Audit report, Richmond County Board of Education, Augusta, Georgia, year ended June 30, 1996

3A
A%oo
. RI E:J.b R5 Igq'.:;) - 9f::,"
AUDIT REPORT RICHMOND COUNTY BOARD OF EDUCATION
AUGUSTA, GEORGIA YEAR ENDED JUNE 30, 1996
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
,.

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

26

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

34

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

36

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

38

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

39

K

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

40

RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

41

2 . CASH AND CASH EQUIVALENTS

44

3 INVESTMENTS

45

4 ACCOUNTS RECEIVABLE

46

5 DEBT SERVICE REQUIREMENTS TO MATURITY

48

SCHEDULE OF REVENUE

6

STATE

50

7

TAXES AND OTHER

52

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

53

9

LOTTERY PROGRAMS

54

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

57

11

BY PROGRAM

58

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

60

SECTION II
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 28, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Richmond County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Richmond County Board of Education, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
96ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were improperly recorded in the year ended June 30, 1996. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, ifany, on the General Fund and the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe consumable supplies and food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Richmond County Board ofEducation as ofJune 30, 1996, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 28, 1997, on our consideration of the Board's internal control structure and a report dated February 28, 1997, on its compliance with laws and regulations.
OUf audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Richmond County Board ofEducation taken as a whole. The combining statements (Exhibits E through K) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Richmond County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect ofadjustments, ifany, on the General Fund and the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies and food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
96ARL-13

A copy ofthis report has been filed as a pennanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp
96ARL-13

RICHMOND COUNTY BOARD OF EDUCATION - 1-

RICHMOND CQUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES ANp ACCOUNT GROUP JUNE30 1996

Cash and Cash Equivalents
Investmeats
Accounts Receivable
Due from Other Funds
Inventories Consumable Supplies Food Donated ColTlTlOdities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements Con1lensated Absences

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPEC~

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 15,698,808.10

$ 2,608,548.40

7,300,504.60

885,571.46 $ 6,418,757.65

498,046.00

125,000.00

2,112,547.85

24.974.11
428,532.26 160,708.01

Total Assets

$ 26,122,432.01 $ 7,032,972.03 $ 3,106,594.40

LIABILITIES AND FUND EQurrv
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Contracts Payable Retainages Payable Deferred Revenue Due to Other Funds Funds Held for Others Capital Lease Agreements Co~nsated Absences General Obligation Bonds Payable
Total Liabilities
FUND EQUrrv
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Debt Service For Encumbrances For Expired Grant Balances/Questioned Costs For Inventories Consumable Supplies Food Donated Corrmodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund EqUity
The notes to the general purpose financial statements are an integral part of this statement.
-2-

$ 866,698.56

$ 3,634,955.27

431,250.48 $

1,707,589.45

752.13
892,167.05 955,831.08
25,000.00 125,000,00

$ 3,634,955.27 $ 3,005,538.49 $ 1,998,750.26

$

225,304..07 $

19.84

1,049,002.16 100,773.44

142,373.49

2,112,547.85

24,974.11

428,532.26 160,708.01
$

$ 3,487,627,52 $ 756,607.71 $

18,999,849.22

3,270,825.83

$ 22,487,476.74 $_...4:,.0L2:7C,=4.3J3...5=4~ $

893,360.72
893,360.72
214,483.42
.'"
1,107,844.14

$ 26,122,432.01 $ 7,032,972.03 $ 3,106,594.40

EXHIBIT "A"

DEBT 'SERVICE
FUND

ADUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONC7TERM DEBT

TOTALS (Memorandum Only) JUNE 30,1996 JUNE 30,1995

$ 2,853,188.05 $

86,135.06

$ 21,246,679.61 $ 20,907,731.90

7,300,504.60 13,384,781.71

22,618.00

7,824,993.11

3,696,819.32

125,000.00

2,137,521.96

2,163,099.27

428,532.26 160,708.01

554,743.70 144,266.29

$

2,875,806.05

2,875,806.05

2,878,434.30

21,859,193.95 13,669,163.50
755,257.53

21,859,193.95 13,669,163.50
755,257.53

23,541,565.70 15,045,270.99
689,740.33

$ 2,875,806.05 $

86,135.06 $ 39,159,421.03 $ 78,383,360.58 $ 83,006,453.51

$

866,698.56

4,066,957.88 $ 3,998,376.95

1,707,589.45

1,365,148.59

892,167,05

133,695.09

955,831.08

198,147.55

25,000.00

125,000.00

$

34,592.48

34,592.48

37,490.49

$

13,669,163.50 13,669.163.50 15,045,270.99

755,257.53

755,257.53

689.740.33

24,735,000.00 24,735,000.00 26,420,000.00

$

34,592.48 $

39.159,421.03 $ 47.833.257.53 $ 47.887,869.99

$ 2,875.806.05
$ 2,875,806.05 0.00 $
$ 2.875,806.05 $ $ 2,875,806.05 $

51,542.58 51,542.58

$

225,304.07

19.84 $

1,178.94

2,875,806.05

2,878.434.30

1.191 ,375.65

598,935.04

100,n3.44

110.003.98

2,137,521.96

2,163.099.27

428,532.26 160,708.01 893.360.72

554,749.06 144,266.29 3,167,719.45

$ 8,013,402.00 $ 9,618,386.33

22,536,701.05 25,500,197.19

$ 30,550,103.05 $ 35,118,583.52

86,135.06 $

39,159,421.03 $ 78,383,360.58 $ 83,006,453.51

.3.

RICHMOND COUNTY BOARD OF EDUCATION COMBINED SIDEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYpES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration SChool Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
TotalExpend~ures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Cap~alLeases
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expend~ures and Other Financing Uses
FUND BALANCE JULY 1
Consumable Supplies Inventory - Net Change in Period Food Inventory - Net Change in Period
Donated Commodities Purchased Food Residual Equ~ Transfer
FUND BALANCE JUNE 30

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 98,464,749.27 $ 8,793,907.15 $

1,507,666.90 16,969,899.39

56,093,004.07

3,108,514,96

$ 156,065,420,24 $ 28,872,321.50 $

3,537,365.58 40,637.07
3,578,002,65

$ 99,528,573,47 $ 11,370,297.59

5,126,220,58 2,979,198,59 4,394,342.41 1,803,127.85 10,814,468.69
896,408,41 15,711,355.67 5,897,881.66
1,853,982.27 268,812.66 8,595.10 24,690,64
1,525,954.94

2,025,464,37 864,958.20 14,639.36 752,542.35

2,438.27 $ 865,548.21
85,158,40

234.45

289,285.58 12,690,879.66
468,287.10

10,559,697.39

. 1,333,686.13 807,152.79

49,096.36 2,400.81

$ 152,974,451,86 $ 29,480,996.26 $ 10,559,931.84 $ 3,090,968.38 $ -608,674.76 $ -6,981,929.19

$

6,675.00

652,463.00 $

-5,258,895.59

$ -4,599,757.59 $

418,091.54 $ 418,091.54 $

4,840,804.05 -652,463.00
4,188,341.05

$ -1,508,789.21 $ -190,583.22 $ -2,793,588.14

23,310,470.73

4,327,786.48

4,553,129.54

34,097.96

651,697.26

-126,211.44 16,441.72

-651 ,697.26
..,

$ 22,487,476,74 $ 4,027,433.54 $ 1,107,844.14

The notes to the general purpose financial statements are an integral part of this statement. -4-

EXHIBIT"B"

TYPES BEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30,1996

JUNE 30, 1995

$ 110,796,022.00

18,4n,566.29

$ 2,909.722.96

62,151,879.06 $

$ 2,909.722.96 $ 191,425,467.35 $

$ 2,780.11

110,796,022.00 $ 18,4n,566.29 62.154,659.17

97,777,706.51 17,368,193.89 59.869,207.51

2,780.11 $ 191,428,247.46 $ 175,015,107.91

$ 110,898.871.06 $

7,151,684.95 3,844,156.79 4,408,981.n 2,555,670.20 10,814,468.69
899,081.13 16,576,903.88
5,983,040.06 1,853,982.27
558.098.24 12,699,474.76
492.9n.74 12,085.652.33

$ .1,685,000.00 1,216,847.50 10.503.71

3,067,782.49 2,026,401.10
10,503.71

$ 2.912,351.21 $ 195.927,731.17 $

$

-2.628.25 $ -4,502,263.82 $

0.00 $ 110.898,871.06 $ 99,430,160.84

7,151.684.95 3,844,156.79 4,408,981.n 2,555,670.20 10,814,468.69
899,081.13 16,576,903.88
5.983,040.06 1,853,982.27
558,098.24 12,699,474.76
492.9n.74 12,085,652.33

5,643,023.30 3,281,066.95 5,127,742.42 2,405,969.04 9,946,038.20
820,464.13 16,629,271.37
6,385,606.07 1,808,520.32
206,692.13 11,448,212.n
1,659,684.47 5,793,007.73

3,067,782.49 2,026,401.10
10,503.71

2,647.018.40 1,793.809.72
10,361.33

0.00 $ 195,927,731.17 $ 175,036,649.19

2.780.11 $ -4,499,483.71 $

-21,541.28

$

6,675.00

5,911 ,358.59

-5,911 ,358.59

$

6,675.00

$

-2,628.25 $

2,878,434.30

-4,495,588.82 $
35,069,821.05
34,097.96
-126,211.44 16,441.72 0.00

$

6,675.00 $

986,117.36

5,911 ,358.59

3,686,168.00

-5,911,358.59

-3,686,168.00

$

6,675.00 $

986,117.36

2,780.11 $ 48,762.47

-4,492,808.71 $
35,118,583.52
34,097.96
-126.211.44 16,441.72 0.00

964,576.08 33,919,857.14
116,156.65
74,082.14 43,911.51

$ 2,875,806.05 $ 30,498,560.47 $

51,542.58 $ 30,550,103.05 $ 35,118,583.52

-5-

THIS PAGE LEFT BLANK

The notes to the general purpose financial statements are an integral part of this statement.
-7-

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Richmond County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception of the departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Richmond County Board of Education.
Based upon the application of the above criteria, the Richmond County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Richmond County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

- 8-

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintainedfor reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLE TRUST FUNDS Davidson Trust Fund - the fund used to account for the principal and earnings which may be expended to provide financial assistance to needy students ofDavidson Fine Arts Magnet S c h o o l . "
Nora Coxwell Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students.
- 9-

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

v
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Robetta McKenzie Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students.
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding, material accrued compensated absences and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1996, a substantial number of personnel of the Board were employed for a one 'hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specifY that compensation be paid
- 10 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion ofthe compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Richmond County Board ofEducation'S budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the fund type level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

'\

- 11 -

RICHMOND COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE~NTS

JUNE 30, 1996

Ii
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

FUND BALANCE JULY I, 1995
Adjustments Inventories - July I, 1995 Consumable Supplies Food Donated Commodities Purchased Foods Encumbrances - July I, 1995
Fund Balance July I, 1995 (Budget Basis)
Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
Encumbrances July 1, 1995 June 30, 1996
Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses (Budget Basis)
Residual Equity Transfers
FUND BALANCE JUNE 30,1996 (Budget Basis)

General Fund

Special Revenue
Fund

$23,310,470.73 $ 4,327,786.48

-795,141.50

-341.605.72

-554,743.70 -144,266.29 -113,126.84

$22.173,723.51 $ 3.515,649.65

$ -1,508,789.21 $ -190,583.22

341,605.72 -782,611.49

113,126.84 -139.468.73

$-1.949,794.98 $ -216,925.11 $ 651.697.26 $20 875.625 79 $ 3.298.724 54

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

INVESTMENTS
COMPOSITION OF INVEST~NTS Investments made by the Board are stated at cost. Donated investments are stated at fair market value as of the date donated. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

- 12 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Augusta - Richmond County Commission - Council fixed the property tax levy for the 1995 tax year (calendar year) on September 5, 1995 (levy date). Taxes were due on November 30, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after yearend are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The Augusta - Richmond County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. In addition, the Clerk of the Superior Court of Richmond County collects recording taxes for the Board of Education, withholds 6% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.
Tax millage rates levied for the 1995 tax year (calendar year) for the Richmond County Board of Education 'I were as follows (a mill equals $1 per thousand dollars of assessed value):

- 13 -

RICHMOND COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

School Operations School Bonds

18.61 mills
---:.2Q mills

19.57 mills

INVENTORIES

CONSUMABLE SUPPLIES Inventories ofathletic, custodial and instructional supplies are recorded as expenditures under the consumption method and are valued at cost (weighted average). These inventories are recorded as assets at the time of purchase. Inventories of maintenance and transportation supplies are recorded as expenditures at the time of purchase and are valued on the Combined Balance Sheet at cost (weighted average). Inventories reported on the balance sheet are equally offset by a reservation of fund balance which indicates that these amounts do. not constitute "available spendable resources" even though they are a component of net current assets.

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

COMPENSATED ABSENCES

Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized during the year bonds are issued. Issuance costs, whether or not withheld from actual net proceeds, are reported as capital project expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the

- 14 -

RICHMOND COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

RESERVED FUND BALANCE

Reserve for Encumbrances - This reserve constitutes the unperformed portion of purchase orders, contracts and other commitments for goods and services at year end. Encumbrances outstanding are reported as a reservation of fund balance and do not constitute expenditures or liabilities in the current year because the commitments will be honored during the subsequent year.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.

Operating transfers are recorded for all interfund transactions other than residual equity transfers and

reimbursements.

.

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

DEFICIT FUND BALANCE

Funds reporting a deficit fund balance position at June 30, 1996, which are not readily apparent on the general purpose financial statements are as follows:

Fund Type/Fund Name
Governmental Fund Type - Capital Projects Fund 1997 Bond Issue Fund

Deficit Balance
."
$ -12,960.70

- 15 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

WNE30.1996

Ii
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding
public funds may, in his discretion, waive the requirement for security in the case of operating funds placed
in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $26,831,254.79. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board1s agent in the Board1s name.
- 16 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTMENTS

Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category

Bank Balance

1

$ 400,321.20

2

14,899,753.30

3

11.531.180.29

Total

$26,831.254.79

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category I - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another governrnent are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 1996, the carrying amount of the Board's total investments was $7,300,504.60 and the market value of these investments, excluding investments in the amount of $6,984,853.10 in the State of Georgia, Local Governrnent Investment Pool, was $398,276.96. The investments are classified as to risk categories as follows:

Type ofInvestment Common Stock
1A>caICIovernment Investment Pools Total Investments
Undeterminable

Risk Categories

2

3

Carrying Amount

Market Value

$ 315 651 50 $===O~O~O $===0!!o"O~O $ 315,651.50 $ 398 276 96

6,984,853.10



$7300504 60

- 17 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

.,. Note 2: DEPOSITS AND INVESTMENTS

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: INTERFUND ASSETS AND LIABILITIES

Due to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund transactions of the Board at June 30, 1996:

Due From Other Funds

Due To Other Funds

General Fund Capital Projects Fund
1997 Bond Issue Fund

$ 125,000.00 $ 125,000.00

$ 125,000.00 $ 125,000.00

Note 5: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation.

The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.

- 18 -

RICHMOND COUNTY BOARD OF EDUCATION

EXIllBIT liD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 5: RISK MANAGEMENT

The Board has established a limited risk management program for workers' compensation claims. The Board accounts for all claims except School Food Services Fund claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. These losses may include an estimate ofclaims that have been incurred but not reported. An excess coverage insurance policy covers individual claims in excess of$225,000.00 loss per occurrence, up to the statutory limit.

Changes in the workers' compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1995 1996

$

0.00 $ 401.531.02 $ 401.531.02 $

0.00

$

0.00 $ 489,935.02 $ 489,935.02 $

0.00

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1995 1996

$

0.00 $ 39.664.59 $ 39,664.59 $

0.00

$

0.00 $ 28,831.02 $ 20,946.84 $

7,884.18

Note 6: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Richmond County Board of Education has entered into various lease agreements as lessee for school buses, operating vehicles and office equipment. These lease agreements qualifY as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

The Richmond County Board ofEducation entered into a lease agreement on April 1, 1994, with Richmond County Public Facilities, Incorporated (RCPF), for the acquisition and construction of school facilities. Under the terms of the lease agreement, the Board will make semi-annual payments through November 1, 2009....

- 19 -

RICHM:OND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

N"ote 6: GENERAL LONG-TERM DEBT

GENERAL OBLIGATION BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Refunding - Series 1993 General Government - Refunding - Series 1991

3.4% - 4.7% 5.4% - 6.3%

$17,720,000.00 7,015,000.00

$24,735,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows:

Capital Leases

RCPF

Other

Compensated Absences

General. Obligation
Bonds

Total

Balance July 1, 1995

S13,470,000.00 S 1,569,723.89 S 689,740.33 S26,420,000.00 $42,149,464.22

Retroactive Restatement ofPrior Year Balances

5.547.10

5.547.10

Balance July 1, 1995 Restated

S13,470,000.00 S 1,575,270.99 S 689,740.33 S26,420,000.00 $42,155,011.32

Additions

6,675.00

6,675.00

Annual Leave Earned and Utilized (Net)

65,517.20

65,517.20

Deductions Payments

625.000.00

757,782.49

1.685,000.00 3,067,782.49

Balance June 30,1996

S12 845 OOD.OO S 82416350 S 75525753 $24735000,00 S39 159 421.03

At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows:

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 6: GENERAL LONG-TERM DEBT
Voters have authorized $115,000,000.00 in general obligation debt which was not issued as ofJune 30, 1996, for the purpose ofacquiring, constructing, and equipping school buildings and other buildings, structures, and facilities useful or desirable in connection therewith, adding to, repairing, renovating, improving, and equipping existing buildings, structures, and facilities ofthe district, acquiring the necessary property therefor, both real and personal, and to pay expenses incident to accomplishing the foregoing.
Note 7: PRIOR YEAR DEFEASEMENT OF DEBT
In fiscal year 1991, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. During fiscal year 1996, the balance of bonds defeased in fiscal year 1991 were retired.
Note 8: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of$3,230,239.60 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies as follows:
Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$2,638,645.01
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount ofSI86,220.59
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount ofS405,374.00
Note 9: SIGNIFICANT COMMITMENTS
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as ofJune 30, 1996, together with funding available:

- 21 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Ii
Note 9: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

Funding Available From State

95/94S-721-049 96/95S-721-063/96-721-059

$ 1,591,347.87 $

0.00

5,367,960.00 1.774,737.00

$ 6.959.307.87 $ 1 774.737.00

The amounts described in this note are not reflected in the general purpose financial statements.

Note 10: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

A liability has not been reported by the Board for the unpaid portion of workers' compensation losses incurred as ofJune 30, 1996. An estimate ofthe amount ofloss cannot be determined but it is probable that claims will be asserted and the Board will incur a loss.

Note 11: ACCUMULATED ErvfPLOYEES' LEAVE

Administrative and other clerical personnel earn two days of vacation leave each month with a maximum accumulation of twenty-four days less required vacation days to be taken during the year. Maintenance and other twelve-month employees earn vacation leave ranging from ten days to twenty-two days per year depending upon the employee's length of service with a maximum accumulation of 22 days. Vacation leave vests with the employee and unused accumulated vacation leave up to the maximum accumulation is paid at the current rate of pay, to employees upon retirement or termination of employment. See Note 1 Compensated Absences

The Board also has an attendance incentive program that provides for payments not to exceed 20% of the employee's daily rate ofpay based on days absent from work. No liability has been recorded for the June 30, 1996, attendance incentive liability as this amount is deemed immaterial to the general purpose financial statements.

- 22 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 12: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after . 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $96,727,244.30; total payroll was $114,805,605.07.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $16,259,869.22, of which $11,423,487.55 was made by the Board and $4,836,381.67 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered p a y r o l l . "

- 23 -

RICHMOND COUNTY BOARD OF EDUCATION

EXffiBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Ii
Note 12: RETIREMENT PLANS

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement NO.5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857.066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$II,423,487.55 was actuarially determined and represented 1.88% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.

PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between

- 24 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 12: RETIREMENT PLANS
the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 1,005 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $33,648.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 13: SURETY BONDS
The School Superintendent, Dr. Charles G. Larke, is bonded in the amount of$50,000.00 with the Fidelity and Deposit Company of Maryland, Baltimore, Maryland, their Bond No. 30091978, on which premium is paid to July 1, 1997.

....
- 25 -

RICHMONP COUNTY BOARP Of EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUNP JUNE 30, 1996

Cash and Cash Equivalents
Accounts Receivable
Inventories COnsumable Supplies Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total Liabilities
FUNPEQUITY
Fund Balances Reserved For Continuation of Federal Program For Encumbrances For Inventories Consumable Supplies Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 2.718,365.64

$

0.00

1,266,834.32 $ 1,355,146.81

428.532.26 160,708.01
$ 4,574,440,23 $ 1,355,146,81 $

...;,;0.,;;0.0.

$ 966,816.53

$ 134,194.99

84,678.82

655,118.n

303,651.46

$ 789,313.76 $ 1,355,146.81

$ 428,532.26 160,708.01

$ 589,240,27

3,195,886.20 $

0.00 $

0.00

$ 3,785,126.47 $

0,00 $

0.00

$ 4,574,440.23 $ 1,355,146.81 $

0.00

See notes to the general purpose financial statements.

26

EXHIBIT"E" Page 1

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

EDUCATION OF GRANTS TO

TITLE II

CHILDREN

LOCAL

EISENHOWER

FOREIGN

IN STATE EDUCATIONAL PROFESSIONAL LANGUAGES

SCHOOLS

AGENCIES DEVELOPMENT ASSISTANCE

TITLE VI INNOVATIVE EDUCATION
PROGRAM STRATEGIES

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL

ALTERNATIVE SCHOOL PROGRAM

$

0.00

$ 1,800.832.94 $

83.931.41 $

9,894.03 $

156,578.25 $ 221,972.56 $

39,949.80 $ 163,317.99

$

0.0..0._$ 1,800,832.94 $

83,931.41 $ _ _....;;9~,8;,;94.;;.;;;03;.$

156,578.25 $ 221,972.56 $

39,949.80 $ 163,317.99

$ 1.232,908.68 $ 125,726.56 442,197.70
$ 1,800,832.94 $

83,911.57 $

9,894.03 $

83,911.57 $ _ _--=9;:.:,8:;:.94..;..:.:,:03:.. $

138,737.28 $ 3,627.23 14,213.74

145,482.45 $ 16,212.88 60,277.23

156,578.25 $ 221,972.56 $

16,683.76 $ 5,077.70 18,188.34
39,949.80 $

163,317.99 163,317.99

$

19.84

$

19.84

$

0.00 $

0.00

.:,:0.c:;00:.. $

--"'0=.::;.00::.. $

-=.;0.:;:.00:.. $ _ _---:;0.:;:.00:..$

$

-=0=.::;.00::.. $

-=0;:.:.00:::.. $

--=.1.:,:9.:;:.84..:. $

--"'0=.::;.00::.. $

-=.;0.:;:.00:.. $

0.00 $

0::..;.:,:00:..$ 0.00 $

.::O~.oo=.. ..;:.O:.:;'oo~

$

..0.,;;;.000= $ 1,800,832.94 $

83,931.41 $ _-===9=,8=9..4.....0..3"" $

156,578.25 $ 221,972.56 $

39,949.80 $ 163,317.99

...
- 27

RICHMONP COUNTY BOARP OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUNp JUNE 30 1996

Ii
~ Cash and Cash Equivalents Accounts Receivable Inventories
Consumable Supplies Food
Donated Commodities Purchased Food
Total Assets
LIABILITIES ANP FUNP EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total Uabilities FUNPEQUITY
Fund Balances Reserved For Continuation of Federal Program For Encumbrances For Inventories Consumable Supplies Food Donated Commodities Purchased Food
Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

ATHLETIC FUND

DELINQUENCY PREVENTION
PROGRAM

GEORGIA LEARNING RESOURCES SYSTEM

$ 218,182.52

$

1,405.30 $ 119,219.97

24,974.11

$ 243,156.63 $

1.405.30 $ 119.219.97

$

1,404.30 $ 111,392.22

$

869.40

1.00

1,696.75

6,131.00

$

869.40 $

1,405.30 $ 119,219.97

$ 142,373.49 24.974.11

$ 167,347.60 74,939.63 $
$ 242.287.23 $

0.00 $

0.00

0.00 $

0.00

$ 243,156.63 $

1,405.30 $ 119,219.97

See notes to the general purpose financial statements.

28

EXHIBIT"E" Page 2

SAND HILLS PSYCHOED
CENTER

SAFE AND DRUGFREE SCHOOLS

EDUCATION FOR HOMELESS CHILDREN AND YOUTH

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

TOTALS JUNE 30, 1996 JUNE 30.1995

$ 2.936,548.16 $ 4.266,110.78

$ 403.227.17 $ 445,920.33 $

7,073.19 $ 287,041.90 $

56,411.68 6,418.757.65 1,995.528.91

24,974.11
428.532.26 160,708.01

29,483.12
554,743.70 144,266.29

$ 403,227.17 $ 445,920.33 $

7,073.19 $ 287,041.90 $

56,411.68 $ 9.969,520.19 $ 6,990,132.80

$ 154.969.81 $ 427,201.33 $

55,293.28

3.871.87

192,964.08

14.847.13

7,073.19 $ 287,041.90 $

$ 403.227.17 $ 445,920.33 $ _ _.......:7.!.:.0:.:.7.:.;3.~19=-$ 287,041.90 $

56,411.68 $ 3,803.246,72 $ 940,031.95

431,250.48

357.165.78

1,707,589.45 1,365,148.59

56,411.68 $ 5,942,086.65 $ 2,662,346.32

$

0.00 $

0.00 $

$

0.00 $

0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$

19.84 $

903.24

142,373.49

116,679.48

24,974.11

29.483.12

428.532.26 160,708.01

554,749.06 144,266.29

$ 756,607,71 $ 846.081.19

0.00 3,270,825.83 3,481,705.29

0.00 $ 4,027,433.54 $ 4,327,786.48

$ 403,227.17 $ 445,920.33 $=====7=,0=7=3.=19=$ 287,041.90 $

56,411.68 $ 9,969.520.19 $ .6.990,132.80

29

RICHMOND COUNTY BOARD OF EPUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES ANp CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND yEAR ENPED JUNE 30, 1996

Ii
REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest
TotalExpend~ures
Excess of Revenues over (under) Expend~ures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expend~ures
FUND BALANCE JULY 1
Food Inventory Net Change in Period Donated Commod~ies Purchased Food
Residual Equity Transfer
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 788,050,00 $ 5,426,n9.70 $
8,917,960.38 2,728,036.75
$ 12,434,047,13 $ 5,426,n9,70 $

475,836.00 475,836.00

$ 4,449,512.71 $

217,101.15
25,n2.42

$

9,005.18

12,684,832,89

8,209.87 2,438.27 663,731,86 56,467.00 3,076.65
6,046.n

409,427.20
56,265.49 10,143.31

$ 12,693,838,07 $ 5,432,356,70 $ $ -259,790,94 $ -5,5n.00 $

475,836.00 0.00

5,5n.00

$ -259,790.94 $ 4,154,687.13

0.00 $ 0.00

0.00 0.00

-126,211.44 16,441.72

$ 3,785,126.47 $

0.00 $

0.00

See notes to the general purpose financial statements.

-30-

EXHIBIT"P Page 1

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

EDUCATION OF GRANTS TO

TITLE II

CHILDREN

LOCAL

EISENHOWER

FOREIGN

INSTATE EDUCATIONAL PROFESSIONAL LANGUAGES

SCHOOLS

AGENCIES

DEVELOPMENT ASSISTANCE

TITLE VI INNOVATIVE EDUCATION
PROGRAM STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

ALTERNATIVE SCHOOL PROGRAM

$

14,850.00 $ 5,179,821.33 $

$

14,850.00 $ 5,179,821.33 $

167,153.26 $ 167,153.26 $

10,468.51 $ 268,013.00 $ 781,381.70 $

$ 147,023.98

163,317.99

10,468.51 $ 268,013.00 $ 781,381.70 $

147,023.98 $ 163,317.99

$

14,839.00 $ 4,025,647.24 $

264,676.09 312,951.39

11.00

242,053.69

49,514.17 15,315.50 218,166.08

1,939.54 $
161,444.04 3,749.84

21,613.43 $

50,961.18 $ 330,995.99 $

85,595.67

313,184.30 119,503.96

130,134.34

17,697.45

581.81 740.00

142,603.98 $ 1,381.90

104,913.91

3,038.10

58,404.08

49,096.36 2,400.81

$

14,850.00 $ 5,179,821.33 $

$

0.00 $

0.00 $

167,133.42 $ 19.84 $

21,613.43 $ -11,144.92 $

268,013.00 $ 781,381.70 $

0.00 $

0.00 $

147,023.98 $ 0.00 $

163,317.99 0.00

$

0.00 $

0.00 $

0.00

0.00

19.84 $ 0.00

10,241.68
-903.24 $ 903.24

0.00 $ 0.00

0.00 $ 0.00

0.00 $

0.00

0.00

0.00

$

0.00 $

0.00 $====1=9.=84=$=====0=.00=$

0.00 $ ====0.=00= $ ===~O,;;;;'OO~ $ ===~O;;;;.OO,;;"

....

- 31 -

RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUNP BALANCES
SPECIAL REVENUE FUND yEAR ENDED JUNE 30 1996

Ii
REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support services Pupil Services Improvement of Instructional services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer
FUND BALANCE JUNE 30

ATHLETIC FUND

DELINQUENCY PREVENTION
PROGRAM

GEORGIA LEARNING RESOURCES SYSTEM

$ $ 380,478,21 $ 380,478.21 $

46,958,46 $ 81,930.00

47,822,56

186,607.55

94,781.02 $ 268,537.55

$
$ 40,439.73 150.12
468,287.10

24,938.29

$ 86,228.34 47,612.83 14,639.36 119,470.07

1,950.00

586.95

67,892.73

$ 508,876.95 $ $ -128,398,74 $

94,781.02 $ 0,00 $

268,537.55 0.00

198,489,86
$ 70,091.12 $ 172,196.11

0.00 $

0.00

0.00

0.00

$ 242,287.23 $

0.00 $

0.00

See notes to the general purpose financial statements.

32

EXHIBIT"P Page 2

SAND HILLS PSYCHOED
CENTER

SAFE AND DRUG-FREE SCHOOLS

EDUCATION FOR HOMELESS CHILDREN AND YOUTH

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30. 1995

$ 1,811,035.00 237.402.69 $ 4n.637.4O $
$ 2,048.437.69 $ 4n,637.4O $

12.076.53 $ 354,715.95 $ 12,076.53 $ 354,715.95 $

$ 8.793,907.15 $ 6,442,323.51 166.964.55 16,969.899.39 15,525,473.57
3.108.514.96 2,940,847.23
166,964.55 $ 28,872,321.50 $ 24,908,644.31

$ 1.012.353.97 $ n.037.34 $

635,154.29 169,093.34

362,616.62 18,436.91

138.485.18

9.724.13

93.350.91

9.822.40

$ 2,048,437.69 $ 4n,637.40 $

$

0.00 $

0.00 $

5,712.56 $ 3.260.52

558,498.95 $

289.95

2,813.50

12.076.53 $ 558,498.95 $ 0.00 $ -203.783.00 $

139,302.30 $ 11,370,297.59 $ 7,803,189.61

12.269.47 15.392.78

2,025,464.37 864,958.20 14,639.36 752.542.35 2,438.27 865,548.21 85,158.40 289.285.58
12,690.879.66

1,458,850.12 764,604.60 992,135.72 659.286.87
1,145.352.70 20.914.45
206.692.13 11.425,438.31

468.287.10

516,353.85 64,885.30

49,096.36 2,400.81

46,807.47 4,689.70

166,964.55 $ 29,480,996.26 $ 25,109,200.83

0.00 $ -608.674.76 $ -200,556.52

$

0.00 $

0.00 $

0.00

0.00

203,783.00

0.00 $ 0.00

0.00 $ 0.00

418,091.54

170,385.00

0.00 $ -190,583.22 $ -30,171.52

0.00

4,327.786.48

4,239,964.61

-126,211.44 16,441.72

74,082.14 43,911.51
-0.26

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 4,027,433.54 $ 4,327,786.48

- 33

RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1996

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable Deferred Revenue Due to Other Funds
Total Uabilities FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Deficit Undesignated Total Fund Equity
Total Uabilities and Fund Equity

REGULAR

1997 BOND ISSUE
FUND

GEORGIA STATE FINANCING

PROJECT

PROJECT

95/94S-721-050

95/94S-721-049

96-721-058

$ 252,444.12 $ 112,039.30 $ 1,465,883.26

382,867.00 $ _-.:.1..:.;15:.L'1.:,.:7..:;9.:.,:.0.=..0

$ 252,444.12 $ 112,039.30 $ 1,848.]50.26 $=====1=:15:!:,1=:7=:9;,;;;'0.0...

$
$ 25,000.00 $ 125,000.00

$ 752.13 892,167.05 955,831.08

$ 25,000.00 $ 125,000.00 $ 1,848,750.26 $

115,179.00 115,179.00

$ -12,960.70

$ 227,444.12

$

0.00 $

0.00

$ 227,444.12 $ -12,960.70 $

0.00 $

0.00

============ $ 252,444.12 $ 112,039.30 $ 1,848,750.26 $

115,179.00

See notes to the general purpose financial statements.

- 34-

EXHIBIT"G"

AND INVESTMENT COMMISSION

PROJECT 95/94S-721-o51

PROJECT 96-721-059

LOTIERY PROJECT 96/955-721-063

LOCAL ASSISTANCE
GRANT PROJECT 95-C-L-73

EMERGENCY FUND GRANT
PROJECT 96-E05-66

TOTALS JUNE 30,1996 JUNE 30,1995

$ 289,689.98 $ 482,084.74 $ 121,586.00 $

0.00 $

0.00 $ 2,723,727.40 $ 3,611,790.32

664,000.00

498,046.00

612,981.86

$ 289,689.98 $ 482,084.74 $ 121,586.00 $

0.00 $====0..0.0.,,= $ 3,221,773.40 $ 4,888,772.18

$ 115,179.00 $ 752.13
892,167.05 955,831.08 25,000.00 125,000.00
$ 2,113,929.26 $

3,800.00 133,695.09 198,147.55
335,642.64

$ 289,689.98 $ 482,084.74 $ 121,586.00
-----$ $ 289,689.98 $ 482,084.74 $ 121,586.00 $

$ 893,360.72 $ 3,167,719.45

0.00 $ _ _---"0.;.;;.0..::,.0

-12,960.70 227.444.12

1,385,410.09

0.00 $ _ _---"'0.;..;..0..::,.0 $ 1,107,844.14 $ 4,553,129.54

$ 289,689.98 $ 482,084.74 $ 121,586.00 $

0.00 $======0='0.=0 $ 3,221,773.40 $ 4,888,772.18 ....

- 35-

RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1996

"
REVENUES
State Funds Taxes and Other Funds
Total Revenues EXPENDITURES
Current Support Services Business Administration Travel
Capital Outlay Land and Land Improvements Building and Building Improvements Total Expendnures
Excess of Revenues over (under) Expendnures OTHER FINANCING SOURCES (USES)
Operating Transfers In Ope'rating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Residual Equity Transfer

REGULAR

1997 BOND ISSUE
FUND

GEORGIA STATE FINANCING

PROJECT

PROJECT

95/94S-721-050

95/94S-721-049

96-721-058

$

$

500.00

$

500.00 $

0.00 $ 3,325,455.77 $

191,709.81

0.00 $ 3,325,455.77 $

191,709.81

$

234.45

$

17,664,00

12,726.25 $ 9,286,501,12 $

$

17,664.00 $ 12,960.70 $ 9,286,501.12 $

$ -17,164.00 $ -12,960.70 $ -5,961 ,045.35 $

993,392.96 993,392.96 -801 ,683.15

$ -652,463.00 $ -652,463.00

$ 4,783,082.49 $ 4,783,082.49

$ -669,627.00. $ -12,960.70 $ -1,177,962.86 $

1,385,410.09

0.00

1,177,962.86

-488,338.97

-801,683.15 965,041.44 -163,358.29

FUND BALANCE JUNE 30

$ 227,444.12 $ -12,960.70 $

0.00 $ -=======0.=00=

See notes to the general purpose financial statements.

- 36-

EXHIBIT"H"

AND INVESTMENT COMMISSION

PROJECT 95/94S-721-051

PROJECT 96-721-059

LOTIERY PROJECT 96/95S-721-063

LOCAL ASSISTANCE
GRANT PROJECT 95-C-L-73

EMERGENCY FUND GRANT
PROJECT 96-E05-66

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$

$

5,427.48 $ 34,709.59

$

5,427.48 $ 34,709.59 $

0.00 $ 0.00 $

200.00 $ 200.00 $

20,000.00 $ 3,537,365.58 $ 1,761,805.23

40,637.07

39,940.54

20,000.00 $ 3,578,002.65 $ 1,801,745.n

$

$

11,441.50 $

9,650.00

150,400.00

$

11,441.50 $ 160,050.00 $

$

-6,014.02 $ -125,340.41 $

0.00
$ 0.00 $ 0.00 $

$ 200.00
200.00 $
0.00 $

$

234.45

n,721.56

116,4n.06 $ 346,816.03

10,443,220.33

3,278,958.93

n}21.56 $ 10,559,931.84 $ 3,625,n4.96

-57,721.56 $ -6,981,929.19 $ -1,824,029.19

$ 57,721.56 $ 4,840,804.05 $ 4,699,719.15 -652,463.00 -1,183,936.15
$ 57}21.56 $ 4,188,341.05 $ 3,515,783.00

$

-6,014.02 $ -125,340.41 $

295,704.00 607,425.15

0.00 $ 121,586.00

0.00 $ 0.00

0.00 $ -2,793,588.14 $ 1,691,753.81

0.00

4,553,129.54

2,861,375.73

-651,697.26

$ 289,689.98 $ 482,084.74 $ 121,586.00 $

0.00 $====0...0.=.,=0 $ 1,107,844.14 $ 4,553,129.54
...

- 37-

RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE30 1996

EXHIBITT

Cash and Cash Equivalents Accounts Receivable

EXPENDABLE TRUST fUNDS

NORA

ROBETTA

DAVIDSON

COXWEll

MCKENZIE

TRUST

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

FUND

AGENCY FUNDS

TOTALS JUNE 30. 1996 JUNE 30. 1995

$ 29.426.79 $

21.448.58 $

667.21 $

34.592.48 $ 86.135.06 $ 86.178.66

74.30

Total Assets

$ 29,426.79 $

21.448.58 $

667.21 $

34.592.48 $ 86.135.06 $ 86.252.96

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

FUNPEQUITY

Fund Balences Unreserved Undesignated

$ 29.426.79 $

$ 21,448.58 $ _ _-=66:.:,7.:::.2.:,.1

34,592.48 $ 34.592.48 $ 37.490.49

0.00

51.542.58

48,762.47

Total Liabilities and Fund Equity

$ 29,426.79 $

21,448.58 $

667.21 $

34,592.48 $ 86,135.06 $ 86,252.96

See notes to the general purpose financial statements.

38

RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE EXpENDABLE TRUST FUNDS YEAR ENDED JUNE 30 1996

REVENUES
Taxes and Other Funds
EXPENPITURES
Current Other Operations of Non-Instructional Services
Excess of Revenues over (under) Expenditures
FUNP BALANCE JULY 1

DAVIDSON TRUST FUND

NORA COXWELL SCHOLARSHIP
FUND

ROBETIA MCKENZIE SCHOLARSHIP
FUND

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30,1995

$ 1,587.65 $

1,156.46 $

36.00 $

2,780.11 $

3,186.59

$ 1,587.65 $ 27,839.14

1,156.46 $ 20,292.12

36.00 $ 631.21

$ 2,780.11 $ 48,762.47

1,756.00 1,430.59 47,331.88

FUND BALANCE JUNE 30

$ 29,426.79 $

21,448.58 $

667.21 $

51,542.58 $_......;48';;':',;,,;76.2...4...7.

....

See notes to the general purpose financial statements.

- 39-

RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30,1996

EXHIBIT HI<"

LIABILITIES Funds Held for Others
PERFORMANCE BONDS ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
TOTALS-AGENCY FUNDS ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

$

608.05 $

34.66 $

0.00 $====6:..;4=2';;,7.1...

$

36,882.44 $

46,216.87 $

49,149.54 $=====3=.!3,=94=9..n...=

$

36,882.44 $

46,216.87 $

49,149.54 $====3=3,=94=9=.n=

$

37,490.49 $

46,251.53 $

49,149.54 $ ====3::!4,.5..9.=2=.4=8

$

37,490.49 $

46,251,53 $

49,149.54 $ ==34==,==:59=2=.4=8

See notes to the general purpose financial statements.

- 40-

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

"FUNDING AGENCY
PROGRAM/GRANT
Education, U. S. Department of Through Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Severely Emotionally Disturbed 1996 Grant Safe and Drug-Free Schools 1996 Grant Special Education Personnel Development and Parent Training Georgia Learning Resources System Title VI. D 1995 Regular 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth 1996 Grant Through Georgia Department of Human Resources Rehabilitation Services Basic Support 1996 Grant
Total U. S. Department of Education
Justice, U. S. Department of Through Richmond County Board of Commissioners Juvenile Delinquency Prevention and Intervention 1995 Grant 1996 Grant
Total U. S. Department of Justice
Labor, U. S. Department of Through Richmond/Burke Training Authority Job Training Partnership Act 08-94-20-33-244 08-94-20-rcboe-245 08-95-11-13-316 08-95-16-13-316 08-95-20-13-245 08-95-20-31-245
Total U. S. Department of Labor

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

* 84.027 $ 84.186

237,402.69 $ 477,637.40

237,402.69 477,637.40

84.029 84.029

873.35 12,200.94

873.35 12,200.94

84.048 84.196

354,715.95 12,076.53

558,498.95 (3) 12,076.53

84.126

15,740.00

$ 9,035,902.18 $

(4) 8,052,059.98

16.548 $ 16.548
$

25,874.73 $ 21,947.83
47,822,56 $

25,874.73 21,947.83
47,822.56

17.250 $ 17.250 17.250 17.250 17.250 17.250
$

42,537.10 $ 17,253.10 36,306.33 25,229.82
8,733.81 36,904.39
166,964.55 $

42,537.10 17,253.10 36,306.33 25,229.82
8,733,81 36,904,39
166,964.55

- 42 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Defense ActiVity for Non-Traditional Support 1996 Grant Department of the Air Force RO.T.C. Program 1996 Grant Department of the Army RO.T.C. Program 1996 Grant Department of the Navy RO.T.C. Program 1995 Grant 1996 Grant National Science Center 1996 Contract
Total U. S. Department of Defense
Total Federal Financial Assistance

CFDA UMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$

7,970.40

31,742.98

133,454.14

3,521.94 99,827.16
32,400.00 $
$ 308,916.62 $

(4)
(4)
(4)
(4) (4) 32,400.00 32,400.00

$ 18,477,566.29 $ 20,993,085.16

Major Programs are identified by an asterisk (*) in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

....
See notes to the general purpose financial statements. - 43 -

RICHMOND COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1996

SCHEDULE "2"

"NONINTEREST BEARING ACCOUNT
Sun Trust Bank of Augusta, N.A., Augusta, Georgia
INTEREST BEARING ACCOUNTS
First Union National Bank, Augusta, Georgia
Certificates of Deposit No. 21-053-352-0054464 (5.31%) No. 21-053-352-0054465 (5.31%) No. 21-053-353-0047148 (5.36%)
Sun Trust Bank of Augusta, N.A., Augusta, Georgia
Overnight Sweep Account (4.756%)
Wachovia Bank of Georgia, Augusta, Georgia
N.O.W. Accounts (1.00%)
OTHER
Petty Cash

$

19,520.60

$ 1,000,000.00 6,000,000.00 6,000,000.00 $ 13,000,000.00
1,857,000.00
5,503,260.45 20,360,260.45
200.00

$ 20,379,981.05

See notes to the general purpose financial statements. - 44 -

RICHMOND COUNTY BOARD OF EDUCATION INVESTMENTS
JUNE 30, 1996
COMMON STOCK First Union Corporation 6,542 Shares
INVESTMENT POOL . State of Georgia, Office of Treasury and Fiscal Services
Local Government Investment Pool (5.361%)

SCHEDULE "3"
$ 315,651.50 6,984,853.10
$ 7,300,504.60

See notes to the general purpose financial statements.
- 45 -

RICHMOND COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30.1996

GOVERNMENTAL FUND TYPES

,.

SPECIAL

CAPITAL

DEBT

GENERAL

REVENUE

PROJECTS SERVICE

FUND

FUND

FUND

FUND

TOTAL

Agriculture, U. S. Department of Summer Food Service Program

$ 176,212.00

$ 176,212.00

Augusta-Richmond County Commission-Council Delinquency Prevention Program

40.30

40.30

Augusta-Richmond County Tax Commissioner County Wide Bond Tax County Wide School Tax

$ 424,719.57

$ 20,746.09

20,746.09 424,719.57

Children and Youth Services, Georgia Department of Delinquency Prevention Program

1,365.00

1,365.00

Clerk of the Superior Court of Richmond County County Wide Bond Tax County Wide School Tax

34,398.75

1,871.91

1,871.91 34,398.75

Defense, U. S. Department of Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program Department of the Navy R.O.T.C. Program National Science Center

2,659.65
34,086.84
33,092.32 32,400.00

2,659.65
34,086.84
33,092.32 32,400.00

Education, Georgia Department of Food Services Child and Adult Care Food Program School Breakfast Program National School Lunch Program Vocational Education Federal Funds Other State Programs Alternative Programs At-Risk Summer School Program Georgia Learning Resources System Part B - Special Projects Part D - Special Education Personnel Development and Parent Training State Funds Middle School Mentoring Program Remedial Summer School Program Severely Emotionally Disturbed Part 8 - Special Projects State Funds Special Education Support Cost Lottery Programs Alternative School Program Applied Technology Labs Distant Learning Instructional Technology Model Technology Schools Safe Schools Grant

126,520.96
2,388.46 38,702.00
6,487.00

6,692.10 270,751.44 809,950.90
287,041.90
163,317.99
86,807.01
4,372.09 28,040.87
41,750.46 360,889.31
45,000.00 204,166.67
11,448.89 6,207.83 8,613.38 11,373.00

6,692.10 270,751.44 809,950.90
287,041.90
163,317.99 126,520.96
86,807.01
4,372.09 28,040.87
2,388.46 38,702.00
41,750.46 360,889.31
6,487.00
45,000.00 204,166.67
11,448.89 6,207.83 8,613.38
11,373.00

- 46 -

RICHMOND COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30.1996

SCHEDULE -4-

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

Education, Georgia Department of Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Foreign Languages Assistance TItJeVI Innovative Education Program Strategies Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Safe and Drug-Free Schools Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth

$ 1,800,730.12
83,931.41 9,894.03
156,578.25
221,972.56 39,949.80
444,549.33
7,073.19

$ 1,800,730.12
83,931.41 9,894.03
156,578.25
221,972.56 39,949.80
444,549.33
7,073.19

Georgia Peace Officers Standards and Training Council

Law Enforcement Program

$ 37,830.38

37,830.38

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

$ 498,046.00

498,046.00

Office of School Readiness Pre-Kindergarten Program

1,068,337.04

1,068,337.04

Reimbursement for Overpayment of Salaries Dunbar, Stephanie HiII,Jesse

260.40 950.00

260.40 950.00

RichmondlBurke Job Training Authority Job Training Partnership Act

56,411.68

56,411.68

Various Sources Interest Earned Lost and Damaged Books Other Refunds

n,429.92 22,825.83 2,450.00
8,369.38

2,329.86 2,959.24

79,759.78 22,825.83
5,409.24 8,369.38

$ 885,571.46 $ 6,418,757.65 $ 498,046.00 $ 22,618.00 $ 7,824,993.11

....

See notes to the general purpose financial statements.

- 47 -

RICHMOND COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30, 1996

..PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$ 2,922,080,00 $ 1,137,080.00 $ 1,785,000.00

2,931,515.00

1,061,515.00

1,870,000.00

2,938,425.00

978,425.00

1,960,000,00

2,948,348.75

888,348.75

2,060,000.00

2,961,077.50

791,077.50

2,170,000.00

2,976,082.50

686,082.50

2,290,000.00

2,987,097.50

572,097.50

2,415,000.00

2,998,460.00

448,460.00

2,550,000.00

3,015,25625

315,256.25

2,700,000.00

3,026,972.50

171,972,50

2,855,000,00

2,128,880.00

48,880.00

2,080,000,00

$ 31,834,195.00 $ 7,099,195.00 $ 24,735,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired During Period
Bonds Payable at June 30, 1996

TOTAL

1993 ISSUE

$ 26,420,000.00 $ 17,970,000.00

1,685,000.00

250,000,00

$ 24,735,000.00 $ 17,720,000.00

MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date

MAY 1 - NOV 1 NOV 1

See notes to the general purpose financial statements. - 48 -

SCHEDULE -5-

1993 ISSUE

INTEREST

PRINCIPAL

1991 ISSUE

INTEREST

PRINCIPAL

$ 734,575.00 $ 1,240,000.00 $ 402,505.00 $

689,537.50

1,295,000.00

371,977.50

639,060.00

1,360,000.00

339,365.00

584,040.00

1,425,000.00

304,308.75

524,790.00

1,500,000.00

266,287.50

460,860.00

1,580,000.00

225,222.50

391,050.00

1,665,000.00

181,047.50

314,932.50

1,755,000.00

133,527.50

232,780.00

1,855,000.00

82,476.25

143,937.50

1,965,000.00

28,035.00

48,880.00

2,080,000.00

545,000.00 575,000.00 600,000.00 635,000.00 670,000.00 710,000.00 . 750,000.00 795,000.00 845,000.00 890,000.00

$ 4,764,442.50 $ 17,720,000.00 $ 2,334,752.50 $ 7,015,000.00

1991 ISSUE

1986 ISSUE

$ 7,530,000.00 $

920,000.00

515,000.00

920,000.00

$ 7,015,000.00 $

0.00

MAY 1 - NOV 1 MAY 1 - NOV 1

NOV 1

NOV 1

.,
- 49 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1996

SCHEDULE "6"

AGENCYIFUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Technology Training Counselors Grades 4 and 5 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs At-Risk Summer School Program Environmental Science Program Georgia Learning Resources System Health Insurance Innovative Programs Mentor Teacher Program Middle School Mentoring Program Preschool Handicapped Program Remedial Summer School Program Severely Emotionally Disturbed Special Education Support Cost Teachers'Retirement Lottery Programs Alternative School Program Applied Technology Labs Distant Learning Instructional Technology Model Technology Schools Pre-Kindergarten Program Safe Schools Grant Technology Installation
Children and Youth Services, Georgia Department of Delinquency Prevention Program
Community Affairs, Georgia Department of Emergency Fund Grant Local Assistance Grants
Georgia Peace Officers Standards and Training Council Law Enforcement Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 64,748,446.00 6,494,450.00 1,559,962.00 2,712,089.00 882,169.00
17,060,571.00

2,334,264.00 536,093.00 137,965.00
2,090,661.00 2,479,740.00
636,585.00 819,071.00 489,535.00 205,364.00 -14,531,838.00 6,040,155.00
$ 17,113.00

788,050.00

204,508.10 1,964.19
2,638,645.01 4,800.00
39,390.00 2,388.46
64,380.18
6,487.00 186,220.59

163,317.99 81,930.00
475,836.00 1,811,035.00

45,000.00 300,000.00
15,140.07 895,907.63 205,803,00 1,406,890.29
11,373.00 579,444.00

$ 64,748,446.00 6,494,450.00 1,559,962.00 2,712,089.00 882,169.00
17,060,571.00
2,334,264.00 536,093.00 137,965.00
2,090,661.00 2,479,740.00
636,585.00 819,071.00 489,535.00 205,364.00 -14,531,838.00 6,040,155.00 788,050.00 17,113.00
163,317.99 204,508.10
1,964.19 81,930.00 2,638,645.01
4,800.00 39,390.00
2,388.46 475,836.00 64,380,18 1,811,035.00
6,487.00 186,220.59
45,000.00 300,000.00
15,140,07 895,907.63 205,803.00 1,406,890.29
11,373.00 579,444.00

46,958.46

46,958.46

$ 20,000,00 200.00

20,000,00 200.00

159,996,74

159,996.74

- 50 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1996

SCHEDULE "6"

AGENCYIFUNDING
GRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Human Resources, Georgia Department of Rehabilitation Services Basic Support
OffICe of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Governor's School Leadership Institute
OTHER Education, Georgia Department of Special Education Administrators' Conference Transition Services Conference
Medical College of Georgia Injury Prevention

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 3,517,165.58 $ 3,517,165.58

$

4,260.00

$ 1,967,221.71

405,374.00

4,260.00 1,967,221.71
405,374.00

4,000.00

4,000.00

2,040.00 900.00
27,000.00

2,040.00 900.00
27,000.00

$ 98,464,749.27 $ 8,793,907.15 $ 3,537,365,58 $ 110,796,022.00

I,

See notes to the general purpose financial statements.

51 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEPULE OF TAXES ANP OTHER REVENUE
YEAR ENDED JUNE 30. 1996

SCHEDULE"r

GOVERNMENTAL FUND TYPES

FIDUCIARY

.,.

GENERAL

SPECIAL REVENUE

CAPITAL PROJECTS

DEBT SERVICE

FUND TYPE EXPENDABLE

FUND

FUND

FUND

FUND

TRUST FUNDS

TOTAL

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax

$ 53,332,447.07 35,326.24 138.758.56

$ 2,754,034.55
1,822.31 7,312.62

$ 2,754.034.55 53.332,447.07 37,148.55 146.071.18

Other Sources Donations Gate Receipts Indirect Cost Special Revenue Fund Interest Earned Job Training Partnership Act RichmondlBurke Job Training Authority Lost and Damaged Books R.EAP Westinghouse Savannah River Company Reimbursement for Health Screenings Rents Revenue in Lieu of Taxes Augusta-Richmond County Commission-Council Sales Breakfast Lunches School Assets Tuition Other

21,768.58 $ 380.478.21

149.086.00 1.795,601.49

160,195.98 $ 40,137.07

4.050.00 46,235.55

55,806.24 4,070.92
33.702.34

146,553.48 $

2.780.11

21,768.58 380,47821
149.086.00 2.145,268.13
4,050.00 46,235.55
55,806.24 4,070.92
33,702.34

43,612.68

7,355.41 334.799.89
90,383.10

545,945.40 1,997.242.85
24.652.52

500.00

43,612.68
545,945.40 1.997,242.85
7.355.41 334.799.89 115.535.62

$ 56.093.004.07 $ 3.108.514.96 $ 40.637.07 $ 2,909.722.96 $

2,780.11 $ 62.154.659.17

See notes to the general purpose financial statements.

- 52 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE "8"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures
Nonoperating Costs Principal and Interest Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 102,119,284,89 $ 12,686,320.18 $ 114,805,605.07

30,090,993.20

3,124,802,60

33,215,795.80

304,705.38

196,397.11

501,102.49

1,235,729.82

1,182,179.20

2,417,909.02

49,422.68

49,422.68

345,494.55

128,547,13

474,041.68

920,945.60

73,346.03

994,291.63

169,508.78

33,163.55

202,672,33

321,233.22

4,005.00

325,238.22

507,164.36

22,300.92

529,465.28

17,717.45

65,831.31

83,548.76

4,849,489.85

2,513,633.47

7,363,123.32

4,238,783.18

90,401.60

4,329,184.78

5,606,626,64

5,606,626.64

3,133,837.97

44,413.75

3,178,251.72

116,947.78

47,921.71

164,869.49

149,086.00

149,086.00

178,441.52

163,139.95

341,581.47

2,140,838.92 1,127,527.16 1,106,385.55

51,497.17 3,297,382.94

2,192,336.09 1,127,527.16 4,403,768.49

Total Expenditures

$ 152,974,451.86 $ 29,480,996.26 $ 182,455,448.12

See notes to the general purpose financial statements. - 53 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1996

.,i
EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer and Cleaning Services Repair and Maintenance Services Communications Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment

ALTERNATIVE SCHOOL PROGRAM

APPLIED TECHNOLOGY
LABS

DISTANT LEARNING

$

15,140.07

$ 45,000.00 $ 300,000.00

Total Expenditures

$ 45,000.00 $ 300,000.00 $ _ =.1..5=,=14...0...,..0...7...

See notes to the general purpose financial statements,

- 54 -

SCHEDULE "9"

" INSTRUCTIONAL TECHNOLOGY

MODEL TECHNOLOGY
SCHOOLS

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

$

12,805.55 $

7,375.00

237,992.95

61,796.95

650,686.13

136.631.05

$

901,484.63 $ 205.803.00 $

1,966,709.46 529,341.17 18,372.61 55,385.71 8,599.98 10,640.43 1,152.97 3,663.65 408,815.64 $ 53,233.53 6,046.77 11,916.29 1,569.00 35,865.79
262,799.00

$ 11,373.00

$ 579,444.00

1,966,709.46 529,341.17 18,372.61 670,150.33 8,599.98 10,640.43 1,152.97 3,663.65 719,978.54 53,233.53 6,046.77 11,916.29 1,569.00 35,865.79

1.395,116.18

3.374.112.00 $

11.373.00 $ 579,444.00 $ 5,432,356.70

- 55 -

THIS PAGE LEn BLANK

RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE "10"

....
Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations Less:
Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 76.334,018.00 $ _---=2::.l...4;..:;,8..:....l7.~93=5..;.;;.0;.;;;..0

$ 87,193,884.47 5,520,640.01 $ _ _4..:.l,:,:.81.;.:6:.!,;,3:.;0;,.:;5.:.7:.;.;;;..3
$ 92.714.524.48

-1.566,634.86 $ 91,147.889.62

Amount of Underexpenditure for Total Allotment

$

0.00 $====~O~.O~O

See notes to the general purpose financial statements. - 57 -

RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENprruRE REQUIREMENTS - BY PROGRAM
GENERAL fUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENPEDJUNE 30, 1996

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (j Grades 1 3 (j Sub-Total K-3 Grades 4 5 (j Gracles 6 8 (j Grades 9 -12 (j
r> High School Laboratories
Vocational Education Laboratories (j Total General and Career Education Programs
SPEC~EDUCATIONPROGRAMS
Regular Programs Category I (")
r> Category II
Category III (")
r> Category N
Sub-Total Regular
r> Category V (Gifted)
Total Special Education Programs REMEPIAL EDUCATION pROGRAM (*)
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

'l(,

ORIGINAL

MID-TERM

$ 6,764,002.00

$ 6,087,601.80

17,344,153,00

15,609,737.70 $

$ 24,108,155.00 90 $ 21,697,339,50 $

8,639,613.00 90

7,n5,651.70

13,805,039.00 90

12,424,535.10

7,529,096,00 90

6,n6,186,4O

7,258,529.00 90

6,532,676.10

3,408,014.00 90

3,067,212,60

$ 64,748,446,00

$ 58,273,601,40 $

819,071.00 819,071.00
819,071.00

$ 5,932,150.00

$ 5,338,935,00 $

0,00

$ 5,932,150.00 562,300,00
$ 6,494,450.00 $ 1,559,962,00 $ n,802,858,00

90 $ 5,338,935.00 $

90

506,070.00

$ 5,845.005,00 $

90 $ 1,403,965,80 $

$ 65,522,572,20 $

0.00
0.00 0,00 819,071.00

$ 2,142,585.00 90 $ 1,928,326.50 $

0.00

569,504,00 90

512,553,60

$ 2,712,089,00

$ 2,440,880,10 $

0.00

$ 75,514,947,00

$ 67,963,452,30 $

819,071,00

STAFf DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development (") identifIeS Thirteen Weighted Programs, See notes to the general purpose financial statements.

$

217,924.00

$

217,924,00 $

0.00

664,245,00

664,245,00

0.00

$

882,169,00 100 $

882,169,00 $-=_===0.,.0...0..

- 58 -

SCHEDULE "11"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 6,087,601.80 $ 7,455,368.24 $

228,645.94 $ 7,684,014.18

16,428,808.70

21,143,662.51

836,578.96

21,980,241.47

$ 22,516,410.50 $ 28,599,030.75 $ 1,065,224.90 $ 29,664,255.65 $

0.00

7,n5,651.70

9,810,573.59

446,148.17

10,256,721.76

0.00

12,424,535.10

14,451,046.14

870,639.40

15,321,685.54

0.00

6,n6,186.4O

10,445,479.21

1,187,208.28

11,632,687.49

0.00

6,532,676.10

7,218,390.01

74,954.52

7,293,344.53

0.00

3,067,212.60

3,847,171.19

827,046.56

4,674,217.75

0.00

$ 59,092,672.40 $ 74,371,690.89 $ 4,471,221.83 $ 78,842,912.72

$ 5,338,935.00 $

416,489.53 $ 1,749,980.31 4,593,691.30
598,307.89

28,803.16 $ 30,457.23 63,967.54 16,181.14

445,292.69 1,780,437.54 4,657,658.84
614,489.03

$ 5,338,935.00 $ 7,358,469.03 $

139,409.07 $ 7,497,878.10

0.00

506,070.00

354,627.21

161,848.19

516,475.40

0.00

$ 5,845,005.00 $ 7,713,096.24 $

301,257.26 $ 8,014,353.50

$ 1,403,965.80 $ 1,534,707.76 $

43,826.64 $ 1,578,534.40

0.00

$ 66,341,643.20 $ 83,619,494.89 $ 4,816,305.73 $ 68,435,800.62

$ 1,928,326.50 $ 3,574,389.58

$ 3,574,389.58

0.00

- - - - - $ 512,553.60

704,334.28

704,334.28

0.00

$ 2,440,880.10 $ 3,574,389.58 $

704,334.28 $ 4,278,723.86

$ 68,782,523.30 $ 87,193,884.47 $ 5,520,640.01 $ 92,714,524.48 $========0.=00=

$

217,924.00

664,245.00

$ =~88=2;;;',;,;16;;;9=.00==

$

421,042.73 $

421,042.73

484,939.33

484,939.33

$

905,982.06 $

905,982.06 $ ========0.=00=

59 .

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1996

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr, Kenneth J. Echols, Sr., President (*) 2924 Foxhall Circle Augusta, Georgia 30907
Mr. Andrew A Jefferson. Vice President (*)
2653 Portsmouth Place Hephzibah. Georgia 30815
Mr. Jeff Annis (*) 1323 Glenn Avenue Augusta. Georgia 30904
Mrs. Cherie H. Foster (*) 924 Avacado Street Augusta. Georgia 30909
Mr. Johnnie Jackson (*) 1370 Dewitt Street Augusta, Georgia 30901
Mr. Y. N. Myers (*) 3164 Truxton Road Augusta, Georgia 30906
Mrs. Mary L. Oglesby (*) 2509 Church Street Hephzibah, Georgia 30815
Mrs. Barbara Padgett (*) 3533 Richmond Hill Road Augusta. Georgia 30906
Mrs. Kingsley S. Riley (*) 2030 Steiner Avenue Augusta, Georgia 30901
Mr. Adna L. Stein (*) P. O. Box 543 Augusta, Georgia 30903
(*) Denotes Board Members Serving as of June 30, 1996
See notes to the general purpose financial statements.
- 60 -

COMPENSATION

TRAVEL

$

5,002.35 $

842.99

4,508.00

464.76

4,001.65

397.92

4,009.65

106.49

4,001.65

522.61

4,011.99

2,168.86

4,009.65

1.878.84

4.005.65

523.65

4,013.65

435.78

4,009.65

506.89

$

41,573.89 $ ======7,=84=8:=.7==9

,.
SECTION II COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 28, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Richmond County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Richmond County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted
auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Richmond County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

96CRL-I0

The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
This "report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:gp
96CRL-IO

Claude L. Vickers State Auditor

.,i
CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 28, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Richmond County Board of Education

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Richmond County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Richmond County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996:

(1 ) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits ofState and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Richmond County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

96CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested.,,. nothing came to our attention that caused us to believe that the Richmond County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~.
Claude L. Vickers State Auditor
CLV:gp 96CRL-50

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 28, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Richmond County Board ofEducation

SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Richmond County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Richmond County Board of Education's compliance with the requirements governmg:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

(2) Eligibility
(3) Matching, Level of Effort, and/or Earmarking

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the Richmond County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

96CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (OMB) Circular A-128, "Audits of State and Local""Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Richmond County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking ofthe Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Richmond County Board ofEducationIS compliance with the requirements listed in the second paragraph of this report.
In our opinion, the Richmond County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 96CRL-80

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 28, 1997

Honorable Zel1 Miller, Governor Members ofthe General Assembly . Members ofthe State Board ofEducation
and Superintendent and Members of the Richmond County Board ofEducation

SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Richmond County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1996 general purpose financial statements of the Richmond County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (OMB) Circular A-
128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor
Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Richmond County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

96CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of
noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing
came to our attention that caused us to believe that the Richmond County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 96CRL-120

SECTION III INTERNAL CONTROL

,.
CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 28, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Richmond County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Richmond County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1996, nor could we satisfY ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management ofthe Richmond County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations iIi any internal control structure, errors or irregularities may nevertheless occur and not
96ICL-4

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
"
In planning and performing our audit of the general purpose financial statements of the Richmond County Board ofEducation for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1 ) Cash and Cash Equivalents
(2) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness:
General Fixed Assets
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Richmond County Board ofEducation's financial statements and this report does not affect our report thereon dated February 28, 1997.
96ICL-4

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a
matte.,..r of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 96ICL-4

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
February 28, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Richmond County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Richmond County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated February 28, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Richmond County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated February 28, 1997.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Richmond County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1996, we' considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and
96ICL-7

procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose finan.c,. ial statements in a separate report dated February 28, 1997.
The management ofthe Richmond County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level of Effort, and/or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Drug-Free Workplace Act (7) Audit Follow-UplResolution (8) Administrative Requirements

(5) Applicable Special Tests and Provisions
(6) Other Requirement Claims for Advances and Reimbursements

For all ofthe internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1996, the Richmond County Board of Education expended 86% of its total Federal financial assistance under major Federal financial assistance programs.

96ICL-7

We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which
are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would
be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be det~cted within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Richmond County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated February 28, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other . Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 96ICL-7

.,.
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIO" R YEAR
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $655.85 Audit Control Number 7211-93-02
The audit report for the year ended June 30, 1993, disclosed improper expenditures of$655.85 made from the Board's General Fund for breakfast meetings with local representatives of the Georgia General Assembly. These type expenditures are considered beyond the customary scope of expenditures of school funds for educational purposes. This questioned cost had not been resolved at June 30, 1996. Reimbursement of the $655.85 should be secured for deposit to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $244.00 Audit Control Number 7211-93-05
The audit report for the year ended June 30, 1993, disclosed improper expenditures of $244.00 made from the Board's General Fund for engraved brass trays for Board Members. Expenditures of this nature are considered beyond the customary scope of expenditures of school funds for educational purposes. This questioned cost had not been resolved at June 30, 1996. Reimbursement of the $244.00 should be secured for deposit to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7211-93-06
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$9,230.54 for the Staff Development - Professional Development Stipends Program. For the year under review, an adjustment was made to the Boards's local fair share by the Georgia Department of Education to refund this underexpenditure as required.
- 1-

RICHM:OND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR
EXPENDITURESILIABll..ITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Amount: $100,773.44 Audit Control Number 7211-94-01
The audit report for the year ended June 30, 1994, noted that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$100,773.44 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $100,773.44 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UPIRESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 7211-95-03
The audit report for the year ended June 30, 1995, reported the Board failed to submit a copy of the 1994 audit report to all agencies that provided Federal financial assistance to the Board. During the year under review, the Board submitted copies of the 1994 and 1995 fiscal year audit reports to all agencies as required.
AUDIT FOLLOW-UPIRESOLUTION Selection of Eligible Attendance Areas Federal Financial Assistance Finding Resolved Audit Control Number 7211-95-05
The audit report for the year ended June 30, 1995, reported that the Board was unable to document identification of eligible attendance areas for the Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies Program (CFDA 84.010). The Georgia Department ofEducation has reviewed this matter and in a letter dated September 30, 1996 determined that this finding is closed. For the year under review, the Board provided adequate documentation of the identification of eligible attendance areas as required.
'\
- 2-

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIbR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7211-93-04
The audit report for the year ended June 30, 1995, noted that the management of the Richmond County Board
ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal
accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance .Major Program Reportable Condition- Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-93-07
The audit report for the year ended June 30, 1995, stated that the Board's property management records for the National School Lunch Program (CFDA 10.555) were incomplete and failed to meet applicable property management standards. For the year under review, the property management records for the National School Lunch Program were again incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA).
The inventory records for six schools selected for examination were deficient as follows:
1) The inventory records did not include acquisition costs, acquisition dates and serial numbers or other identifying numbers for many of the items.
2) One equipment item with an acquisition cost in excess of$500.00 was not added to the inventory listing.
3) The inventory listing included two items which were replaced, however, the original items were not deleted from the inventory listing during the period under review.
- 3-

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR/CURRENT YEAR
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-93-07
An inventory system should be implemented that provides for the identification of all equipment purchased, as outlined in Chapter 41 ofthe FMGLUA Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be perfo~ed and reconciled to the property records to ensure the accuracy of inventory records.
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7211-95-01
The audit report for the year ended June 30, 1995, reported that the Richmond County Board ofEducation failed to adequately provide for the collateralization of its bank balances. In the year under review, the Board again failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section... The aggregate of the face value ofsuch surety bond, and the market value of securities pledged, shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance" .
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments.
.,
- 4-

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRI"OR YEAR/CURRENT YEAR
FEDERAL FINANCIAL REPORTS DE 0106 not Supported by Accounting Records Federal Financial Assistance Major Programs Nonmaterial Noncompliance Audit Control Number 7211-95-02
The audit report for the year ended June 30, 1995, reported errors in the amounts reported on the Board's School Nutrition Claim Data Form (DE 0106). For the year under review, a comparison of the Board's DE 0106's and the accounting records for the Food Distribution Program (CFDA 10.550) and the National School Lunch Program (CFDA 10.555) revealed an error in the amount reported for the USDA Commodities received. This error occurred due to management's failure to adequately monitor the accuracy of reports submitted to the Georgia Department of Education in accordance with the State Agency's School Nutrition Program record keeping guide.
U. S. Department of Agriculture regulations 7 CFR 210.9, 3015 and 250.16 mandates that financial management systems provide for accurate, complete and current disclosure of the financial results of these U. S. Department of Agriculture programs. Procedures should be implemented to ensure that DE 0106's are accurate and verifiable to the accounting records as required.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-95-04
The audit report for the year ended June 30, 1995, stated that the Board's property management records for the Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies Program (CFDA 84.010) were incomplete and failed to meet applicable property management standards. For the year under review, the property management records for the Title I Program were again incomplete and failed to meet property management standards as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA). A review of the inventory records presented for examination revealed that eighty-five equipment items with an acquisition cost in excess of $1,000.00 each were not added to the inventory listing.
An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41 of the FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records.
- 5-

RICHMOND COUNTy BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditure Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $2,998.00 Audit Control Number 7211-96-01 An expenditure in the amount of $2,998.00 was made for equipment for the Individuals with Disabilities Education Act, Part B - Special Education - Severely Emotionally Disturbed Program (CFDA 84.027). This expenditure does not appear to be allowable in accordance with cost allowability criteria defined in Office of Management and Budget (OMB) Circular A-87 which states, in part, that equipment purchases are "allowable when such procurement is specifically approved by the Federal grantor agency". The Board did not receive specific approval for this expenditure as required. This questioned cost occurred because management failed to monitor the Board's compliance with OMB Circular A-87. The Georgia Department ofEducation should review this matter and determine what action is necessary to resolve this questioned cost.
Note: The Richmond County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.
..\
- 6-