 2014, and financial information of the pension trust funds as of June 30, 2014, using generally accepted actuarial procedures. At June 30, 2014, the College’s SCRS proportion was .176 percent, which was the same as its proportion of the net pension liability measured as of June 30, 2013. The College’s PORS proportion of the net pension liability at June 30, 2014 was .012 percent, which was the same as its proportion as of June 30, 2013. For the year ended June 30, 2016, the College recognized pension expenses of $2,236,717 for SCRS and $36,891 for PORS, respectively. For the year ended June 30, 2015, the College recognized pension expenses of $2,120,841 for SCRS and $23,718 for PORS, respectively.

36



At June 30, 2016, the College reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

SCRS PORS Deferred Outflows of Resources: Differences Between Expected and Actual Experience $ 582,108 $ 6,167 Deferred amounts from Changes in Proportionate Share and Differences between Employer Contributions and Proportionate Share Of total Plan Employer Contributions - 34,881 Contributions Subsequent to the Measurement Date 1,843,512 36,164 Net difference between projected and actual Investment earnings 219,307 3,406 Total $ 2,644,927 $ 80,618

SCRS PORS Deferred Inflows of Resources: Differences Between Expected and Actual Experience $ 58,593 $ - Deferred amounts from Changes in Proportionate Share and Differences between Employer Contributions and Proportionate Share Of total Plan Employer Contributions 453,313 - Total $ 511,906 $ - Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year

Ended

June 30, SCRS PORS

2017

$ 3,002

$(10,173)

2018

$ 3,002

$(10,173)

2019

$ 211,827

$(10,661)

2020

$(507,340)

$(13,447)

37



At June 30, 2015, the College reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

SCRS PORS Deferred Outflows of Resources: Differences Between Expected and Actual Experience $ 858,778 $ 6,212 Contributions Subsequent to the Measurement Date 1,765,317 23,718 Total $ 2,624,095 $ 29,930

SCRS PORS___ Deferred Inflows of Resources: Differences Between Expected and Actual Experience $ 2,555,120 $ 26,936

Actuarial Assumptions and Methods

Actuarial valuations involve estimates of the reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and future salary increases. Actuarial assumptions and methods used during the annual valuation process are subject to periodic revision, typically with an experience study, as actual results over an extended period of time are compared with past expectations and new estimates are made about the future. South Carolina state statute requires that an actuarial experience study be completed at least once in each five-year period. The last experience study was performed on data through June 30, 2010, and the next experience study, performed on data through June 30, 2105, is currently underway.

The June 30, 2015 total pension liability, net pension liability, and sensitivity information were determined by PEBA’s consulting actuary, Gabriel, Roeder, Smith and Company (GRS) and are based on the July 1, 2014 actuarial valuations, as adopted by the PEBA Board and the State Fiscal Accountability Authority which utilized membership data as of July 1, 2014. The total pension liability was rolled-forward from the valuation date to the plan’s fiscal year ended June 30, 2015, using generally accepted actuarial principles. Information included in the following schedules is based on the certification provided by GRS.

The following table provides a summary of the actuarial assumptions and methods used in the July 1, 2014, valuations for SCRS and PORS.

SCRS PORS

Actuarial cost method Entry age normal Entry age normal

Investment rate of return1 7.5% 7.5% Projected salary increases 3.5% to 12.5% (varies by

service)1 4.0% to 10.0% (varies by service)1

Benefit adjustments lesser of 1% or $500 annually lesser of 1% or $500 annually

1 Includes inflation at 2.75%

38



The post-retiree mortality assumption is dependent upon the member’s job category and gender. This assumption includes base rates which are automatically adjusted for future improvement in mortality using published Scale AA projected from the year 2000. Assumptions used in the July 1, 2014 valuations for SCRS and PORS are as follows.

Former Job Class Males Females

Educators RP-2000 Males (with White Collar adjustment) multiplied by 110%

RP-2000 Females (with White Collar adjustment) multiplied by 95%

General Employees and Members of the General Assembly

RP-2000 Males multiplied by 100%

RP-2000 Females multiplied by 90%

Public Safety and Firefighters RP-2000 Males (with Blue Collar

adjustment) multiplied by 115% RP-2000 Females (with Blue Collar

adjustment) multiplied by 115%

Net Pension Liability

The net pension liability (NPL) is calculated separately for each system and represents that particular system’s total pension liability determined in accordance with GASB No. 67 less that System’s fiduciary net position. NPL totals, as of June 30, 2015, for SCRS and PORS are presented below.

System

Total Pension Liability

Plan Fiduciary Net

Position

Employers' Net Pension

Liability (Asset)

Plan Fiduciary Net Position as a Percentage of

the Total Pension Liability SCRS $ 44,097,310,230 $ 25,131,828,101 $ 18,965,482,129 57.0% PORS 6,151,321,222 3,971,824,838 2,179,496,384 64.6%

The total pension liability is calculated by the Systems’ actuary, and each plan’s fiduciary net position is reported in the Systems’ financial statements. The net pension liability is disclosed in accordance with the requirements of GASB 67 in the Systems’ notes to the financial statements and required supplementary information. Liability calculations performed by the Systems’ actuary for the purpose of satisfying the requirements of GASB Nos. 67 and 68 are not applicable for other purposes, such as determining the plans’ funding requirements. Long-term Expected Rate of Return The long-term expected rate of return on pension plan investments, as used in the July 1, 2014 actuarial valuations, was based upon the 30 year capital market outlook at the end of the fourth quarter 2013, as developed by the Retirement Systems Investment Commission in collaboration with its investment consultant, Aon Hewitt. The long-term expected rate of returns represent assumptions developed using an arithmetic building block approach, reflecting observable inflation and interest rate information available in the fixed income markets as well as Consensus Economic forecasts. Long-term assumptions for other asset classes are based on historical results, current market characteristics and professional judgment.

http://www.peba.sc.gov/assets/financialsretirement.pdf

39



The expected returns, along with the expected inflation rate, form the basis for the target asset allocation as adopted annually by the Investment Commission for fiscal year 2015. The long-term expected rate of return is calculated by weighting the expected future real rates of return by the target allocation percentage and then adding the expected inflation which is summarized in the table on the following page. For actuarial purposes, the 7.50 percent assumed annual investment rate of return set in statute and used in the calculation of the total pension liability includes a 4.75 percent real rate of return and a 2.75 percent inflation component.

Asset Class

Target Asset Allocation

Expected Arithmetic

Real Rate of Return

Long Term Expected Portfolio

Real Rate of Return

Short Term 5.0% Cash 2.0% 1.90% 0.04% Short Duration 3.0% 2.00% 0.06% Domestic Fixed Income 13.0% Core Fixed Income 7.0% 2.70% 0.19% Mixed Credit 6.0% 3.80% 0.23% Global Fixed Income 9.0% Global Fixed Income 3.0% 2.80% 0.08% Emerging Markets Debt 6.0% 5.10% 0.31% Global Public Equity 31.0% 7.10% 2.20% Global Tactical Asset Allocation 10.0% 4.90% 0.49% Alternatives 32.0% Hedge Funds (Low Beta) 8.0% 4.30% 0.34% Private Debt 7.0% 9.90% 0.69% Private Equity 9.0% 9.90% 0.89% Real Estate (Broad Market) 5.0% 6.00% 0.30% Commodities 3.0% 5.90% 0.18%

Total Expected Real Return 100.0% 6.00% Inflation for Actuarial Purposes 2.75% Total Expected Nominal Return 8.75%

Discount Rate The discount rate used to measure the total pension liability was 7.50 percent. The projection of cash flows used to determine the discount rate assumed that the funding policy specified in the South Carolina State Code of Laws will remain unchanged in future years. Based on those assumptions, each System’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

40



Sensitivity Analysis The following table presents the collective net pension liability of the participating employers calculated using the discount rate of 7.50 percent, as well as what the employers’ net pension liability would be if it were calculated using a discount rate that is 1.00 percent lower (6.50 percent) or 1.00 percent higher (8.50 percent) than the current rate.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

System 1.00% Decrease

(6.50%) Current Discount

Rate (7.50%) 1.00% Increase

(8.50%) SCRS $ 23,910,053,704 $ 18,965,482,129 $ 14,821,302,520 PORS 2,968,982,818 2,179,496,384 1,473,738,169

Pension Plan Fiduciary Net Position Detailed information regarding the fiduciary net position of the plans administered by PEBA is available in the Systems’ audited financial statements for the fiscal year ended June 30, 2015 (including the unmodified audit opinion on the financial statements). Additional actuarial information is available in the accounting and financial reporting actuarial valuation as of June 30, 2015. The CAFR of the Pension Trust Funds is publicly available on PEBA’s Retirement Benefits’ website at www.retirement.sc.gov, or a copy may be obtained by submitting a request to PEBA, PO Box 11960, Columbia, SC 29211-1960.

Deferred Retirement Program Effective January 1, 2001, Section 9-1-2210 of the South Carolina Code of Laws allows employees eligible for service retirement to participate in the Teacher and Employee Retention Incentive (TERI) Program. TERI participants may retire and begin accumulating retirement benefits on a deferred basis without terminating employment for up to five years. Upon termination of employment or at the end of the TERI period, whichever is earlier, participants will begin receiving monthly service retirement benefits which will include any cost of living adjustments granted during the TERI period. Because participants are considered retired during the TERI period, they do not earn service credit and are ineligible to receive group life insurance benefits or disability retirement benefits. The TERI program will end effective June 30, 2018.

Optional Retirement Program As an alternative to membership to SCRS, newly hired State and school district employees may elect to participate in the State Optional Retirement Program (ORP), a defined contribution plan. The ORP was established in 1987 under Title 9, Chapter 20, of the South Carolina Code of Laws. State ORP participants direct the investment of their funds into a plan administered by one of four investment providers. The State assumes no liability for State ORP plan other than for payment of contributions to designated companies. To elect participation in the ORP, eligible employees must elect membership within their first 30 days of employment. Under State law, contributions to the ORP are required at the same rates as for the SCRS, 10.91% plus the retiree surcharge of 5.00% from the employer in fiscal year 2016. Of the 10.91% employer contribution rate, the employer remits 5.00% directly to the participant’s ORP account and the remaining 5.76% and .15% incidental death program contribution amounts are remitted to SCRS.

http://www.retirement.sc.gov/

41



Optional Retirement Program, (continued) For fiscal year 2016, total contributions requirements to the ORP were approximately $204,000 (excluding the surcharge) from Tri-County Technical College as employer and approximately $274,700 from its employees as plan members.

The amounts paid by the College for pension, incidental death program, and accidental death program contributions are reported as employer contribution expenditures within the applicable functional expenditure categories to which the related salaries are charged. NOTE 8 -- POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Description In accordance with the South Carolina Code of Laws and the annual Appropriations Act, the State provides post-employment health and dental and long-term disability benefits to retired State and school district employees and their covered dependents. Tri-County Technical College contributes to the South Carolina Retiree Health Insurance Trust Fund (SCRHITF) and the South Carolina Long-Term Disability Insurance Trust Fund (SCLTDITF), cost-sharing multiple employer defined benefit postemployment healthcare and long-term disability plans administered by the Insurance Benefits Division (IB) of the South Carolina Public Employee Benefit Authority (PEBA). Generally, retirees are eligible for the health and dental benefits if they have established at least ten years of retirement service credit. For new hires beginning employment May 2, 2008 and after, retirees are eligible for benefits if they have established 25 years of service for 100% employer funding and 15 through 24 years of service for 50% employer funding. Benefits become effective when the former employee retires under a State retirement system. Basic Long-Term Disability (BLTD) benefits are provided to active state, public school district, and participating local government employees approved for disability. Funding Policies Section 1-11-710 of the South Carolina Code of Laws of 1976, as amended, requires these postemployment and long-term disability benefits be funded through annual appropriations by the General Assembly for active employees to the IB and participating retirees to the PEBA, except for the portion funded through the pension surcharge and provided from the other applicable sources of the IB, for its active employees who are not funded by State General Fund appropriations. Employers participating in the retiree medical plan are mandated by State statute to contribute at a rate assessed each year by the Office of the State Budget, 5.33% of annual covered payroll for 2016 and 5.0% of annual covered payroll for 2015. The IB sets the employer contribution rate based on a pay-as-you-go basis. Tri-County Technical College recorded expense for these insurance benefits (health and dental) for active employees in the amount of $2,139,460 and $1,927,065 for the fiscal years ended June 30, 2016 and 2015, respectively. As discussed in Note 7, the College paid SCRS, PORS and ORP approximately $1,011,387 and $926,385 applicable to the surcharge included with the employer contribution for retirement benefits for the fiscal years ended June 30, 2016 and 2015, respectively. BLTD benefits are funded through a person’s premium charged to State agencies, public school districts, and other participating local governments. The monthly premium per active participant paid to IB was $3.22 for the fiscal years ended June 30, 2016 and 2015. The College recorded employer contributions expenses applicable to these insurance benefits for active participants in the amount of approximately $12,445 and $11,689 for the years ended June 30, 2016 and 2015, respectively.

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 8 -- POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS – Continued Effective May 1, 2008 the State established two trust funds through Act 195 for the purpose of funding and accounting for the employer costs of retiree health and dental insurance benefits and long-term disability insurance benefits. The SCRHITF is primarily funded through the payroll surcharge. Other sources of funding include additional State appropriated dollars, accumulated IB reserves, and income generated from investments. The SCLTDITF is primarily funded through investment income and employer contributions. A copy of the separately issued financial statements for the benefit plans and the trust funds may be obtained by writing to the South Carolina Public Employee Benefit Authority – Insurance Benefits Division, P.O. Box 11960, Columbia, South Carolina 29211-1960. NOTE 9 -- CONTINGENCIES, LITIGATION, AND PROJECT COMMITMENTS In the opinion of College management, there are no material claims or lawsuits against the College that are not covered by insurance or whose settlement would materially affect the College’s financial position. At June 30, 2016, the College continued work on the Student Success Center and Engineering Industrial Technology (EIT)/Industrial Technology Center (ITC) renovations. The Vet Tech Kennel Project at Halbert Hall was completed and placed in service in April 2016. At year end, the College had taken delivery of equipment for the EIT/ITC renovations project in the amount of $997,502. This equipment was stored at an off-site location awaiting completion of construction work prepping the site for the installation of the equipment. As this equipment was not placed in service at year end, it was not being depreciated for fiscal year 2016. Funding for the Student Success Center Project will be made from current resources and bonds issued in the amount of support to be received from Anderson, Oconee and Pickens counties. Funding for the EIT/ITC renovations project will be made from current resources and State Capital Reserve Fund Appropriations. Expenditures Through Project Name and Number Estimated Project Cost June 30, 2016____ Student Success Center $ 42,000,000 $ 1,226,033 EIT/ITC renovations 1,800,000 700,390 Total Construction in Progress $ 43,800,000 $ 1,926,423 Commitments for other signed contracts as of June 30, 2016 total $141,426.

At June 30, 2015, the College began construction of a new kennel in support of the Veterinary Technology program housed in Halbert Hall. This project is being funded out of current resources. The College also began design work on a Student Success Center project. Funding for design will be made from current resources and Anderson, Oconee and Pickens counties.

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 9 -- CONTINGENCIES, LITIGATION, AND PROJECT COMMITMENTS – Continued Expenditures Through Project Name and Number Estimated Project Cost June 30, 2015____ Halbert Hall – Vet Tech Kennel Project $ 1,700,000 $ 311,875 Student Success Center – Design costs 624,000 329,535 Total Construction in Progress $ 2,324,000 $ 641,410 Commitments for other signed contracts as of June 30, 2015 total $1,519,198. NOTE 10 -- LEASE OBLIGATIONS For fiscal year ending June 30, 2016, Tri-County Technical College has several operating leases and one (1) capital lease obligation. Current year operating lease expenses were $767,972. The following are the operating lease obligations of the College:

Year Ended

Operating leases

June 30, with external parties 2017 $685,905 2018 $544,858 2019 $386,956 2020 $53,149

For fiscal year 2016, the College did not have any on-going contingent rental agreements. The College acquired a nineteen-year capital lease related to the Anderson Campus building from TCTC Foundation during fiscal year 2007. The financing portion was the present value of $8,000,000 with an implicit interest rate of 4.08%. During fiscal year 2016, the interest rate was reset to 1.77%. Maintenance and operational costs for the building are expensed. The following is the capital lease obligations of the College as of June 30 2016:

Capital leases Year Ended

June 30, with external

parties 2017 $506,995 2018 514,251 2019 526,198 2020 537,790 2021 549,029

2022-2025 2,316,199

TOTAL $4,950,462 Less: Interest 385,462 Present value of net minimum lease payments $4,565,000

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 10 -- LEASE OBLIGATIONS – Continued

Fiscal Year 2016 Capital lease assets with external parties

Assets acquired under capital lease: Anderson Campus building $8,000,000 Total assets acquired under capital lease $8,000,000

Less: accumulated depreciation (4,210,523) Assets acquired under capital leases, net $3,789,477

In February 2016, the College entered into a lease agreement with the TCTC Foundation, LLC to lease the soon to be constructed Student Success Center for a period of 30 years. The agreement will commence on February 1, 2017 and will end February 1, 2047. The lease payments will be determined based on the actual amount of proceeds advanced to TCTC Foundation, LLC under the Bond Purchase and Loan Agreement with the South Carolina Jobs – Economic Development Authority.

For fiscal year ending June 30, 2015, Tri-County Technical College has several operating leases and one (1) capital lease obligation. Current year operating lease expenses were $812,984. The following are the operating lease obligations of the College:

Year Ended

Operating leases

June 30, with external parties 2016 $536,270 2017 $361,404 2018 $256,703 2019 $113,360 2020 $ 53,149

The College also rents certain office equipment based on usage. The current year expense for these contingent rentals was $35,004. The College acquired a nineteen-year capital lease related to the Anderson Campus building from TCTC Foundation during fiscal year 2007. The financing portion was the present value of $8,000,000 with an implicit interest rate of 4.08%. Maintenance and operational costs for the building are expensed.

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 10 -- LEASE OBLIGATIONS – Continued The following is the capital lease obligations of the College as of June 30 2015:

Year Ended Capital leases

June 30, with external

parties 2016 $604,616 2017 607,480 2018 604,630 2019 606,066 2020 606,686

2021-2025 3,028,660

TOTAL $6,058,138 Less: Interest 1,083,138 Present value of net minimum lease payments $4,975,000

Fiscal Year 2015 Capital lease assets with external parties

Assets acquired under capital lease: Anderson Campus building $8,000,000 Total assets acquired under capital lease $8,000,000

Less: accumulated depreciation (3,789,468) Assets acquired under capital leases, net $4,210,532

NOTE 11 -- LONG-TERM LIABILITIES Long-term liability activity for the year ended June 30, 2016 was as follows: June 30, June 30, Due Within 2015 Additions Reductions 2016 One Year Capital Lease Payable $4,975,000 $ - $410,000 $4,565,000 $430,000 Accrued Compensated Absences 1,231,770 197,685 154,922 1,274,533 127,453 Total Long-term Liabilities $ 6,206,770 $197,685 $564,922 $5,839,533 $557,453

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 11 -- LONG-TERM LIABILITIES – Continued Long-term liability activity for the year ended June 30, 2015 was as follows: June 30, June 30, Due Within 2014 Additions Reductions 2015 One Year Capital Lease Payable $ 5,370,000 $ - $ 395,000 $4,975,000 $410,000 Accrued Compensated Absences 1,311,578 168,126 247,934 1,231,770 123,177 Total Long-term Liabilities $ 6,681,578 $168,126 $ 642,934 $6,206,770 $533,177 Additional information regarding Lease Payable is in Note 10. NOTE 12 -- RELATED ORGANIZATIONS, RELATED PARTY TRANSACTIONS, AND TRANSACTIONS WITH DISCRETELY PRESENTED COMPONENT UNITS Certain separately chartered legal entities whose activities are related to those of the College exist primarily to provide financial assistance and other support to the College and its educational program. Financial statements for these entities are audited by independent auditors and retained by them. They include the Tri-County Technical College Foundation, Inc. and its subsidiaries. Management reviewed its relationship with the Foundation under the existing guidance of GASB Statement Codification Section 2100, Defining the Financial Reporting Entity, and Section 2600, Reporting Entity and Component Unit Presentation and Disclosure. Because of the nature and the significance of its relationship with the College, the Foundation is considered a component unit of the College. The Foundation reimburses the College for any purchases of goods and services made by the College on behalf of the Foundation. The Foundation reimburses the College for office space and support services provided to the Foundation. The College considers the Foundation a third-party sponsor when scholarships are granted to students. See note 16 for further information. NOTE 13 -- RISK MANAGEMENT The College is exposed to various risks of loss and maintains State or commercial insurance coverage for each of those risks. Management believes such coverage is sufficient to preclude any significant uninsured losses for the covered risks. Settlement claims have not exceeded this coverage in any of the past three years.

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 13 -- RISK MANAGEMENT – Continued The State of South Carolina believes it is more economical to manage certain risks internally and set aside assets for claim settlement. Several State funds accumulate assets and the State itself assumes substantially all the risk for the following claims of covered employees:

Unemployment compensation benefits; Worker’s compensation benefits for job-related illnesses or injuries; Health and dental insurance benefits; Long-term disability and group-life insurance benefits. Employees elect health insurance coverage through either a health maintenance organization or through the State’s self-insured plan.

The College and other entities pay premiums to the State’s Insurance Reserve Fund (IRF), which issues policies, accumulates assets to cover the risk of loss, and pays claims incurred for covered losses relating to the following activities:

Theft, damage to, or destruction of assets; Real property, its contents, and other equipment; Motor vehicles and watercraft; Torts; Natural disasters.

The IRF is a self-insurer and purchases reinsurance to obtain certain services and to limit losses in certain areas. The IRF’s rates are determined actuarially. The College obtains coverage through a commercial insurer for employee fidelity bond insurance for all employees for losses arising from theft or misappropriation.

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 14 -- OPERATING EXPENSES BY FUNCTION Operating expenses by functional classification for the year ended June 30, 2016 are summarized as follows:

Salaries Benefits Scholarships Utilities Resale Supplies/ Services Depreciation Total

Instruction 13,068,861 4,126,898 55,711 6,539,389 $23,790,859 Academic Support 2,506,411 808,720 100,784 $3,415,915 Student Services 2,539,731 786,037 1,734,068 $5,059,836 Operation and Maintenance of Plant 781,173 303,712 1,098,727 2,663,273 $4,846,885 Institutional Support 2,138,128

1,153,722 726,612 $4,018,462

Scholarships

5,945,172 $5,945,172 Auxiliary Enterprises 188,981 65,043 9,227 3,094,331 248,056 $3,605,638

Depreciation

__________

__________ __________ _______

_________ _________

2,928,770 $2,928,770 Total Operating

Expenses $21,223,285 $7,244,132 $5,945,172 $1,107,954 $3,150,042 $12,012,182 $2,928,770 $53,611,537

Operating expenses by functional classification for the year ended June 30, 2015 are summarized as follows:

Salaries Benefits Scholarships Utilities Resale Supplies/ Services Depreciation Total

Instruction 12,766,832 3,920,995 39,115 5,149,461 $21,876,403 Academic Support 2,507,365 786,585 663,329 $3,957,279 Student Services 2,445,607 756,616 1,959,563 $5,161,786 Operation and Maintenance of Plant 631,195 245,955 1,062,291 2,688,969 $4,628,410 Institutional Support 2,087,734

1,121,695 736,480 $3,945,909

Scholarships

6,572,600 $6,572,600 Auxiliary Enterprises 196,149 58,953 8,032 3,587,950 413,549 $4,264,633

Depreciation

__________

__________ __________ _______

_________ _________

2,932,355 $2,932,355 Total Operating

Expenses $20,634,882 $6,890,799 $6,572,600 $1,070,323 $3,627,065 $11,611,351 $2,932,355 $53,339,375

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 15 -- BUSINESS TYPE ACTIVITIES

REQUIRED INFORMATION ON BUSINESS-TYPE ACTIVITIES FOR INCLUSION IN STATE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES

FISCAL YEAR ENDING JUNE 30

Increase/

2016

2015

Decrease

Charges for services $34,959,115

$34,517,793

$441,322 Non-operating grants and contributions 12,688,210

14,328,449

(1,640,239)

Capital grants and contributions 2,501,787

1,565,909

935,878 Less: expenses (53,716,162)

(53,550,413)

(165,749)

Net program revenue (expense) (3,567,050)

(3,138,262)

(428,788)

Transfers: State appropriations 9,076,724

7,416,983

1,659,741

Total transfers 9,076,724

7,416,983

1,659,741

Change in net position 5,509,674

4,278,721

1,230,953 Net position – beg of year restatement - (30,113,466) 30,113,466 Net position-beginning 41,268,765

67,103,510

(25,834,745)

Net position-ending $46,778,439

$41,268,765

$5,509,674

REQUIRED INFORMATION ON BUSINESS-TYPE ACTIVITIES FOR INCLUSION IN STATE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES

FISCAL YEAR ENDING JUNE 30

Increase/

2015

2014

Decrease

Charges for services $34,517,793

$33,978,971

$538,822 Non-operating grants and contributions 14,328,449

15,546,204

(1,217,755)

Capital grants and contributions 1,565,909

1,479,500

86,409 Less: expenses (53,550,413)

(55,352,589)

1,802,176

Net program revenue (expense) (3,138,262)

(4,347,914)

1,209,652

Transfers:

State appropriations 7,416,983

6,762,823

654,160

Total transfers 7,416,983

6,762,823

654,160

Change in net position 4,278,721

2,414,909

1,863,812 Net position – beg of year restatement (30,113,466) - (30,113,466) Net position-beginning 67,103,510

64,688,601

2,414,909

Net position-ending $41,268,765

$67,103,510

($25,834,745)

50

NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 16 -- COMPONENT UNIT INFORMATION Nature of Operations Tri-County Technical College Foundation, Inc. (the “Foundation”), a nonprofit organization incorporated in the State of South Carolina, supports the advancement of Tri-County Technical College (the “College”) in its objectives for scientific, educational, and charitable purposes. The four classes of programs used to achieve the Foundation’s objectives are:

1. Scholarship Program – benefits eligible students who attend the College. 2. Technology Program – supports the physical equipment needs of the College 3. Professional Development Program – supports the skill enhancement of the College’s faculty

and staff. 4. Priority Needs Program – funds projects of the College as identified by the College’s

management.

Tri-County Technical College Foundation, LLC (the “LLC”), a South Carolina limited liability company and a “disregarded entity” for federal income tax purposes, is a wholly-owned subsidiary of Tri-County Technical College Foundation, Inc. The LLC was formed as a real estate holding company for the construction of the Anderson, South Carolina campus of Tri-County Technical College.

TCTC Research Foundation, LLC (the “Research LLC”), a South Carolina limited liability company and a “disregarded entity” for federal income tax purposes, is a wholly-owned subsidiary of Tri-County Technical College Foundation, Inc. The Research LLC was formed with the primary purpose of promoting, encouraging, and aiding scientific research and investigation at the College and transferring and licensing its technology.

Summary of Significant Accounting Policies

Principles of Consolidation The accompanying consolidated financial statements include the accounts of Tri-County Technical College Foundation, Inc. and its wholly-owned subsidiaries, Tri-County Technical College Foundation, LLC, and TCTC Research Foundation, LLC. All significant intercompany balances and transactions have been eliminated in consolidation.

Basis of Accounting

The financial statements are presented on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables, and other liabilities. Revenues are recognized when earned; expenses are recorded as incurred.

Financial Statement Presentation In accordance with generally accepted accounting principles, the Foundation reports information regarding its financial position and activities according to three classes of net assets: 1. Unrestricted – Net assets with no donor-imposed restrictions.

2. Temporarily Restricted – Net assets subject to donor-imposed restrictions that may be met either by actions of the Foundation or the passage of time.

3. Permanently Restricted – Net assets subject to donor-imposed restrictions that are to be maintained permanently by the Foundation, including contributions for endowments.

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 16 -- COMPONENT UNIT INFORMATION – Continued

Contributions

In accordance with generally accepted accounting principles, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions.

Contributions are recognized when the donor makes a promise to give to the Foundation that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets.

Cash and Cash Equivalents For purposes of reporting cash flows, the Foundation considers all liquid, non-equity instruments with remaining original maturity of three months or less to be cash equivalents. Money market funds awaiting reinvestment are not considered cash equivalents.

Investments Investments in marketable securities with readily determinable fair market values and all investments in debt securities are valued at their fair market values in the statement of financial position. Unrealized gains and losses are included in the change in net assets.

Endowments

The Foundation interprets the South Carolina Uniform Prudent Management of Institutional Funds Act (“SCUPMIFA” or “state law”) as requiring the Foundation to preserve the original fair value amount donated, in the absence of donor spending or preservation intentions. Therefore, the Foundation classifies as permanently restricted net assets the value of the original and subsequent donor gifts qualifying as endowments. If the gift instrument requires all or a portion of endowment related earnings accumulations to be preserved rather than spent, they are classified as permanently restricted. Earnings accumulations without such donor-imposed restrictions are classified as temporarily restricted until appropriated for expenditure. The Foundation, in accordance with SCUPMIFA, considers the following factors in deciding whether to accumulate or spend donor endowment funds earnings accumulations:

1. The duration and preservation of the endowment fund. 2. The purposes of the Foundation and the donor-restricted endowment fund. 3. General economic conditions. 4. The possible effect of inflation and deflation. 5. The expected total return from income and the appreciation of investments. 6. Other resources of the organization. 7. The Foundation’s investment policies.

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Pledges and Accounts Receivable

Pledges receivable consist of unconditional promises to give that have met the criteria for recording as contributions. Pledges extending beyond one year are recorded at the present value of the expected future cash flows, using risk-adjusted discount rates derived from observed returns for comparable assets. The Foundation uses the direct write-off method to recognize the effect of pledges and accounts receivable deemed to be uncollectible. For the years ended June 30, 2016 and 2015, $60,150 and $0 pledges or accounts receivable were written off, respectively.

Property, Plant, and Equipment

The Foundation capitalizes all property and equipment acquisitions exceeding $1,000. Purchased property and equipment is capitalized at cost. Property and equipment are depreciated over their estimated useful lives using the straight-line method of depreciation.

Donated Material, Equipment, Services, and Supplies

Donated materials and equipment are recorded as contributions at their estimated fair market value at the date of donation. Donated services are not recorded as contributions unless they meet the criteria for recognition as contributed services.

Income Taxes

The Foundation is a charitable organization as described in Section 501(c)3 of the Internal Revenue Code and is exempt from federal and state income taxes. In addition, it has been determined by the Internal Revenue Service that the Foundation is not a private foundation within the meaning of Section 509(a) of the Internal Revenue Code and is, therefore, not subject to federal excise taxes.

The Foundation is tax-exempt under Section 501(c)(3) of the Internal Revenue Code. The Foundation is subject to federal income tax on any unrelated business income. Management believes the Foundation continues to satisfy the requirements of its tax-exempt status. Management believes the Foundation has no uncertain tax positions at June 30, 2016. The Foundation is no longer subject to federal or state income tax examinations by taxing authorities for the years prior to 2012.

Management Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the statement of financial position and the reported amounts of revenues and expenses for the operating period. Actual results could differ significantly from those estimates.

Subsequent Events The Foundation has evaluated subsequent events through August 12, 2016, which is the date the financial statements were available to be issued. Management believes that no events have occurred subsequent to June 30, 2016 that meet the requirements for adjustment or disclosure under accounting principles generally accepted in the United States.

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Pledges Receivable

Pledges receivable at June 30, 2016 and 2015 consist of the following:

June 30, 2016 2015 Unconditional Promises to Give $ 321,640 $ 317,562 Less Unamortized Discount ( 26,731 ) ( 11,838 ) Net Unconditional Promises to Give $ 294,909 $ 305,724 Amounts due in:

Less than one year $ 183,640 $ 230,062 One to five years 138,000 87,500

$ 321,640 $ 317,562

Pledges receivable at June 30, 2016 and 2015 are reflected at the present value of estimated future cash flows using discount rates of 1.49 percent and 2.33 percent, respectively.

Investments

Investment assets consist predominantly of funds held in trust by the Commonfund, managed debt and equity funds, interests in private limited partnerships, and short-term Treasury instruments and money market funds.

The Commonfund is a non-profit membership corporation operated by and for its member college, university, and independent schools. Participation in the Commonfund is limited to members in the fund. Members elect the governing Board of Trustees. The Commonfund offers a series of pooled investment funds, which are not separate legal entities and are exempt from registration under securities laws. Accounts of participants are stated in units, the initial cost of which is $1,000. Thereafter, the value of each unit is based on the fair market value of all the assets in the fund(s) calculated in a manner prescribed by the Board of Trustees.

The Commonfund uses a variety of investment tools to accomplish its goal of earning a reasonable return for its members while mitigating risk. In general, securities for which there is an active market are stated at fair market value. Securities for which there is no sales price or bid/ask price are stated at fair market value as determined by the custodian of the fund or, in the case of investment partnerships, the most recent valuation data as reported by the general partners or managers. On April 29, 2016, all of the Foundation’s investments held in the Commonfund except the limited partnerships were sold. The funds from the sale of the investments were reinvested with Atlanta Consulting Group (ACG). During 2016, ACG was selected to serve the Foundation as the Outsourced Chief Investment Officer.

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The Foundation’s investments at June 30, 2016 and 2015 were as follows:

June 30, 2016 2015 Commonfund Investments $ - $ 11,424,847 Debt and Equity Mutual Funds 19,136,949 7,903,580 Limited Partnership Investments 632,214 723,644 Money market funds and short-term Treasury investments 61,009 1,093,002 Total Investments $ 19,830,172 $ 21,145,073

During the year ended June 30, 2016, The Foundation sold investments totaling $17,550,803 which had a cost basis of $13,464,231. Upon the sale of these investments, the Foundation realized net gains of $4,086,572. At June 30, 2016, the fair market value of investments was $19,830,172 with a cost basis of $18,727,432 and net unrealized gains of $1,102,738. The Foundation subscribed to and maintains interests in five restricted limited partnerships. The Foundation is restricted by the partnership agreements from divesting its interests without approval from the general partners. The Foundation bears all risks of investment in the partnerships for their duration, a date no later than June 30, 2020. The Foundation’s subscription commitments total $1,604,205 and range from $230,000 to $500,000 for each partnership. As of June 30, 2016, the Foundation’s remaining commitments to the partnerships totaled $140,600. Fair Value Measurements

Generally accepted accounting principles (GAAP) establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under GAAP are described below:

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2: Inputs to the valuation methodology include:

• Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data

by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

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Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The fair value measurement level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value. There were no changes in valuation techniques during 2016 or 2015:

Mutual Funds, Treasury Investments and Money Market Funds: Valued at the net asset value (“NAV”) of shares held at year-end.

Limited Partnership Investments: Valued at the observable fair market value of underlying assets and liabilities of the partnerships at year-end.

The methods described above may produce fair value calculations that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Foundation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the Foundation’s investments at

fair value as of June 30, 2016 and 2015:

Assets at fair value as of June 30, 2016 Level 1 Level 2 Level 3 Total

Mutual Funds $ 19,137,001 $ - $ - $ 19,137,001 Money Market and Treasury Funds 60,957 - - 60,957 Limited Partnerships - 632,214 - 632,214 Total investments at fair value $ 19,197,958 $ 632,214 $ - $ 19,830,172

Assets at fair value as of June 30, 2015 Level 1 Level 2 Level 3 Total

Commonfund Investments $ 11,424,847 $ - $ - $ 11,424,847 Mutual Funds 7,903,580 - - 7,903,580 Money Market and Treasury Funds 1,093,002 - - 1,093,002 Limited Partnerships - 723,644 - 723,644 Total investments at fair value $ 20,421,429 $ 723,644 $ - $ 21,145,073

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 16 -- COMPONENT UNIT INFORMATION – Continued Endowment Funds

The Foundation has established four separate endowments (Scholarship, Technology, Professional Development, and Priority Needs). The endowments have separate purposes and uses, but maintain the overall theme of supporting and expanding the programs of education of Tri-County Technical College. The endowments are made up of total investments and a portion of restricted cash.

The following tables present changes to the Foundation’s endowment funds for the years ended June 30, 2016 and 2015:

Technology Professional Development

Scholarships

Priority Needs

Total

Endowment Balances

at June 30, 2015

$ 1,387,113

$ 5,229,534

$ 11,626,672

$ 3,040,972

$ 21,284,291 Contributions 21,493 54,970 174,316 10,351 261,130 Transfers 10,055 - 8,594 17,579 36,228 Investment Earnings and Net Gains (Losses) 2,948 337,093 47,470 ( 305,820) 81,691 Administrative Fees ( 6,769) ( 26,303) ( 55,802) ( 12,463) ( 101,337) Other Expenditures ( 57,600) ( 157,118) ( 411,736) ( 42,066) ( 668,520)

Endowment Balances at June 30, 2016 $ 1,357,240 $ 5,438,176 $ 11,389,514 $ 2,708,553 $ 20,893,483

Technology Professional Development

Scholarships

Priority Needs

Total

Endowment Balances

at June 30, 2014

$ 1,363,656

$ 5,219,621

$ 11,585,885

$ 2,905,767

$ 21,074,929 Contributions 29,693 7,885 66,746 134,827 239,151 Investment Earnings and Net Gains (Losses) 52,902 177,650 408,553 68,745 707,850 Administrative Fees ( 7,038) ( 26,436) ( 57,910) ( 14,878) ( 106,262) Other Expenditures ( 52,100) ( 149,186) ( 376,602) ( 53,489) ( 631,377)

Endowment Balances at June 30, 2015 $ 1,387,113 $ 5,229,534 $ 11,626,672 $ 3,040,972 $ 21,284,291

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 16 -- COMPONENT UNIT INFORMATION – Continued Property, Plant, and Equipment

Property, plant, and equipment, held in the LLC, consist of the following at June 30, 2016 and 2015: 2016 2015

Land $ 2,413,299 $ 2,413,299 Building 6,303,247 6,303,247 Signs 2,459 2,459

8,719,005 8,719,005 Less Accumulated Depreciation (1,504,073) ( 1,342,458 )

$ 7,214,932 $ 7,376,547 The Foundation recognized $161,615 and $323,340 in depreciation expense during the years ended June 30, 2016 and 2015, respectively. Bond Payable The Foundation issued an economic revenue bond on August 25, 2005 through the South Carolina Jobs-Economic Development Authority in the amount of $8,000,000. The bond, which bears interest at 1.770% per annum, requires annual payments in varying amounts approximating $550,000 through its maturity date of January 1, 2025. On August 25, 2015, the bond’s interest rate was automatically reset, thru maturity, from 4.080% to 1.770% per annum. Proceeds of the bond were used to purchase land and construct the 45,000 square foot building that houses the Anderson, South Carolina campus of Tri-County Technical College. Construction of the building was completed during the year ended June 30, 2007. Bond payments are made from rental income the College pays to the Foundation.

Annual principal and interest requirements for the bond at June 30, 2016 were:

Years Ending June 30, Principal Interest Total

2017 $ 430,000 $ 80,801 $ 510,801 2018 445,000 73,190 518,190 2019 465,000 65,313 530,313 2020 485,000 57,083 542,083 2021 505,000 48,498 553,498 2021 and Thereafter 2,235,000 100,977 2,335,977 $ 4,565,000 $ 425,862 $ 4,990,862

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 16 -- COMPONENT UNIT INFORMATION – Continued Bonds Payable, continued The Foundation issued an additional economic revenue bond on February 2, 2016 through the South Carolina Jobs-Economic Development Authority in the amount of $27,920,000. The bond, which bears interest at 2.63% per annum, requires annual payments in varying amounts approximating $1,600,000 through its maturity date of February 2, 2037. Proceeds of the bond will be used to construct a new Student Success Center as well as other smaller construction projects on the Pendleton, South Carolina campus of Tri-County Technical College. As of June 30, 2016 construction of the building had not begun and only $200,000 was drawn from the bond proceeds to be used to pay the fees related to the bond issuance. Bond payments will be made from rental income the College pays to the Foundation. Bond issuance costs are amortized over a 20-year period. For the year ended June 30, 2016 and 2015, amortization expense on the bond issuance costs was $7,146 and $3,150, respectively.

Related Party Transactions The Foundation supports many projects of Tri-County Technical College. Predominantly all revenues raised and expenditures disbursed are for the benefit of the College. During the years ended June 30, 2016 and 2015, the Foundation recognized $555,963 and $650,335, respectively, in rental income from the College related to its Anderson, South Carolina campus. During the years ended June 30, 2016 and 2015, the Foundation provided scholarships to students of the College totaling $456,261 and $416,206, respectively, and provided educational support totaling $653,214 and $640,330, respectively. Several employees of the College perform services for the Foundation. During the years ended June 30, 2016 and 2015, the Foundation recognized $201,817 and $189,708, respectively, for administrative costs. At June 30, 2016 and 2015, $215,597 and $136,761, respectively, were recorded as payable to the College. During the year ended June 30, 2016, the Foundation selected the Atlanta Consulting Group (ACG) to serve as the Outsourced Chief Investment Officer. The Foundation paid $30,000 in investment fees to ACG. Restrictions on Net Assets Temporarily restricted net assets totaled $7,770,929 and $8,375,710 at June 30, 2016 and 2015, respectively, and carried a variety of purpose and time restrictions.

Permanently restricted net assets were available for the following purposes at June 30, 2016 and 2015:

June 30, 2016 2015 Technology $ 1,097,379 $ 1,094,831 Professional Development 2,806,057 2,751,088 Scholarships 6,861,320 6,691,446 Priority Needs 2,568,804 2,560,102

$ 13,333,560 $ 13,097,467

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NOTES TO FINANCIAL STATEMENTS TRI-COUNTY TECHNICAL COLLEGE NOTE 16 -- COMPONENT UNIT INFORMATION – Continued Concentrations Financial instruments consist principally of cash, pledges receivable, investments, and bond payable.

At June 30, 2016, the Foundation had investments totaling $19,830,172 that were subject to normal declines in value due to market conditions. In addition, the Foundation may, at times, carry balances of cash in financial institutions in excess of federally insured limits. Reclassifications of Net Assets The Foundation periodically reclassifies amounts between categories of net assets based upon donor intentions and restrictions. Such reclassifications have no effect on the change in net assets of the period in which they are recognized. NOTE 17 -- SUBSEQUENT EVENT The College has evaluated subsequent events through September 13, 2016, which is the date the financial statements were available to be issued. Management believes that no events have occurred subsequent to June 30, 2016 that meet the requirements for adjustment or disclosure under accounting principles generally accepted in the United States.

REQUIRED SUPPLEMENTAL INFORMATIONTRI-COUNTY TECHNICAL COLLEGE

2016 2015 2014SCRS - South Carolina Retirement System

College's Proportion of the Net Pension 0.173% 0.176% 0.176%Liability

College's Proportionate Share of the Net Pension Liability 32,764,198$ 30,308,021$ 31,574,220$

College's Covered-Employee Payroll 14,291,156$ 14,247,878$ 14,596,437$

College's Proportionate Share of the Net Pension Liability as a Percentageof its Covered-Employee Payroll 229.26% 212.72% 216.31%

Plan Fiduciary Net Position as a Percentage of the Total PensionLiability 57.00% 56.39% 59.92%

PORS - South Carolina Police Officers Retirement System

College's Proportion of the Net PensionLiability 0.014% 0.012% 0.012%

College's Proportionate Share of the Net Pension Liability 311,232$ 232,938$ 252,073$

College's Covered-Employee Payroll 176,864$ 146,249$ 123,503$

College's Proportionate Share of the Net Pension Liability as a Percentageof its Covered-Employee Payroll 175.97% 159.27% 204.10%

Plan Fiduciary Net Position as a Percentage of the Total PensionLiability 64.60% 62.98% 67.55%

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Schedule of the College's Proportionate Share of the Net Pension Liability

implemented GASB 68 during fiscal year 2015. As such, only the last three years of information is available.membership data as of that day, projected forward to June 30 of the previous year. Additionally, the College* The amounts presented for each fiscal year were determined as of July 1 of two years prior, using

SCRS and PORS Net Pension LiabilitiesFor the Fiscal Year Ended June 30, 2016Last 10 Fiscal Years*

REQUIRED SUPPLEMENTAL INFORMATIONTRI-COUNTY TECHNICAL COLLEGE

Schedule of The College's SCRS and PORS ContributionsFor the Fiscal Year Ended June 30, 2016Last 10 Fiscal Years*

2016 2015 2014SCRS - South Carolina Retirement System

Contractually Required Contribution 1,843,513$ 1,765,317$ 1,694,049$

Contributions in Relation to theContractually Required Contribution (1,843,513)$ (1,765,317)$ (1,694,049)$

Contribution Deficiency (Excess) -$ -$ -$

College's Covered- Employee Payroll 14,823,540$ 14,291,156$ 14,247,878$

Contributions as a percentageof Covered- Payroll 12.44% 12.35% 11.89%

PORS - South Carolina Police Officers Retirement System

Contractually Required Contribution 36,164$ 23,718$ 18,778$

Contributions in Relation to theContractually Required Contribution (36,164)$ (23,718)$ (18,778)$

Contribution Deficiency (Excess) -$ -$ -$

College's Covered- Employee Payroll 263,204$ 176,864$ 146,249$

Contributions as a percentageof Covered- Payroll 13.74% 13.41% 12.84%

* The College implemented GASB 68 during fiscal year 2015. As such only the lastthree years of information is available.

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sTaTisTiCal


sChedules


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Statistical Section Content Explanation Tri-County Technical College This section of the Tri-County Technical College (the “College”) Comprehensive Annual Financial Report presents information that will assist in understanding the information in the financial statements, note disclosures, and the required supplementary information about the overall financial health of the College. Contents Financial Trends The Schedules in this section contain trend information to assist in understanding how the College’s financial performance and well-being have changed over time. Revenue Capacity The schedules in this section contain information to assess the College’s most significant revenue sources. Debt Capacity The schedules in this section present information that assess the affordability of the College’s current levels of outstanding debt and the ability of the College to issue additional debt in future years. Demographic and Economic Information The schedules in this section offer demographic and economic indicators to assist in understanding the environment within which the College’s financial activities occur. Operating Information The schedules in this section contain service and infrastructure data to assist in understanding how the information in the College’s financial report relates to the services it provides and the activities it performs. Other Information The schedules in this section are additional information that is not required by GASB 44 Statement but is of interest to those reading the report.



FinanCial Trends

Schedule 1 Schedule of Net Position and Changes in Net Position

Schedule 2 Schedule of Expenses by Function

Schedule 3 Schedule of Expenses by Use


Tri-County Technical CollegeSchedule of Net Position and Changes in Net PositionLast Ten Fiscal Years

2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016Income Before Other Revenues, Expenses,Gains or Losses (89,897)$ 2,542,180$ 1,693,617$ 2,867,498$ 2,708,193$ 3,085,265$ 1,688,049$ 935,409$ 2,712,812$ 3,007,887$ Federal capital appropriations 32,492 147,986 - 12,848 10,228 8,308 1,635 - - - State capital appropriations 1,037,655 6,366,135 302,540 198,537 38,894 726,421 1,129,661 315,360 401,909 1,337,787 Local/Other capital appropriations 1,455,225 957,562 1,246,913 1,063,088 820,261 1,160,955 1,160,535 1,164,140 1,164,000 1,164,000 Gain on disposal of leased asset - 24,254 - - - - - - - - Total increase in net position 2,435,475$ 10,038,117$ 3,243,070$ 4,141,971$ 3,577,576$ 4,980,949$ 3,979,880$ 2,414,909$ 4,278,721$ 5,509,674$

Invested in capital assets, net of related debt 25,270,429$ 26,318,626$ 26,860,454$ 30,882,006$ 31,629,320$ 32,459,589$ 34,461,515$ 33,236,371$ 32,390,604$ 34,414,032$ Restricted for Expendable: Capital projects 10,771 21,396 10,718,387 15,907,223 18,589,537 22,619,728 24,310,670 27,117,031 32,144,475 35,422,288 Debt service 25,214 19,814 495 - - - - - - - Capital reserve fund - 6,046,642 5,650,433 - - - - - - - Unrestricted 9,420,624 12,358,677 4,778,456 5,360,967 5,508,915 5,629,404 5,916,416 6,750,108 (23,266,314) (23,057,881) Total College net position 34,727,038$ 44,765,155$ 48,008,225$ 52,150,196$ 55,727,772$ 60,708,721$ 64,688,601$ 67,103,510$ 41,268,765$ 46,778,439$

* - See Note 7 - Pensions related to implementation of GASB no. 68.

Source: Tri-County Technical College Audited Financial Statements

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Schedule 1

Tri-County Technical College Schedule 2Schedule of Expenses by Function Last Ten Fiscal Years

Expenses: 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016

Instruction 14,965,567$ 17,008,625$ 17,008,692$ 18,592,496$ 20,646,144$ 20,383,445$ 20,633,104$ 21,134,019$ 21,876,403$ 23,790,859$ Academic Support 2,453,552$ 2,665,606$ 2,772,075$ 2,931,346$ 2,911,763$ 2,924,823$ 2,832,259$ 3,886,504$ 3,957,279$ 3,415,915$ Student Services 4,636,110$ 4,953,081$ 6,129,651$ 6,748,430$ 5,014,805$ 5,520,058$ 5,493,109$ 5,401,168$ 5,161,786$ 5,059,836$ Operation and Maintenance of Plant 4,894,894$ 4,084,208$ 3,512,916$ 3,988,001$ 6,269,709$ 4,569,947$ 5,355,708$ 6,434,171$ 4,628,410$ 4,846,885$ Institutional Support 2,654,282$ 2,544,123$ 2,878,065$ 3,336,973$ 3,240,723$ 3,386,199$ 3,554,987$ 3,684,447$ 3,945,909$ 4,018,462$ Scholarships 2,906,153$ 3,505,098$ 4,948,979$ 10,498,294$ 12,794,016$ 9,335,395$ 6,351,762$ 7,273,530$ 6,572,600$ 5,945,172$ Auxiliary Enterprises 2,635,338$ 3,144,158$ 3,706,501$ 5,282,887$ 5,471,671$ 5,080,167$ 4,753,486$ 4,449,175$ 4,264,633$ 3,605,638$ Depreciation 2,260,354$ 2,545,300$ 3,026,719$ 2,625,429$ 2,717,913$ 2,450,719$ 2,549,878$ 2,862,727$ 2,932,355$ 2,928,770$ Total Operating Expenses 37,406,250$ 40,450,199$ 43,983,598$ 54,003,856$ 59,066,744$ 53,650,753$ 51,524,293$ 55,125,741$ 53,339,375$ 53,611,537$ (Gain) Loss on disposal of assets -$ -$ -$ -$ -$ 1,518$ -$ -$ -$ 2,958$ Interest on capital asset-related debt 269,875$ 395,901$ 346,884$ 438,060$ 272,702$ 256,632$ 242,046$ 226,848$ 211,038$ 101,667$ Total Expenses 37,676,125$ 40,846,100$ 44,330,482$ 54,441,916$ 59,339,446$ 53,908,903$ 51,766,339$ 55,352,589$ 53,550,413$ 53,716,162$

Expenses: 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016

Instruction 39.7% 41.6% 38.4% 34.2% 34.8% 37.8% 39.9% 38.2% 40.9% 44.3% Academic Support 6.5% 6.5% 6.3% 5.4% 4.9% 5.4% 5.5% 7.0% 7.4% 6.4% Student Services 12.3% 12.1% 13.8% 12.4% 8.5% 10.2% 10.6% 9.8% 9.6% 9.4% Operation and Maintenance of Plant 13.0% 10.0% 7.9% 7.3% 10.6% 8.5% 10.3% 11.6% 8.6% 9.0% Institutional Support 7.0% 6.2% 6.5% 6.1% 5.5% 6.3% 6.9% 6.7% 7.4% 7.5% Scholarships 7.7% 8.6% 11.2% 19.3% 21.6% 17.3% 12.4% 13.1% 12.3% 11.1% Auxiliary Enterprises 7.0% 7.7% 8.4% 9.7% 9.2% 9.4% 9.2% 8.0% 8.0% 6.7% Depreciation 6.0% 6.2% 6.8% 4.8% 4.6% 4.5% 4.9% 5.2% 5.5% 5.5%Total Operating Expenses 99.3% 99.0% 99.2% 99.2% 99.5% 99.5% 99.5% 99.6% 99.6% 99.8%Gain(Loss) on disposal of assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Interest on capital asset-related debt 0.7% 1.0% 0.8% 0.8% 0.5% 0.5% 0.5% 0.4% 0.4% 0.2% Total Expenses 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

* Restated FY13 Scholarship Expense - See Note 1 of the Financial Statements for additional explanation.


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Tri-County Technical College Schedule 3Schedule of Expenses by UseLast Ten Fiscal Years

2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016Expenses: Salaries 16,356,160$ 17,804,799$ 18,614,189$ 19,575,222$ 20,088,380$ 20,572,973$ 20,148,143$ 20,645,366$ 20,634,882$ 21,223,285$ Benefits 4,049,917$ 4,584,530$ 4,896,098$ 5,120,425$ 5,394,587$ 6,022,664$ 6,100,873$ 6,248,068$ 6,890,799$ 7,244,132$ Scholarships 2,906,153$ 3,505,098$ 4,948,979$ 10,498,294$ 12,794,016$ 9,335,395$ 6,351,762$ 7,273,530$ 6,572,600$ 5,945,172$ Utilities 589,162$ 731,931$ 817,889$ 834,952$ 884,250$ 935,422$ 961,433$ 1,034,419$ 1,070,323$ 1,107,954$ Supplies and Other Services 8,961,136$ 8,590,743$ 8,385,212$ 10,838,092$ 12,594,696$ 10,055,348$ 11,428,787$ 13,314,330$ 11,611,351$ 12,012,182$ Auxiliary Resale Costs 2,283,368$ 2,687,798$ 3,294,512$ 4,511,442$ 4,592,902$ 4,278,232$ 3,983,417$ 3,747,301$ 3,627,065$ 3,150,042$ Depreciation 2,260,354$ 2,545,300$ 3,026,719$ 2,625,429$ 2,717,913$ 2,450,719$ 2,549,878$ 2,862,727$ 2,932,355$ 2,928,770$ Total Operating Expenses 37,406,250$ 40,450,199$ 43,983,598$ 54,003,856$ 59,066,744$ 53,650,753$ 51,524,293$ 55,125,741$ 53,339,375$ 53,611,537$ (Gain) Loss on disposal of assets -$ -$ -$ -$ -$ 1,518$ -$ -$ -$ 2,958$ Interest on capital asset-related debt 269,875$ 395,901$ 346,884$ 438,060$ 272,702$ 256,632$ 242,046$ 226,848$ 211,038$ 101,667$ Total Expenses 37,676,125$ 40,846,100$ 44,330,482$ 54,441,916$ 59,339,446$ 53,908,903$ 51,766,339$ 55,352,589$ 53,550,413$ 53,716,162$

2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016Expenses: Salaries 43.4% 43.6% 42.0% 36.0% 33.9% 38.2% 38.9% 37.3% 38.5% 39.5% Benefits 10.7% 11.2% 11.0% 9.4% 9.1% 11.2% 11.8% 11.3% 12.9% 13.5% Scholarships 7.7% 8.6% 11.2% 19.3% 21.6% 17.3% 12.3% 13.1% 12.3% 11.1% Utilities 1.6% 1.8% 1.8% 1.5% 1.5% 1.7% 1.9% 1.9% 2.0% 2.1% Supplies and Other Services 23.8% 21.0% 18.9% 19.9% 21.2% 18.7% 22.1% 24.1% 21.7% 22.4% Auxiliary Resale Costs 6.1% 6.6% 7.4% 8.3% 7.7% 7.9% 7.7% 6.8% 6.8% 5.9% Depreciation 6.0% 6.2% 6.8% 4.8% 4.6% 4.5% 4.9% 5.2% 5.5% 5.5%Total Operating Expenses 99.3% 99.0% 99.2% 99.2% 99.5% 99.5% 99.5% 99.6% 99.6% 99.8% Gain (Loss) on disposal of assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Interest on capital asset-related debt 0.7% 1.0% 0.8% 0.8% 0.5% 0.5% 0.5% 0.4% 0.4% 0.2%Total Expenses 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

* Restated FY13 Scholarship Expense - See Note 1 of the Financial Statements for additional explanation.


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revenue CapaCiTy

Schedule 4 Schedule of Revenue by Source

Schedule 5 Annual Tuition and Fees

Schedule 6 Admissions Statistics

Schedule 7 Opening Fall Enrollment and Degree Statistics with Graph

Schedule 8 Continuing Education Division Statistics


Tri-County Technical College Schedule 4Schedule of Revenues by Source,Last Ten Fiscal Years

Revenues: 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016 Student tuition and fees (net of scholarship allowances) 7,490,613$ 9,531,160$ 10,967,806$ 14,446,672$ 19,555,685$ 18,885,413$ 15,622,668$ 16,870,456$ 16,839,355$ 16,288,993$ Federal grants and contracts 7,312,329$ 9,202,766$ 12,292,964$ 4,841,904$ 2,067,514$ 1,939,199$ 1,903,289$ 2,540,879$ 2,304,878$ 2,596,359$ State grants and contracts 6,001,719$ 5,815,489$ 6,399,479$ 6,985,097$ 8,176,987$ 9,122,875$ 10,032,781$ 10,569,753$ 11,225,569$ 11,854,528$ Nongovernmental grants and contracts 1,171,430$ 1,480,537$ 1,455,772$ 1,459,367$ 898,654$ 1,110,084$ 1,024,711$ 1,241,977$ 1,404,762$ 1,449,164$ Auxiliary enterprises (net of book allowances)* 2,025,832$ 2,218,669$ 2,349,486$ 2,443,019$ 2,817,497$ 2,543,011$ 2,674,669$ 2,650,191$ 2,654,973$ 2,625,575$ Other operating revenues 58,138$ 69,867$ 67,360$ 86,087$ 40,975$ 40,292$ 60,389$ 105,715$ 88,257$ 144,496$ Total Operating Revenues 24,060,061$ 28,318,488$ 33,532,867$ 30,262,146$ 33,557,312$ 33,640,874$ 31,318,507$ 33,978,971$ 34,517,794$ 34,959,115$ State appropriations 8,860,702$ 9,765,118$ 7,561,326$ 7,191,310$ 6,343,689$ 6,210,945$ 6,493,776$ 6,760,138$ 7,414,368$ 9,074,269$ State appropriations-CHE 7,815$ 8,269$ 5,629$ 3,791$ 2,606$ 2,713$ 2,611$ 2,685$ 2,615$ 2,455$ Local appropriations 3,188,682$ 3,370,371$ 3,530,344$ 3,600,226$ 3,909,984$ 2,889,507$ 2,983,018$ 3,003,000$ 3,000,000$ 2,596,162$ Investment income 601,039$ 455,065$ 116,976$ 54,296$ 142,176$ 207,957$ 213,124$ 83,544$ 43,489$ 54,786$ Federal grants and contracts -$ -$ -$ 15,045,123$ 16,763,431$ 12,605,758$ 11,103,979$ 11,310,543$ 10,248,357$ 9,025,665$ State grants and contracts 371,392$ 869,351$ 550,710$ 548,619$ 500,435$ 444,749$ 222,851$ 153,332$ 57,846$ 29,903$ Other nonoperating revenues 490,091$ 601,618$ 719,534$ 630,140$ 814,457$ 991,665$ 1,116,522$ 995,785$ 978,756$ 981,694$ Gain/(Loss) on disposal of asset 24,254$ 6,713$ (26,237)$ 13,549$ -$ -$ -$ -$ (2,958)$ State capital bond fund/Capital Reserve -$ 6,067,200$ -$ -$ -$ -$ -$ -$ -$ -$ Federal capital grants and gifts 32,492$ 147,986$ -$ 12,848$ 10,228$ 8,308$ 1,635$ -$ -$ -$ State capital grants and gifts -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ State appropriations-Lottery Technology 294,465$ 298,935$ 302,540$ 198,537$ 38,894$ 193,453$ 629,661$ 237,702$ 253,522$ 580,815$ State Research Infrastructure Bond Proceeds 743,190$ -$ -$ -$ -$ -$ -$ -$ -$ -$ State appropriations-Deferred Maintenance -$ -$ -$ -$ -$ 532,968$ 500,000$ -$ -$ -$ State Capital Reserve - Manufacturing Cert -$ -$ -$ -$ -$ -$ -$ 77,658$ 82,536$ 20,339$ State Capital reserve-State Approp Surplus -$ -$ -$ -$ -$ -$ -$ -$ 65,851$ 736,633$ Local/Other capital appropriations 1,084,354$ 957,562$ 1,246,913$ 1,063,088$ 820,261$ 1,160,955$ 1,160,535$ 1,164,140$ 1,164,000$ 1,164,000$ Total Nonoperating Revenues 15,674,222$ 22,565,729$ 14,040,685$ 28,321,741$ 29,359,710$ 25,248,978$ 24,427,712$ 23,788,527$ 23,311,340$ 24,263,763$ Total Revenues 39,734,283$ 50,884,217$ 47,573,552$ 58,583,887$ 62,917,022$ 58,889,852$ 55,746,219$ 57,767,498$ 57,829,134$ 59,222,878$

* Restated FY13 Scholarship Expense - See Note 1 of the Financial Statements for additional explanation. Source: Tri-County Technical College Audited Financial Statements

66

Tri-County Technical College Schedule 4Schedule of Revenues by Source, (continued)Last Ten Fiscal Years

Revenues: 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016 Student tuition and fees (net of scholarship allowances) 18.85% 18.73% 23.05% 24.66% 31.08% 32.07% 28.03% 29.21% 29.13% 27.51% Federal grants and contracts 18.40% 18.09% 25.84% 8.26% 3.29% 3.29% 3.41% 4.40% 3.99% 4.38% State grants and contracts 15.10% 11.43% 13.45% 11.92% 13.00% 15.49% 18.00% 18.30% 19.41% 20.02% Nongovernmental grants and contracts 2.95% 2.91% 3.06% 2.49% 1.43% 1.89% 1.84% 2.15% 2.43% 2.45% Auxiliary enterprises (net of book allowances) 5.10% 4.36% 4.94% 4.17% 4.48% 4.32% 4.80% 4.59% 4.59% 4.43% Other operating revenues 0.15% 0.14% 0.14% 0.15% 0.07% 0.07% 0.11% 0.18% 0.15% 0.24% Total Operating Revenues 60.55% 55.65% 70.49% 51.66% 53.34% 57.13% 56.18% 58.82% 59.69% 59.03% State appropriations 22.30% 19.19% 15.89% 12.28% 10.08% 10.55% 11.65% 11.70% 12.82% 15.32% State appropriations-CHE 0.02% 0.02% 0.01% 0.01% - - - - - - Local appropriations 8.03% 6.62% 7.42% 6.15% 6.21% 4.91% 5.35% 5.20% 5.19% 4.38% Investment income 1.51% 0.89% 0.25% 0.09% 0.23% 0.35% 0.38% 0.14% 0.08% 0.09% Federal grants and contracts 0.00% - - 25.68% 26.64% 21.41% 19.92% 19.58% 17.72% 15.24% State grants and contracts 0.93% 1.71% 1.16% 0.94% 0.80% 0.76% 0.40% 0.27% 0.10% 0.05% Other non-operating revenues 1.23% 1.18% 1.51% 1.08% 1.29% 1.68% 2.00% 1.72% 1.69% 1.66% State capital bond fund/Capital Reserve - 15.27% - - - - - - - - Federal capital grants and gifts 0.08% 0.37% - 0.03% 0.03% 0.02% - - - - State capital grants and gifts - - - - - - - - - - State appropriations-Lottery Technology 0.74% 0.59% 0.64% 0.34% 0.06% 0.33% 1.13% 0.41% 0.44% 0.98% State Research Infrastructure Bond Proceeds 1.87% - - - - - - - - - State appropriations-Deferred Maintenance - - - - - 0.91% 0.90% - - - State Capital Reserve - Manufacturing Cert - - - - - - - 0.13% 0.14% 0.03% State Capital reserve-State Approp Surplus - - - - - - - - 0.11% 1.24% Local/Other capital appropriations 2.73% 1.88% 2.62% 1.81% 1.30% 1.97% 2.08% 2.02% 2.01% 1.97% Total Nonoperating Revenues 39.45% 44.35% 29.51% 48.34% 46.66% 42.87% 43.82% 41.18% 40.31% 40.97%Total Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

* Restated FY13 Scholarship Expense - See Note 1 of the Financial Statements for additional explanation. Source: Tri-County Technical College Audited Financial Statements

67

South Carolina Public Two Year Institutions Schedule 5Annual Tuition and FeesLast Ten Academic Years

(Alpha Order)Technical Colleges 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

In-CountyAiken 3,190$ 3,298$ 3,506$ 3,626$ 3,706$ 3,722$ 3,866$ 3,972$ 4,098$ 4,262$ Central Carolina 2,900$ 2,920$ 3,020$ 3,308$ 3,380$ 3,476$ 3,584$ 3,720$ 3,840$ 3,960$ Denmark 2,278$ 2,278$ 2,378$ 2,492$ 2,590$ 2,500$ 2,568$ 2,568$ 2,624$ 3,580$ Florence-Darlington 3,190$ 3,190$ 3,190$ 3,302$ 3,526$ 3,658$ 3,766$ 3,886$ 3,934$ 4,078$ Greenville 3,190$ 3,290$ 3,396$ 3,492$ 3,616$ 3,748$ 3,866$ 3,974$ 4,094$ 4,224$ Horry-Georgetown 2,944$ 3,114$ 3,194$ 3,206$ 3,408$ 3,530$ 3,530$ 3,590$ 3,854$ 3,960$ Midlands 3,100$ 3,244$ 3,360$ 3,608$ 3,680$ 3,706$ 3,788$ 3,838$ 3,888$ 3,988$ Northeastern TC 2,646$ 2,982$ 3,270$ 3,270$ 3,342$ 3,438$ 3,534$ 3,630$ 3,726$ 3,846$ Orangeburg-Calhoun 2,832$ 2,832$ 3,048$ 3,218$ 3,434$ 3,554$ 3,650$ 3,770$ 3,890$ 4,010$ Piedmont 2,956$ 3,076$ 3,076$ 3,334$ 3,540$ 3,572$ 3,714$ 3,850$ 3,958$ 4,084$ Spartanburg 3,094$ 3,194$ 3,314$ 3,434$ 3,576$ 3,740$ 3,820$ 3,940$ 4,064$ 4,192$ TC of the Lowcountry 3,050$ 3,150$ 3,270$ 3,382$ 3,556$ 3,676$ 3,772$ 3,940$ 4,060$ 4,180$ Tri County 2,856$ 2,976$ 3,060$ 3,168$ 3,465$ 3,570$ 3,648$ 3,744$ 3,852$ 3,967$ Trident 3,114$ 3,220$ 3,330$ 3,450$ 3,530$ 3,600$ 3,712$ 3,823$ 3,942$ 4,070$ Williamsburg 2,830$ 2,830$ 2,942$ 3,042$ 3,264$ 3,438$ 3,540$ 3,650$ 3,756$ 4,008$ York 3,124$ 3,124$ 3,244$ 3,352$ 3,496$ 3,628$ 3,712$ 3,744$ 3,840$ 3,960$ System Average 2,956 3,045 3,162 3,293 3,438 3,535 3,629 3,727 3,839 4,023

Two-Year Regional Campuses of USCIn-State

USC - Lancaster 4,652$ 4,868$ 5,264$ 5,528$ 5,864$ 6,092$ 6,284$ 6,482$ 6,686$ 7,008$ USC - Salkehatchie 4,652$ 4,868$ 5,264$ 5,528$ 5,864$ 6,092$ 6,284$ 6,482$ 6,686$ 6,918$ USC - Sumter 4,652$ 4,868$ 5,264$ 5,528$ 5,864$ 6,092$ 6,284$ 6,482$ 6,686$ 6,928$ USC - Union 4,652$ 4,868$ 5,264$ 5,528$ 5,864$ 6,092$ 6,284$ 6,482$ 6,686$ 6,908$

Source: South Carolina Commission on Higher Education - Analysis of Tuition & Required Fees for FT Undergradutate Students

68

69

Tri-County Technical CollegeAdmissions StatisticsMost Recent Years Available

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Admissions

Applications 6,251 6,793 7,987 9,898 9,999 9,439 9,165 9,428 8,890 9,437 Applications accepted 5,647 6,278 7,442 8,536 8,212 7,574 7,474 7,234 6,842 6,734 New admits registered 3,984 4,440 5,030 5,695 5,236 5,055 5,171 5,119 4,929 4,919 Accepted as a percentage of applications 90.3% 92.4% 93.2% 86.2% 82.1% 80.2% 81.5% 76.7% 77.0% 71.4%Registered as a percentage of accepted 70.6% 70.7% 67.6% 66.7% 63.8% 66.7% 69.2% 70.8% 72.0% 73.0%Registered as a percentage of applicants 63.7% 65.4% 63.0% 57.5% 52.4% 53.6% 56.4% 54.3% 55.4% 52.1%

Notes : Tri-County Technical College has an open enrollment policy. All figures are unduplicated unless otherwise stated.

Source: TCTC admissions office

Schedule 6

-

2,000

4,000

6,000

8,000

10,000

12,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Admissions Statistics

Applications Applications accepted New admits registered

70

Tri-County Technical CollegeOpening Fall Enrollment Demographics and Degree StatisticsLast Ten Fiscal Years

GENDER 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16(Term) (06-1) (07-1) (08-1) (09-1) (10-1) (11-1) (12-1) (13-1) (14-1) (15-1)

Female 2,780 2,997 3,204 3,796 3,963 3,855 3,625 3,536 3,361 3,067Male 1,973 2,226 2,526 2,962 2,978 2,945 2,997 3,017 3,025 3,061Total 4,753 5,223 5,730 6,758 6,941 6,800 6,622 6,553 6,386 6,128

RACE 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Minority 679 860 1,006 1,201 1,283 1,225 1,127 1,184 1,119 1,123White 3,844 4,238 4,605 5,448 5,590 5,465 5,413 5,293 5,207 4,957Other(unknown) 230 125 119 109 68 110 82 76 60 48Total 4,753 5,223 5,730 6,758 6,941 6,800 6,622 6,553 6,386 6,128

COUNTY 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Anderson 1,821 1,975 2,164 2,616 2,738 2,523 2,517 2,449 2,330 2,219 Oconee 973 919 1,006 1,167 1,165 1,140 1,013 982 942 905 Pickens 996 1,092 1,143 1,250 1,314 1,347 1,393 1,404 1,350 1,206 Other 963 1,237 1,417 1,725 1,724 1,790 1,699 1,718 1,764 1,798 Total 4,753 5,223 5,730 6,758 6,941 6,800 6,622 6,553 6,386 6,128

HEADCOUNT 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Full-time 2,576 2,783 3,316 4,064 4,221 3,913 3,735 3,681 3,564 3,451Part-time 2,177 2,440 2,414 2,694 2,720 2,887 2,887 2,872 2,822 2,677Total 4,753 5,223 5,730 6,758 6,941 6,800 6,622 6,553 6,386 6,128

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

FTEs 3,293.3 3,579.0 4,086.0 4,959.7 5,152.1 4,910.8 4,794.3 4,740.3 4,653.0 4,463.5

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

RATIO FTE/HC 0.69 0.69 0.71 0.73 0.74 0.74 0.72 0.72 0.73 0.73

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

AVERAGE CREDITS 10.4 10.3 10.7 11.0 11.1 10.8 10.9 10.9 10.9 10.9

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

AVERAGE AGE 24.7 24.5 24.4 25.1 24.8 24.5 24 23.7 23 22.3

DEGREES AWARDED 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16* Associate 414 511 485 554 598 598 650 993 867 760 Diploma 148 161 173 143 151 168 151 123 127 115 Certificate 175 197 191 187 311 546 341 547 205 353Total Awards Granted 737 869 849 884 1060 1312 1142 1663 1199 1228

Source: TCTC website and office of institutional research*Preliminary

Schedule 7

71

Tri-County Technical College Schedule 7Selected Opening Fall Enrollment Demographics GraphLast Ten Fiscal Years

2015-16

2015-16

2015-16

0

1000

2000

3000

4000

5000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Opening Fall Enrollment By Gender

0

1000

2000

3000

4000

5000

6000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Opening Fall Enrollment by Race

Minority White

0

500

1000

1500

2000

2500

3000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Anderson Oconee Pickens Other

Opening Fall Enrollment by County

Male 47.4% Female

52.6%

81.5%

18.5%

14.8%21.1%

36.5%27.6%

Tri-County Technical College Schedule 8Corporate and Continuing Education Division (CCED) StatisticsMost Recent Data Available

Corporate and Continuing Education Departments: Business Training Center Center for Workforce Excellence Health Care Education SCDOT Training Program Truck Driving/Transportation Training Program

Continuing Education Contact HoursFiscal Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16Contact Hours 233,616.0 200,268.0 190,460.5 200,561.0 217,130.0 153,213.5 208,235.0 213,377.7 213,377.7 225,447.9

Continuing Education Headcount (Unduplicated)Fiscal Year-unaudited 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16Headcount 7,658 5,787 8,158 9,185 9,266 9,000 10,965 7,941 7,941 5,621

Sources: SBTCE Factbook, Rick Pace (CE evaluation coordinator SBTCE) CCED information coordinator

72

0.0

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

CCED Contact Hours



deBT CapaCiTy

Schedule 9 Schedule of Ratios of Outstanding Debt

Schedule 10 Schedule of Bond Coverage


Tri-County Technical College Schedule 9Schedule of Outstanding Debt & RatiosLast Ten Fiscal Years

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

General institution bonds 1,365,000$ 700,000$ -$ -$ -$ -$ -$ -$ -$ -$ Capital lease 7,876,571$ 7,733,188$ 7,343,021$ 6,948,285$ 6,465,000$ 6,115,000$ 5,750,000$ 5,370,000$ 4,975,000$ 4,565,000$ Total outstanding debt 9,241,571$ 8,433,188$ 7,343,021$ 6,948,285$ 6,465,000$ 6,115,000$ 5,750,000$ 5,370,000$ 4,975,000$ 4,565,000$

Full-time equivalent students-annual Credit 3,797 4,057 4,666 5,632 5,698 5,298 5,174 5,198 5,031 4,851

Outstanding debt per student FTE 2,434$ 2,078$ 1,574$ 1,234$ 1,135$ 1,154$ 1,111$ 1,033$ 989$ 941$

Source: Tri-County Technical College Comprehensive Annual Financial Reports Formula Computation Allocation Worksheet provided by the System Office for years presented

73

Tri-County Technical CollegeSchedule of Bond CoverageLast Ten Fiscal Years

Institution Bonds

Fiscal Year Ended June

30,

Budgeted Capital Fees

Total Revenue Available for Debt Service

Principal Interest Total Coverage Ratio

2009 1,333,127$ 1,333,127$ 700,000$ 35,000$ 735,000$ 1.812008 1,078,225$ 1,078,225$ 665,000$ 68,250$ 733,250$ 1.472007 1,042,000$ 1,042,000$ 630,000$ 99,750$ 729,750$ 1.432006 1,042,373$ 1,042,373$ 600,000$ 129,750$ 729,750$ 1.432005 1,041,314$ 1,041,314$ 565,000$ 158,000$ 723,000$ 1.442004 1,075,694$ 1,075,694$ 535,000$ 184,750$ 719,750$ 1.492003 1,216,040$ 1,216,040$ 510,000$ 210,250$ 720,250$ 1.692002 1,074,758$ 1,074,758$ 485,000$ 234,500$ 719,500$ 1.492001 1,038,191$ 1,038,191$ 455,000$ 257,250$ 712,250$ 1.462000 1,222,960$ 1,222,960$ 435,000$ 282,263$ 717,263$ 1.71

Bond was paid in full in fiscal year 2009

Source: GAAPS reports and TCTC financial statements

Schedule 10

Debt Service Requirements

74


demographiC and eConomiC

inFormaTion

Schedule 11 Economic Indicators for the College Service Area

Schedule 12 Principal Employers by County


Tri-County Technical CollegeEconomic Indicators for the College Service AreaMost Recent Data Available

Total Personal Income (in Millions)2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Anderson 5,011$ 5,374$ 5,627$ 5,599$ 5,813$ 5,975$ 6,111$ 6,256$ 6,599$ N/AOconee 1,745$ 2,219$ 2,343$ 2,324$ 2,346$ 2,516$ 2,533$ 2,603$ 2,691$ N/APickens 2,778$ 3,147$ 3,291$ 3,247$ 3,340$ 3,405$ 3,517$ 3,581$ 3,902$ N/ASouth Carolina 134,204$ 142,167$ 148,892$ 148,265$ 154,568$ 159,267$ 166,959$ 171,088$ 177,242$ N/A(NOTE: Years 2007 - 2009 have been revised per USBEA)

Per Capita Personal Income2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Anderson $28,299 $29,831 30,760$ 30,280$ 29,916$ 31,693$ 32,272$ 32,818$ $34,228 N/AOconee $28,561 $31,388 32,954$ 32,499$ 31,527$ 33,899$ 33,943$ 34,684$ $35,794 N/APickens $24,430 $27,106 28,002$ 27,487$ 27,385$ 28,508$ 29,373$ 29,887$ $32,419 N/ASouth Carolina $30,041 $32,134 33,063$ 32,505$ 32,462$ 34,079$ 35,347$ 35,831$ $36,677 N/A(NOTE: Years 2007 - 2009 have been revised per USBEA)

Population of Service Area(estimates) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Anderson 177,963 179,981 182,825 184,901 187,126 188,532 189,357 190,641 192,810 194,692Oconee 70,567 70,753 71,274 71,514 74,273 74,229 74,628 75,045 75,192 75,713Pickens 114,446 116,003 116,915 118,144 119,224 119,448 119,745 119,829 120,368 121,691

Labor Market-Unemployment Trends(Annual) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Anderson 6.8% 6.0% 6.9% 13.4% 11.6% 9.7% 8.7% 7.1% 5.9% 5.4%Oconee 9.0% 7.2% 7.5% 14.6% 11.9% 10.1% 9.1% 7.7% 6.3% 5.8%Pickens 6.2% 5.3% 6.1% 10.8% 10.0% 8.8% 8.0% 7.2% 6.2% 5.8%South Carolina 6.5% 5.9% 6.9% 12.6% 11.3% 10.3% 9.0% 7.6% 6.4% 6.0%United States 4.6% 4.6% 5.8% 10.0% 9.6% 8.9% 8.1% 7.4% 6.2% 5.3%

Announced Job Creation2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Anderson 132 452 26 47 1,216 99 658 887 796 509Oconee 170 113 71 125 206 80 105 117 426 426Pickens 550 335 235 0 95 547 15 0 0 0

Sources:http://sccommerce.com/sites/default/files/document_directory/Capital_Investment_by_County_in_South_Carolina_2003-2010_0.pdfAnderson, Oconee, Pickens County ProfilesWWW.upstatealliance.comBureau of Labor StatisticsBEA, Bearfacts

Schedule 11

75

http://sccommerce.com/sites/default/files/document_directory/Capital_Investment_by_County_in_South_Carolina_2003-2010_0.pdf

http://www.upstatealliance.com/

Tri-County Technical College Schedule 12Principal Employers by CountyJune 30, 2016

Anderson Oconee Pickens

Anderson County School Districts (5 districts) Borg Warner Aramark ServicesAnderson University Duke Energy Corporation Clemson UniversityAnMed Health Medical Center GHS - Oconee Medical Campus Cornell Dubilier Marketing, Inc. Electrolux Home Products Inc Itron Corporation Danfoss Power Solutions/ComatrolGlen Raven Custom Fabrics LLC Johnson Controls, Inc. Battery Group Milliken & CompanyMichelin North America, Mfg Division JTEKT / Koyo Bearings North America, LLC Palmetto Health Medical CenterMilliken & Company -Cushman Facility Oconee County School District Pickens County School DistrictRobert Bosch Corporaton Sandvik St. Jude Medical, Inc. Techtronic Industries NA Schneider Electric-Square D Techtronic Industries North AmerciaTimken U.S. Corporation US Engine Valve Company The Reliable Automatic Sprinkler CoTri-County Technical College YH America

The companies are listed in alphabetical order.

Note: Due to confidentiality issues, the number of employees for each company is not available. Note2: Data for the period nine years prior the current period is not available and therefore not presented.

Source: Upstate Alliance website

County

76


operaTing inFormaTion

Schedule 13 Faculty and Staff Statistics

Schedule 14 Space Utilization


Tri-County Technical CollegeFaculty and Staff StatisticsLast Ten Fiscal Years

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Faculty Part-time 219 241 256 308 338 336 305 270 250 266 Full-time 109 118 115 125 130 138 138 137 145 147

Staff Part-Time 137 160 144 172 187 137 80 115 114 166 Full-time 165 167 170 171 175 167 178 187 189 192

Total Employees Part-time 356 401 400 480 525 473 385 385 364 432 Full-time 274 285 285 296 305 305 316 324 334 339

630 686 685 776 830 778 701 709 698 771

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Average Annual Faculty Salary 42,637$ 44,450$ 44,801$ 43,823$ 43,345$ 43,513$ 44,594$ 44,225$ 44,439$ 44,187$

NOTE: Faculty/Staff statistics are as of November each fiscal year. College workstudy not included.

Source: Integrated Postsecondary Education Data System (IPEDS) data for years indicated (From Human Resource Office)

Schedule 13

77

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Faculty

Faculty Part-time

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Staff

Part-Time Full-time

36000

38000

40000

42000

44000

46000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Average Annual Faculty Salary

Average Annual Faculty Salary

Tri-County Technical College Schedule 14Space UtilizationMost Recent Data Available

2006* 2007** 2008 2009 2010 2011 2012 2013 2014 2015

Instruction Assignable Square Feet 156,645 171,538 171,538 196,363 196,363 203,643 214,814 240,243 242,764 254,466 Percentage of Total 68.26% 70.19% 70.19% 74.71% 74.71% 75.28% 76.26% 78.22% 78.40% 79.05%

Academic Support Assignable Square Feet 23,431 23,431 23,431 22,615 22,615 23,042 23,042 23,042 23,042 23,365 Percentage of Total 10.21% 9.59% 9.59% 8.60% 8.60% 8.52% 8.18% 7.50% 7.44% 7.26%

Student Services Assignable Square Feet 16,184 16,184 16,184 11,736 11,736 11,736 11,736 11,736 11,736 11,980 Percentage of Total 7.05% 6.62% 6.62% 4.47% 4.47% 4.34% 4.17% 3.82% 3.79% 3.72%

Institutional Support Assignable Square Feet 16,179 16,179 16,179 16,117 16,117 16,117 16,117 16,117 16,117 16,121 Percentage of Total 7.05% 6.62% 6.62% 6.13% 6.13% 5.96% 5.72% 5.25% 5.20% 5.01%

Plant Operations and Maintenance Assignable Square Feet 9,946 9,946 9,946 10,060 10,060 10,060 10,060 10,060 10,060 10,060 Percentage of Total 4.33% 4.07% 4.07% 3.83% 3.83% 3.72% 3.57% 3.28% 3.25% 3.13%

Auxiliary Enterprises Assignable Square Feet 5,926 5,926 5,926 5,926 5,926 5,926 5,926 5,926 5,926 5,926 Percentage of Total 2.58% 2.42% 2.42% 2.25% 2.25% 2.19% 2.10% 1.93% 1.91% 1.84%

Unassigned Assignable Square Feet 1,176 1,176 1,176 - - - - - - - Percentage of Total 0.51% 0.48% 0.48% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Total Assignable Areas Assignable Square Feet 229,487 244,380 244,380 262,817 262,817 270,524 281,695 307,124 309,645 321,918 Percentage of Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Parking Facilities 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Parking spaces available 2,046 2,346 2,346 2,346 2,346 ***2746 2,746 2,746 2,746 2,746 Number of employees 615 630 686 685 776 830 778 701 709 698 Number of students-fall term 4,645 4,753 5,223 5,730 6,758 6,941 6,800 6,622 6,553 6,386

NOTE: Common areas(such as, hallways, foyers, restrooms, closets, mechanical rooms are not included in totals.

*Utilization was reassessed.**Includes Anderson Campus***Includes Mechanic Street parking lotSource: Facilities extract from IPEDS and SCCHE

78


oTher inFormaTion

Schedule 15 Schedule of Current Unrestricted Expenses Per Full Time Equivalent Units (FTEs)

Schedule 16 Accreditation Information

Schedule 17 Statement of Nondiscrimination


Tri-County Technical College Schedule 15Schedule of Current Unrestricted ExpensesPer Credit Full Time Equivalent Unit (FTE)Most Recent Data Available

Current UnrestrictedEducational and General: 2007 2008 2009 2010 2011* 2012 2013 2014 2015 2016Instruction 11,315,637$ 12,519,469$ 13,061,517$ 14,385,333$ 14,508,658$ 16,689,866$ 16,701,530$ 16,974,492$ 17,056,542$ 17,631,951$ Academic Support 1,892,243$ 2,114,604$ 2,458,279$ 2,157,777$ 2,412,337$ 2,553,967$ 2,518,195$ 3,266,586$ 3,551,849$ 3,546,752$ Student Support 2,436,119$ 2,305,952$ 2,488,614$ 2,544,123$ 2,955,300$ 3,280,286$ 3,077,458$ 3,027,883$ 2,857,821$ 3,088,057$ Operation of Maint/Plant 2,419,312$ 2,543,108$ 2,492,480$ 2,686,910$ 3,027,838$ 3,115,085$ 3,214,958$ 3,517,773$ 3,508,739$ 3,832,312$ Administrative and General 2,582,223$ 2,735,227$ 3,161,215$ 3,545,464$ 3,933,999$ 4,048,928$ 4,142,178$ 4,180,985$ 3,886,624$ 3,595,780$

Total E & G** 20,645,534$ 22,218,360$ 23,662,105$ 25,319,607$ 26,838,132$ 29,688,132$ 29,654,319$ 30,967,719$ 30,861,575$ 31,694,852$

Annual Credit Student FTEs 3,797 4,057 4,666 5,632 5,698 5,298 5,174 5,198 5,031 4,851

Expense per Credit Student FTE 5,437$ 5,477$ 5,071$ 4,496$ 4,710$ 5,604$ 5,731$ 5,958$ 6,134$ 6,534$ (total E&G/annual student FTEs)

Actual*2011

15,694,191$ 2,412,337$ 2,955,300$ 3,027,838$ 3,933,999$

Total E & G 28,023,665$ Credit FTE 5,698

Expense per FTE 4,918

*ARRA (American Recovery and Reinvestment Act) funds were used to pay for a portion of instructional salaries in fiscal year 2011. The actual E & G is listed separately for comparative purposes.

**Note: EXCLUDES Auxiliary Enterprise, Continuing Education, Restricted and Unexpended Plant Funds. EXCLUDES Anderson Campus Capital Lease payment

79Sources: Audited Annual Reports on Financial Statements for years presented.

Tri-County Technical College Schedule 16Accreditation InformationJune 30, 2016

College AccreditationTri-County Technical College is Accredited by the Commission on Colleges of the Southern Association ofColleges and Schools to award the Associate Degree.

Program Accreditations and Approvals

The Associate Degree Nursing program is approved by the State Board of Nursing for South Carolina andaccredited by the Accreditation Commission for Edcuation in Nursing (ACEN).

The Accounting, Management and Administrative Office Technology programs are accredited by theAccreditation Council for Business Schools and Programs.

The Expanded Duty Dental Assisting diploma program is accredited by the Commission on DentalAccreditation.

The Early Childhood Development degree program is accredited by the National Association for theEducation of Young Children (NAEYC).

The Medical Assisting degree program is accredited by the Commission on Accreditation of Allied HealthEducation Programs (CAAHEP) upon the recommendation of the Medical Assisting Education ReviewBoard (MAERB).

The Medical Laboratory Technology degree program is accredited by the National Accrediting Agency forClinical Laboratory Sciences (NAACLS).

The Practical Nursing program is approved by the State Board of Nursing for South Carolina and theAccrediting Commission for Education in Nursing (ACEN).

The Pharmacy Technician program is accredited by the Pharmacy Technician Accreditation Commission(PTAC) which is a collaboration between the American Society of Health-System Pharmacists (ASHP) andthe Accreditation Council for Pharmacy Education (ACPE). It also meets the requirements for pharmacytechnician education set forth by the South Carolina Board of Pharmacy for the purposes of obtaining thecredential of "state certified pharmacy technician".

The Surgical Technology program is accredited by the Commission on Accreditation of Allied HealthEducation Programs (CAAHEP) upon the recommendation of the Accreditation Review Council onEducation in Surgical Technology (ARC/STSA).

The Veterinary Technology degree program is accredited by the American Veterinary Medical Association(AVMA).

Source: VP for Academic Affairs

80

Tri-County Technical CollegePolicy on DiscriminationJune 30, 2016

Policy on Discrimination

Source: Office of Personnel and Administrative Services,

Schedule 17

It is the policy of Tri-County Technical College to recruit, hire, train and promote employees and to provide

educational opportunities to students without regard to race, color, religion, sex, disability, veteren's status, age or

national origin, in compliance with the provisions of the Civil Rights Act of 1964, Title VII of the Equal

Employment Opportunity Act of 1972, Title IX of the Education Amendments of 1972, the Rehabilitation Act of

1973, Executive Orders 11246 and 11375, Revised Order 4 of the Department of Labor, the South Carolina Human

Affairs Law of 1972, and the Format Memorandum issued by HEW in August of 1975, the Equal Pay Act, the Age

Discrimination in Employment Act of 1967, the Immigration Reform and Control Act as amended 1990, and the

Americans with Disabilities Act.

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single audiT

TRI-COUNTY TECHNICAL COLLEGE ____________________________________

Independent Auditors’ Reports Required By Governmental Auditing Standards and the Uniform Guidance

Schedule of Expenditures of Federal Awards

For the Year Ended June 30, 2016


Tri-County Technical College Single Audit Section Table of Contents

Independent Auditors’ Report on Compliance For Each Major Program And On Internal Control Over Compliance Required By the Uniform Guidance 1-2 Independent Auditors’ Report on Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed in Accordance With Government Auditing Standards 3-4 Schedule of Expenditures of Federal Awards 5-8 Notes to Schedule of Expenditures of Federal Awards 9 Summary Schedule of Prior Audit Findings 10 Schedule of Findings and Questioned Costs 11 Other: Independent Accountants’ Report on State Lottery Tuition Assistance 12










Independent Auditors' Report On Compliance

For Each Major Program And On Internal Control Over Compliance Required By The Uniform Guidance

Tri-County Technical College Pendleton, South Carolina Report on Compliance for Each Major Federal Program We have audited Tri-County Technical College’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Tri-County Technical College’s major federal programs for the year ended June 30, 2016. Tri-County Technical College’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the College’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Tri-County Technical College’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on Tri-County Technical College’s compliance. Opinion on Each Major Federal Program In our opinion Tri-County Technical College, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal programs for the year ended June 30, 2016.

1


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Established 1950

2

Tri-County Technical College September 13, 2016 Page Two

Report on Internal Control Over Compliance Management of Tri-County Technical College is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirement referred to above. In planning and performing our audit of compliance, we considered Tri-County Technical College’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Tri-County Technical College's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the business-type activities of Tri-County Technical College, a discretely presented component unit of the State of South Carolina, as of and for the years ended June 30, 2016 and June 30, 2015, and the related notes to the financial statements, which collectively comprise the College’s basic financial statements. We issued our report thereon dated September 13, 2016, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.










Independent Auditors' Report On Internal Control Over Financial Reporting And On Compliance And Other Matters

Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards

Tri-County Technical College Pendleton, South Carolina We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities of Tri-County Technical College, a discretely presented component unit of the State of South Carolina, as of and for the years ended June 30, 2016 and June 30, 2015, and the related notes to the financial statements, which collectively comprised Tri-County Technical College’s basic financial statements, and have issued our report thereon dated September 13, 2016. Our report includes a reference to other auditors who audited the financial statements of Tri-County Technical College Foundation, Inc. and Subsidiary, as described in our report on Tri-County Technical College’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. The Tri-County Technical College Foundation, Inc. and Subsidiary’s financial statements were not audited in accordance with Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Tri-County Technical College’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Tri-County Technical College’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Tri-County Technical College’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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Established 1950

4

Tri-County Technical College September 13, 2016 Page Two Compliance and Other Matters As part of obtaining reasonable assurance about whether Tri-County Technical College’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


TRI-COUNTY TECHNICAL COLLEGESCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFor the Fiscal Period Ending June 30, 2016

FEDERAL GRANTOR Pass-Through Entity Award Fund CFDA Grant Fund Balance Refunds Federal Fund Balance Program Title Number Number Number Period 6/30/2015 Federal To Grantor Expenditures 6/30/2016

U.S. DEPARTMENT OF EDUCATION

Student Financial Aid Pell Grant P063P142578 22073 84.063 2014-15 - (9,127) (9,127) 0 Pell Grant P063P152578 22080 84.063 2015-16 - 9,034,792 9,034,792 0 Federal Work Study P033A143810 22074 84.033 2014-15 - 2,647 2,647 0 Federal Work Study P033A153810 22081 84.033 2015-16 - 113,829 113,829 0 Job Location and Development Program P033A153810 22082 84.033 2015-16 - 15,508 15,508 0 Federal SEOG P077A153810 22083 84.007 2015-16 - 167,067 167,067 0

Federal Direct Student Loan Program P268K152578 22077 84.268 2014-15 - (826) (826) 0 Federal Direct Student Loan Program P268K162578 22084 84.268 2015-16 - 6,518,795 6,518,795 0

TRIO Program Talent Search P044A120270 22078 84.044A 2014-15 - 81,014 81,014 0 Upward Bound P047A120290 22079 84.047A 2014-15 - 114,248 114,248 0 Talent Search P044A120270 22085 84.044A 2015-16 - 287,323 287,323 0 Upward Bound P047A120290 22086 84.047A 2015-16 - 271,786 271,786 0

Higher Education-Institutional Aid Learning Through Community and Connections P031A100034 22334 84.031A 2015-16 - 354,337 354,337 0

Pass-Through State Department of Education Vocational Education-Basic Grants to State Perkins IV-Placement Coordinator 16VA414 V048A140040 22657 84.048A 2015-16 - 38,113 38,113 0 Perkins IV-Institutional Research 16VA414 V048A140040 22660 84.048A 2015-16 - 7,296 7,296 0 Perkins IV-Special Populations 16VA414 V048A140040 22662 84.048A 2015-16 - 1,600 1,600 0 Perkins IV-Academic Resource BPS 16VA414 V048A140040 22663 84.048A 2015-16 - 28,325 28,325 0 Perkins IV-Academic Resource E&IT 16VA414 V048A140040 22664 84.048A 2015-16 - 25,033 25,033 0 Perkins IV-Tech Programs Specialist 16VA414 V048A140040 22665 84.048A 2015-16 - 57,177 57,177 0 Perkins IV-Career Counselor 16VA414 V048A140040 22666 84.048A 2015-16 - 25,275 25,275 0 Perkins IV-Vet Tech Equipment 16VA414 V048A140040 22668 84.048A 2015-16 - 3,200 3,200 0 Perkins IV-Administration 16VA414 V048A140040 22669 84.048A 2015-16 - 10,107 10,107 0 Perkins IV CIT Computer Course 16VA414 V048A140040 22684 84.048A 2015-16 - 4,182 4,182 0 Perkins IV Disabil Coord Prof Dev 16VA414 V048A140040 22685 84.048A 2015-16 - 2,639 2,639 0 Perkins IV Faculty Development 16VA414 V048A140040 22689 84.048A 2015-16 - 1,095 1,095 0

5

Revenues



Revenues

Perkins IV EIT Equipment 16VA414 V048A140040 22690 84.048A 2015-16 - 9,998 9,998 0 Perkins IV EIT Tutoring 16VA414 V048A140040 22691 84.048A 2015-16 - 0 0 0 Perkins IV Vet Tech Instructional Supplies 16VA414 V048A140040 22692 84.048A 2015-16 - 750 750 0 Perkins IV Pharmacy Tech Work-Based Learning 16VA414 V048A140040 22693 84.048A 2015-16 - 10,660 10,660 0

Perkins IV Pharmacy Tech Supplies/Equipment 16VA414 V048A140040 22694 84.048A 2015-16 - 1,827 1,827 0

Total U.S. Department of Education 17,178,670 17,178,670 0

U.S. DEPARTMENT OF AGRICULTURE-NATIONAL INSTITUTE OF FOOD & AGRICULTURE

Pulp and Paper Manufacturing Training Grant 2011-38450-31026 22405 10.314 2011-15 - 26,054 26,054 0 Pass-Through SC Department of Social Services SNAP2Work Training Program 4400009143 22425 10.561 2015-16 - 49,188 49,188 0

Total U.S. Department of Agriculture 75,241 75,241 0

U.S. DEPARTMENT OF LABOR-EMPLOYMENT AND TRAINING ADMINISTRATION

Pass-Through SC Department of Education and Workforce Workforce Innovation & Opportunity Act EvolveSC Grant 15EvolveSC 22430 17.258 2015-16 - 98,198 98,198 0 Workforce Innovation & Opportunity Act EvolveSC Grant 15EvolveSC 22430 17.259 2015-16 - 13,000 13,000 0 Workforce Innovation & Opportunity Act EvolveSC Grant 15EvolveSC 22430 17.278 2015-16 - 80,400 80,400 0 Workforce Innovation & Opportunity Act Priority Populations Apprenticeship Grant 15APP01 22431 17.278 2016-17 - 156 156 0

Pass-Through SC Appalachian Council of Governments Make It in America 13M295T1 JA-24960-13-60-A-45 22420 17.268 2014-17 - 72,977 72,977 0 Pass-Through Greenville Technical College TAA Community College Career & Training TC-23765-12-60-A-45 22415 17.282 2012-16 - 164,044 164,044 0

Total U.S. Department of Labor 428,775 428,775 0

6



Revenues

U.S. DEPARTMENT OF TRANSPORTATION

Pass-Through South Carolina Department of Transportation

Estimation of Low Temp Properties-RAP Binder 1598 22412 20.205 2013-16 R&D - 50,374 50,374 0 Characterization of Asphalt Concrete Dynamic Modulus in South Carolina 1715 22413 20.205 2015-16 R&D - 191,544 191,544 0 Effect of Asphalt Quality Due to Nighttime Construction 1741 22414 20.205 2015-16 R&D - 90,309 90,309 0

Laboratory Performance of Liquid Anti- Stripping Agents in Asphalt Mixtures Used in South Carolina 1800 22416 20.205 2015-16 R&D - 30,122 30,122 0

Total U.S. Department of Transportation 362,349 362,349 0

APPALACHIAN REGIONAL COMMISSION

Tech Hire Grant Application Preparation CO-18487 22450 23.011 2015-16 - 5,000 5,000 0

Pass-Through South Carolina Board of Technical and Comprehensive Education New Market Skills Apprenticeship Program SC-17412-C2-14 22409 23.011 2014-16 - 173,603 173,603 0

Total Appalachian Regional Commission 178,603 178,603 0

NATIONAL SCIENCE FOUNDATION

Pass-Through Tetramer Technologies, LLC

SBIR Phase II: Commercialization of Innovative Low Refractive Index, High Temperature Perfluorocyclobutyl Polymers TCTC-001 1330948 22326 47.041 2015-16 - 3,939 3,939 0

Pass-Through College of Charleston UnPAK: Undergraduates Phenotyping Arabidopsis Knockouts 521148-TCTC IOS-1355106 22324 47.074 2014-15 - 17,786 17,786 0

7



Revenues

Pass-Through Indian River Community College Laser & Fiber Optics Regional Center LASER-TEC TCTC 0002 DUE-1304628 22323 47.076 2015-16 - 4,482 4,482 0

Pass-Through University of Central Florida OP-TEC: The National Center for Optics and Photonics Education 61036046 DUE-1303732 22327 47.076 2015-16 - 9,603 9,603 0

Pass-Through American Association of Community Colleges MentorLinks: Advancing Technological Education AACC-138800-08 DUE-1265405 22319 47.076 2014-16 - 6,685 6,685 0

Pass-Through Daytona State College Southeastern Advanced Cybersecurity Education Consortium DUE-124800 22325 47.076 2014-15 - 1,144 1,144 0

Total National Science Foundation 43,639 43,639 0

TOTAL FEDERAL AWARDS $18,267,277 $18,267,277 $0

8

TRI-COUNTY TECHNICAL COLLEGE NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For the Year Ended June 30, 2016 1. GENERAL

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of Tri-County Technical College. The reporting entity is defined in Note 1 of the College’s financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the schedule.

2. BASIS OF ACCOUNTING

The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 of the College’s financial statements.

3. FEDERAL LOAN PROGRAM

The College began participating in the Stafford/Plus Loan Program through third party lenders in July 2007. Participation in the Federal Direct Student Loan Program began in July 2009. The total loans for fiscal year ending June 30, 2016 are:

Subsidized Stafford Loans $ 2,630,284 Unsubsidized Stafford Loans 3,047,099 PLUS Loans 840,586

$ 6,517,969

9

10

TRI-COUNTY TECHNICAL COLLEGE Summary Schedule of Prior Audit Findings

June 30, 2016 Findings Relating to the Financial Statements:

There were no findings relating to the financial statements. Findings and Questioned Costs Relating to Federal Awards: There were no findings and questioned costs relating to federal awards.

11

TRI-COUNTY TECHNICAL COLLEGE Schedule of Findings and Questioned Costs

June 30, 2016 Summary of Auditor’s Results:

An unmodified opinion was issued on Tri-County Technical College’s basic financial statements dated September 13, 2016.

There were no material weaknesses or significant deficiencies relating to the financial statements

reported in the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements performed in accordance with Government Auditing Standards

There were no instances of noncompliance material to the financial statements of Tri-County

Technical College disclosed during the audit.

The auditor’s report on compliance for the major federal award programs for Tri-County Technical College expresses an unmodified opinion

There were no material weaknesses or significant deficiencies relating to the audit of major federal

awards reported in the Independent Auditor’s Report on Compliance for Each Major Program and on

Internal Control over Compliance required by the Uniform Guidance.

There were no audit findings reported relative to the major federal award programs for Tri-County Technical College as depicted below in this schedule.

Major federal programs:

Student Financial Aid Cluster from the U.S. Department of Education Federal Supplemental Education Opportunity Grants CFDA #84.007 Federal Work-Study Programs CFDA #84.033 Federal PELL Grant Program CFDA #84.063 Federal Direct Loan Program CFDA #84.268 TRIO- Cluster from the U.S. Department of Education

TRIO- Talent Search CFDA #84.044A TRIO- Upward Bound CFDA #84.047A

The threshold for distinguishing between Type A and Type B Programs was $750,000.

Tri-County Technical College is a low risk auditee according to the criteria in Title 2 U.S. Code of

Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards (Uniform Guidance).

Findings Relating to the Financial Statements:

There were no findings relating to the financial statements. Findings and Questioned Costs Relating to Federal Awards: There were no findings and questioned costs relating to federal awards.










Independent Accountants’ Report on State Lottery Tuition Assistance

Tri-County Technical College We have examined Tri-County Technical College's compliance with the administrative procedures and internal controls related to the State Lottery Tuition Assistance Program in order to determine that the College administered the program in accordance with State law and Policy 3-2-307 and Procedure 3-2-307.1 of the State Board for Technical and Comprehensive Education for the year ended June 30, 2016. Management is responsible for Tri-County Technical College’s compliance with those requirements. Our responsibility is to express an opinion on Tri-County Technical College’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Tri-County Technical College's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Tri-County Technical College's compliance with specified requirements. The method of sample selection used was random systematic. Eleven (11) students were selected for testing. We examined the individual files maintained in the financial aid office of each applicant selected to determine that they contained all necessary information and documentation to determine eligibility. We also determined that any lottery tuition assistance awarded did not exceed the remaining cost of tuition and academic fees for the applicable semester after first applying Pell grants, FSEOG, SC Need-Based grants and other applicable grants. We traced amounts to the student account detail to determine that the awarded amounts were identifiably credited to the student’s account. The result of our tests disclosed no instances of noncompliance. In our opinion the State Lottery Tuition Assistance Program has been administered in accordance with State law and Policy 3-2-307 and Procedure 3-2-307.1 of the State Board for Technical and Comprehensive Education. This report is intended solely for the use of management and of the Tri-County Technical College Area Commission and management of the State Board for Technical and Comprehensive Education and should not be used by anyone other than these specified parties.

September 13, 2016

12


& CO., P.A.


Established 1950


7900 SC Highway 76P. O. Box 587Pendleton, South Carolina 29670

Phone number: (864) 646-8361Toll free within 864 area code: 1 (866) 269-5677

Tri-County Technical College


Documents

Tri-C TeChniCal College Comprehensive a FinanCial …...Tri-CounTy TeChniCal College Comprehensive annual FinanCial reporT A Component Unit of the State of South Carolina For the Two