Audit report, Appling County Board of Education, Baxley, Georgia, year ended June 30, 1994

GA ABOCI
.Rl El~
Ab 1qq3 _q4
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT APPLING COUNTY BOARD OF EDUCATION
BAXLEY, GEORGIA YEAR ENDED JUNE 30, 1994

APPLING 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

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

26

J

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCYFUND

27

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

28

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

30

3 INVESTMENTS

31

4 ACCOUNTS RECEIVABLE

32

APPLING COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

5 DEBT SERVICE REQUIREMENTS TO MATURITY

33

SCHEDULE OF REVENUE

6

STATE FUNDS

34

7

LOCAL AND OTHER FUNDS

35

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

36

9

LOTTERY PROGRAMS

37

10

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

38

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

II

OVERALL

39

12

BY PROGRAM

40

13 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

42

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

APPLING 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
July 25, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Appling County Board of Education
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 Appling County Board of Education, as of and for the year ended June 30, 1994, 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.
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 0MB 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.
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:
* 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.
94ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To confonn 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, 1994, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share ofthese 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, 1993, were improperly recorded in the year ended June 30, 1994. To confonn 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 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 Appling County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Appling County Board of Education taken as a whole. The combining and individual fund statements (Exhibits E through J) and the financial schedules (Schedules 1 through 13 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Appling County Board of Education. Such infonnation has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effects ofthe matters referred to in the third paragraph, such infonnation is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
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.
I~
Claude L. Vickers State Auditor
CLV:gp 94ARL-13

APPLING COUNTY BOARD OF EDUCATION - 1-

APPLING COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1994

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years
For Payment of: Bond Dabt Capital Lease Agreements
Total Assets

GENERAL FUND
4,037,972.53 84,354.80

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

402,547.78

452,869.63

153,783.23

115,635.14

395,843.56

18,418.25 8,567.43

4,122,327.33 $ 545168.60 $ 1 002 496.42

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Capital Lease Agreements
General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Dabt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Cornmcxfrties Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$

69,516.43

$

38,316.66 $

984.26

126,438.70

21,181.07

883.00

106,486.88

$

69,516.43 $ 185,936.43 $ 108,354.14

44,265.87 88,669.45
$
132,935.32 $ 3,919,875.58 4,052,810.90 $

18,418.25 8,567.43
26,985.68 $ 332,246.49 359,232.17 $

9,869.00 9,669.00 884,473.28 894,142.28

Total Liabilities and Fund Equity

$ 4,122,327.33 $

The notes to the general purpose financial statements are an integral part of this statement -2-

545168.60 $ 1,002 496.42

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS
(Memorandum Onl~! JUNE 30, 1994 JUNE 30, 1993

$

,n1.34 s

88,755.42

$ 948,944.17 $ 1,786,244.65

190,209.01

,381,964.n

6,973, 168.82

1,092.59

596,926.09

1,052,315.52

18,418.25 8,567.43

24,828.31 7,923.75

$

196,072.94

196,072.94

245,203.28

23,927.06 6,852.12

23,927.06 6,852.12

89,796.72 11,401.87

$ 196 072.94 $

88 755.42 $

226852.12 $ 6,181 672.83 $ 10 190 882.92

$

69,516.43

39,300.92 $

22,016.46

126,438.70

158,313.02

21,181.07

4,748.15

883.00

422,891.36

s

14,948.13

106,486.88 14,948.13

310,997.76 16,208.08

$

6,852.12

6,852.12

11,401.87

220,000.00

220,000.00

335,000.00

$

14,948.13 $

226,852.12 $ 605,607.25 $ 1,281,576.70

$ 196,072.94
196,072.94 0.00 $
$ 196,072.94 $ 196 072.94 $

73,807.29 73,807.29

$

44,265.87 $ 131,895.95

135,383.50

196,072.94

245,203.28

88,669.45

33,768.80

18,418.25 8,567.43 9,669.00

24,828.31 7,923.75
151,253.20

$

365,662.94 $

730,256.79

5,210,402.64

8,179,049.43

5,576,065.58 $ 8,909,306.22

88,755.42 $

226,852.12 $ 6,181,672.83 $ 10,190,882.92

3.

APPLING COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

REVENUES
S-Funds Fedenil Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services PupiSe!vices Improvement af Instructional Services Educational Media Se!vices General Administration School Adminlstration Business Administration Maintenance and Operation af Plant Student Transpor1ation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations af Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess af Revenues over (under) Expen<frtures
OTHER FINANCING SOURCES {USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Scurces (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

$ 7,324,423.94 $

117,430.13 $

107,655.11

1,597,020.53

5329510.01

316323.17

859,258.35 389255.59

$ 12 761 589.06 $ 2 030 773.83 $ 1248513.94

$ 9,695,277.58 $

913,699.39

554,371.59 340,012.75 435,699.0B 234,971.45 953,376.62 103,110.96 1,277,343.39 973,620.20
22,079.50
26,260.41 105,426.41

46,656.42 59,111.89
63,773.07
$ 4,615.91 21,889.47 3,826.25 29,538.20 1,041,256.23

75.00

2,406,282.95

4,549.75 978.05

s $ 14 n1279.74

2 184 366.83 $ 2406357.95

$ -1 965 690.68 $ -153 593.00 $ -1 157 844.01

$ -250349.71

$

-250349.71 $

349.71 $

250,000.00

349.71

250000.00

-2,216,040.39 $ 6,268,851.29

-153,243.29 $ -907,844.01

518,241.84

1,B01,986.29

-6,410.06 643.68

FUND BALANCE JUNE 30

$ 4,052,810.90 $

The nctes to the general purpose financial statements are an integral part af this statement.

. 4.

359,232.17 $

894142.28

EXHIBIT"B"

DEBT SERVICE
FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS
!Memorandum Onl~
YEAR ENDED
JUNE 30 1994 JUNE30 1993

8,301,112.42

1,704,675.64

$

84106.15

6119194.92 $

$

84106.15 $ 16124 982.98 $

8,301,112.42 $ 10,199,903.15

1,704,675.64

2,122,032.41

0.00

6119194.92

9 395 801.63

0.00 $ 16 124 982.98 $ 21717737.19

s 10,608,976.97 $

601,028.01 399,124.64 435,899.08 298,744.52 953,376.62 103,185.96 1,281,959.30 995,509.67
3,826.25 51,617.70 1,041,256.23 26,260.41 105,428.41 2,406,282.95

$ 115,000.00 17,690.74 545.75

119,549.75 18,668.79 545.75

$ 133236.49 $ 19 451 241.01 $

$

-49130.34 $ -3 326 258.03 $

1,216.23 $ 10,610,193.20 S 10,339,882.09

601,028.01 399,124.64 435,899.08 298,744.52 953,376.62 103,185.96 1,281,959.30 995,509.67
3,826.25 51,617.70 1,041,256.23 26,260.41 105,428.41 2,406,282.95

655,261.06 394,093.04 423,615.18 276,780.35 901,319.14 115,176.41 1,098,804.51 938,271.55 54,503.82
999,878.68 27,022.96 87,976.01 3,470,142.08

119,549.75 18,668.79 545.75

110,000.00 24,862.61
534.50

1 216.23 $ 19 452 457.24 $ 19 918123.99

-1 216.23 $ -3 327 474.26 $ 1799613.20

$

250,349.71

-250349.71

$

0.00

$

-49,130.34 $ -3,326,258.03 $

245,203.28

8,834,282.70

-8,410.06 643.68

$ 250,349.71 $ -250,349.71

$

0.00 $

772,413.80 -772413.80
0.00

-1,216.23 $ -3,327, 474.26 $

75,023.52

8,909,306.22

1,799,613.20 7, 120,362.97

-8,410.06 643.68

-8,144.06 -2525.89

196,072.94 $ 5,502,258.29 $

73,807.29 $ 5,576,065.58 $ 8,909,306.22

-5-

aePLING ~OUNIY: HQABQ QF !;CU:!QAIIQH QQMINl;Q ~TAT~MENT OF R!;~f;NUE l;XP!;~QITUBE aNQ Q!::tAN!:iE~ I~ E!.!~12 DaL.a,NQE~
AQTUAL ANQ ~UQ!;ET GQllERNM~NTAL FU~ll TYPe YE.AR );NQFD JUNE 30 1994

EXHIBIT"C"

~
State Funds Federal Funds Local and other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of lnotruotional Services Educational Media Services General Admintstration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay Dob!Service
Total Expenditures
Excess of Revenues over (under) Expenditures
QTHl;B FINANCIN~ Q!JRCES (YS!;S}
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUNQ ~I ANC!; J~JI y 1 1993
FOOD INV!;NTORY NET CHA!!GE IN PEBIOD
Donated Commod~ies Purchased Food

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE !UNFAVORABLE)

8,301,112.42 $ 1,704,675.64 6,119194.92
16,124,982.98 $

o.oo $
0.00 $

8,301,112.42 $ 9,694,659.97 $ 1,704,675.64 1,734,001.99 6,119194.92 5,865,516.17
16,124,982.98 $ 17,294,178.13 $

1,393,547.55 -29,326.35 253,678.75
1,189195.15

10,608,976.97 $
601,028.01 399,124.64 435,899.08 298,744.52 953,376.62 103,185.96 1,281,959.30 995,509.67
3,826.25 51,617.70 1,041,255.23 26,260.41 105,428.41 2,406,282.95 138,764.29
19,451,241.01 $
-3,326,258.03 $

0.00 $
0.00 $ 0.00 $

10,608,976.97 $ 11,088,351.11 $

601,028.01 399,124.64 435,899.08 298,744.52 953,376.62 103,185.96 1,281,959.30 995,509.67
3,826.25 51,617.70 1,041,255.23 26,260.41 105,428.41 2,406,282.95 138,764.29

662,774.20 428,527.15 443,347.67 347,211.40 971,060.08 140,733.06 1,211,087.46 1,004,005.94
891.90 63,259.00 983,519.03 32,052.70 95,000.00 3,755,881.57 133,190.51

19,451,241.01 $ 21,360,892.78 $

-3,326,258.03 $ -4,066,714.65 $

479,374.14
61,746.19 29,,402.51 7,448.59 48,468.88 17,883.46 37,547.10 -70,871.64 8,496.27 -2,934.35 11,641.30 -57,737.20 5,792.29 -10.428.41 1,349,598.62 -5,573.78
1 909,651.77
740,456.82

250,349.71 $ -250,349.71

$

0.00 $

0.00 $ 0.00 $

250,349.71 $ -250,349.71
0.00 $

0.00 $ 0.00 $

250,349.71 -250,349.71
0.00

-3,326,258.03 $ 8,834,282.70

o.oo $
-32,752.06

-3,326,258.03 $ -4,066,714.65 $ 8,801,530.64 8,950,574.35

740,456.62 -149,043.71

-6,410.06

6,410.06

0.00

0.00

643.68

-643.68

0.00

0.00

FUND i!,!,1 ANCE JUN!, ;iQ 1994

$ 5,502,258.29 $ -26,985.68 $ 5,475,272.61 $ 4,883,859.70 $

591,412.91

The notes to the general purpose financial statements are an integral part of this statement. -6-

APPLING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Appling County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements ofthe Board have been prepared in conformity with generally accepted accounting principles as applied to government units. 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 government 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 Appling County Board ofEducation.
Based upon the application ofthe above criteria, the Appling County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Appling 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, except for the Superintendent who was also elected, 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.
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 maintained for reporting the cost of assets acquired by governmental fund types.
- 7-

APPLING COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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, Local and Other Funds under control oftheBoard, 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 of a Board's general 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 traditionally 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. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
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 ofresources 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 FUND Self-Insured Employee Benefit Fund - the fund used to account for the principal and earnings which may be expended to provide for unemployment compensation contributions and expenditures.
AGENCY FUND - the fund used to account for assets held for other funds, governments, or individuals.
- 8-

APPLING COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental funds and the expendable trust fund 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 ofavailable 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 does not involve measurement of results ofoperations.
Governmental funds and the expendable trust fund 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 detennined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe 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 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to
- 9-

APPLING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and
related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. 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 Appling County Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated 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 ofthe 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 prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings accounts 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 INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:

- 10 -

APPLING COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(I) 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 ofthe United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the Office ofTreasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations ofother political subdivisions ofthe 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 Appling County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on September 21, 1993 (levy date). Taxes were due on December 21, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The Appling County Tax Commissioner bills and collects the property taxes for the Board of Education.

Tax millage rates levied for the 1993 tax year (calendar year) for the Appling County Board ofEducation were as follows (a mill equals $1 per thousand dollars ofassessed value):

School Operations School Bonds

8.80 mills _J_J. mills

8 93 mills

- 11 -

APPLING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
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. 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 offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund 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.
Operating transfers are recorded for all interfund transactions other than 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.
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 in an amount of 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
- 12 -

APPLING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS
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 any one 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 ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness 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 ofthe State ofGeorgia,
(5) Bonds ofany 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, 1994, the bank balances were $1,418,003.35. 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 Board's agent in the Board's name.
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.)

- 13 -

APPLING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS

The Board's deposits are classified by risk category at June 30, 1994, as follows:

Risk Category

Bank Balance

l

$ 300,000.00

2

178,902.92

3

939 100.43

Total

$141800335

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

Category l - 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 government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 1994, the carrying amount of the Board's total investments was $4,381,964.77 and consisted entirely offunds in the Local Government Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool.

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: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$1,216.23 was paid in claims.

- 14 -

APPLING COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO 11IE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Appling County Board of Education has entered into various lease agreements as lessee for telecommunication equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date of their inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$ 11,401.87 $ 335,000.00 $ 346,401.87

Deletions

4 549.75

115 000.00

119 549.75

Balance June 30, 1994

$ 6 852 12 $ 22Q QQ0 QQ $ 226 852 ]~

At June 30, 1994, payments due, by fiscal year which includes principal and interest for these items:

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1995 1996

$ 5,067.15 $ 130,199.88 $ 135,267.03

2 303.35

103 187.40

105 490.75

Total Principal and Interest

$ 7 370.50 $ 233 387 28 $ 240 757 78

Deduct: Imputed Interest

$

518.38

Net Present Value ofFuture Minimum Lease Payments

$ 6 852 12

Note 6: SIGNIFICANT COl\.1MITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$293,601.37 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department of Education has funding available to the Board in the amount of $293,383.00. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current

- 15 -

APPLING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: SIGNIFICANT COMMITMENTS

year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant

$ 70,754.37 6,000.00
105,000.00 111 847.00

$ 293 6Q] 37

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as ofJune 30, 1994:

Project

Unearned Executed Contracts

92/92S-601-00I

$ 5 279 55

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

Note 7: 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.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.

Note 8: 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).

- 16 -

APPLING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average ofthe member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribl!tion ofthe 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 ofemployer 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, 1994, was $9,977,686.03; total payroll was $11,469,387.56.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.500/o.
Total contributions made during fiscal year 1994 amounted to $1,777,070.10, of which $1,178,474.17 was made by the Board and $598,595.93 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.
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.
- 17 -

APPLING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ 1 090 292 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. 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, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $1,178,474.17 was actuarial)y determined and represented .2260% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 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 Substantial)y 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.

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. 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 provisions include death and disability benefits. Disability benefits are the same as ifthe 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. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere 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 ofemployer contributions occurs, but the member's contributions are refunded with interest.

- 18 -

APPLING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT. PLANS
There were 107 employees covered under PSERS for the year ended June 30, 1994.
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 1994 amounted to $3,748.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. Ray Sellers, is bonded in the amount of$100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 58551883, on which premium was paid through December31, 1994.

- 19 -

APPLING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE30 1994

ASSETS Cash and Cash Equivalents
Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdrafts Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabiltties FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodtties Purchased Food
Unreserved Undesignated Total Fund Equtty
Total Liabilities and Fund Equtty

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 395,626.23

$

1,B23.73

4,515.18 $

766.00

18,418.25 8,567.43

$ 427,127.09 $

766.00 $

1,823.73

$ $ 18,992.70
48,902.22
$ 67,894.92 $

762.13
3.87 $ 766.00 $

1,B23.73 1,823.73

$ 18,418.25 8,567.43
$ 26,985.68
332,246.49 $
$ 359,232.17 $

0.00 $ 0.00 $

$ 427.127.09 $

766.00 $

0.00 0.00
1,823.73

See notes to the general purpose financial statements.

-20-

EXHIBIT"E"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II -

CHAPTER1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

MIGRANT BLOCK GRANT - AND SCIENCE

CHILDREN

PROGRAM FLOW THROUGH EDUCATION

INDIVIDUALS WITH
DISABILITIES EDUCATION ACT
TITLE VI, B FLOW
THROUGH

TOTALS JUNE 30, 1994 JUNE 30, 1993

35,398.04 $

2.04 $

0.00 $

0.00

$ 432,850.04 $ 385,985.18

69,784.00

7,163.96

$

33,406.00

115,635.14

359,544.89

18,418.25 8,567.43

24,828.31 7,fa.3.75

105,182.04 $

7,166.00 $

0.00 $

0.00 $

33,406.00 $ 575,470.86 $ TTS,282.13

$

17,233.76 $

1,338.98

70,604.42

5,820.90

17,343.86

6.12

$

105,182.04 $

7,166.00

29,540.13 $ 751.22
1,111.16 2,003.49

30,302.26 $ 38,316.66 126,438.70 21,181.07

74,962.66 22,016.46 158,313.02
4,748.15

$

33,406.00 $ 216,238.69 $ 260,040.29

$

0.00 $

0.00 $

$

0.00 $

0.00 $

105,182.04 $

7,166.00 $

0.00 $ 0.00 $
0.00 $

0.00 $ 0.00 $

$ 135,383.50

$
$ 0.00 0.00 $

18,418.25 8,567.43
26,985.68 $ 332,246.49
359,232.17 $

24,828.31 7,fa.3.75
168,135.56 350,106.28 518,241.84

0.00 $

33,406.00 $ 575,470.86 $ TTS,282.13

-21-

APPLING COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
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
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 77,888.00 $ 625,985.27 316,323.17
$ 1,020,196.44 $

39,542.13 $
39,542.13 $

41,486.27 41,486.27

$ 39,125.84 $
766.00

41,386.68 99.59

$ 1,038,056.23 $ 1,038,056.23 $ $ -17,859.79 $

39,891.84 $ -349.71 $

41,486.27 0.00

349.71

$ -17,859.79 $

0.00 $

0.00

382,858.34

0.00

0.00

-6,410.06 643.68

$ 359,232.17 $

0.00 $

0.00

See notes to the general purpose financial statements.

-22-

EXHIBIT"F"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEII-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

MIGRANT BLOCK GRANT - AND SCIENCE

CHILDREN

PROGRAM FLOW THROUGH EDUCATION

INDIVIDUALS WITH
DISABILITIES EDUCATION ACT
TITLEVI, B FLOW
THROUGH

TOTALS YEAR ENDED JUNE 301 1994 JUNE 30, 1993

704,203.62 $ 73,154.86 $

$

704,203.62 $ 73,154.86 $

26,962.00 $ 26,962.00 $

15,550.00 $ 15,550.00 $

$ 109,678.51
109,678.51 $

117,430.13 $ 1,597,020.53
316,323.17
s 2,030m.83

78,148.00 2,0:0,877.10
291,185.48
2,397,210.58

$

713,273.96 $ 66,955.94 $

5,269.74 698.08
62,283.49 3,849.91
18,890.55 3,826.25
29,538.20

2,998.92 3,200.00

$

837,630.18 $ 73,154.86 $

$

-133,426.56 $

0.00 $

1,039.25 $ 25,788.60
134.15
26,962.00 $ 0.00 $

1,956.94 $ 15,516.48
33.52
17,506.94 $ -1,956.94 $

91,347.46 $ 913,699.39 $ 1,028,281.26

17,108.73 1,222.32

46,656.42 59,111.89 63,m.01
4,615.91 21,889.47
3,826.25 29,538.20 1,041,256.23

58,309.25 41,606.79 74,364.33
4,185.00 20,691.31 33,397.82
999,878.68

109,678.51 $ 2, 184,366.83 $ 2,260,714.44

0.00 $ -153,593.00 $ 136,496.14

$

-133,426.56 $

133,426.56

0.00 $ 0.00

0.00 $ 0.00

-1,956.94 $ 1,956.94

349.71

0.00 $ 0.00

-153,243.29 $ 518,241.84

136,496.14 392,415.65

-6,410.06 643.68

-8,144.06 -2,525.89

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 359,232.17 $ 518,241.84

-23-

APPi ING CQI INTY BQARQ Of fQI JCATIQN cou91N1NG BAI ANCF s~EFCT CAPITAL PROJECTS FUND JUNf 30 1Q!'.l4

EXHIBIT"G"

~ Cash and Cash Equivalents Investments Accounts Receivable

~

LOCAL PROJECT FIRE LOSS REPLACEMENT

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

92192S-601-001 93194-601.001

TOTALS JUNE 30 1994 JUNE 30 1993

$ 370,846.49

72,354.14 $

9,669.00 $ 452,869.63 $ 1,001,675.53

153,783.23

153,783.23

986,655.76

359 843.56

36000.00

395 843.56

547544.12

Total Assets

$ 524629.72 $ 359 843.56 $ 108 354.14 $

9 669.00 $ 1 002 496.42 $ 2 535 875.41

LIABII mfs AND Fl JND E;;QUITY
~
Accounts Payable Cont.- Payable Retainages Payable
Total Liabilities
FUNDFQUllY
Fund Balances Reser-.ed For State capital Outlay Projects Unreserved Undesignated
Total Fund Equity

984.26 883.00 106 486.88
108 354.14

984.26 883.00 $ 106 486.88
108354.14 $

422,891.36 310 997.76
733889.12

9,669.00 $

359 843.56 s_ ____,o"".oo"- ___...,o"'.oo"'-

359843.56 s _ _~o=.oo~s

9 669.00 $

9,669.00 $ 151,253.20 884473.28 1650733.09 894 142.28 $ 1 801 986.29

Total Liabilities and Fund Equity

$ 524 629.72 $

359 843.56 $

108 354.14 $

9669.00 $ 1002496.42 $ 2535875.41

See notes to the general purpose financial statements

APP! ING COUNTY BQA.RQ OF EQUCA.TIQN
COMBINING STAJFMENTOf REVE"NtlfS fXPENOffi)Rf;S ANP CHAN@es IN AJNQ RAI ANCfS
CAPITAL PRO IFCTR FUND
YEAR ENDED JUNE 3Q 1994

EXHIBIT''H''

~
State Funds Local and Other Funds
Total Revenues
fXPENpm JRES
current
Support Services Business Administration Dues and Fees
Cap;tal Outlay Land and Land lmprcwements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues a--er (under) Expenditures
OTHE;R FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources <U-)
Excess cl Revenues and other Financing Sources OYer (under) Expenditures and Other Financing Uses
Fl JNQ RAI ANCE JlJI Y 1

REGULAR

LOCAL PROJECT FIRE LOSS REPLACEMENT

GEORGIA STAlE FINANCING

ANO INVESTMENT COMMISSION

PROJECT

PROJECT

92/92S-601-001 93/94-601-001

TOTALS YEAR ENDED JUNE30 1994 JUNE 30 1993

29 412.03 $ 29 412.03 $

359 843.56 359 843.56 $

859,258.35 $ 859 258.35 $

0.00 $

859,258.35 $ 3,062,491.65

389 255.59

882 883.49

0.00 $ 1 248 513.94 $ 3 945 375.14

75.00
75.00 $ 29 337.03 $

18,683.88 $ 736,660.91
16 696.23

88,219.46 1,540,062.47 $

772 041.02 $ 1628281.93 $

-412197.46 $

-769 023.58 $

75.00

5,960.00

106,903.34 2,282,883.38 $
16 696.23

3,394,000.08 26 086.00

5 960.00 $ 2 406 357.95 $ 3 420086.08

-5 960.00 $ -1157 844.01 $ 525 289.06

$ -654 495.39

271,096.01 $

633,399.38

$ -654 495.39 $

271 096.01 $

633 399.38

904,495.39 $ -654495.39

772,413.80

250 000.00 $ n2413.BO

$ -625,158.36 $ 1149 788.08

-141,101.45 $ 500 945.01

-135,624.20 $ 135 624.20

-5,960.00 $ -907,844.01 $ 1,297,702.86

15 629.00

1 801 986.29

504 283.43

Ft IND RA! ANCE JUN!;; ~Q

524629.72 $

359 843.56 $

0.00 $

9 669.00 $ 894142.28 $ 1 801 986.29

See notes to the general purpose financial statements

-25-

APPLING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30 1994

EXHIBIT"!"

Cash and Cash Equivalents

EXPENDABLE TRUST FUND SELF-INSURED
EMPLOYEE BENEFIT FUND UNEMPLOYMENT COMPENSATION
FUND

AGENCY FUND

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

73807.29 $

14948.13 $

88 755.42 $

91 231.60

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held to, Others

FUND EQUITY

Fund Balances

Unreserved

Undesignated

$

$

14,948.13 $

14,948.13 $

16,208.08

73,807.29

0.00

73,807.29

75,023.52

Total Liabilities and Fund Equity

$

73807.29 $

14 948.13 $

88755.42 $

91231.60

See notes to the general purpose financial statements.

-26-

APPLING COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30 1994

EXHIBIT"J''

SCHOOL FOOD SERVICES SPECIAL ACCOUNT
ASSETS Cash and Cash Equivalents

BALANCE JULY1, 1993

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30 1994

$

16,208.08 $

9 925.77 $

11.1s5.72 $ _ _1_4..,.9.4.s._1_3

LIABILITIES Funds Held for others

16,208.08 $

9,925.77 $

111s5.72 $ _ _1_4..,.9.4.s...1.,..3

See notes to the general purpose financial statements.

-27-

cni APPLING iNTY ROA RD OF EQUCATION
CHEQULE OF FEQERAb FJNANCiAJ AISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1993 Grant 1994Grant National School Lunch Program 1993 Grant 1994Grant Food Distribution Program (1)

10.553 10.553 $

115,878.60

10.555 10.555 10.550

431,755.34 78351.33

8,830.32 125,790.41 $

115,878.60

4,796.54 427,240.16 NIA

431,755.34 $ 78351.33

(2)
959,704.90 (3) 78351.33

Total U. S. Department of Agriculture

$ 625985.27

566657.43 $ 625985.27 $ 1 038056.23

Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1993 Grant 1994Grant Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1992 Carry-Over 1993 Regular 1993 carry--OVer 1993Summer 1994Regular Chapter2 Block Grant - Flow Through 1994Regular Trtlell Eisenhower Mathematics and Science Education 1993 Regular 1994Regular Individuals with Disabilities Education Act TilleVl,B Flow Through 1992 Carry-Over 1993Regular 1993 Car,y-Over 1994 Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1994Grant Consumer and Homemaking Education 1994 Contract Tech-Prep Education 1994 Grant Through Altamaha Technical Institute Adult Education 1993 Grant

84.186 84.186 $
84.010 84.010 84.010 84.010 84.010
84.151
84.164 84.164
84.027 84.027 84.027 84.027
84.048 84.049 84.243
84.002

$ 43,310.00
54,050.00 103,435.00 634,751.00
26,962.00
15,550.00
24,406.00 129,422.00
55,506.25 1,631.00
25,870.37

3,445.37 43,310.00 $

41,486.27 $

41,486.27

54,050.00 121,740.44 103,435.00 135,867.38 506,569.10

54,050.00
103,435.00 -9,290.62
556,009.24

26,962.00

26,962.00

54,050.00 103,435.00 124,135.94 556,009.24
26,962.00

18,739.00 15,550.00

15,550.00

1,956.94 15,550.00

1,005.00 38,972.00 24,406.00 53,870.00

24,406.00 85,272.51

24,406.00 85,272.51

47,571.72

55,506.25

(4)

935.00

1,631.00

(4)

24,828.84

25,870.37

(4)

1,992.68

28

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Through First District Regional Educational Service Agency Elementary and Secondary Educatioo Act Chapter 1 Migrant Education 1993 Regular 1993Summer 1994Regular

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.011 84.011 $ 84.011

$ 29,140.24 44020.74

11,792.81 29,140.24 $ 36856.78

29,140.24 $ 44014.62

29,140.24 44014.62

Total U.S. Department of Education

$ 1 188 054.60 $

1 301 039.36 $ 1054042.88

1106418.76

Healh and Human Services, U. S. Department of Through Georgia Department of Human Resources Job OpportunHies and Basic Skills Training 1993 Contract

93.561

637.36

OTHER FEDl:;RAL ASSISTANCE

Defense, U. S. Department of Dirac! Department of the Air Force R.O.T.C. Program 1993 Grant 1994Grant

$ 24647.49

6,078.12

18 465.21 $ 24647.49

(4)

Total Other Federal Financial Assistance

$ 24647.49 $

24543.33 $ 24647.49

Total Federal Financial Assistance

s 1 838 687.36 $

1 892 8TT.48 $ 1 704 675.64 $ 2144 474.99

Major Programs are identified by an asterisk(') in front of the CFDA number.
(1) The amounts soown for the Food Distribution Program represents the Federally assigned value of nonmonelary
assistance for donated commodHies received and/or consumed by the system during the current flSCal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994
Nallonal School Lunch Program. (3) Expenc:tHures for this program include Slate, and/or Local and other Funds.
Expenditures are not maintained by fund source. (4) ExpendHures on this program were not mainlaned by fund source.

See notes to the general purpose financial statements.

- 29 -

APPLING COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994
INTEREST BEARING ACCOUNTS
Baxley Federal Savings Bank, Baxley, Georgia
N.O.W. Account {2.5%) Certificates of Deposit
No. 005968 (3.35%) No. 050316 (3.85%) No. 058139 (3.85%) Passbook Savings Accounts (3.00%)
People's State Bank and Trust, Baxley, Georgia
N.O.W. Account {2.50%) Certificate of Deposit No. 8011 (3.55%)
Trust Company Bank of Southeast Georgia, Brunswick, Georgia
N.O.W. Accounts (2.53%)

SCHEDULE "2"

$

1,563.41

40,000.00 70,000.00 10,000.00 157,339.51

131,671.44 65,350.26

403,503.12

$ 879,427.74

See notes to the general purpose financial statements. - 30 -

APPLING COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30 1994
INVESTMENT POOL Office of Treasury and Fiscal Services Local Government Investment Pool (4.194%)

SCHEDULE 3 $ 4,381,964.77

See notes to the general purpose financial statements. - 31 -

APPLING COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "4"

Appling County Tax Commissioner County Wide Bond Tax County Wide School Tax
Defense, U. S. Department of Department of the Air Force R.O.T.C. Program
Education, Georgia Department of Food Services National School Lunch Program Vocational Education S-Funds Federal Funds Lottery Program Safe School Grant Federal Programs ESEA - Chapter 1 Education of Deprived Chidren Individuals with Disabilities Education Act Title VI, B Flow Through
First District Regional Educational Service Agency ESEA Chapter 1 Migrant Education Program
Georgia State Financing and Investment CommtSSion Reimbursement on Construction Projects
Human Resources, Georgia Department of Adult Education for PEACH Program
Utica National Insurance Group Insurance Claim
VIP Printing and Office Supplies Overpayment

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

66,232.74

1,092.59 $ 1,092.59 66,232.74

6,182.28

6,182.28

$
1,234.28 9,672.06

4,515.18 766.00

66,784.00 33,406.00

4,515.18 1,234.28 9,672.06
766.00
66,784.00 33,406.00

7,163.96

7,163.96

$ 36,000.00 1,033.44
359,843.56 3,000.00

36,000.00 1,033.44
359,843.56 3000.00

$ 84,354.80 $ 115,635.14 $ 395,843.56 $ 1 092.59 $ 596 926.09

See notes to the general purpose financial statements.

- 32 -

APPLING COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30 1994

SCHEDULE "5"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996

TOTAL DEBT SERVICE

1974ISSUE

INTEREST

PRINCIPAL

$

130,199.88 $

103,187.40

10,199.88 $ 3,187.40

120,000.00 100,000.00

$

233,387.28 $

13,387.28 $

220,000.00

CHANGES IN GENERAL LONG-TERM DEBT
Bonds Payable at July 1, 1993 Bonds Retired During Period

$

335,000.00

-115,000.00

Bonds Payable at June 30, 1994

$ ==22;;,;0;.;,0;,;;0,;;;0.;;;;00;;,,

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

JUN 1-DEC 1 DEC1

See notes to the general purpose financial statements. - 33 -

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE "5'

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remecfial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Middle School Incentive In-School Suspension Local Fair Share Food Services Vocational Education Other S - Programs Mentor Teacher Program Special Education Low Incidence Grant Supervision and Assessment of Student and Beginning Teachers and Performance-
Based Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Safe Schools Grant
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

5,919,538.00 1,057,323.00
245,531.00 256,724.00
83,303.00 1,7S7,437.00
651,709.00 155,769.00
68,778.00 -2,985, 139.00
$ 67,38724
930.00 15,898.00

77,888.00

1,850.00 27,385.70

2,312.13 36,464.00
766.00

$ 5,919,538.00 1,057,323.00 245,531.00 256,724.00 83,303.00 1,7fi7,437.00
651,709.00 155,769.00
68,778.00 -2,985, 139.00
77,888.00 67,387.24
930.00 15,898.00
1,850.00 27,385.70
2,312.13 36,464.00
766.00

$ 859,258.35

859,258.35

$ 7,324,423.94 $ 117 430.13 $ 859258.35 $ 8 301112.42

See notes 1D the general purpose financial statements.

- 34 -

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30 1994

SCHEDULE "7"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

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

$ 5,079,703.15 85.11
4,201.56

$ 77,059.25 $ 77,059.25 5,079,703.15 85.11 4,201.56

Other Adult Education Altamaha Technical Institute Department of Human Resources Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Lost and Damaged Books Migrant Program For Salaries For Supplies Rentals Sales Lunches and Breakfast Tuition Other

12,681.27 11,057.76 16,435.24
3,500.00

$ 359,843.56

8,402.52 184,660.41 $
1,745.00 629.30

10,827.31 75.00

29,412.03

3,017.75

1,678.97 1,521.03

3,000.00 390.94

299,927.67 2,293.19

7,046.90

12,681.27 11,057.76 376,278.80
3,500.00
8,402.52 231,946.65
1,820.00 629.30
1,678.97 1,521.03 3,017.75
299,927.67 3,000.00 2,684.13

$ 5,329,510.01 $ 316,323.17 $ 389,255.59 $ 84,106.15 $ 6,119,194.92

See notes to the general purpose financial statements.

- 35 -

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

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 Insurance Communications Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures
Nonoperating Costs Principal and Interest Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 10,371,029.52 $ 2,112,711.92 49,888.86 119,880.12 24,189.72 22,158.35 294,193.61 48,262.29 41,945.93
11,579.50 20,507.35 421,592.33 511,039.12
234,114.21 23,503.64
4,222.69

1,098,358.04 $ 177,878.82 13,674.42 5,261.88
15,134.38
6,055.06
8,078.69 112,141.87
24,563.29 458,876.30
8,446.03 9,262.94 8,402.52 238,232.59

11 ,469 ,387 .56
2,290,590.74 63,563.28
125,142.00 24,189.72
22,158.35 309,327.99
48,262.29 41,945.93
6,055.06 11,579.50 28,586.04 533,73420 535,602.41 458,876.30 242,56024 32,766.58 8,402.52 242,455.28

5,527.80 410,932.78

5,527.80 410,932.78

Total Expenditures

$ 14,727,279.74 $ 2,184,366.83 $ 16,911,646.57

See notes to the general purpose financial statements. - 36 -

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE"9"

EXPENDITURES
Operating Costs Supplies
Nonoperating Costs Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

SAFE SCHOOLS
GRANT

TOTAL

$

2,312.13 $

2,160.50 $

34,65321

766.00 $

5,238.63

34,653.21

Total Expenditures

$

2,312.13 $

36,813.71 $

766.00 $ 39 891.84

See notes to the general purpose financial statements. - 37 -

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30 1994
EXPENDITURES
Operating Costs Unemployment Claims

SCHEDULE "1 O" $===='1.2.1...,6=.23..,

See notes to the general purpose financial statements. - 38 -

APPLING COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE 11

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 for Staff Development Programs in Excess of Total Staff Development Allotment for: Cost of Instruction
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 7,479,116.00 $

83,303.00

$ 8,936,131.42 723,020.05 $
$ 9,659,151.47 $

83,463.54 83,463.54

-179, 175.08

$ 9,479,976.39 $

-55,061.19 28,402.35

$

0.00 $

54 900.65

See notes to the general purpose financial statements. - 39 -

APPLING CQUNTY BOARD OF fQUCATION ANALvsrs OF MINIM! Jl,1 EXPENDITURE REQUIREMENTS - BY PRQGRAM
GENERAi BJNQ - QUAL !TY BASIC fQUClfflQN PROGRAMS
YfARfN()EQ.JllNf30 1994

GfNfRAL AND CARfl;R fQl )CATION PROGRAMS
Grades1-3(") Sub-Total - K-3
Grades 4 5 (1 Grades 6 8 (1 Grades 9-12 (") High School Laboratories (") Vocational Education Laboratories (")
Total General and career Education Programs
SPECIAJ l;DUCATION PROGRAMS Regular Programs category I(") categay/1 (1 categay Ill (1 category IV (1
Itinerant Supplemental Speech
Sub-Total - Regular category V (Gifted) (1
Total Special Education Programs RfUfQIAL EDUCATION PROGRAM ,, MeQIA Cfl>/TER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF QEVfl OPMENT PROGRAMS (1) Cost a Instruction Professional Development
Total Staff OeYelopment
() Identifies Thirteen Weighted Programs Note (1) $9,688.35 of the allotment tor Professional
Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDLICATION

REQUIRED

TOTAL

ORIGINAL _,!_

ORIGINAL

Ml~TERM

REQUIRED

566,460.00

509,814.00 $

0.00 $

509,814.00

1 451 082.00

1305973.80

1305973.80

2,017,542.00 90 $ 1,815,787.80 $

0.00 $ 1,815,787.80

825,770.00 90

743,193.00

743,193.00

1,330,980.00 90

1,197,882.00

1,197,882.00

1,041,505.00 90

937,354.50

937,354.50

321,949.00 90

289,754.10

289,754.10

381 792.00 90

343612.80

343612.80

$ 5 919 538.00

5 327 584.20 $ ----"o"'.oo~ s s 321 584.20

1,036,730.00

933,057.00 $

0.00 $ 933,057.00

1,036,730.00 20 593.00
1057323.00 245,531.00 256,724.00

90 $ 90
90 $ 90 $

933,057.00 $ 18 533.70
951 590.70 $ 220 977.90 $ 231 051.60 $

$ 7,479,116.00

6,731 204.40 $

0.00 $
0.00 $ 0.00 $ 0.00 $

933,057.00 18 533.70
951,590.70 220 977.90 231 051.80

0.00 $ 6 731,204.40

28,402.35 100 $ 54,900.65 100

28,402.35 $ 54 900.65

83,303.00

83,303.00 $

0.00 $

28,402.35 54900.65

o.oo s____s_3_303=.oo"-

7,562,419.00

s s a14,so1.40 s _ _ _ _o_.o_o s s 814 507.40

. 40

SCHEDULE ''12''

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

497,312.10 $

617,669.67

12,501.90 $

22,742.02

1 267115.40

1 896,307.37

38 858.40

77,414.78

1,764,427.50 s 2,513,977.04 $

0.00

51,360.30 $

100,156.80 $

0.00

721,890.90

1,004,860.10

0.00

21,302.10

65,603.88

0.00

1,164,640.50

1,528,362.46

0.00

33,241.50

79,759.87

0.00

898,731.90

1,264,469.19

0.00

38,622.60

130,941.07

0.00

277,862.40

309,736.71

0.00

11,891.70

18,175.09

0.00

301 628.70

617 817.34

0.00

41,984.10

178 223.28

0.00

$ 5129181.90 $ 7 239 222.84 $

0.00

198 402.30 $

572 859.99 $

0.00

11,605.50 $ 228,556.80 581,867.10
82,533.60 4,391.10 1 602.00

11,812.91 247,260.20 589,665.68 149,592.66

554.40 $ 4,557.60 14,757.30 2,631.60

824.05 3,637.97 35,830.35 22,284.87

910,556.10 $

998,331.45 $

0.00

22,500.90 $

62,577.24 $

0.00

18,054.90

67 255.29 $

0.00

478.80

3,010.62 $

0.00

928 611.00 $ 1,065,586.74

22 979.70 $

65,587.86

217 328.40 $

276,345.46 $

0.00

3 649.50 $

3,649.50 $

0.00

180 693.00 $

354 976.38 $

0.00

50 358.60 $

80 922.70 $

0.00

6 455,814.30 $ 8,936,131.42 $

0.00

275,390.10 $

723,020.05 $

0.00

6 455 814.30 $ 8,936,131.42 $

28,402.35 $ 54,900.65

83,463.54 $

0.00 54,900.65

83 303.00 $

83,463.54 S

54 900.65

0.00

358,693.10 $

806,483.59 $

54 900.65

- 41 -

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994

SCHEDULE "13"

BOARD MEMBER ADDRESS
Mr. Doug Harris, Chairman () Route 7, Box 1155 Baxley, Georgia 31513
Mr. John W. Aycock () Route 8, Box 680 Baxley, Georgia 31513
Mr. H. Virgil Carter() Route 5, Box 1400 Baxley, Georgia 31513
Mr. Phil Jenkins () Route 5, Box 265 Baxley, Georgia 31513
Mr. Deraimus Walker (J
708 Hopps Street Baxley, Georgia 31513

COMPENSATION

TRAVEL

$

4,600.00 $

884.03

3,300.00

216.13

4,600.00

878.50

3,600.00

496.15

5,000.00

614.91

$

21,100.00 $

3,089.72

(J Denotes Board Members Serving as of June 30, 1994

See notes to the general purpose financial statements. - 42 -

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
July 25, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Appling County Board of Education
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 ofthe Appling County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 25, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
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.
Compliance with laws, regulations, contracts, and grants applicable to Appling 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.
The results of our tests indicate that, with respect to the items tested, the Appling County Board ofEducation complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

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 94CRL-10

CLAUDE L. VICKERS
STATE AUDITOR j404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 25, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Appling 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 ofthe Appling County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 25, 1995. This report was qualified 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 Appling County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to. the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State 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 ofan opinion on the Appling County Board ofEducation's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-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 of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Appling County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is 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.

~-=~

Claude L. Vickers State Auditor

CLV:gp 94CRL-50

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 25, 1995

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

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 ofthe Appling County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 25, 1995. This report was qualified 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 Appling County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

(2) Eligibility
(3) Matching, Level ofEffort, 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, 1994. The management of the Appling 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.

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB 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 Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Appling 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, 1994.
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 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 25, 1995

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

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 ofthe Appling County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 25, 1995. This report was qualified 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 ofthe fiscal year 1994 general purpose financial statements of the Appling County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financiai assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB 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 Appling County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-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 Appling 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,
c:f~
Claude L. Vickers State Auditor
CLV:gp 94CRL-120

SECTION III INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 25, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Appling 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 ofthe Appling County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 25, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
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.
In planning and performing our audit ofthe general purpose financial statements of the Appling County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Appling 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 ofinternal control structure policies and procedures. The objectives ofan 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 of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-3

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.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the followirg categories:

(I) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement

(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation (8) General Ledger
(9) General Fixed Assets

For all ofthe internal control categories listed above, 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.

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) Accounting Controls (Overall)

(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, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.

94ICL-3

These conditions were considered in detennining the nature, timing, and extent of the procedures to be performed in our audit ofthe Appling County Board ofEducation's financial statements and this report does not affect our report thereon dated July 25, 1995.
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 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 25, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Appling 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 ofthe Appling County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 25, 1995. This report was qualified 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 Appling County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 25, 1995.
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 (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB 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 Appling County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion 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 0MB Circular A-128. This report addresses our consideration of internal control structure policies and 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 financial statements in a separate report dated July 25, 1995.
. 94ICL-7

The management ofthe Appling 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 ofinternal control structure policies and procedures. The objectives ofan 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 ofthe 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 ofEffort, and/or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Audit Follow-Up/Resolution (7) Administrative Requirements

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

For all of the 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, 1994, the Appling County Board of Education expended 69% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by 0MB 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

94ICL-7

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 a certain matter involving the internal control structure and its operation that we consider to be a reportable condition 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 descnbed in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was 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 detected 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 condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Appling County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated July 25, 1995.
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 94ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $33,768.80 Audit Control Number 6011-93-03
The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Program had an underexpenditure of Quality Basic Education (QBE) funds of$33,768.80 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$33,768.80 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Finding Resolved Audit Control Number 6011-93-04
The audit report for the year ended June 30, 1993, called attention to an improper expenditure of$197.10 by the Board for marching auxiliary' s summer camp and a graduation celebration trip. Subsequent to the year under review, reimbursement of$ I97.10 was received and deposited to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 6011-93-05
The audit report for the year ended June 30, 1993, stated that the Board's property management records maintained for Elementary and Secondary Education Act - Chapter I - Education of Deprived Children Program (CFDA 84.010) were incomplete and failed to meet Federal property management standards as set forth in Chapter 8 of the Georgia Financial Accounting Handbook for Local School Systems. In the year under review, it was noted that property management records were maintained as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Retain Records Federal Financial Assistance Finding Resolved Audit Control Number 6011-93-06
The audit report for the year ended June 30, 1993, stated that the Board did not provide information used in the determination oflow income families or the ranking of attendance areas for Part I, Section IV and VI of

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Retain Records Federal Financial Assistance Finding Resolved Audit Control Number 6011-93-06
the Elementary and Secondary Education Act - Chapter 1 (CFDA 84.010) grant application. After further review by the Georgia Department of Education, it was determined in a letter dated June 1, 1995, that a reclaim of funds was not necessary. In addition, in the year under review, the Board established procedures to provide appropriate documentation.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6011-93-01
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, our audit noted no improvements regarding adequate separation of employee duties. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "l" of this report are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6011-93-02
The audit report for the year ended June 30, 1993, noted that the management of the Appling 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 the General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned

APPLING COUNfY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED ruNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6011-93-02
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.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $54,900.65 Audit Control Number 6011-94-01
For the year under review, the Board reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $83,463.54 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) Program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost oflnstruction Program purposes resulting in an underexpenditure of$54,900.65 for the minimum required allotment of$54,900.65 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Finding Resolved Audit Control Number 6011-94-02
The Board failed to submit a copy of the 1993 audit report to the Georgia Department of Human Resources from whom the Board received Job Opportunities and Basic Skills Training Program (CFDA 93 .56 I) funds. Paragraph 13fofOMB Circular A-128 requires that the recipients ofFederal financial assistance submit copies

APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Finding Resolved Audit Control Number 6011-94-02
ofsingle audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing of these report distribution responsibilities by the Department of Audits, management indicated it was unaware ofthis audit distnbution requirement. Procedures should be implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements. Subsequent to June 30, 1994, the Board submitted a copy ofthe 1993 audit report to the Georgia Department of Human Resources as required.
Note: The Appling 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.