Audit report, Baldwin County Board of Education, Milledgeville, Georgia, year ended June 30, 1994

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT BALDWIN COUNTY BOARD OF EDUCATION
MILLEDGEVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

BALDWIN 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

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES,'EXPENDITURES AND

CHANGES IN FUND BALANCES

25

FIDUCIARY FUND TYPE

I

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

27

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

28

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

30

3 ACCOUNTS RECENABLE

31

4 DEBT SERVICE REQUIREMENTS TO MATURITY

32

BALDWIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

5

STATE FUNDS

33

6

LOCAL AND OTHER FUNDS

34

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

35

8

LOTTERY PROGRAMS

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

37

10

BY PROGRAM

38

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

40

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

BALDWIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF 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
February 9, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Baldwin 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 Baldwin County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and
0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether
the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
94ARL-14

* 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 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 Baldwin County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board changed its method ofaccounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Baldwin County Board ofEducation taken as a whole. The combining statements (Exhibits E through I) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Baldwin 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 of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-14

BARROW COUNTY BOARD OF EDUCATION - 1-

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

ASSETS
Cash and Cash Equivalents Investments Held by Trustee Accounts Receivable Notes Receivable Inventories
Food Donated Commodities Purchased Food
Prepaid Items Amount Available in Debt Service Fund Amount to be Provided in Future Years
For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

$1,459,767.00$ 419,021.45$ 1,569,402.37

2,433,234.36 4,296.86

266,759.52

179,862.10

25,233.50 22,830.71
2,120.00

Total Assets

$=3=,=8=9=7==, 2==9=8=.=2=2 $ ====7=3=5=,=9=6=5=.=1=8 $ ==1=,7=4==9=,2==6=4=.4==7

LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Deferred Compensation Plan General Obligation Bonds Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated Total Fund Equity

$ 626,844.26 $ 2,314,774.07

60,725.31 $ 245,269.50
1,206.67 6,828.66

95,751.97 179,862.10

------------- ------------- ------------$-2--,9-4--1-,6-1--8-.3-3- $---3--1-4-,0--3-0-.1--4 $----2-7-5-,6--1-4-.0-7-

$ $ 25,510.45

1,216.10

25,233.50 22,830.71
------------- ------------- $--1-,2-7--0-,9--5-0-.8--3
$ 25,510.45 $ 49,280.31 $ 1,270,950.83

----9-3-0-,-1-6-9-.4--4

372,654.73
-------------

----2-0-2-,-6-9-9-.5--7

$----9-5-5-,6--7-9-.8--9 $----4-2-1-,9--3-5-.0--4 $--1-,4-7--3-,6--5-0-.-4-0

Total Liabilities and Fund Equity

$=3==,8=9==7=,2=9==8=.2=2=

$ 735,965.18$ 1,749,264.47
============= =============

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

EXHIBIT "A"

-------D-EB-T-----SEFURNVDICE

FFUIDNUDCITAYRPYE A-G- E-N-C-Y- - -FU-N- D- -S -

ACCOUNT GROUP ----G-EN--ER-A-L----
LONDEGB-TTERM

(MemoraTnOdTuAmLS Only) J-U-N-E--3--0-, --19-9-4----JU-N-E---3-0-, --1-9-93-

$ 129,387.95$

248.57

245,217.29

5,546.01

$3,577,827.34$ 4,394,896.73

245,217.29

221,121.98

2,885,401.99 2,631,255.52

4,296.86

$ 134,933.96

25,233.50 22,830.71 2,120.00 134,933.96

32,338.11 9,968.54
147,889.05

2,515,066.04 2,515,066.04 2,6.97,110.95

$ 134,933.96$ 245,465.86$ 2,650,000.00$ 9,412,927.69 $10,134,580.88

$ 783,321.54 $ 687,826.26

2,560,043.57 2,368,571.76

1,206.67

295,557.62

179,862.10 248,481.60

6,828.66

$

248.57

248.57

306.20

245,217.29

245,217.29

221,121.98

$ 2,650,000.00 2,650,000.00 2,845,000.00

$ 245,465.86$ 2,650,000.00$ 6,426,728.40$ 6,666,865.42

$ 134,933.96

$ 134,933.96

0.00 $

0.00

$ 134,933.96$

0.00

$

1,216.10$

7,421.55

134,933.96 147,889.05

25,510.45

292.96

25,233.50 22,830.71 1,270,950.83

32,338.11 9,968.54
738,115.65

$1,480,675.55$ 936,025.86

1,505,523.74 2,531,689.60

$2,986,199.29$ 3,467,715.46

$====1=3=4=,=9=3=3=.=9=6$====2=4=5=,=4=6=5=.=8=6$

==2=,6==5=0=,=0=0=0=.=0=0$

9,412,927.69
=============

$10,134,580.88
=============

- 3-

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

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE FUND

TOTALS (Memorandum Only)
----------Y-EA--R--EN--D-ED----------
JUNE 30, 1994 JUNE 30, 1993

REVENUES

State Funds Federal Funds Local and Other Funds

$18,024,807.42 $ 571,357.16$ 2,445,592.10

$21,041,756.68 $19,282,848.28

50,653.35 3,757,682.70

3,808,336.05 3,548,428.72

7,091,411.61 554,608.99

32,543.26$ 343,073.56 8,021,637.42 7,476,705.91

Total Revenues

$25,166,872.38 $4,883,648.85$ 2,478,135.36$ 343,073.56 $32,871,730.15 $30,307,982.91

EXPENDITURES

Current

Instruction

$15,952,674.80 $2,000,856.09

$17,953,530.89 $17,020,205.33

Support Services

Pupil Services

614,510.20 274,994.54

889,504.74 751,163.78

Improv~nt of Instructional

Serv1ces

610,672.23 232,398.27

843,070.50 792,498.15

Educational Media Services

575,828.99

4,573.77

580,402.76 545,281.04

General Adninistration

442,292.79 88,017.18

530,309.97 490,427.58

School Administration

1,691,099.62

1,691,099.62 1,650,054.66

Business Administration

271,114.60

271,114.60 307,084.36

Maintenance and Operation

of Plant

2,312,869.00 136,456.22

2,449,325.22 2,219,703.24

Student Transportation

Services

1,300,765.59 88,525.85

1,389,291.44 1,353,249.54

Central Support Services

123,759.87 18,641.99

142,401.86 125,736.60

Other Support Services

53,354.28

9,649.99

63,004.27

54,108.14

Food Services Operation

1,636.18 1,916,882.78

1,918,518.96 1,652,777.60

Other Operations of Non-

Instructional Services

153,941.89

153,941.89

21,022.12

Capital Outlay

103,563.98 65,730.00$ 3,958,164.53

4,127,458.51 3,019,555.10

Debt Service

Principal Interest Paying Agent Fees

$195,000.00 157,307.50 3,721.15

195,000.00 157,307.50
3,721.15

120,000.00 164,785.00
2,868.35

------------- -------------

Total Expenditures

$24,208,084.02 $4,836,726.68$ 3,958,164.53 $ 356,028.65 $33,359,003.88 $30,290,520.59

Excess of Revenues over (under)

Expenditures

$ 958,788.36$ 46,922.17 $-1,480,029.17 $ -12,955.09 $ -487,273.73 $ 17,462.32

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 15,277.00$ 1,892,784.08 $-1,908,061.08

$1,908,061.08 $ 840,853.04 -1,908,061.08 -840,853.04

Total Other Financing

Sources (Uses)

$-1,908,061.08 $ 15,277.00$ 1,892,784.08

$

0.00 $

0.00

Excess of Revenues and Other

Financing Sources over (under)

Expenditures and Other Financ1ng

Uses

$ -949,272.72 $ 62,199.17 $ 412,754.91 $ -12,955.09 $ -487,273.73 $

17,462.32

FUND BALANCE JULY 1 .

1,904,952.61 353,978.31 1,060,895.49 147,889.05 3,467,715.46 3,491,719.08

Food Inventory Donated C0111l10dities July 1 June 30 Purchased Food July 1 June 30

-32 ,338.11 25,233.50 -9,968.54 22,830.71

-32,338.11 25,233.50 -9,968.54 22,830.71

-73,157.22 32,338.11 -10,615.37 9,968.54

FUND BALANCE JUNE 30

$===9=5=5=,=6=7=9=.8=9= $===4=2=1=,=9=3=5=.=0=4$==1=,4==7=3=,=6=5=0=.=4=0$==1=3=4=,=9=3=3=.=9=6$==2=,9=8=6=,=1=9=9=.2=9= $=3=,=4=6=7=,=7=1=5=.4==6

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

- 4-

BALDWIN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30. 1994

EXHIBIT "C"

ACTUAL

ACTUAL

PER

PER

EXHIBIT "B" ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

REVENUES

State Funds Federal Funds Local and Other Funds

$21,041,756.68$ 3,808,336.05 8,021,637.42

0.00 $21,041,756.68 $20,932,290.00$ 109,466.68 3,808,336.05 3,201,281.00 607,055.05 8,021,637.42 8,166,688.00 -145,050.58

Total Revenues

$32,871,730.15$

0.00 $32,871,730.15 $32,300,259.00 $ 571,471.15

EXPENDITURES

Current Instruction Support Services Pupil Services IIIJ)rovement of Instructional Services Educational Media Services General Adninistration School Acininistration Business Acininistration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Total Expenditures

$17,953,530.89 $

0.00 $17,953,530.89 $17,541,148.00$ -412,382.89

889,504.74 843,070.50 580,402.76 530,309.97 1,691,099.62 271,114.60 2,449,325.22 1,389,291.44 142,401.86 63,004.27 1,918,518.96

889,504.74 843,070.50 580,402.76 530,309.97 1,691,099.62 271,114.60 2,449,325.22 1,389,291.44 142,401.86 63,004.27 1,918,518.96

768,241.00 851,533.00 567,669.00 525,750.00 1,698,788.00 358,949.00 2,300,449.00 1,286,794.00 139,122.00 75,647.00 1,833,011.00

-121,263.74 8,462.50
-12,733.76 -4,559.97 7,688.38 87,834.40 -148,876.22 -102,497.44 -3,279.86 12,642.73 -85,507.96

153,941.89

153,941.89 112,050.00 -41,891.89

4,127,458.51

4,127,458.51 6,021,955.00 1,894,496.49

356,028.65

356,028.65 528,608.00 172,579.35

------------- ------------- ------------- ------------- -------------

$33,359,003.88$

0.00 $33,359,003.88 $34,609,714.00$ 1,250,710.12

Excess of Revenues over (under) Expenditures $ -487,273.73 $

0.00 $ -487,273.73 $-2,309,455.00 $1,822,181.27

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$1,908,061.08$ -1,908 ,061.08

0.00 $1,908,061.08$ 1,744,920.00$ 163,141.08 -1,908,061.08 -1,759,920.00 -148,141.08

Total Other Financing Sources

(Uses)

$

0.00 $

0.00 $

0.00 $ -15,000.00 $ 15,000.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other

Financing Uses

$ -487,273.73 $

FUND BALANCE JULY 1, 1993

3,467,715.46

0.00 $ -487,273.73 $-2,324,455.00 $1,837,181.27 -42,306.65 3,425,408.81 4,476,287.84 -1,050,879.03

FOOD INVENTORY

Donated CCJ11110dities July 1, 1993 June 30, 1994
Purchased Food July 1 1993 June 36, 1994

-32,338.11

32,338.11

0.00

0.00

25,233.50 -25,233.50

0.00

0.00

-9,968.54

9,968.54

0.00

0.00

22,830.71 -22,830.71

0.00

0.00

------------- ------------- ------------- ------------- -------------

FUND BALANCE JUNE 30, 1994

$=2=,=9=8=6=,1=9=9=.=2=9 $===-4=8=,0=6=4.=2=1 $=2=,9=3=8=,=1-3-=5=.0=8$=2==,1=5=1==,8=3=2=.=8=4$===7=8=6,=3=0=2.=2=4

The notes to the general purpose financial statements are an integral part of this statement. - 5-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Baldwin County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements ofthe Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant 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 Baldwin County Board ofEducation.
Based upon the application ofthe above criteria, the Baldwin County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Baldwin County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
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.
- 6-

BALDWIN COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: 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 and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to
provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a
special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the agency fund used to account for assets held by a government unit as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUNDS - the funds used to account for assets held for other funds or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.
- 7-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental 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 substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1993 and ending in early June 1994. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fiinge benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.

- 8-

BALDWIN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
Baldwin County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval:After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including 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.
INVESTMENTS HELD BY TRUSTEE
Investments held by trustee consist of contributions from employees who have elected to participate in the Board's deferred compensation plan. See Note 10 - Deferred Compensation Plan
ACCOUNTS RECEIVABLES
Accounts receivables consist of grant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Accounts rece~vables are recorded when either the asset or revenue recognition criteria has been met. Accounts receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

- 9-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTES RECEIVABLE

Notes rec~ivable consist of the outstanding balance on student loans for assistantships with upper division minority students in teacher training programs attending Georgia College. See Note 13 - Other Financial Notes

PROPERTY TAXES

The Baldwin County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on December 7, 1993 (levy date). Taxes were due on March 1, 1994. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The Baldwin County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

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

School Operations School Bonds

15.96 mills _:J.Qmills

16.72 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 of fund balance which indicates that these amounts do not constitute "available spendabl~ resources" even though they are a component of net current assets.

For fiscal year 1994, the Board began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the Board. The reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles.

- 10 -

BALDWIN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1994, are recorded as prepaid items.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting
accumulating leave in which payment is probable and can be reasonably estimated. No liability has been
recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 11 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount ofnot 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 of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State ofGeorgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $5,646,332.89. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
- 12 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS AND INVESTMENTS

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, 1994, as follows:

Risk Category
1 2
3
Total

Bank Balance
$ 219,022.29 4,984,939.70 442,370.90
$ 5,646,332 89

CATEGORIZATION OF INVESTMENTS At June 30, 1994, the carrying amount of the Board's total investments was $245,217.29 and this entire amount is categorized as Unclassified - Deferred Compensation Plan pooled investments. The market value ofthese investments was $245,217.29.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$5,129.42 was paid in claims.

Note 5: OPERATING LEASES

Baldwin County Board of Education has entered into various leases as lessee for rental of copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1994, amounted to $52,725.00. Future minimum lease payments for these leases are as follows:

Year Ending
1995 1996 1997
Total

Amount
$ 15,850.00 12,450.00 10,375.00
$ 38,615.QQ

- 13 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 6: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1, 1993

$ 2,845,000.00

Deletions

195,000.00

Balance June 30, 1994

$ 2,650 000.00

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

Fiscal Year Ended June 30

General Obligation
Bonds

1995 1996 1997 1998 1999 2000 and thereafter

$ 276,265.00 357,330.00 360,935.00 363,285.00 359,565.00
1,791,325.00

Total Principal and Interest

$3,508,705.00

Note 7: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal years 1986 and 1992, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose :financial statements. At June 30, 1994, $3,050,000.00 of bonds defeased by the 1985 and 1992 bond issues are outstanding and are considered defeased.

Note 8: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of $316,587.62 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department ofEducation has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized

- 14 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 8: SIGNIFICANT COMMITMENTS

in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

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

$ 96,387.31 139,995.51 80,204.80 6,828.66
$ 323,416.28

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

Project

Unearned Executed Contracts

Funding Available From State

93/94-605-002

$ 867,489.20 $ 71,887 90

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

Note 9: CONTINGENT LIABILITIES

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

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

Note 10: DEFERRED COMPENSATION PLAN

The Board offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Board employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.

All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Board subject only to the claims of the Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant.

- 15 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\1ENTS

JUNE 30, 1994

Note 10: DEFERRED COMPENSATION PLAN
Investments are managed by the plan's trustee, Lincoln National Life Insurance Company, under an investment option, or a combination of investment options, made by the participants.
Note 11: ACCUMULATED EMPLOYEES' LEAVE
All twelve month employees ofthe Baldwin County Board ofEducation earn annual leave according to the number ofyears ofcontinuous and creditable service. Annual leave may be accumulated up to thirty days and unused leave up to the maximum accumulation, is paid to employees at their current rate of pay, upon retirement or termination of employment. See Note 1 - Compensated Absences
Note 12: RETIRE1\1ENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average 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 ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $15,839,753.27; total payroll was $18,615,053.38.

- 16 -

BALDWIN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 12: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $2,821,064.13, ofwhich $1,870,670.85 was made by the Board and $950,393.28 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

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

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1.090.292.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $1,870,670.85 was actuarially determined and represented .3586% oftotal contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

- 17 -

BALDWIN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 12: RETIREMENT PLANS
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 ofGeorgia.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after l Oyears ofservice and attainment of age 65. A member applying for service retirement with l Oyears 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 of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the 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 217 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $7,304.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
NOTE 13: OTHER FINANCIAL NOTES
The Baldwin County Board ofEducation entered into an agreement with Georgia College to establish two assistantships for upper division minority students in teacher training programs at a cost to the school system ofup to $2,000.00 per year ($1,000.00 per student). The Baldwin County Board ofEducation's contribution is in the form of loans to selected students with repayment beginning within six months of completion of the individual's study at Georgia College with a repayment period not to exceed twenty-four months. The loan

- 18 -

BALDWIN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

NOTE 13: OTHER FINANCIAL NOTES

is also cancellable at the rate of 33 1/3 percent for each year of satisfactory employment as a teacher in the
Baldwin County School System. The balance of$4,296.86 is shown in the General Fund as Notes Receivable
on Exhibit "A". An analysis of the changes for this program during the year ended June 30, 1994, is as follows:

Balance July 1, 1993

$ 5,053.34

Additions: Assistantships During Year

589.18

Deductions: Cancellation - Teaching Service Repayments

1,145.66 200.00

Balance June 30, 1994

$ 4,296.86

Note 14: SURETY BONDS

The School Superintendent, Dr. Ivan H. Washington, is bonded in the amount of$10,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60031721, on which premium was paid through August 6, 1994.

- 19 -

BAl..ll/IN CCUITY 006.RD CF ECXr.ATIOO CCMlINIM> P/\1..MCT SltET SPECIAL REVENL FIJID
JltlE 30. 1994

ASSETS
Cash and Cash Equivalents Acca.nts Receivable Inventories
Food 1ma1:a:1 Camooities Purchased Food
Prepaid I1:slS

som.
FCXD SERVICES
Fl.tlD

.xE

STATE CFPCRTLtHTIES

PRESctm. ANO BASIC

AllU IWIDIWPEO SKILLS

LOTTERY

ECXr.ATIOO PROCRAM lRAINIM> PROCRAMS

El.ElNTMYNIJ CIW7TER 1
IRL&FREE
Sctm.S NE ECXr.ATIOO CF ECXr.ATIOO CF CO+UHTIES OULIREN IN CEPRIVEO
PCT STATE Sctm.S OIILIREN

$457,819.88

$

25,318.54 $44,424.98

0.00 $

0.00

$

$16,449.39

899.66 $

0.00 $ 5,679.24 aa,n4.20

25,233.50 22,830.71 2,120.00

Total Assets

$533,322.63 $44,424.98 $

0.00 $

0.00 $16,449.39$ 899.66 $

0.00 $ 94,453.44

LIABILITIES ANO FLtil E~ITY

LIABILITIES

Cash Overdraft Accwrt:s Payable Salaries Payable ~ired Grant Balances Payable De erred Reverue

$44,424.98 $19,113.15
93,490.54

Total Liabilities

$112,603.69 $44,424.98

FLtil E~ITY

FLl'ld Balances Reserved For Cart:inuatia, of Federal Progrcl!S For Expired Grant Balances/ ()Jesti a,ed Costs For Inventories Food lknata:I Cmmxli ti es Purchased Food

$25,233.50 22,830.71

lilreserved lildesi gnata:I

$ 48,064.21 372,654.73$

0.00 $

Total FLl'ld Equity

$420,718.94$ 0.00 $

0.00 $ 0.00 $

$8,174.06 240.00 $
1,206.67 6,828.66

144.50 755.16

$16,449.39 $ 899.66

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$ 20,401.52 74,051.92
$ 94,453.44

0.00 $

0.00

0.00 $

0.00

Total Liabilities and Fuoo Equity

$533,322.63 $44,424.98$

0.00 $

0.00 $16,449.39$ 899.66 $

0.00 $ 94,453.44

See notes to tl-e general ?Jrpose financial stateJBrt:s.

- 20 -

EXHIBIT "E"

SECIJllJMY Ell.CATIOO PCT

INDIVIIX.W.S WITH

TITLE II - DISABILITIES Ell.CATIOO PCT

QW>TER 2

EISENJ-OER

TITLE VI, B

BLOO< fRANT - INOOVATIVE AMNAOTIEsMcImITIaCS:

FLOJ

.Dl TRAININJ PRESClm PARTNERSHIP

FLOJ TIRcx.Gi PRww-1 Ell.CATIOO TIRcx.Gi

PRww-1

PCT

tAD START

TOTALS .l.tE 30, 1994 JLt 30, 1993

$

0.00 $

0.00 $ 1,216.10$ 4,001.78$ 2,916.00

$ 472,532.66$ 333,501.33

13,566.32 2,914.18 $ 912.17 $74,399.74 266,759.52 294,981.26

25,233.50 22,830.71 2,120.00

32,338.11 9,968.54

$

0.00 $

0.00 $ 1,216.10$ 17,SfiB.10 $ 5,830.18 $

912.17 $74,399.74$ 789,476.39$ 670,789.24

$ $ 4,139.36 $ 1,181.76
13,428.74 4,648.42 $ 17,568.10 $ 5,830.18 $

912.17

$

$15,505.02

58,894.72

53,511.21 60,725.31 $ 245,269.50 1,206.67 6,828.66

66,193.06 250,617.87

912.17 $74,399.74 $ 367,541.35$ 316,810.93

$ 1,216.10

$ 1,216.10 $ 7,421.55 292.96

25,233.50 22,830.71

32,338.11 9,968.54

$ 1,216.10

$ 49,280.31$ 50,021.16

$

0.00 $

0.00

0.00 $

0.00 $

0.00 $

0.00 $ 0.00 372,654.73 303,957.15

$

0.00 $

0.00 $ 1,216.10$

0.00 $

0.00 $

0.00 $ 0.00 $ 421,935.04 $ 353,978.31

$

0.00 $

0.00 $ 1,216.10$ 17,568.10$ 5,830.18$

912.17 $74,399.74$ 789,476.39$ 670,789.24

==== ====

==== ===

- 21 -

BAl...llrlIN CCUlTY OOMD CF EIU'.ATIOO CXM3ININ> STAIDENT CF REVEtuS, EXPENDITI.RES AND Clwa:S IN Fl.ti) BAI..AfCES
SPECIAL REVENLE Fl.ti) YE.AR EtaD .l.t 30, 1994

som. FIXX)
SERVICES
AH)

All.l.T EIU'ATIOO

.IE

PRSTEAsToEm.

CPPCRTLNITIES AND BASIC

IWf)ICAPPED SKILLS

PRoow,t

lRAININ>

LOTTERY
PRoow,tS

EWENTMY NlJ

OW'TER 1

sIoRml&.FsREAEND EIU'ATIOO CF EIU'ATIOO CF

<XJMJHTIES N:r

STOAUTLEIRsEoNmIN.s

DEPRIVED OiILIREN

REVEN.ES

State FU'lds
LFoecdae1raa1ooFUO'ldths er FU'lds

$ 135,684.00

$ 72,013.00

$.363, 660 .16

1,295,619.58 $183,558.32

$ 65,104.81

$ 47,167.22$ 10,620.00 $ 886,988.2_5

553,983.82

Total Rewnies

$1,985,287 .40 $183,558.32 $ 72,013.00 $ 65,104.81 $.363,660.16 $ 47,167.22$ 10,620.00$ 886,988.25

EXPEN>Ill.RES

CuTTent

Instruc:tia,

$189,393.32 $ 72,013.00 $

~ -

SSeerrvviicceess

~~t~1 Services

Ecu:atia,al Media Services

MGeaninerteanl aAncdenaionois~traatitai, a,

of Plant

Stooent Transportatia,

Services

Cart:ral ~ Services

Other Stwart Services

Focxl Services ~ratia, $1,916,882.78

Capital Ckrt:lay

65,104.81 $294,021.11 $ 11,187.20

52,150.58

$

1,000.33 35,427.85

552.17

16,449.39

38.75

$ 792,820.36

10,580.00

17.57

43.06

22.43 71,337.07

11,567.32 18,641.99

Tota1 Expenditures $1,916,882.78 $189,393.32 $ 72,013.00$ 65,104.81 $.363,660.16 $ 47,167.22$ 10,620.00 $ 894,409.80

Excess of Rewnies over (t.n:ler)

Expenditures

$ 68,404.62 $ -5,835.00 $

OTtfR FINAtCIN> SCl.RCES

0.00 $

0.00 $ 0.00 $

0.00 $

0.00 $ -7,421.55

~rati~ Transfers In

5,835.00

Excess of Rewnies aoo Other

Financi~ Sources over (t.n:ler)

Expenditures

$ 68,404.62 $

AH) BAI..AfCE .ll.y 1

346,556.76

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ -7,421.55 0.00 7,421.55

Focxl Inventory . !mated Carimdities .lily 1 .lrie 30 Purchased Focxl .lily 1 .lrie 30

-32,338.11 25,233.50 -9,968.54 22,830.71

Fl.N) BAI..AfCE .J.1 30

$ 420,718.94$ 0.00 $

0.00 $

0.00 $ 0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial staterents.

- 22 -

EXHIBIT "F''

SE~Y Ell.CATIOO /lCT

TITLE II -

ow>TER 2

EISEtfOER

M6.TJBIATICS

BLOCK fRANT - lhNJYATIVE NfJ SCIEK:E

FLDJ nRa.Gi ~ Ell.CATIOO

ItfllVIDlW.S Willi

DISABILITIES Ell.CATIOO /lCT

Tin VI, B

.IE lRAINiti

FLDJ

PREsom.. PARTNERSHIP

nRa.Gi

~

/lCT

tAD START

TOTALS YEAR EtflED .ll 30, 1994 .ll 30, 1993

$ 53,193.00 $ 67,160.00 $ 44,573.23 $ 184,616.32 $ 43,879.18 $ $ 53,193.00 $ 67,160.00 $ 44,573.23 $ 184,616.32 $ 43,879.18 $

$ 571,357.16$ 129,406.00 9,122.96 $866,079.83 3,757,682.70 3,497,123.56
625.17 554,606.99 609,641.11 9,122.96 $866,705.00$ 4,883,648.85$ 4,236,170.67

$ 2,120.00

$ 157,989.84 $ 35,599.45$

$ 47,699.14

24,639.62

8,178.88

74,482.00$ 43,357.13 4,573.n
920.00

1,574.17 412.69

100.85

$ 53,193.00 $ 76,602.00 $ 43,357.13 $ 184,616.32 $ 43,879.18$

9,122.96 $371,484.04 $ 2,000,856.00 $ 1,823,714.14

131,746.32 274,994.54 187,714.21

76,496.16 14,671.88

232,398.27 4,573.n 88,017.18

206,546.32 6,267.34 38,527.13

120,006.83 136,456.22

42,882.33

76,919.78 9,649.99 65,730.00

88,525.85 18,641.99 9,649.99 1,916,882.78 65,730.00

76,692.81 17,622.71 12,141.99 1,652,777.60 11,404.00

9,122.96 $866,705.00 $ 4,836,726.68 $ 4,076,290.58

$

0.00 $ -9,442.00 $ 1,216.10$

0.00 $

0.00 $

0.00 $

0.00 $ 46,922.17 $ 159,880.00

9,442.00

15,2n.OO

8,203.04

$

0.00 $

0.00 $ 1,216.10 $

0.00 $

0.00 $

0.00 $

0.00 $ 62,199.17$ 168,003.13

0.00

0.00

0.00

0.00

0.00

0.00

0.00 353,978.31 227,361.12

-32,338.11 25,233.50
-9,968.54 22,830.71

-73,157.22 32,338.11 -10,615.37 9,968.54

$

0.00 $

0.00 $ 1,216.10$

0.00 $

0.00 $

0.00 $

0.00 $ 421,935.04$ 353,978.31

- 23 -

BALDWIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1994

EXHIBIT "G"

ASSETS

REGULAR

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

92/92S-605-003 93/94-605-002 94/94S-605-001

TOTALS
---------------------------JUNE 30, 1994 JUNE 30, 1993

Cash and Cash Equ;valents Accounts Rece;vable

$ 202,699.57 $

0.00 $1,040,599.58$ 179,862.10

326,103.22 $1,569,402.37 $1,410,906.71 179,862.10 194,028.00

Total Assets

$ 202,699.57 $

0.00 $1,220,461.68$ 326,103.22 $1,749,264.47 $1,604,934.71

========== ============== ============= ============== ============ ==-===========

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Contracts Payable Reta;nages Payable

Total L;ab;1;t;es

FUND EQUITY

Fund Balances Reserved For State Capital Outlay Projects Unreserved Undes;gnated

$ 202,699.57 $

Total Fund Equity $ 202,699.57$

$ 95,751.97
179,862.10
-------------
$ 275,614.07
-------------

$ 95,751.97 $ 295,557.62
179,862.10 248,481.60
------------- -------------
$ 275,614.07 $ 544,039.22
------------- -------------

$ 944,847.61 $

0.00

0.00

326,103.22 $1,270,950.83 $ 738,115.65 0.00 202,699.57 322,779.84

0.00 $ 944,847.61 $ 326,103.22 $1,473,650.40$ 1,060,895.49

Total L;ab;1;ties

and Fund Equ;ty $ 202,699.57 $

0.00 $1,220,461.68$ 326,103.22 $1,749,264.47 $1,604,934.71

======== ======== ======== =========== ======== ============

See notes to the general purpose f;nanc;al statements. - 24 -

BALDWIN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

---------------------------------------------

PROJECT

PROJECT

PROJECT

92/92S-605-003 93/94-605-002 94/94S-605-001

TOTALS
---------------------------YEAR ENDED
---------------------------JUNE 30, 1994 JUNE 30, 1993

REVENUES

State Funds Local and Other Funds

$ 1,293.57 $

$ 2,445,592.10 5,824.85 20,421.46$

$2,445,592.10$ 1,903,177.54 5,003.38 32,543.26 46,121.07

Total Revenues

$ 1,293.57 $

5,824.85$ 2,466,013.56$

5,003.38$ 2,478,135.36$ 1,949,298.61

EXPENDITURES

Capital Outlay Land and Land I~rovements $ Building and Building I~rovements Equipment

0.00 $

7,208.66$ 295,229.57 $
895,409.90 2,531,623.98 131,260.45 95,751.97

1,680.00$ 304,118.23 $ 91,129.13
3,427,033.88 2,705,548.04 227,012.42 100,038.97

Total Expenditures $

0.00 $ 1,033,879.01 $2,922,605.52$

1,680.00$ 3,958,164.53 $ 2,896,716.14

Excess of Revenues over (under) Expenditures

$ 1,293.57 $ -1,028,054.16 $ -456,591.96 $ 3,323.38 $-1,480,029.17 $ -947,417.53

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$201,406.00$ 528,378.08$ l,163,000.00 $ 322,779.84$ 2,215,563.92$ 1,141,541.25

-322,779.84

-322,779.84 -308,891.25

Total Other Financing Sources (Uses) $-121,373.84 $ 528,378.08$ l,163,000.00 $ 322,779.84$ 1,892,784.08$ 832,650.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

$-120,080.27 $

-499,676.08 $

706,408.04$

FUND BALANCE JULY 1

322,779.84

499,676.08 238,439.57

326,103.22 $ 412,754.91 $ -114,767.53 0.00 1,060,895.49 1,175,663.02

FUND BALANCE JUNE 30

$ 202,699.57 $

0.00 $ 944,847.61 $ 326,103.22 $1,473,650.40$ 1,060,895.49

======= =========== ========= ============ ============ ============

See notes to the general purpose financial statements. - 25 -

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

EXHIBIT "I"

DEFERRED COMPENSATION PLAN
ASSETS Investments Held by Trustee

BALANCE JULY 1, 1993

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1994

$ 221,121.98 $ 24,095.31 $

0.00 $ 245,217.29

===========~= ====z====== ============= =============

LIABIL !TI ES Deferred Compensation Plan

$ 221,121.98 $ 24,095.31 $

0.00 $ 245,217.29

SPECIAL ACTIVITIES ACCOUNT
ASSETS Cash and Cash Equivalents
LIABILITIES Funds Held for Others

$

306.20 $ 9,130.00 $ 9,187.63 $

248.57

============= ============= ============= =============

$

306.20 $ 9,130.00 $ 9,187.63 $

248.57

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents Investments Held by Trustee

$

306.20 $ 9,130.00$

221,121.98

24,095.31

9,187.63 $

248.57

0.00 245,217.29

LIABILITIES Funds Held for Others Deferred Compensation Plan

$ 221,428.18$ 33,225.31 $ 9,187.63 $ 245,465.86
============= ============= ============= =============

$

306.20 $ 9,130.00 $

221,121.98

24,095.31

9,187.63 $

248.57

0.00 245,217.29

$ 221,428.18$ 33,225.31 $ 9,187.63 $ 245,465.86
============= ============= ============= =============
See notes to the general purpose financial statements. - 27 -

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

SCHEDULE "l" Page 1

FUNDING AGENCY PROGRAM/GRANT
--------------
Agr;culture, U. S. Department of Direct Food and Nutrition Program Sumer Food Serv;ce Program for Children 1993 Grant 1994 Grant Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1994 Grant Food Services School Breakfast Program 1993 Grant 1994 Grant Nat;onal School Lunch Program 1993 Grant 1994 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Through B;bb County Board of Education Adult Educat;on 1993 Grant 1994 Grant Through Georgia Department of Education Drug-Free Schools and CCJ111L1nit;es Act 1992 Carry-Over Grant 1993 Grant 1993 Carry-Over Grant 1994 Grant Elementary and Secondary Education Act Chapter 1 Education of Children ;n State Schools 1994 Regular Education of Depr;ved Ch;ldren 1992 Carry-Over 1993 Regular 1993 Summer 1993 Carry-Over 1994 Regular 1994 Summer Chapter 2 Block Grant - Flow Through 1993 Regular 1994 Regular Innovative Programs 1994 Regular Education for Economic Security Act Title II Eisenhower Mathemat;cs and Science Educat;on 1993 Regular 1994 Regular

FEDERAL FUNDS

RECEIVED IN FEDERAL

CFDA AWARDS

PERIOD (NET

REVENUE EXPENDITURES

NUMBER IN PERIOD OF REFUNDS) IN PERIOD

IN PERIOD

------------- ------------- ------------- -------------

10.559 $ 21,867.35$ 26,350.00$ 21,867.35$ 21,965.88(3)

10.559

13,818.00

13,818.00

13,818.00

12,576.83(3)

10.558

11,410.00

10,798.67

11,410.00

(2)

10.553

3,015.74

10.553 251,951.81 249,086.49 251,951.81

(2)

*10.555

7,401.17

*10.555 852,884.86 831,071.97 852,884.86 1,738,652.51(3)

10.550 143,687.56

N/A

143,687.56 143,687.56

------------- ------------- ------------- -------------

$1,295,619.58$ 1,141,542.04 $1,295,619.58$ 1,916,882.78
------------- ------------- ------------- -------------

84.002

$ 56,310.43

84.002 $ 214,545.00 139,133.34$ 183,558.32 $ 189,393.32(3)

84.186 84.186 84.186 84.186

362.00 7,129.00 55,078.00

346.06 4,873.31 5,505.90 41,315.26

346.06
5,505.90 41,315.26

346.06
5,505.90 41,315.26

84.009
*84.010 *84.010 *84.010 *84.010 *84.010 *84.010
84.151 84 .151
84 .151

10,620.00 3,908.00
250,883.00 633,373.00 79,833.00
53,193.00 67,160.00

10,620.00
3,908.00 128,327.07 56,264.05 250,882.00 487,160.00
9.00 53,193.00
67,160.00

10,620.00 3,908.00 56,264.05 250,882.00 575,934.20
53,193.00 67,160.00

10,620.00 3,908.00 63,685.60 250,882.00 575,934.20
53,193.00 76,602.00(3)

84.164 84.164

25,288.00

20,912.90 25,288.00

19,285.23 25,288.00

19,285.23 24,071.90

- 28 -

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

SCHEDULE "l" Page 2

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 Georgia Department of Education Individuals with Disabilities Education Act
Title VI, B Flow Through
1993 Regular 1993 Carry-Over
1994 Regular Preschool Program
1992 Carry-Over 1993 Regular 1993 Carry-Over 1994 Regular
Vocational Education - Basic Grants to States High School Program
Basic Grant 1993 Grant 1994 Grant

84.027 84.027 $ 84.027
84.173 84.173 84.173 84.173

$ 17,416.00 188,754.00
3,186.00 42,657.00

19,991.04 17,416.00$ 153,634.00
5,440.00 3,891.47 3,186.00 37,779.00

17,416.00$ 167,200.32
3,186.00 40,693.18

17,416.00 167,200.32
3,186.00 40,693.18

84.048

5,619.93

84.048

50,653.35

36,980.35

50,653.35

(4)

------------- ------------- ------------- -------------

Total U. S. Department of Education

$1,704,038.35$ 1,635,146.11 $1,572,408.87$ 1,543,237.97
------------- ------------- ------------- -------------

Health and Human Services, U. S. Department of Direct
Head Start 1993 Grant 1994 Grant
Through Georgia Department of H1111an Resources Various Offices of Department of Family and Children Services Job Opportunities and Basic Skills Training 1994 Grant

*93.600 *93.600 $
93.561

$ 866,705.00 66,108.00

59,611.71 791,680.09 $
65,104.81

866,079.83 $ 65,104.81

866,705.00(3) 65,104.81

Total U. S. Department of Health and H1111an Services

$ 932,813.00$ 916,396.61 $ 931,184.64 $ 931,809.81

Labor, U. S. Department of
Through Overview, Incorporated Job Training Partnership Act DV-93-BBOE-007

17 .250 $ 10,000.00$ 8,210.79 $ 9,122.96 $ 9,122.96

Total Federal Financial Assistance

$ 3,942,470.93 $3,701,295.55$ 3,808,336.05$ 4,401,053.52
=========== ======== ========== ============

Major Programs are identified by an asterisk (*) in front of the CFDA number.
(1) The amount shown for the Food Distribution Program represents the Federally assigned value of nonnonetary assistance for donated cannodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1994 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. - 29 -

BALDWIN COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30. 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Exchange Bank, Milledgeville, Georgia
INTEREST BEARING ACCOUNTS
Century Bank and Trust, Milledgeville, Georgia
N.O.W. Accounts (2.75%) Exchange Bank, Milledgeville, Georgia
N.O.W. Accounts (2.75%)

$

248.57

$ 457,819.93
3,119,758.84 3,577,578.77
$ 3,577,827.34
=============

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

BALDWIN COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1994

SCHEDULE "3"

Baldwin County High School Reini>ursement for Expenses

GOVERNMENTAL FUND TYPES

----------------------------------------------------------

SPECIAL

CAPITAL

DEBT

GENERAL

REVENUE

PROJECTS

SERVICE

FUND

FUND

FUND

FUND

TOTAL

------------- ------------- ------------- ------------- -------------

$ 2,000.00

$ 2,000.00

Baldwin County Tax Comnissioner County Wide Bond Tax County Wide School Tax

396,036.36

$ 5,546.01

5,546.01

396,036.36

Bibb County Board of Education Adult Education

$ 44,424.98

44,424.98

Education, Georgia Department of Quality Basic Education Deferred Sunmer Salaries - FY 1994 Food Services Child and Adult Care Food Program School Breakfast Program National School Lunch Program Vocational Education Federal Funds Lottery Programs Safe Schools Grant ESEA - Chapter l Education of Deprived Children Individuals with Disabilities Education Act Title VI, B Flow Through Preschool Program

2,021,525.00 13,673.00

611.33 2,865.32 21,812.89
16,449.39 88,774.20
13,566.32 2,914.18

2,021,525.00 611.33
2,865.32 21,812.89 13,673.00 16,449.39 88,774.20
13,566.32 2,914.18

Georgia State Financing and Investment Ccmnission Reini>ursement on Construction Projects

$ 179,862.10

179,862.10

Health and Human Services, U. S. Department of Head Start

74,399.74

74,399.74

Overview, Incorporated Job Training Partnership Act

912.17

912.17

Various Sources Other

29.00

29.00

------------- ------------- ------------- ------------- -------------

$2,433,234.36$ 266,759.52 $ 179,862.10$ 5,546.01 $ 2,885,401.99
========== =====~~=== ============= =======-=== ===========

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

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

SCHEDULE "4"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
--------------
1995 1996 1997 1998 1999
2000 2001 2002 2003 2004
2005

TOTAL

1992 ISSUE

DEBT ----------------------------

SERVICE

INTEREST (*)

PRINCIPAL

------------- ------------- -------------

$ 276,265.00 $ 76,265.00$ 200,000.00 357,330.00 142,330.00 215,000.00 360,935.00 130,935.00 230,000.00 363,285.00 118,285.00 245,000.00 359,565.00 104,565.00 255,000.0Q

360,030.00 359,370.00 357,555.00 339,555.00 316,405.00

90,030.00 74,370.00 57,555.00 39,555.00 21,405.00

270,000.00 285,000.00 300,000.00 300,000.00 295,000.00

58,410.00

3,410.00

55,000.00

------------- ------------- -------------

$3,508,705.00$ 858,705.00$ 2,650,000.00
============= ============= =============

(*) Interest due July 1, 1994 was paid prior to June 30, 1994, and has been excluded from this schedule.

CHANGES IN GENERAL LONG-TERM DEBT

Bonds Payable at July 1, 1993 Bonds Retired During Period

$ 2,845,000.00 195,000.00

Bonds Payable at June 30, 1994

$ 2,650,000.00

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

JAN 1 - JUL 1 JAN 1

See notes to the general purpose financial statements. - 32 -

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

SCHEDULE "5"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

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 Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Fiscal Year
1993 1994 Local Fair Share Deferred Summer Salaries - FY 1993 Deferred Summer Salaries - FY 1994 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Mentor Teacher Program Preschool Handicapped Program Special Education Support Cost Supervision and Assessment of Student and Beginning Teachers and Performance-Based Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Pre-Kindergarten Program Safe Schools Grant

$10,432,600.00 1,955,843.00 260,042.00 463,391.00 151,774.00 3,155,092.00
656,413.00 205,284.00 382,024.00 274,084.00 98,337.00
171,248.00 110,420.00 -1,957,362.00 -1, 883,036.11 2,021,525.00 1,432,800.00
$
1,694.00
5,040.00
73,320.00
3,800.00 7,474.53

135,684.00
72,013.00
2,280.67 45,580.00 299,350.10 16,449.39

$10,432,600.00 1,955,843.00 260,042.00 463,391.00 151,774.00 3,155,092.00
656,413.00 205,284.00 382,024.00 274,084.00 98,337.00
171,248.00 110,420.00 -1,957,362.00 -1,883,036.11 2,021,525.00 1,432,800.00 135,684.00
1,694.00
5,040.00 72,013.00 73,320.00
3,800.00 7,474.53
2,280.67 45,580.00 299,350.10 16,449.39

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

$2,445,592.10 2,445,592.10

OTHER Education, Georgia Department of Reimbursement for GENESIS Project

3,000.00

3,000.00

$18,024,807.42 $ 571,357.16 $2,445,592.10 $21,041,756.68
============= ============= ============ =============
See notes to the general purpose financial statements.
- 33 -

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

SCHEDULE "6"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Antitrust Settlement Canpensation for Loss of Assets Donations Arco Builders, Incorporated Georgia College Georgi a Power Canpany Quota Club of Milledgeville Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Lost and Damaged Books Recovery of Prior Year Questioned Cost !~roper Expenditure Travel Overpayment Rents Sales Meals School Assets Supply Fees Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE FUND

TOTAL

$ 6,887,157.32 178.57
19,708.30

$ 338,643.10 $ 338,643.10

6,887,157.3-;!

8.52

187.09

950.30

20,658.60

$ 2,780.76

2,069.16

$ 165.00

985.77

30,324.56 53,967.54 1,185.00 1,505.64

10,790.84

2,000.00 76.84
8,600.00

17,354.00 4,101.77 51,728.72 9,591.82

541,748.99

500.00 4,889.00
27,154.26

3,471.64

2,069.16 2,780.76
500.00 165.00 4,889.00 985.77
30,324.56 95,384.28 1,185.00 1,505.64
2,000.00 76.84
8,600.00
541,748.99 17,354.00 4,101.77 51,728.72 9,591.82

$ 7,091,411.61 $ 554,608.99 $ 32,543.26$ 343,073.56$ 8,021,637.42
======== ========= ========== ========== ===========

See notes to the general purpose financial statements. - 34 -

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

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$16,335,070.75$ 2,279,982.63 $18,615,053.38

4,285,660.87

513,696.99 4,799,357.86

52,069.45

17,269.70

69,339.15

258,479.08

118,236.77

376,715.85

21,611.66

21,611.66

58,592.64

5,373.49

63,966.13

117,813.76 101,157.26 218,971.02

232,975.86

232,975.86

14,547.00

14,547.00

194,326.00

1,228.50 195,554.50

75,352.56

7,551.55

82,904.11

9,663.24

9,663.24

27,585.00

27,585.00

27,120.82

5,104.76

32,225.58

901,031.63 497,515.95 1,398,547.58

878,737.14

878,737.14

904,689.58 904,689.58

301,791.61

3,634.10 305,425.71

44,550.43

15,903.20

60,453.63

30,324.56

30,324.56

3,939.40

14,482.55

18,421.95

102,447.90

48,479.00

150,926.90

274,380.46

262,432.85

536,813.31

------------- ------------- -------------

$24,208,084.02 $ 4,836,726.68 $29,044,810.70
============= ============= =============

See notes to the general purpose financial statements. - 35 -

EXPENDITURES
------------
Operating Costs Salaries Eq:,loyee Benefits Travel Supplies Dues and Fees Other
Nonoperating Costs Equipment
Total Expenditures

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDIT~ES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1994

SCHEDULE "8"

COMPUTERS

SAFE

ALGEBRA

IN

PRE-KINDERGARTEN SCHOOLS

CLASSROOMS CLASSROOMS

PROGRAM

GRANT

TOTAL

------------- ------------- ---------------- ------------- -------------

$ $ 2,280.67 $ 9,010.76

105,973.92 28,560.28 1,533.76 123,542.14
500.00 800.00

$ 105,973.92 28,560.28 1,533.76 134,833.57 500.00 800.00

36,569.24

38,440.00 $ 16,449.39

91,458.63

------------- ------------- ---------------- ------------- -------------

$ 2,280.67$ 45,580.00$

299,350.10 $ 16,449.39 $ 363,660.16

======== ============ ============ ============ =========

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

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

SCHEDULE "9"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries Operations
Less: Expenditures for Media Center Program in Excess of Total Media Allotment Expenditures for Staff Development Programs in Excess of Total Staff Development Allotment for: Cost of Instruction
Expenditures per Audit (1) (2)

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$13,202,034.00$ 152,131.00

$14,348,622.64 673,076.05$ 152,131.00
$15,021,698.69 $ 152,131.00 -103,286.86 -25,510.45
$14,918,411.83 $ 126,620.55

Amount of Underexpenditure for Total Allotment

$

0.00 $ 25,510.45

============= =============

Note: (1) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

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

BALDWIN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30. 1994

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*l
g:i:g~~~ lfr<cl>
Category IV(*) Itinerant Supplemental Speech
Sub-Total - Regular Category V (Gifted) (*)
Total Special Education Programs REMEDIAL EDUCATION PROGRAM(*) MEDIA CENTER PROGRAMS

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

RE?OIRED

IOIAL

..!_ OR GINAL

MID-TERM

REQUIRED

$ 1,111,369.00 3.002.268.00
$ 4,113,637.00 90 1,569,513.00 90 2,202,425.00 90 1,424,519.00 90 552,278.00 90 570,228.00 90

$1,000,232.10$ g,702,041.20
$3,702,273.30$ 1,412,561.70 1,982,182.50 1,282,067.10 497,050.20 513.205.20

$10.432.600.00

$ 9.389.340.00 $

0.00 $1,000,232.10 2,702,041.20
0.00 $ 3,702,273.30 0.00 1,412,561.70 87,268.00 2,069,450.56 2,890.00 1,284,957.10 0.00 497,050.20 0.00 513,205.20
90,158.00 $ 9,479,498.00

$1,790,195.00

$1,611,175.50$

0.00 $1,611,175.50

$1,790,195.00 90 165,648.00 90
$ 1.955.843.00 $ 260.042.00 90 $ 463,391.00 90

$1,611,175.50$

0.00 $1,611,175.50

149.083.20 ______o....o...o.. 149.083.20

$ 1,760.258.70 $_ _ _..;;o_.o_...,o $ 1.160.2sa.10

$ 234,037.80$

0.00 $ 234,037.80

$ 417.051.90 $

0.00 $ 417,051.90

Total Thirteen Weighted and Media Center $13 1111 1876.00

$11.800.688.40 $

STAFF DEVELOPMENT PROGRAMS (1) Cost of Instruction Professional Develoi:,nent

$ 51,754.50 100 $ 51,754.50$

100,019.50 100

100,019.50

90,158.00 $11.890.846.40
357.00 $ 52,111.50 0.00 100,019.50

Total Staff Development

$ 151,774.00

$13.263.650.00 (*) Identifies Thirteen Weighted Programs. Note: (1) $17,650.50 of the allotment for Professional
Developnent has been transferred to Cost of Instruction as authorized by OCGA 20-2-182. (2) Salary accruals (July and Au9ust 1994 Deferred Salar1es) reported as expend1tures in the General Purpose Financial Statements are not included on this analysis in order to COOl)ly with program guidelines. (3) Salary accruals (July and Au9ust 1993 Deferred Salar1es) reported as expend1tures in the prior year General Purpose Financial Statements are 1ncluded on this analysis as required by program guidelines. See notes to the general purpose financial statements
- 38 -

$ 151.774.oo $_ _ _3_5_7_.o_o $ 152 131.00 1
$11.952,462.40 $ 90.515.00 $12.042,977.40

SCHEDULE "10"

REQUIRED ALLOTMENT

SA[:ilRIES
ACTUAL (2l (3)

DISTRIBUTION BY RESPECTIVE PORTIONS

AMoUNT OF
UNDEREXPENDITURE FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERA I HIRS
ACTUAL

AMOUNT OF
UNDEREXPENDITURE FOR RESUIRED ALLOT ENT

$ 974,7B4.60 $ 1,266,439.22

$ 25,447.50$ 21,862.21

2,618,607.60 3,576,619.01

83,433.60

98,540.27

$3,593,392.20$ 4,843,058.23 $

0.00

$ 108,881.10 $ 120,402.48$

0.00

1,370,171.70 1,775,442.75

0.00

42,390.00

61,987.56

0.00

2,011,857.70 2,181,970.87

0.00

57,592.80

95,065.61

0.00

1,226,758.50 1,592,475.98

0.00

58,198.60

104,758.19

0.00

475,691.40

524,502.52

0.00

21,358.80

21,451.19

0.00

447,812.10

525,732.45

0.00

65,393.10

87,505.01

0.00

$9,125,683.60$ 11,443,182.80 $

0.00

$ 353,814.40$ 491.170. 04 $

0.00

$ 136,443.60$ 183,277.48

562,795.20

569,978.39

796,534.20 1,092,675.76

68,836.50

110,932.68

1,472.40

~,988.00

$ 6,835.50$ 11,773.80 21,194.10 2,302.20

3,868.40 9,203.64 38,040.99 6,389.10

$1,569,069.90 $ 1,956,864.31 $

0.00

$ 42,105.60$ 57,502.13 $

0.00

145,048.50

242,192.67 $

0.00

4,034.70

13,744.14 $

0.00

$1,714,118.40$ 2,199,056.98

$ 46,140.30$ 71,246.27

$ 230,026.50$ 245,943.66$

0.00

$ 4,011.30 $

4,421.08 $

0.00

$ 325,301.40 $ 460,439.20$

0.00

$ 91,750.50 $ 106,238.66$

0.00

$1113951129.90 $ 14.3481622.64 $

0.00

$ 4951716.50 $ 6731076.05 $

0.00

$1L395 1129.9o $ 14 134a 1522.s4 $_ _ _ _ _0....0..0.

$ 52,111.50$ 100,019.50

77,621.95 $ 74,509.05

0.00 25,510.45

$ 152.131.00 $ 152 1131. oo $_ _ _25_1..,51_0....4-5

$ 647 1847.50 $

825 201.05 1

$_ _ _25_1..,51_0....4_s

- 39 -

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. C. Earnest Yearwood, Chairman(*) 136 Meier Circle, S. E. Milledgeville, Georgia 31061
Ms. Katherlene B. Hawkins (*) 109 Deerwood Drive Milledgeville, Georgia 31061
Mr. Allen C. Nelson(*) 128 Nathanial Drive Milledgeville, Georgia 31061
Mr. Jeff C. Owens, Jr. (*) 3608 Hurst Drive Milledgeville, Georgia 31061
Mr. J. David Pettigrew(*) 111 Pineway Drive Milledgeville, Georgia 31061

COMPENSATION

TRAVEL

$ 3,600.00$

946.22

3,600.00

783.63

3,600.00

1,007.09

3,600.00

214.10

3,600.00

660.62

$ 18,000.00$ 3,611.66
============= =============

(*) Denotes Board Members Serving as of June 30, 1994

See notes to the general purpose financial statements. - 40 -

SECTIONil COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 9, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Baldwin 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 Baldwin County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Baldwin 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 indicate that, with respect to the items tested, the Baldwin County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 9, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Baldwin 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 Baldwin County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Baldwin County Board ofEducation's compliance with the following requirements applicable to eachof its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office ofManagement and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective ofwhich 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.

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Baldwin County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~?~
Claude L. Vickers State Auditor
CLV:cm 94CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 9, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Baldwin 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 Baldwin County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purp<?se financial statements.

We have also audited the Baldwin County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirements a) Claims for Advances and Reimbursements b) Amounts Claimed and Used for Matching

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994. The management of the Baldwin County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Baldwin County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
L , x ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:cm 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 9, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Baldwin 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 Baldwin County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1994 general purpose financial statements of the Baldwin County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Baldwin County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 94CRL-120

~~,;,'~
Claude L. Vickers State Auditor

SECTION ill INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 9, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Baldwin 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 Baldwin County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit ofthe general purpose financial statements of the Baldwin County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Baldwin County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, 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
94ICL-4

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 of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

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

(I) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(I) Expenditures/Liabilities/Disbursements

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above.

94ICL-4

However, as described in the Schedule ofFindings and Improper or Questioned Costs, we noted a reportable condition that we believe to be a material weakness in the following control category:

General Fixed Assets

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Baldwin County Board ofEducation's financial statements and this report does not affect our report thereon dated February 9, 1995.

This report is intended for the information of management, the Federal cognizant audit agency and other

Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a

matter of public record.



Respectfully submitted,
~~,
Claude L. Vickers State Auditor

CLV:cm 94ICL-4

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 9, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Baldwin 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 Baldwin County Board of Education as of
and for the year ended June 30, 1994, and have issued our report thereon dated February 9, 1995. This report
was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Baldwin County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated February 9, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those
standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance
about whether the general purpose financial statements are free of material misstatement and about whether the Baldwin 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, 1994, 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 February 9, 1995.
94ICL-6

The management of the Baldwin County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives 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 of the structure
to future periods is subject to the risk that procedures may become inadequate because of changes in
conditions or that the effectiveness ofthe 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) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements

(5) Applicable Special Tests and Provisions
(6) Other Requirements a) Claims for Advances and Reimbursements b) Amounts Claimed and Used for Matching

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

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to

94ICL-6

preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule of Federal 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 of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Allowable Costs/Cost Principles
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 the reportable condition described above is not a material weakness.
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,
L~
Claude L. Vickers State Auditor
CLV:cm 94ICL-6

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Finding Resolved Audit Control Number 6051-93-02
The audit report for the year ended June 30, 1993, reported that a payment of $2,000.00 was made for a
private audit of a school activity account. During the year under review, reimbursement of $2,000.00 was
secured and deposited to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Overpayment of Travel Financial Statements Finding Resolved Audit Control Number 6051-93-04
The audit report for the year ended June 30, 1993, reported a travel overpayment in the amount of$76.84. In the year under review, $76.84 was reimbursed and deposited to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $1,054.03 Audit Control Number 6051-93-05
The audit report for the year ended June 30, 1993, reported that the Baldwin County Board of Education overpaid an employee in the amount ofSl,054.03. This overpayment was the result of duplicate payments for work performed. In the year under review, the Board contacted the former employee involved in an attempt to obtain reimbursement of $1,054.03. However, a response received from the former employee indicated a refusal to repay the questioned costs. The Board should consider taking legal action to obtain reimbursement ofSl,054.03 for deposit into the General Fund.

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balance Federal Financial Assistance Finding Resolved Audit Control Number 6051-93-06
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Elementary and Secondary Education Act, Chapter 1 -Education ofDeprived Children (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds" were made in advance ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations by the Board.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 6051-93-07
The audit report for the year ended June 30, 1993, reported that the Board failed to submit a copy of the 1992 audit report to all agencies that provided Federal financial assistance to the Board. During the year under review, the Board submitted copies of the 1992 and 1993 fiscal year audit reports to all agencies as required.
AUDIT FOLLOW-UP/RESOLUTION Free and Reduced Price Meal Applications Federal Financial Assistance Finding Resolved Audit Control Number 6051-93-08
The audit report for the year ended June 30, 1993, reported $292.96 in overreimbursement for free and reduced price meals for the National School Lunch Program (CFDA 10.555), which should be refunded to the Georgia Department of Education. The Georgia Department of Education in a letter dated October 5, 1994 disregarded this questioned cost.

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6051-93-01
The audit report for the year ended June 30, 1993, noted that the Board did not 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 again chose not to establish General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements ofthe 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.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Control Procedures/Documentation Financial Statements Reportable Condition Audit Control Number 605-1-93-03
The audit report for the year ended June 30, 1993, noted several deficiencies in control procedures and supporting documentation for the Minority Students in Teacher Training Scholarship Program between Georgia College and the Baldwin County Board ofEducation. The Board entered into an agreement with minority students in teacher training programs at a cost to the school system ofup to $2,000.00 per year ($1,000.00 per student). The Board's contribution is in the form of loans with interest at the current market rate to the selected students with repayment beginning within six months of completion of the individual's study at Georgia College with the repayment period not to exceed twenty-four months. The loan is also cancellable at the rate of 33 1/3 percent for each year of satisfactory employment as a teacher in the Baldwin County School System. In year under review, some improvements were made in the control procedures; however, an examination ofthe records for the year ended June 30, 1994, revealed the following deficiencies:
(1) Four of the nine recipients of the loan had not signed promissory notes agreeing to the repayment/cancellation terms ofthe program.
(2) Four recipients have left Georgia College and have not been employed by the Board or begun repayment.
(3) Repayments were not recorded correctly against the individual loan balances.

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
EXPENDITURES/LIABil..ITIES/DISBURSEMENTS Inadequate Control Procedures/Documentation Financial Statements Reportable Condition Audit Control Number 6051-93-03
These deficiencies occurred because Board personnel did not record payments correctly when received nor did they verify that promissory notes were signed by the student before the scholarship funds were sent to Georgia College. Additionally, the Board does contact students who have left Georgia College and not entered repayment status or begun employment with the school system. Appropriate internal controls should be established by the Board to verify that all recipients have a signed promissory note on file, that records are updated on a timely basis and that an annual review verifying ther current status of each participant is performed.
CURRENT YEAR
EXPENDITURES/LIABil..ITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $25,510.45 Audit Control Number 6051-94-01
For the year under review, the Board reported to the Georgia Department of Education on DE Form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $77,621.95 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost oflnstruction Program purposes resulting in an underexpenditure of $25,510.45 for the minimum required allotment of$100,019.50 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
ALLOWABLE COSTS/COST PRINCIPLES Salary Charges Based on Budgeted Amounts Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Amount: $7,728.33 Audit Control Number 6051-94-02
A review of the time sheets for salaries charged to the Elementary and Secondary Education Act - Chapter
1, Education ofDeprived Children Program (CFDA 84.010) revealed that the Board charged salary and related
fiinge benefits ofthe coordinator to the program based on budgeted expenditures rather than on actual time worked by the employee. 0MB Circular A-87 requires that the grantee maintain appropriate time distribution records, that actual costs charged to each program must be based on the employee's time distribution records and the method used must produce an equitable distribution of time and effort.
This condition occurred because management used budget amounts to prorate the Chapter 1 coordinator's salary. Appropriate internal controls should be established by the Board to ensure that all salary charges of employees involved in Federal and/or State projects be based on actual hours worked. The Georgia Department ofEducation should review this matter to determine if a reclaim of funds is appropriate.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

BALDWIN COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
EXPENDITURES/I.JABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $25,510.45 Audit Control Number 6051-94-01
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation ofOfficial Code of Georgia 20-2-182. We do not agree that these funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period, since the management's source of information as it relates to QBE spending is the Georgia Department ofEducation.
Note: The Baldwin County Board of Education has elected not to provide comments for inclusion in this report other than the above.