GA. Aioo . Rl -;;..(o Ai 109 4-95 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 AUDIT REPORT ATKINSON COUNTY BOARD OF EDUCATION PEARSON, GEORGIA YEAR ENDED JUNE 30, 1995 ATKINSON 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 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 3 C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 4 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 5 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 16 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 18 SCHEDULES 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 20 2 CASH AND CASH EQUNALENTS 22 3 ACCOUNTS RECEIVABLE 23 SCHEDULE OF REVENUE 4 STATE 24 5 LOCAL AND OTHER 25 ATKINSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES SCHEDULE OF EXPENDITURES BY OBJECT 6 GENERAL AND SPECIAL REVENUE FUNDS 27 7 LOTTERY PROGRAMS 28 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 8 OVERALL 31 9 BY PROGRAM 32 IO SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 34 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 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 ATKINSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 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 August 22, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Atkinson County Board ofEducation INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Ladies and Gentlemen: We have audited the general purpose financial statements (Exhibits A through D) of the Atkinson County Board of Education, as of and for the year ended June 30, 1995, 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. 95ARL-13* * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. * The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 199.5. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects 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 Atkinson County Board of Education as of June 30, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated August 22, 1996, on our consideration ofthe Board's internal control structure and a report dated August 22, 1996, on its compliance with laws and regulations. Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Atkinson County Board ofEducation taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements ofthe Atkinson County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information 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 permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully Sl.!bmitted, / 4 . , . _ ; ' ~ . -...~c' Claude L. Vickers State Auditor CLV:dt 95ARL-13* ATKINSON COUNTY BOARD OF EDUCATION - 1- ATKINSON CQ!.!NTY ~ARD OF l;DUQAI~ QQM~INED BALANCE S!:!EliT &,L FUND TYP!;;S JUN!;; 30 1995 EXHIBIT"A" Mfil Cash and Cash Equivalents Accounts Receivable Prepaid Items Inventories Food Donated Commodities Purchased Food GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTALS (Memorandum On~} JUNE 30, 1995 JUNE 30, 1994 $ 244,942.54 $ 311,640.59 $ 556,583.13 $ 716,225.56 $ 426,307.13 122,879.43 549,186.56 210,278.96 995.00 995.00 17,773.99 3,595.51 17,773.99 3595.51 18,548.76 3,230.47 Tolal Assets $ 427,302.13 $ 389,191.47 $ 311,640.59 $ 1,128,134.19 $ 948,283.75 LIABILITIES~QFUND!;;QUITY LIABIL!IIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Tolal Liabilities fUNPEQV[TY Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 87,629.75 60,073.60 $ 33,218.86 79,464.60 68.51 42.01 $ 147,703.35 $ 112,793.98 $ 87,629.75 93,292.46 $ 79,464.60 68.51 42.01 $ 260,497.33 $ 98,286.57 67,227.74 165,514.31 $ 4,217.31 $ 4,217.31 $ $ 17,773.99 3,595.51 17,773.99 3,595.51 $ 4,217.31 $ 21,369.50 $ 25,586.81 $ 275,381.47 255,027.99 $ 311,640.59 842,050.05 $ 279,598.78 $ 276,397.49 $ 311,640.59 $ 867,636.86 $ 4,217.31 18,548.76 3,230.47 25,996.54 756,772.90 782,769.44 Total Liabilities and Fund Equity $ 427,302.13 $ 389,191.47 $ 311,640.59 $ 1,128,134.19 $ 948,283.75 The notes to the general purpose financial statements are an integral part of this statement. -2 - ~IK!NSQ!:)! QOUNTY ~ARD QF !;;DUCATION COM~INEQ IA!EMEt:II QE Rl;~NUl;;S, EXP!;NQIT!,!Rl;;S AND C~G!;S IN EYNQ BALANQES aLL ~O~RNMENTAL FUND TYPl;;S YEAR ENDED JUNE 30, 1995 EXHIBIT"B" B~N!.!ES State Funds Federal Funds Local and Olher Funds Total Revenues EXfENDITlJBES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Olher Support Services Food Services Operation Olher Operations of Non-Instructional Se!Vic:es Total Expenditures Excess of Revenues over (under) Expenditures QTHEB FINANCING Q!.!BCI;; (l.!Sl;Sl Operating Transfers In Operating Transfers Out Total Olher Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE J!JLY 1 Food Inventory Net Change In Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND CAPITAL PROJECTS FUND TOTALS (Memorandum On!}'.} YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ 4,181,627.61 $ 315,642.38 $ 30,287.15 1,033,575.46 952,695.45 31,043.90 $ 5,164,610.21 $ 1,380J61.74 $ 0.00 $ 4,497,269.99 $ 1,063,862.61 983,739.35 4,078,957.70 1,006,407.07 617,173.23 0.00 $ 6,544,871.95 $ 5,702,538.00 $ 3,267,232.74 $ 580,615.30 $ 94,610.71 150,26321 167,930.48 193,425.14 292,261.38 133,519.02 317,249.73 402,276.08 7,183.90 26,839.21 38,861.27 45,005.81 11,083.89 42,982.70 76,766.33 20,906.05 12,64925 3,577.67 574,354.93 $ 5,091,652.87 $ 1,367,941.93 $ $ 72,957.34 $ 12,319.81 $ 0.00 $ 3,847,848.04 $ 3,595,361.09 139,616.52 161,347.10 210,913.18 270,191.47 292,261.38 133,519.02 338,155.78 414,925.33 7,183.90 30,416.88 574,354.93 38,86127 91,603.44 156,657.63 150,841.10 334,267.31 279,389.45 43,860.81 593,37427 404,851.91 9,522.95 33,877.70 501,249.51 25,408.37 0.00 $ 6,459,594.80 $ 6,220,265.54 0.00 $ 85,277.15 $ -511,n1.54 $ -50,000.00 $ -501000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 -50,000.00 -50,000.00 $ 50,000.00 $ 0.00 $ 0.00 s 22,957.34 $ 12,319.81 $ 50,000.00 $ 85,277.15 S .s11.n1.54 256,641.44 264,487.41 261,640.59 782,769.44 1,302,517.15 -774.77 365.04 -774.77 365.04 -1,113.62 -906.55 FUND BALANCE J!,!NE 30 $ 2791598.78 $ 276,397.49 S 311,640.59 $ 867,636.86 $ 782,769.44 The notes to the general purpose financial statements are an integral part of this statement. -3- ATKINSON COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30. 1995 EXHIBITc REVENUES State Funds Federal Funds Local and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING (USES} Other Uses Excess of Revenues over (under) Expenditures and Other Financing Uses FuN1:2 aALAN~E JULY 1. 1994 Adjustments GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) $ 4,280,083.00 $ 4,181,627.61 21,496.00 30,287.15 886,049.08 952,695.45 $ 5,187,628.08 $ 5,164,610.21 $ 3,446,858.71 $ 3,267,232.74 134,193.68 188,966.06 220,648.36 205,502.18 299,394.43 148,794.78 517,256.66 537,195.41 10,000.00 29,884.00 94,610.71 150,263.21 167,930.48 193,425.14 292,261.38 133,519.02 317,249.73 402,276.08 7,183.90 26,839.21 39,963.07 38,861.27 $ s.ns,657.34 $ 5,091,652.87 $ -591,029.26 $ 72,957.34 $ -50,000.00 $ -50,000.00 $ -641,029.26 $ ns,591.06 767.76 22,957.34 256,641.44 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 50,895.00 $ 315,642.38 795,441.51 1,033,575.46 50,876.21 31,043.90 $ 897,212.72 $ 1,380,261.74 $ 333,727.89 $ 580,615.30 7,500.00 3,200.00 74,560.00 45,005.81 11,083.89 42,982.70 76,766.33 700.00 4,997.00 527,285.87 20,906.05 12,649.25 3,5n.67 574,354.93 $ 951,970.76 $ 1,367,941.93 $ -54,758.04 $ 12,319.81 $ -54,758.04 $ 12,319.81 252,045.91 242,708.18 -1,118.06 FUND BALANCE JUNE 30. 1995 $ 138,329.56 $ 279,598.78 $ 196,169.81 $ 255,027.99 The notes to the general purpose financial statements are an integral part of this statement. -4- ATKINSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Atkinson 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 ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to 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 ofthe 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 Atkinson County Board ofEducation. Based upon the application of the above criteria, the Atkinson County Board ofEducation is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Atkinson 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 to report on its financial position and the results ofits 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 ofaccounts. 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. - 5- ATKINSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 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 ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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 provided by a board ofeducation. 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. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. - 6- ATKINSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\ffiNTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey 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 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. 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. BUDGET The Atkinson County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, - 7- ATKINSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report: Special Revenue Fund Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 12,319.81 Fund Balance July 1, 1994 264,487.41 Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods -18,548.76 -3,230.47 Fund Balance June 30, 1995 (Budget Basis) $255,027.99 CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including savings and N.0.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 of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State. - 8- ATKINSON COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS .JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Atkinson County Board of Commissioners fixed the property tax levy for the 1994 tax year (calendar year) on January 12, 1995 (levy date). Taxes were due on June 2, 1995. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria ofGASB codification section P70.103. The Atkinson County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% oftaxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board. The tax millage rate levied for the 1994 tax year (calendar year) for the Atkinson County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 12 27 mills 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. PREPAID ITEMS Payments made to vendors for services that will benefit periods subsequent to June 30, 1995, are recorded as prepaid items. - 9- ATKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 ofthis data. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS . ~ Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one ofor any combination ofthe following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates 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 of the State of Georgia, - 10 - ATKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 2: DEPOSITS (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, 1995, the bank balances were $677,232.06. The amounts of the total bank balances are classified into three categories of credit risk: Category I - 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.) The Board's deposits are classified by risk category at June 30, 1995, as follows: Risk Category I 2 3 Total Note 3: NON-MONETARY TRANSACTIONS Bank Balance $ 200,000.00 428,607.75 48,624.31 $ 677,232.06 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 - 11 - ATKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 4: RISK MANAGEMENT The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation. The Board has obtained commercial insurance for risk of loss associated with torts, assets and job related illnesses or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. The Board has elected to self-insure for all losses related to natural disaster and errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years. The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: Beginning ofYear Liability Claims and Changes in Estimates Claims Paid EndofYear Liability 1994 1995 $ 0.00 $ 360.00 $ 360.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Note 5: CONTINGENT LIABil.,ITIES 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. Note 6: 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). - 12 - ATKINSON COUNTY BOARD OF EDUCATION EXI-llBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 6: RETIREMENT PLANS TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting 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, 1995, was $3,517,751.58; total payroll was $4,010,345.44. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%. Total contnbutions made during fiscal year 1995 amounted to $591,294.17, ofwhich $415,418.48 was made by the Board and $175,875.69 was made by employees. These contributions represented 11.81 % (Board) and 5% (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 - 13 - ATKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS JUNE 30, 1995 Note 6: RETIREMENT PLANS readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. Total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, was as follows: Total pension benefit obligation $15,313,743,000.00 Net assets available for benefits, at cost 14,254,785,000.00 Unfunded pension benefit obligation $ 1.058.958.000,00 The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. 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, 1995 were $565, 117,811.00. The Board's contribution for the year ended June 30, 1995 of$415,418.48 was actuarially determined and represented .0735% oftotal contributions made by all participating employers. Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute. PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are - 14 - ATKINSON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 6: RETIREMENT PLANS dependent upon the number ofyears of service. If there 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. There were 47 employees covered under PSERS for the year ended June 30, 1995. 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 ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $1,516.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00. Note 7: SURETY BONDS Mr. EdwinF. Davis, School Superintendent through July 31, 1996, was bonded in the amount of$7,500.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60199386. The School Superintendent, Dr. Sandra B. Dickson, effective August 26, 1996, is bonded in the amount of $7,500.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 13657695, on which premium is paid through December 31, 1996. - 15 - ATKINSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPEC~LREVENUEFUND JUNE 30. 1995 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food ELEMENTARY AND SCHOOL FOOD SERVICES FUND STATE PRESCHOOL HANDICAPPED PROGRAM LOTTERY PROGRAMS CHAPTER 1 EDUCATION OF DEPRIVED MIGRANT CHILDREN PROGRAM $ 264.891.54 $ 0.00 $ 22,258.46 25,720.20 $ 49,308.79 $ 14,755.19 17,n3.99 3,595.51 Total Assets $ 311,981.24 $====0=.00= $ 22,258.46 $ 49,308.79 $ 14,755.19 blABILIIIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Total Liabilities FUND EQUITY Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 10,919.n 24,663.98 $ 35,583.75 $ 17,n3.99 3,595.51 $ 21,369.50 255,027.99 $ $ 276,397.49 $ $ $ 9,no.3o 12,Jn.64 68.51 42.01 $ 22,258.46 $ 1,n2.69 $ 10,390.30 37,145.80 14,755.19 49,308.79 $ 14,755.19 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 Total Liabilities and Fund Equity $ 311,981.24 $ 0.00 $ 22,258.46 $ 49,308.79 $ 14,755.19 See notes to the general purpose financial statements. 16 EXHIBIT"E" SECONDARY EDUCATION ACT TITLE JI. EISENHOWER CHAPTER2 MATHEMATICS BLOCK GRANT - AND SCIENCE FLOW THROUGH EDUCATION INDIVIDUALS WITH DISABILITIES EDUCATION ACT TITLE VI, B FLOW PRESCHOOL THROUGH PROGRAM JOB TRAINING PARTNERSHIP TOTALS ACT JUNE 30, 1995 JUNE 30, 1994 $ 1,076.35 $ 603.84 $ 288,830.19 $ 262,982.43 $ 11,835.00 $ 5,819.91 3,606.98 $ 11,833.36 122,879.43 163,018.28 17,TT3.99 3,595.51 18,548.76 3,230.47 $ 11,835.00 $ 5,819.91 $ 1,076.35 $ 4,210.82 $ 11,833.36 $ 433,079.12 $ 447,n9.94 $ 11,581.50 $ 5,819.91 $ 9,958.36 $ 43,887.65 $ 65,358.32 253.50 $ 9.99 1,875.00 33,218.86 50,706.47 1,066.36 $ 4,210.82 79,464.60 67,227.74 68.51 42.01 $ 11,835.00 $ 5,819.91 $ 1,076.35 $ 4,210.82 $ 11,833.36 $ 156,681.63 $ 183,292.53 $ 17,TT3.99 $ 3,595.51 18,548.76 3,230.47 $ 21,369.50 $ 21,TT9.23 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 255,027.99 242,708.18 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 276,397.49 $ 264,487.41 $ 11,835.00 $ 5,819.91 $ 1,076.35 $ 4,210.82 $ 11,833.36 $ 433,079.12 $ 447,TT9.94 -17- ATKINSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1995 REVENUES state Funds Federal Funds Local and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Total Expenditures Excess of Revenues 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 ELEMENTARY AND STATE PRESCHOOL HANDICAPPED PROGRAM LOTTERY PROGRAMS CHAPTER 1 EDUCATION OF DEPRIVED MIGRANT CHILDREN PROGRAM $ 35,576.00 $ 518,165.72 31,043.90 $ 584,785.62 $ 18,099.00 $ 261,967.38 $ 18,099.00 $ 261,967.38 $ 358,749.79 $ 58,642.22 358,749.79 $ 58,642.22 $ $ 572,465.81 $ 572,465.81 $ $ 12,319.81 $ 264,487.41 18,099.00 $ 154,509.15 $ 33,930.10 2,883.15 42,982.70 6,148.80 20,064.28 204.54 1,244.66 18,099.00 $ 261,967.38 $ 0.00 $ 0.00 $ 0.00 0.00 305,741.69 $ 331.20 765.47 49,318.07 260.35 2,333.01 358,749.79 $ 0.00 $ 0.00 43,824.28 484.11 12,444.71 1,889.12 58,642.22 0.00 0.00 -774.77 365.04 - - - - - $ 276,397.49 $ 0.00 $ 0.00 $ o.oo s____,o.,..oo_ See notes to the general purpose financial statements. -18- EXHIBIT "F" SECONDARY EDUCATION ACT TITLE II- EISENHOWER CHAPTER2 MATHEMATICS BLOCK GRANT - AND SCIENCE FLOW THROUGH EDUCATION INDIVIDUALS WITH DISABILITIES EDUCATION ACT TITLE VI, B FLOW . PRESCHOOL THROUGH PROGRAM JOB TRAINING PARTNERSHIP ACT TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ 11,835.00 $ s_ _ s .....;..11""',835-'-.=oo.c.. 7,770.72 $ 7,770.72 $ 48,487.67 $ 48,487.67 $ 18,090.98 $ 18,090.98 $ $ 11,833.36 315,642.38 $ 1,033,575.46 31,043.90 121,745.49 969,664.55 57,288.12 11,833.36 $ 1,380,261.74 $ 1,148,698.16 $ 11,771.02 $ 1,275.81 $ 24,824.83 $ 8,833.47 $ 11,736.05 $ 580,615.30 $ 479,913.64 63.98 6,473.27 21.64 7,837.00 662.00 15,163.84 2,907.51 300.00 6,050.00 97.31 45,005.81 11,083.89 42,982.70 76,766.33 20,906.05 12,649.25 3,STT.67 574,354.93 8,581.55 1,373.61 75,385.73 31,799.89 8,697.84 7,127.40 501,249.51 $ 11,835.00 $ 7,770.72 $ 48,487.67 $ 18,090.98 $ 11,833.36 $ 1,367,941.93 $ 1,114,129.17 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 12,319.81 $ 34,568.99 0.00 0.00 0.00 0.00 0.00 264,487.41 231,938.59 -774.77 365.04 -1,113.62 -906.55 $ o.oo s_ _ _ _o..,.o.o.. s o.oo s _ _ _.,.0..0..0... s_-==~==o=.oo=s 276,397.49 s 264,487.41 -19- ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1995 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 Child and Adult Care Food Program 1995 Contract Food Services School Breakfast Program 1994 Grant 1995 Grant National School Lunch Program 1994 Grant 1995 Grant Food Distribution Program (1) 10.558 $ 2,784.28 $ 10.553 10.553 * 10.555 * 10.555 10.550 130,760.04 341,157.68 431463.72 2,378.81 $ 2,784.28 (2) 13,524.78 125,489.38 8,961.73 323,084.18 N/A 130,760.04 (2) 341,157.68 $ 431463.72 529,002.09 (3) 431463.72 Total U.S. Department of Agriculture $ 5181165.72 $ 4731438.88 $ 5181165.72 $ 5721465.81 Education, U. S. Department of Through Berrien County Board of Education d/bla Southern Pine Migrant Education Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1994Summer 84.011 1995 Regular 84.011 $ 1995Summer 84.011 Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1994 Regular * 84.010 1994 Carry-Over * 84.010 1995 Regular * 84.010 Chapter2 Block Grant - Flow Through 1995 Regular 84.151 Tdlell EisenhoY.ler Mathematics and Science Education 1994 Regular 84.164 1995 Regular 84.164 Individuals with Disabilities Education Act Title VI, B Flow Through 1994 Carry-Over 84.027 1995 Regular 84.027 Preschool Program 1994 Regular 84.173 1994 Carry-Over 84.173 1995 Regular 84.173 Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant 84.048 1995Grant 84.048 Through Okefenokee Regional Educational Service Agency Drug-Free Schools and Communities Act 1994 Regular 84.186 $ 13,500.00 36,100.00 60,441.00 313,n5.oo 11,835.00 7,464.00 22,065.00 42,750.00 8,984.00 17,500.00 21,496.00 41,631.62 $ 12,574.78 31,312.25 $ 12,574.78 14,755.19 31,312.25 12,574.78 14,755.19 69,400.13 60,441.00 249,000.00 60,441.00 298,308.79 11,835.00 60,441.00 298,308.79 11,835.00 7,000.00 1,950.81 5,819.91 1,950.81 5,819.91 22,065.00 26,422.67 108.59 8,984.00 5,500.00 22,065.00 26,422.67 8,984.00 9,106.98 22,065.00 26,422.67 8,984.00 9,106.98 9,083.38 21,496.00 (4) 16,184.46 - 20 - ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1995 SCHEOULE 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 Education. U. S. Department of Through Okefenokee Regional Educational Service Agency Drug-Free Schools and Communities Act 1994 Carry-Over 1995 Regular 84.186 $ 84.186 338.00 $ 91047.00 338.00 $ 338.00 $ 81453.15 338.00 81453.15 Total U. S. Department of Education $ 5651295.00 $ 528z733.63 $ 5331863.53 $ 5121367.53 Labor. U.S. Department of Through Southeast Georgia Regional Development Center Job Training Partnership Act 956-06 17.250 $ 371287.00 $ 111833.36 $ 111833.36 Total Federal Financial Assistance $ 1,120i747.72 $ Major Programs are identified by an asterisk (*) in front of the CFDA number. 1,002,172.51 $ 1,0631862.61 $ 110961666.70 (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program and the Child and Adult Care Food Program were not maintained separately and are included in the 1995 National School Lunch Program. (3) Expenditures for this program include State. and/or Local and Other Funds. Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. See notes to the general purpose financial statements. 21 - ATKINSON COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995 SCHEDULE ''2'' INTEREST BEARING ACCOUNTS Citizens Exchange Bank, Pearson, Georgia N.O.W. Account (3.09%) Money Market Account (3.14%) Peoples Bank, Willacoochee, Georgia Money Market Account (3.25%) $ 17,070.83 171,340.80 $ 188,411.63 280,541.75 $ 468,953.38 See notes to the general purpose financial statements. - 22 - ATKINSON COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1995 SCHEDULE "3" Atkinson County Tax Commissioner County Wide School Tax Berrien County Board of Education d/o/a/ Southern Pine Migrant Education Agency ESEA - Chapter 1 Migratory Education Program Concerted Services, Incorporated Child and Adult Care Food Program Education, Georgia Department of Food Services Child and Adult Care Food Program School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Funds Other State Programs At-Risk Summer School Program Remedial Summer School Program Federal Programs ESEA Chapter 1 Education of Deprived Children Chapter2 Block Grant - Flow Through Title II Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act. Title VI, B - Preschool Program Okefenokee Regional Educational Service Agency Federal Program Drug-Free Schools and Communities Act. Reimbursement for Salaries Southeast Georgia Regional Development Center Job Training Partnership Act. Other Overpayment to Vendor GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 379,009.72 $ 379,009.72 $ 14,755.19 1,900.84 14,755.19 1,900.84 8,690.00 21,496.00 6,184.54 2,150.22 405.47 5,270.66 18,073.50 405.47 5,270.66 18,073.50 8,690.00 21,496.00 6,184.54 2,150.22 49,308.79 11,835.00 5,819.91 3,606.98 49,308.79 11,835.00 5,819.91 3,606.98 8,453.15 323.50 11,833.36 69.73 8,453.15 323.50 11,833.36 69.73 $ 426,307.13 $ 122,879.43 $ ===5=49,=18=6.5=6 See notes to the general purpose financial statements. - 23 - ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995 SCHEDULE "4" AGENCY/FUNDING GRANTS Education. Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant Limited English Speaking Special Instructional Assistance In-School Suspension School Counselors Grades 4 and 5 Superintendent's Base Salary Mid-term Adjustment Migrant Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Environment Science Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Algebra Classrooms Distant Learning Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 2,403,595.00 321,265.00 65,621.00 102,214.00 33,031.00 703,141.00 196,760.00 58,532.00 48,709.00 18,296.00 63,437.00 33,896.00 19,971.00 16,782.00 55,510.00 11,405.00 -381, 145.00 350,207.00 $ 46,837.00 6,184.54 982.73 1,380.00 2,150.22 2,866.12 $ 2,403,595.00 321,265.00 65,621.00 102,214.00 33,031.00 703,141.00 35,576.00 196,760.00 58,532.00 48,709.00 18,296.00 63,437.00 33,896.00 19,971.00 16,782.00 55,510.00 11,405.00 -381, 145.00 350,207.00 35,576.00 46,837.00 18,099.00 6,184.54 982.73 1,380.00 18,099.00 2,150.22 2,866.12 960.04 4,183.66 25,126.00 42,982.70 169,591.99 191122.99 960.04 4,183.66 25,126.00 42,982.70 169,591.99 191122.99 $ 4,181,627.61 $ 315,642.38 $ 4,497,269.99 See notes to the general purpose financial statements. - 24 - ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30, 1995 SCHEDULE "5" Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax Other Commodity Rebates Donations Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Reimbursements for Renovations Sales Lunches School Assets Other GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 919,664.84 4,122.51 1,416.60 $ 919,664.84 4,122.51 1,416.60 $ 1,077.00 1,663.00 15,645.79 321.91 3,353.58 3,877.50 1,552.72 641.97 7,401.21 23,000.72 641.97 1,077.00 1,663.00 23,047.00 321.91 3,353.58 23,000.72 3,877.50 1,552.72 $ 952,695.45 $ 31,043.90 $ 983,739.35 See notes to the general purpose financial statements. - 25 - ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1995 SCHEDULE "6" EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications 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 Equipment GENERAL FUND SPECIAL REVENUE FUND TOTAL $ 3,404,065.11 $ 906,783.70 22,916.95 41,588.79 3,808.36 5,151.28 15,078.30 5,321.56 60,797.18 25,854.29 28,463.00 9,613.40 223,422.02 132,347.96 51,964.78 8,946.66 3,710.01 606,280.33 $ 135,624.58 8,649.93 23,101.38 300.00 260.35 3,143.64 2,942.83 1,244.66 120,988.85 39,255.07 300,520.52 2,874.09 1,714.50 1,663.00 7,854.05 4.010,345.44 1,042,408.28 31,566.88 64,690.17 3,808.36 5,451.28 15,338.65 5,321.56 60,797.18 28,997.93 2,942.83 28,463.00 10,858.06 344,410.87 171,603.03 300,520.52 54,838.87 10,661.16 1,663.00 11,564.06 141,819.52 111,524.15 253,343.67 Total Expenditures $ 5,091,652.87 $ 1,367,941.93 $ 6,459,594.80 See notes to the general purpose financial statements. - 27 - ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995 EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Communications Other Purchased Services Supplies Books, Textbooks and Periodicals Dues and Fees Other Expenditures Nonoperating Costs Equipment Total Expenditures ALGEBRA CLASSROOMS DISTANT LEARNING INSTRUCTIONAL TECHNOLOGY $ $ 960.04 $ 4,183.66 3,540.00 21,586.00 $ 960.04 $ 4,183.66 $ =====25=,1=26=.0=0 See notes to the general purpose financial statements. - 28 - SCHEDULE "7" MEDIA CENTER AND LIBRARY EQUIPMENT PRE-KINDERGARTEN PROGRAM SAFE SCHOOLS GRANT TOTAL $ $ 734.00 7,272.20 34,976.50 $ 42,982.70 $ 81,417.72 17,622.72 1,650.67 890.00 459.78 1,244.66 52,370.77 $ 439.36 80.00 752.31 12,664.00 $ 6,223.14 12,899.85 81,417.72 17,622.72 1,650.67 5,164.00 459.78 1,244.66 71,009.81 439.36 80.00 752.31 82,126.35 169,591.99 $ 19,122.99 $ 261,967.38 - 29 - ATKINSON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1995 SCHEDULE "8" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit Amount of Underexpenditure for Total Allotment THIRTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS $ 2,937,168.00 $ 100,695.00 $ 2,975,979.20 128,443.90 $ - - - -1-0-6,'92-0-.8-5 $ 3,104,423.10 -44,495.48 $ 3,059,927.62 $ 0.00 $ = = = = 0.00 == See notes to the general purpose financial statements. - 31 - ATKINSON COUNTY BOARD Of EDUCATION ANALYSIS Of MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1995 GENERAL AND CAREEB EDUCATION PROGRAMS Kindergarten M Grades 1 3 M SUb-Total - K-3 Grades 4 - 5 M Grades 6 - 8 (") Grades 9 - 12 M High SChool Laboratorie& (") Vocational Education Laboratorie& (") Total General and career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs category I (") category II M category Ill M category IV M SUb-Total Regular category V (Gifted) (") Total Special Education Programs ,:i REMEQIAL EDUCATION ffiOGRAM Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs Total Thirteen Weighted and Media Center Programs .!AFF DEVELOPM!ili! PROGRAMS Cost d Instruction Proressional Del.'elopment " Total Slaff Del.'elopment M Identifies Thirteen Weighted Programs. ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 247,015.00 $ 222,313.50 598,728.00 538,855.20 $ $ 845,743.00 90 $ 761,168.70 $ 318,546.00 90 286,691.40 559,673.00 90 503,705.70 345,725.00 90 311,152.50 167,119.00 90 150,407.10 166,789.00 90 150,110.10 $ 2,403,595.00 $ 2,163,235.50 $ 42,175.00 42,175.00 42,175.00 $ 309,663.00 $ 278,696.70 $ 0.00 $ 309,663.00 90 $ 278,696.70 $ 11,602.00 90 10,441.80 $ 321,265.00 $ 289,138.50 $ $ 65,621.00 90 $ 59,058.90 $ $ 2,790,481.00 $ 2,511,432.90 $ 0.00 0.00 0.00 42,175.00 $ 79,829.00 90 $ 22,385.00 90 $ 102,214.00 $ 71,846.10 $ 20,146.50 91,992.60 $ 1,891.00 407.00 2,298.00 $ 2,892,695.00 $ 2,603,425.50 $ 44,473.00 $ 7,783.00 25,248.00 $ 7,783.00 $ 25,248.00 $ 33,031.00 100 $ 33,031.00 $ 143.00 143.00 See notes to the general purpose financial statements. 32 SCHEDULE "9" TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT s 222,313.50 s 281,370.69 s s 10,274.18 291,644.87 581,030.20 660,266.31 17,633.13 677,899.44 s 803,343.70 s 941,637.00 s 27,907.31 s 969,544.31 $ 0.00 286,691.40 290,ns.ao 8,709.20 299,486.00 0.00 503,705.70 592,303.59 12,929.82 605,233.41 0.00 311,152.50 306,244.96 23,617.25 329,862.21 0.00 150,407.10 162,640.15 2,341.95 164,982.10 0.00 150,110.10 187,464.97 21,211.28 208,676.25 0.00 s s 2,205,410.50 s 2,481,067.47 96,716.81 $ 2,577,784.28 s 278,696.70 s 27,869.41 s 59,679.59 153,202.76 30,413.75 3,277.54 $ 926.06 3,542.58 268.98 31,146.95 60,605.65 156,745.34 30,682.73 $ 278,696.70 s 271,165.51 $ 8,015.16 s 279,180.67 0.00 10,441.80 36,550.52 1,553.53 38,104.05 0.00 $ 289,138.50 $ 307,716.03 s 9,568.69 s 317,284.72 $ 59,058.90 $ 59,711.27 $ 635.35 $ 60,346.62 0.00 s s 2,553,607.90 2.848,494.n $ 106,920.85 $ 2,955,415.62 $ 73,737.10 $ 127,484.43 $ 127,484.43 0.00 20,553.50 $ 21,523.05 21,523.05 0.00 $ 94,290.60 $ 127,484.43 $ s 21,523.05 149,007.48 s $ 216471898.50 21975,979.20 $ 128,443.90 S 3,104,423.10 $ 0.00 $ 7,926.00 25,248.00 s _ _ _33_._11_4_.oo_ $ 17,999.29 S 17,999.29 15,501.73 15,501.73 s 33,501.02 $ 33,501.02 s _ _ _ _ _ _o_.oo_ - 33 - ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30, 1995 SCHEDULE "10" BOARD MEMBER ADDRESS Ms. Hilda Haskins Mercer, Chairperson (*) Route 1, Box 146 Axson, Georgia 31624 Mr. DeLouis Bell (*) P. 0. Box567 Wdlacoochee, Georgia 31650 Ms. Glenda M. Bester (*) P. 0. Box 1374 Pearson, Georgia 31642 Mr. Larry Hayes (*) Route 1, Box 350 Willacoochee, Georgia 31650 Mr. Roger T. White (*) Route 1, Box 22 Axson, Georgia 31624 COMPENSATION TRAVEL $ 750.00 $ 23.10 750.00 19.32 750.00 19.74 700.00 21.84 750.00 24.36 (*) Denotes Board Members Serving as of June 30, 1995 $ 3,700.00 $===1==0=8.=36= See notes to the general purpose financial statements. - 34 - 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 August 22, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Atkinson County Board ofEducation COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Atkinson County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 22, 1996. 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 Atkinson County Board ofEducation 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 ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 95CRL-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, a~~ Claude L. Vickers State Auditor CLV:dt 95CRL-10 CLAUDE L. VICKERS STATE AUDITOR (404) 65&-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 22, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Atkinson County Board ofEducation SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Atkinson County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 22, 1996. 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 Atkinson County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995: (I) 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 ofManagement and Budget's "Compliance Supplement for Single Audits ofState and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 95CRL-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 Atkinson County Board of Education 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. Respectfully submitted, ??~,,;r:~ Claude L. Vickers State Auditor CLV:dt 95CRL-50 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 22, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and . Superintendent and Members ofthe Atkinson County Board ofEducation SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Atkinson County Board of Education as of and for the year ended June 30, 1995, and haye issued our report thereon dated August 22, 1996. 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 Atkinson County Board ofEducation's compliance with the requirements governing: (I) Types of Services Allowed or Unallowed (5) Applicable Special Tests and Provisions (2) Eligibility (3) Matching, Level of Effort, and/or Earmarking (6) Other Requirement Claims for Advances and Reimbursements (4) Reporting These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Atkinson 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. 95CRL-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 Atkinson County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Atkinson 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, 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, CLV:dt 95CRL-80 ~--,;,;~ Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 22, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members of the Atkinson County Board ofEducation SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Ladies and Gentlemen: We have audited the general purpose financial statements of the Atkinson County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 22, 1996. 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 of the fiscal year 1995 general purpose financial statements of the Atkinson County Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. 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 Atkinson County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion. 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 Atkinson County Board of Education. had not complied, in all material respects, with those requirements. 95CRL-120 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. a ~ Respectfully submitted, .:r: Claude L. Vickers State Auditor CLV:dt 95CRL-120 SECTION III INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 22, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Atkinson County Board ofEducation REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Atkinson County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 22, 1996. 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. The management ofthe Atkinson County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives 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 ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because ofchanges in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 95ICL-3 In planning and performing our audit ofthe general purpose financial statements of the Atkinson County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. I We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. As descnbed in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (I) 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 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 the reportable conditions disclosed above are also considered to be material weaknesses. These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Atkinson County Board of Education's financial statements and this report does not affect our report thereon dated August 22, 1996. 95ICL-3 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, f f4--K- ~ u ) Claude L. Vickers State Auditor CLV:dt 95ICL-3 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 22, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education and Superintendent and Members of the Atkinson County Board ofEducation SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Atkinson County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 22, 1996. 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 Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated August 22, 1996. 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 ofState 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 Atkinson County Board ofEducation 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, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 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 August 22, 1996. 95ICL-7 The management ofthe Atkinson County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives 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 (I) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (I) Types of Services Allowed or Unallowed (2) Eligibility (3) Matching, Level ofEffort, and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Audit Foilow-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 ofthe 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, 1995, the Atkinson County Board ofEducation expended 65% ofits 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 95ICL-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 Atkinson County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated August 22, 1996. 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:dt 95ICL-7 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COST YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Accounting/Internal Control Deficiencies Financial Statements Federal Financial Assistance Finding Resolved Audit Control Number 6021-93-03 The audit report for the year ended June 30, 1994, noted a material weakness in internal control and accounting procedures resulting in a deficiency in the accounting system due to a lack of proper authorization or approval of journal entries posted to the accounting records. For the year under review, the Board implemented procedures to ensure journal entries are properly authorized/approved prior to posting to the accounting records. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,000.41 Audit Control Number 6021-93-04 The audit report for the year ended June 30, 1993, disclosed that the StaffDevelopment - Cost oflnstruction Programs had an underexpenditure of Quality Basic Education (QBE) funds of $1,000.41 for the required minimum allotment. In 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. These fund should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal year. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $3,216.90 Audit Control Number 6021-94-02 The audit report for the year ended June 30, 1994, disclosed that the Staff Development - Professional Development Stipends Program had an underexpenditure of Quality Basic Education (QBE) funds of $3,216.90 for the required minimum allotment. In the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure. These fund should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal year. -I- ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COST YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Salary Payment Errors Financial Statements Audit Control Number 6021-94-03 Finding Resolved The audit report for the year ended June 30, 1994, stated that the Board overpaid an employee in the amount of $119.46 and underpaid another employee in the amount of $17.21. During the year under review, reimbursement of $119.46 was secured and deposited to the Board's General Fund and payment of $17.21 from the Board's General Fund was made to the employee who was underpaid. PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6021-93-02 The audit report for the year ended June 30, 1994, noted that the management of the Atkinson County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Conditions - Material Weakness Audit Control Numbt::r 6021-94-01 The audit report for the year ended June 30, 1994, disclosed that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds. For the year under review, the Board made some improvements regarding separation of employee's duties, but still did not achieve an adequate degree of internal control. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management -2- ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COST YEAR ENDED JUNE 30, 1995 PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL)"' Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Conditions - Material Weakness Audit Control Number 6021-94-0 I 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 "I" of this report, are affected by this finding. CURRENT YEAR EMPLOYEE COMPENSATION Salary Payment Errors Financial Statements Nonmaterial Noncompliance Audit Control Number 6021-95-01 An employee compensation sample of twenty-seven employees was selected to test the accuracy of the Board's payment of employee compensation. This sample revealed one instance where the Board paid an employee $150.00 in excess of the individual's contracted salary without documentation to support the additional payment and another instance where an employee was underpaid in the amount of $27.50 as a result of an error by payroll personnel. Appropriate action should be taken by the Board to ensure that all personnel are paid in accordance with approved rates for work actually performed. Reimbursement of$150.00 should be secured and deposited to the Board's General Fund. Payment of $27.50 from the Board's General Fund should be made to the employee who was underpaid. CASH MANAGEMENT Excess Lottery Cash Balance Financial Statements Nonmaterial Noncompliance Audit Control Number 6021-95-02 A review of cash management procedures for the Lottery - Distant Learning program disclosed that cash draws were made in excess of actual expenditures. At June 30, 1995, this reimbursement basis program had a cash balance of $42.01. Procedures should be implemented to ensure that funds are not retained in the program at year end. The Georgia Department of Education should review this matter to determine if a reclaim of funds is appropriate. -3- ATKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COST YEAR ENDED JUNE 30, 1995 CURRENT YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plans Federal Financial Assistance Nonmaterial Noncompliance Finding Resolved Audit Control Number 6021-95-03 The Board failed to submit a corrective action plan for the 1994 audit report as required by O:MB Circular A128 to various entities that were the sources ofFederal financial assistance, as follows: ENTITY PROGRAM Okefenokee Regional Educational Service Agency Drug-Free Schools and Communities Act (CFDA 84.186) Berrien County Board ofEducation d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act Chapter I - Migrant Education Program (CFDA 84.011) Management maintained they were unaware ofthis Federal requirement. Subsequent to the year under review, the Board submitted a corrective action plan for the 1994 audit report to entities listed above. The Board should implement procedures to submit corrective action plans in a timely manner as required. -4- SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS ATKINSON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995 GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6021-93-02 We concur with this recommendation. Due to current staffing limitations and budgetary considerations prolubiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Conditions - Material Weakness Audit Control Number 6021-94-01 We concur with this finding, however due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this -finding. The Board feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding can not be totally resolved. EMPLOYEE COMPENSATION Salary Payment Errors Financial Statements Nonmaterial Noncompliance Audit Control Number 6021-95-01 We concur with this finding. Reimbursement will be secured from the employee who was overpaid. The employee who was underpaid will be reimbursed the $27.50. CASH MANAGEMENT Excessive Lottery Cash Balance Financial Statements Nonmaterial Noncompliance Audit Control Number 6021-95-02 We concur with this finding. A check has been issued to Georgia Department of Education to return the excessive cash in the amount of$42.0l. - 1- ATKINSON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1995 AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plans Federal Financial Assistance Nonmaterial Noncompliance Finding Resolved Audit Control Number 6021-95-03 We concur with this finding. Letters, along with copies of our corrective action plan, have been forwarded to the two agencies in question. -2-