Audit report, Baldwin County Board of Education, Milledgeville, Georgia, year ended June 30, 1996

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1995-9(,.

AUDIT REPORT BALDWIN COUNTY BOARD OF EDUCATION
MILLEDGEVILLE, GEORGIA YEAR ENDED JUNE 30, 1996

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

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

EXIDBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

30

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

32

I

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

34

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

35

2 CASH AND CASH EQUIVALENTS

37

3 ACCOUNTS RECEIVABLE

38

4 DEBT SERVICE REQUIREMENTS TO MATURITY

39

BALDWIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

5

STATE

40

6

TAXES AND OTHER

41

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

43

8

LOTTERY PROGRAMS

44

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

47

10

BY PROGRAM

48

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

50

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

SECTION ID
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

BALDWIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION ID INTERNAL CONTROL SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 25, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Baldwin County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Baldwin County Board of Education, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 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.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
96ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The 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 of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Baldwin County Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated June 25, 1997, on our consideration of the Board's internal control structure and a report dated June 25, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Baldwin County Board of Education 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 of additional analysis and are not a required part ofthe general purpose financial statements ofthe Baldwin County Board of Education. 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 effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy of this 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,

CLV:gp 96ARL-13

Claude L. Vickers State Auditor

BALDWIN COUNTY BOARD OF EDUCATION - 1-

BALDWIN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1996

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,574,996.83 $

164,315.95 $

516,923.83

2,474,424.39 9,542.43

366,991.62

852.28

46,349.23 26,726.85

Total Assets

$ 6,058,963.65 $

604,383.65 $

517776.11

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Retainages Payable Funds Held for Others Deferred Compensation Plan General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of State Programs 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

$ 685,229.41 $ 2,456,937.73 5,007.90

92,274.81 372,794.13
8,827.01

$ 3,147,175.04 $

473,895.95

$

133,874.00

$

838.44

61,368.68

11,725.76

$

195,242.68 $

2,716,545.93

$ 2,911,788.61 $

46,349.23 26,726.85
$
85,640.28 $
44,847.42
130,487.70 $

517,776.11 517,776.11
0.00 517,776.11

Total Liabilities and Fund Equity

$ 6,058,963.65 $

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

-2-

604,383.65 $

517 776.11

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE
AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS {Memorandum Onl!) JUNE 30, 1996 JUNE 30, 1995

$

140,775.52 $

2,313.74

$ 4,399,325.87 $ 2,940,631.29

296,940.14

296,940.14

267,218.27

5,070.88

2,847,339.17

2,927,983.47

9,542.43

4,642.43

46,349.23 26,726.85

43,053.04 35,894.65

$

145,846.40

145,846.40

135,878.06

2,089,153.60

2,089,153.60

2,314,121.94

$

145,846.40 $

299,253.88 $

2,235,000.00 $ 9,861,223.69 $ 8,669,423.15

$

2,313.74

296,940.14

$

$

299,253.88 $

$ 2,235,000.00

777,504.22 $ 2,829,731.86
13,834.91
2,313.74 296,940.14 2,235,000.00

768,159.43 2,625,377.84
47,716.93 71,611.63
313.74 267,218.27 2,450,000.00

2,235,000.00 $ 6,155,324.87 $ 6,230,397.84

$

145,846.40

$

145,846.40

0.00 $

0.00

$

145,846.40 $

0.00

$

133,874.00

838.44

$

2,347.35

145,846.40

135,878.06

73,094.44

40,096.21

46,349.23 26,726.85 517,776.11

43,053.04 35,894.65 566,994.08

$

944,505.47 $

824,263.39

2,761,393.35

1,614,761.92

$ 3,705,898.82 $ 2,439,025.31

$

145 846.40 $

299,253.88 $

2,235,000.00 $ 9,861,223.69 $ 8,669,423.15

-3-

BALDWIN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS (Memorandum Onl~l
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 20,096,004.85 $ 950,528.39

5,021.00

4,117,245.23

8,368,996.29

537,568.57 $

26,814.21 $

$ 363,632.84

21,046,533.24 $ 4,122,266.23 9,297,011.91

19,864,822.63 3,748,236.71 8,687,090.27

Total Revenues

$ 28,470,022.14 $ 5,605,342.19 $ 26,814.21 $ 363,632.84 $ 34,465,811.38 $ 32,300,149.61

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees

$ 17,843,954.49 $ 2,625,777.75

820,049.14

317,804.61

562,959.22 628,753.54 433,872.54 2,111,973.49 306,844.00

188,180.03 18,500.00 98,463.55 2,830.30

2,708,347.68 1,287,317.66
132,372.36 40,888.62

159,692.54 73,830.29
29,587.58 2,184,599.11

169,822.55 8,715.00

8,233.53 $

$ 20,469,732.24 $ 18,885,501.43

1,137,853.75

1,085,053.69

751,139.25 647,253.54 532,336.09 2,114,803.79 306,844.00

740,578.61 748,075.78 561,062.28 1,839,362.54 318,323.74

2,868,040.22 1,361,147.95
132,372.36 70,476.20
2,184,599.11

2,761,991.49 1,494,543.53
139,625.09 81,269.12
2,303,436.84

76,032.18

169,822.55 92,980.71

151,219.79 1,410,194.67

$ 215,000.00 136,632.50 2,032.00

215,000.00 136,632.50
2,032.00

200,000.00 147,430.00
10 538.47

Total Expenditures

$ 27,055,870.29 $ 5,707,499.29 $ 76,032.18 $ 353 664.50 $ 33,193,066.26 $ 32,878,207.07

Excess of Revenues over (under) Expenditures

$ 1414151.85 $ -102,157.10 $ -49,217.97 $ 9 968.34 $ 1,272,745.12 $ -578,057.46

OTHER FINANCING SOURCES {USES)

Operating Transfers In Operating Transfers Out

$

6,755.36

$

-6 755.36

$

6,755.36 $

359,160.36

-6 755.36

-359, 160.36

Total Other Financing Sources

(Uses)

$

-6 755.36 $

6,755.36

$

0.00 $

0.00

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

$ 1,407,396.49 $

-95,401.74 $ -49,217.97 $

9,968.34 $ 1,272,745.12 $

-578,057.46

FUND BALANCE JULY 1

1,504,392.12

231,761.05

566,994.08

135,878.06

2.439,025.31

2,986,199.29

Food Inventory - Net Change in Period Donated Commodities Purchased Food

3,296.19 -9 167.80

3,296.19 -9 167.80

17,819.54 13,063.94

FUND BALANCE JUNE 30

$ 2,911,788.61 $ 130,487.70 $ 517 776.11 $ 145,846.40 $ 3?051898.82 $ 21439,025.31

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

BALDWIN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - {NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 19,354,736.37 $ 20,096,004.85

5,021.00

7,813,798.00

8,368,996.29

Total Revenues

$ 27,168,534.37 $ 28,470,022.14

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay

$ 17,737,237.94 $ 17,843,954.49

850,779.95 617,032.90 605,449.40 433,532.79 2,084,897.39 368,199.45 2,662,055.00 1,309,850.01 131,064.00
50,800.10

820,049.14 562,959.22 628,753.54 433,872.54 2,111,973.49 306,844.00 2,708,347.68 1,287,317.66 132,372.36
40,888.62

159,880.00 8,715.00

169,822.55 8,715.00

Total Expenditures

$ 27,019,493.93 $ 27,055,870.29

Excess of Revenues over (under) Expenditures

$

149,040.44 $ 1,414,151.85

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -827,568.00 $

-6,755.36

Total Other Financing Sources (Uses)

$ -827,568.00 $

-6,755.36

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

-678,527.56 $ 1,407,396.49

FUND BALANCE JULY 1, 1995

2,198,821.48

1,504,392.12

Adjustments

-34,456.38

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 950,578.79 $ 950,528.39

3,840,455.00 4,117,245.23

502,577.00

537,568.57

$ 5,293,610.79 $ 5,605,342.19

$ 2,671,903.42 $ 2,625,777.75

324,073.42 219,946.79
18,500.00 113,645.79
3,008.00

317,804.61 188,180.03
18,500.00 98,463.55
2,830.30

159,822.43 104,586.31

159,692.54 73,830.29

42,755.74 1,927,136.00

29,587.58 2,184,599.11

8,250.00

8,233.53

$ 5,593,627.90 $ 5,707,499.29

$ -300,017.11 $ -102,157.10

$

6,129.00 $

6,755.36

$

6,129.00 $

6,755.36

$ -293,888.11 _$ 246,547.33 -7,954.09

-95,401.74 152,813.36

FUND BALANCE JUNE 30, 1996

$ 1,485,837.54 $ 2,911,788.61

$ -55,294.87 $

57,411.62

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, 1996

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 ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity ofthe Baldwin County Board of Education.
Based upon the application of the above criteria, the Baldwin County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in 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.

- 6-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances ofthese accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation 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

JUNE30, 1996

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-Tenn 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 ofthe 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 1995 and ending in early June 1996. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts are
disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting
principles, salary and fringe 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.
BUDGET
The Baldwin County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is
-8-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report:

Special Revenue
Fund

FUND BALANCE JULY 1, 1995

$ 231,761.05

Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods

-43,053.04 -35,894.65

Fund Balance July 1, 1995 (Budget Basis)

$ 152,813.36

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

-95 401.74

FUND BALANCE JUNE 30, 1996 (Budget Basis)

$ 57,411.62

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more

-9-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 11 - Deferred Compensation Plan

ACCOUNTS RECEIVABLE

Accounts receivable 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 receivable are recorded when either the asset or revenue recognition criteria has been met. Accounts receivable recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

NOTES RECEIVABLE

Notes receivable consist of the outstanding balance on student loans for assistantships with upper division minority students in teacher training programs attending Georgia College and State University. See Note 14 Other Financial Notes

PROPERTY TAXES

The Baldwin County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on July 18, 1995 (levy date). Taxes were due on November 15, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 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 1995 tax year (calendar year) for the Baldwin County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

17.65 mills ~mills

18.41 mills

- 10 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated 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 of these financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized during the year bonds are issued. Issuance costs, whether or not withheld from actual net proceeds, are reported as capital project expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the 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.
- 11 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the 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 of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

- 12 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $6,476,485.16. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

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

Risk Category

Bank Balance

1

$ 625,556.76

2

4,896,346.95

3

954,581.45

Total

$ 6,476,485.16

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount of the Board's total investments was $296,940.14 and this entire amount is categorized as Unclassified - Deferred Compensation Plan pooled investments. The market value of these investments was $296,940.14.

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

- 13 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 4: RISK MANAGEMENT

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

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

1995 1996

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

7,841.00 $

$

0.00 $

7,594.00 $

Claims Paid

End ofYear Liability

7,841.00 $

0.00

7,594.00 $

0.00

The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Continental Insurance Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $1,000,000.00.

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, 1996, amounted to $39,024.88. Future minimum lease payments for these leases are as follows:

Year Ending
1997 1998 1999 2000
Total

Amount
$ 43,299.88 18,962.50 4,300.00 3,000.00
$ 69,562.38

- 14 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 6: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Refunding - Series 1992

4.50% - 6.20% $ 2,235,000.00

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

General Obligation
Bonds

Balance July 1, 1995

$ 2,450,000.00

Deductions Payments

215,000.00

Balance June 30, 1996

$ 2,235,000.00

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

Fiscal Year Ended June 30

General Obligation
Bonds

1997 1998 1999 2000 2001 2002 and thereafter

$ 295,467.50 363,285.00 359,565.00 360,030.00 359,370.00
1,071,925.00

Total Principal and Interest

$ 2,809,642.50

- 15 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 7: PRIOR YEAR DEFEASEMENT OF DEBT
In fiscal year 1986, 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 fmancial statements. At June 30, 1996, $345,000.00 of bonds are outstanding and are considered defeased.
Note 8: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of$506,195.35 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.
Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $403,537.01
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $10,283.34
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $92,375.00
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 of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.
Note 10: SUBSEQUENT EVENTS
On March 18, 1997, the voters of Baldwin County voted in favor of a Special Purpose Local Option Sales Tax Referendum for education purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot for Baldwin County, is as follows:

- 16 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 10: SUBSEQUENT EVENTS
"Shall a special one percent sales and use tax be imposed on Baldwin County for a period not to exceed 20 calendar quarters and for the raising of not more than $30,000,000 for the purpose of: (i) funding the repayment ofprincipal and interest on the Baldwin County School District General Obligation Refunding Bonds, Series 1992 Debt maturing January 1, 1998, and thereafter in the amount of$2,400,000 and (ii) the acquisition, construction and equipping oftwo new elementary schools, a new middle school, purchasing future school sites, purchasing school furnishings, equipment, and fixtures, and renovating, expanding and enlarging existing school facilities in the amount of $27,600,000?
If imposition ofthe tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of Baldwin County School District in the principal amount of up to $12,500,000 for the above purposes, such debt to be secured by the proceeds of the special one percent sales and use tax."
Note 11: 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 oftheir 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 of compensation 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.
It is the opinion of the Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.
Investments are managed by the plan's trustee, Lincoln National Life Insurance Company. Under this plan, participants select from an investment option, or combination ofinvestment options, determined by the Board.
Note 12: ACCUMULATED EMPLOYEES' LEAVE
All twelve month employees of the Baldwin County Board of Education earn annual leave based on their number of years of continuous and creditable service. Annual leave may be accumulated up to thirty days. 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

- 17 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 13: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless 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 ofdeath on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $17,850,635.95; total payroll was $20,707,159.01.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $3,000,682.57, of which $2,108,153.14 was made by the Board and $892,529.43 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 13: RETIREMENT PLANS

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

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

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857.066,000.00

Unfunded pension benefit obligation

$ 1,585.541.000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$2,108,153.14 was actuarially determined and represented .3471 % of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

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

- 19 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 13: RETIREMENT PLANS
the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears ofcreditable 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 if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number of years of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of
service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 230 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State ofGeorgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $7,440.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 14: MINORITY STUDENT LOAN PROGRAM
The Baldwin County Board of Education entered into an agreement with Georgia College & State University to establish three assistantships for upper division minority students in teacher training programs at a cost to the school system of up to $3,000.00 per year ($1,000.00 per student). The Baldwin County Board of Education's contribution is in the form of loans, with interest at market rates, to selected students with repayment beginning within six months of completion ofthe individual's study at Georgia College & State University, with a repayment period not to exceed twenty-four months. The loan is also cancelable at the rate of 33 l /3 percent for each year of satisfactory employment as a teacher in the Baldwin County School System. The balance of$9,542.43 is shown in the General Fund as Notes Receivable on Exhibit "A". An analysis of the changes in this notes receivable during the year ended June 30, 1996, is as follows:

- 20 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 14: MINORITY STUDENT LOAN PROGRAM

Balance July 1, 1995

$ 4,642.43

Additions: Assistantships Awarded Fiscal Year 96 Fiscal Year 97

$ 3,000.00 2,000.00

5,000.00

Deductions: Repayments

100.00

Balance June 30, 1996

$ 9,542.43

Note 15: SURETY BONDS

Dr. Ivan Hoyt Washington, School Superintendent through June 30, 1996, was bonded in the amount of $10,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 50331850.

The School Superintendent, Mr. Clarence Eugene Trammell, effective July 1, 1996, is bonded in the amount of $10,000.00 with the RLI Insurance Company, Peoria, Illinois, their Bond No. RSB-532850, on which premium is paid through June 30, 1999.

- 21 -

BALDWIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 175,129.43 $ 30,218.53 $

0.00

6,387.20

31,344.75

46,349.23 26,726.85

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of State Programs For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$ 254,592.71 $ 61,563.28 $

0.00

=====

$ 21,387.01 $ 115,282.20
$ 136,669.21 $

11,887.74 43,155.74
5,681.36
60,724.84

$

838.44

$ 46,349.23 26,726.85

$ 73,076.08 $

838.44

44,847.42

0.00 $

0.00

$ 117,923.50 $

838.44 $

0.00

Total Liabilities and Fund Equity

See notes to the general purpose financial statements.

- 22-

$ 254,592.71 $ 61,563.28 $

0.00

=====

EXHIBIT"E" Page 1

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO EDUCATION

TITLE II

INNOVATIVE

LOCAL

OF CHILDREN EISENHOWER

EDUCATION

EDUCATIONAL

WITH

PROFESSIONAL PROGRAM

AGENCIES

DISABILITIES DEVELOPMENT STRATEGIES

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
PARTS SPECIAL EDUCATION FLOW THROUGH PRESCHOOL

$

46,087.79

$

1,308.39 $ 12,634.59

81,661.35 $

336.00 $

4,925.44

12,873.15 $

6,292.79

$ 127,749.14 $

336.00 $

4,925.44 $

1,308.39 $ 25,507.74 $ =====6,=29=2=.7=9

$

$

27,457.86

100,291.28

$ 127,749.14 $

336.00 $ 336.00 $

4,925.44
$ 4,925.44 $

$ 1,308.39 1,308.39 $

$ 5,977.58 19,279.10
251.06
25,507.74 $

3,008.15 533.98
2,750.66
6,292.79

$

0.00 $

0.00 $

$

0.00 $

0.00 $

$ 127,749.14 $

336.00 $

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

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

4,925.44 $

1,308.39 $ 25,507.74 $ ====6,=292=.7=9

- 23 -

BALDWIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SAFE AND DRUG-FREE SCHOOLS

VOCATIONAL EDUCATION
FEDERAL

$

5,593.70 $

$ 14,069.57

HEAD START
13,502.21
86,467.00

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of State Programs For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$ 14,069.57 $

5,593.70 $ ====9=9=,9=69=.=21=

$ 13,066.69 162.38 $ 840.50
$ 14,069.57 $

896.12 $ 3,111.38 1,586.20
5,593.70 $

18,745.86 69,497.59
88,243.45

$

11,725.76

$

0.00 $

$

0.00 $

$ 0.00 0.00 $

11,725.76 0.00
11,725.76

Total Liabilities and Fund Equity

See notes to the general purpose financial statements.

- 24 -

$ 14,069.57 $

5,593.70 $ ===99=,9=69=.2=1

EXHIBIT"E" Page2

GOALS 2000 STATE AND
LOCAL EDUCATION SYSTEMIC IMPROVEMENT
GRANTS

ADULT EDUCATION

TOTALS JUNE 30, 1996 JUNE 30, 1995

$ 284,474.64 $ 318,440.22

$

3,597.24 $ 119,037.13

366,991.62

336,167.25

46,349.23 26,726.85

43,053.04 35,894.65

$

3,597.24 $ 119,037.13 $ 724,542.34 $ 733,555.16

$

3,597.24 $ 95,225.17 $ 120, 158.69 $ 75,120.30

5,226.28

92,274.81

72,947.41

18,585.68

372,794.13

306,009.47

8,827.01

47,716.93

$

3,597.24 $ 119,037.13 $ 594,054.64 $ 501,794.11

$

838.44

$

11,725.76

2,347.35

46,349.23 26,726.85

43,053.04 35,894.65

$

85,640.28 $

81,295.04

$

0.00 $

0.00

44,847.42

150,466.01

$

0.00 $

0.00 $ 130,487.70 $ 231,761.05

$

3,597.24 $ 119,037.13 $ 724,542.34 $ 733,555.16

- 25 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY
PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 150,330.00 $ 1,391,081.95 537,568.57

717,392.39 $

$ 2,078,980.52 $ 717,392.39 $

82,806.00 82,806.00

$ 509,595.59 $
81,973.97 613.1'4
18,500.00

$ 2,184,599.11

96,421.98 335.00 880.74
8,233.53

$ 2,184,599.11 $ 716,553.95 $

$ -105,618.59 $

838.44 $

82,806.00
82,806.00 0.00

$ -105,618.59 $

838.44 $

0.00

229,413.70

0.00

0.00

3,296.19 -9, 167.80

$ 117,923.50 $

838.44 $

0.00

======

See notes to the general purpose financial statements.

- 26 -

EXHIBIT"F" Page 1

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO EDUCATION

TITLE II

INNOVATIVE

LOCAL

OF CHILDREN EISENHOWER

EDUCATION

EDUCATIONAL

WITH

PROFESSIONAL

PROGRAM

AGENCIES

DISABILITIES DEVELOPMENT STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTS

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$ 1,109,161.05 $ $ 1,109,161.05 $

336.00 $ 336.00 $

29,817.44 $ 29,817.44 $

42,931.61 $ 277,985.19 $

34,586.48

- - - ~ - - 42,931.61 $ 277,985.19 $

34,586.48

$ 985,164.71 $
81.84 79,101.09
2,830.30 13,276.27 28,706.84

336.00 $

5,140.84 $
24,401.21 275.39

4,311.01 $ 217,311.72 $

38,620.60

49,526.00 8,766.93

500.00

1,880.54

1,587.04
13,256.00 19,710.00
33.44

$ 1,109,161.05 $

$

0.00 $

336.00 $ 0.00 $

29,817.44 $ 0.00 $

42,931.61 $ 277,985.19 $ _ _ _34....;.,5_8_6_.4_8

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

0.00

0.00

0.00

0.00

0.00

0.00

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

======

- 27 -

BALDWIN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1996

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

SAFE
AND
DRUG-FREE SCHOOLS

VOCATIONAL EDUCATION
FEDERAL

HEAD START

$ 31,569.57 $ 63,727.80 $ 871,471.00 $ 31,569.57 $ 63,727.80 $ 871,471.00

$

8,492.37 $

20,946.54 2,130.66

70,483.16 $

475,972.17
134,428.04 113,660.37
16,422.97
63,270.56 58,338.48

$ 31,569.57 $

$

0.00 $

70,483.16 $ -6,755.36 $

862,092.59 9,378.41

6,755.36

$

0.00 $

o.oo $

9,378.41

0.00

0.00

2,347.35

$

0.00 $

0.00 $ ===1=1,7=25=.7=6

See notes to the general purpose financial statements.

-28 -

EXHIBIT "F" Page2

GOALS 2000 STATE AND
LOCAL EDUCATION SYSTEMIC IMPROVEMENT
GRANTS

ADULT EDUCATION

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 950,528.39 $ 1,168,308.48

$

3,597.24 $ 260,979.90

4,117,245.23 3,689,292.78

537,568.57

554,591.88

$

3,597.24 $ 260,979.90 $ 5,605,342.19 $ 5,412,193.14

$

3,597.24 $ 260,979.90 $ 2,625,777.75 $ 2,323,689.37

317,804.61 188,180.03
18,500.00 98,463.55
2,830.30 159,692.54 73,830.29 29,587.58 2, 184,599.11
8,233.53

348,899.90 143,439.52 150,325.01 121,047.88
136,820.39 73,702.05 35,738.34 2,303,436.84
1,983.84

$

3,597.24 $ 260,979.90 $ 5,707,499.29 $ 5,639,083.14

$

0.00 $

0.00 $ -102,157.10 $ -226,890.00

6,755.36

5,832.53

$

0.00 $

0.00 $

-95,401.74 $ -221,057.47

0.00

0.00

231,761.05

421,935.04

3,296.19 -9, 167.80

17,819.54 13,063.94

$

0.00 $

0.00 $ 130,487.70 $ 231,761.05

- 29 -

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

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects
Total Liabilities and Fund Equity

GEORGIA STATE FINANCING AND INVESTMENT

PROJECT

PROJECT

PROJECT

94/94S-605-001 95/96-605-001

95/96-605-002

$

251,079.21 $

104,020.61 $

117,918.01

445.21

191.13

215.94

$

251,524.42 $

104,211.74 $ ====11=8=,13=3=.9=5

$

251,524.42 $

104,211.74 $ _ _ _11_8......1. _3_3_.9_5

$

251,524.42 $

104,211.74 $ = = =118=,1=33.=95

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

EXHIBIT"G"

COMMISSION PROJECT 96-605-003

LOTTERY PROJECT 96/95S-605-001

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

19,048.00 $

24,858.00 $

516,923.83 $

404,349.82

852.28

253,408.79

$

19,048.00 $

24,858.00 $

517,776.11 $

657,758.61

$

19,152.90

71,611.63

$

90,764.53

$

19,048.00 $

24,858.00 $ 517,776.11

566,994.08

$

19,048.00 $

24,858.00 $

517,776.11 $

657,758.61

- 31 -

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

GEORGIA STATE FINANCING AND INVESTMENT

PROJECT

PROJECT

PROJECT

94/94S-605-001

95/96-605-001

95/96-605-002

REVENUES

State Funds Taxes and Other Funds
Total Revenues

$

15,526.55 $

$

15,526.55 $

5,281.99 $ 5,281.99 $

6,005.67 6,005.67

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

$

870.00 $

75,162.18

0.00 $

0.00

Total Expenditures

$

76,032.18 $

0.00 $

0.00

Excess of Revenues over (under) Expenditures

$

-60,505.63 $

5,281.99 $

6,005.67

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

Total Other Financing Sources (Uses)

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

-60,505.63 $

5,281.99 $

6,005.67

FUND BALANCE JULY 1

312,030.05

98,929.75

112,128.28

FUND BALANCE JUNE 30

$

251,524.42 $

104,211.74 $ ====11=8=,13=3=.9=5

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

EXHIBIT"H"

COMMISSION PROJECT 96-605-003

LOTTERY PROJECT 96/95S-605-001

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

71,887.90

$

0.00 $

0.00 $ ----26-,8-1-4.-21-

24,507.05

$

0.00 $

0.00 $

26,814.21 $ _ _9_6...,.3._9_4_.9_5

$

0.00 $

0.00 $

870.00 $

185,065.11

75,162.18

935,464.12

235,849.87

$

0.00 $

0.00 $

76,032.18 $ 1,356,379.10

$

0.00 $

0.00 $

-49,217.97 $ -1,259,984.15

$

556,027.40

-202,699.57

$

353,327.83

$

0.00 $

0.00 $

-49,217.97 $ -906,656.32

19,048.00

24,858.00

566,994.08

1,473,650.40

$

19,048.00 $

24,858.00 $

517,776.11 $

566,994.08

- 33 -

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

EXHIBIT"I"

DEFERRED COMPENSATION PLAN
ASSETS Investments Held by Trustee

BALANCE JULY 1, 1995

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1996

$ 267,218.27 $

29,721.87 $

0.00 $ 296,940.14

LIABILITIES Deferred Compensation Plan

$ 267,218.27 $

29,721.87 $

0.00 $ 296,940.14

SPECIAL ACTIVITIES ACCOUNT ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for others
TOTALS - AGENCY FUNDS ASSETS
Cash and Cash Equivalents Investments Held by Trustee

$

313.74 $

5,000.00 $

3,000.00 $ ====2,3=13=.7=4

$

313.74 $

5,000.00 $

3,000.00 $===2=,3=1=3=.7=4

$

313.74 $

267,218.27

5,000.00 $ 29,721.87

3,000.00 $

2,313.74 296,940.14

$ 267,532.01 $

34,721.87 $

3,000.00 $ 299,253.88

LIABILITIES Funds Held for Others Deferred Compensation Plan

$

313.74 $

267,218.27

5,000.00 $ 29,721.87

3,000.00 $

2,313.74 296,940.14

$ 267,532.01 $

34,721.87 $

3,000.00 $ 299,253.88

See notes to the general purpose financial statements.

- 34-

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U.S. Department of Direct Summer Food Service Program for Children Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1996 Contract Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U.S. Department of Direct Impact Aid 1990 Grant 1991 Grant Through Bibb County Board of Education Adult Education 1996 Grant Through Georgia Department of Education Elementary and Secondary Education Act Title I Education of Children with Disabilities in State Operated or Supported Schools 1996 Grant Grants to Local Educational Agencies 1995 Summer 1996 Grant Title II Eisenhower Professional Development 1995 Regular 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Goals2000 State and Local Education Systemic Improvement Grants 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Safe and Drug-Free Schools 1996 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.559 $

20,284.00

(2)

10.558

2,799.66

(2)

10.553

257,754.93

(2)

* 10.555 10.550

958,196.08 $ 152,047.28

2,032,551.83 (3) 152,047.28

$ 1,391,081.95 $ 2,184,599.11

84.041 $

102.00

(4)

84.041

4,919.00

(4)

84.002

260,979.90 $

260,979.90

84.009
* 84.010 * 84.010

336.00
77,726.00 1,031,435.05

84.281 84.281

20,350.00 9,467.44

84.298

42,931.61

336.00 77,726.00 1,031,435.05
20,350.00 9,467.44
42,931.61

84.276

3,597.24

3,597.24

84.027 84.173 84.186

277,985.19 34,586.48 31,569.57

277,985.19 34,586.48 31,569.57

- 35 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U.S. Department of Through Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant
Total U.S. Department of Education
Health and Human Services, U.S. Department of Direct Head Start 1996 Grant
Total Federal Financial Assistance

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.048 $ 63,727.80 $ $ 1,859,713.28 $

70,483.16 (3) 1,861,447.64

* 93.600 $ 871,471.00 $ 862,092.59 $ 4,122,266.23 $ 4,908,139.34

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

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

See notes to the general purpose financial statements.

- 36 -

BALDWIN COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30. 1996

SCHEDULE "2"

NONINTEREST BEARING ACCOUNT
Exchange Bank, Milledgeville, Georgia
INTEREST BEARING ACCOUNTS
Century Bank and Trust, Milledgeville, Georgia
N.O.W. Account (2.75%)
Exchange Bank, Milledgeville, Georgia
N.O.W. Account (2.75%) Certificates of Deposit
No. 24208 (5.13%) No. 24209 (5.16%) No. 24210 (5.16%) No. 24474 (5.05%)
First Liberty Bank, Milledgeville, Georgia
N.O.W. Account (2.55%) Certificates of Deposit
No. 1000112129 (5.00%) No. 1000116286 (5.25%)
First National Bank of Baldwin County, Milledgeville, Georgia
Certificate of Deposit No. 2166 (5.25%)

$

2,313.74

$ 175,129.43
140,775.52 575,000.00 117,500.00 104,000.00 650,000.00
734,607.18 250,000.00 750,000.00
900,000.00 4,397,012.13

$ 4,399,325.87

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

BALDWIN COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE ''3"

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

DEBT SERVICE
FUND

TOTAL

Baldwin County Tax Commissioner County Wide Bond Tax County Wide School Tax

$ 117,768.11

$ 5,070.88 $

5,070.88

117,768.11

Bibb County Board of Education Adult Education

$ 119,037.13

119,037.13

Community Affairs, Georgia Department of Local Assistance Grant

12,500.00

12,500.00

Education, Georgia Department of Quality Basic Education Deferred Summer Salaries - FY 1996 Food Services Child and Adult Care Food Program School Breakfast Program National School Lunch Program Other State Program Alternative Programs Lottery Program Alternative School Program Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Education of Children with Disabilities in State Operated or Supported Schools Title II Eisenhower Professional Development Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Safe and Drug-Free Schools Goals 2000 State and Local Education Systemic Improvement Grants

2,283,777.00 25,918.82

381.21 -2,746.42 8,699.96
882.75

81,661.35 336.00
4,925.44
12,873.15 6,292.79
14,069.57
3,597.24

2,283,777.00 381.21
-2,746.42 8,699.96 25,918.82
882.75
81,661.35 336.00
4,925.44
12,873.15 6,292.79
14,069.57
3,597.24

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

86,467.00

86,467.00

Office of School Readiness Pre-Kindergarten Program

30,462.00

30,462.00

Various Sources Interest Earned Recovery of Prior Year Questioned Cost Salary Overpayment Other

29,965.46 4,495.00

$

852.28

52.45

30,817.74
4,495.00 52.45

$ 2,474,424.39 $ 366,991.62 $

852.28 $ 5,070.88 $ 2,847,339.17

See notes to the general purpose financial statements.

- 38 -

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

SCHEDULE "4"

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

TOTAL DEBT SERVICE

1992 REFUNDING ISSUE

INTEREST (*)

PRINCIPAL

$

295,467.50 $

65,467.50 $

230,000.00

363,285.00

118,285.00

245,000.00

359,565.00

104,565.00

255,000.00

360,030.00

90,030.00

270,000.00

359,370.00

74,370.00

285,000.00

357,555.00

57,555.00

300,000.00

339,555.00

39,555.00

300,000.00

316,405.00

21,405.00

295,000.00

58,410.00

3,410.00

55,000.00

$ 2,809,642.50 $

574,642.50 $ 2,235,000.00

(*) Interest due July 1, 1996, was paid prior to June 30, 1996, and has been excluded from this schedule.

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

1992 REFUNDING
ISSUE
$ 2,450,000.00
215,000.00

Bonds Payable at June 30, 1996

$ 2,235,000.00

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. - 39 -

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1996

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Local Assistance Grant
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 Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Training Local Fair Share Deferred Summer Salaries (Fiscal Year 1995) Deferred Summer Salaries (Fiscal Year 1996) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Special Education Support Cost Teachers' Retirement Lottery Programs Alternative School Program Distant Learning Instructional Technology Pre-Kindergarten Program Safe Schools Grant Technology Installation
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
OTHER Education, Georgia Department of Student Information Systems Project
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

50,000.00

$

50,000.00

11,310,620.00 2,485,095.00
382,544.00 500,331.00 167,193.00 3,247,205.00
696,670.00 216,218.00 410,464.00 365,765.00 109,555.00
35,975.00 77,295.00 -2,257,927.00 -2, 163,270.00 2,283,777.00 1,423,435.00
$ 1,856.64
86,148.82 2,399.53 33,683.14 494.31
403,537.01 1,170.00
13,768.06 107,844.00
10,283.34

150,330.00
82,806.00
23,982.75 36,500.00 139,670.43 269,300.00
5,957.00 88,837.21

11,310,620.00 2,485,095.00
382,544.00 500,331.00 167,193.00 3,247,205.00
696,670.00 216,218.00 410,464.00 365,765.00 109,555.00
35,975.00 77,295.00 -2,257,927.00 -2, 163,270.00 2,283,777.00 1,423,435.00 150,330.00
1,856.64
86,148.82 2,399.53 33,683.14 494.31
403,537.01 1,170.00
82,806.00 13,768.06 107,844.00 10,283.34
23,982.75 36,500.00 139,670.43 269,300.00
5,957.00 88,837.21

153,145.00

153,145.00

92,375.00

92,375.00

1,500.00

1,500.00

$ 20,096,004.85 $ 950,528.39 $ 21,046,533.24 - 40 -

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30. 1996

SCHEDULE "6"

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

DEBT SERVICE
FUND

TOTAL

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

$ 8,027,378.62 8,018.94 17,200.99

$ 357,844.48 $ 357,844.48

8,027,378.62

345.45

8,364.39

741.00

17,941.99

Other Sources Compensation for Loss of Assets Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Recovery of Prior Year Questioned Cost Salary Overpayment Rents Sales of Meals Tuition Other

5,363.34

41,376.08 147,144.50 $
2,280.00

4,827.14 $ 26,814.21

4,895.00 11,400.00
87,938.71 16,000.11

532,616.67 124.76

4,701.91

5,363.34
41,376.08 183,487.76
2,280.00
4,895.00 11,400.00 532,616.67 87,938.71 16,124.87

$ 8,368,996.29 $ 537,568.57 $ 26,814.21 $ 363,632.84 $ 9,297,011.91

See notes to the general purpose financial statements.

- 41 -

THIS PAGE LErr BLANK

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

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 Tuition 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 Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 17,870,640.00 $ 5,221,775.62 59,535.40 267,298.61 15,543.37 86,362.28 288,816.53 210,510.87 47,373.98 107,661.00 106,508.86
36,588.52 13,542.00 799,877.92 931,159.43
512,343.25 41,833.34
38,368.02

2,836,519.01 $ 669,689.01 20,765.57 196,605.44
3,038.13 63,020.49
7,359.11 2,930.00 10,276.62
14,141.21 380,675.20
11,000.00 1,044,070.16
3,356.16 13,942.81 41,376.08 16,682.38

20,707,159.01 5,891,464.63 80,300.97 463,904.05 15,543.37 89,400.41 351,837.02 210,510.87 47,373.98 107,661.00 113,867.97 2,930.00 10,276.62 36,588.52 27,683.21 1,180,553.12 942,159.43 1,044,070.16 515,699.41 55,776.15 41,376.08 55,050.40

4,600.00 4,115.00 391,416.29

372,051.91

4,600.00 4,115.00 763,468.20

Total Expenditures

$ 27,055,870.29 $ 5,707,499.29 $ 32,763,369.58

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

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Other Purchased Services Supplies Due and Fees
Nonoperating Costs Building and Building Improvements Equipment

ALTERNATIVE SCHOOL PROGRAM

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

$

5,195.35

$

9,398.95

8,233.53
10,553.87 $

36,500.00

130,271.48

Total Expenditures

$

23,982.75 $

36,500.00 $ ===1=39==,6=7=0=.4=3

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

SCHEDULE "8"

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

312,250.34

83,422.58

1,657.14

650.00

1,215.74

7,034.80

80.00

$ 312,250.34

83,422.58

1,657.14

$

88,837.21

89,487.21

1,215.74

21,629.10

80.00

15,295.96 $

5,957.00

8,233.53 198,578.31

$

421,606.56 $

5,957.00 $

88,837.21 $ 716,553.95

- 45 -

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 14,678,590.00 $

453,700.00

$ 15,365,343.26 1,084,611.69 $ _ __..;;..964;;....;.i...,1...;;.84...;..=27_
$ 16,449,954.95

-118,406.77 $ 16,331,548.18

Amount of Underexpenditure for Total Allotment

$

o.oo $=====o=.o=o

Note: (1) Salary accruals (July and August 1996 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 1995 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. - 47 -

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

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten () Grades 1 - 3 () Sub-Total - K-3 Grades 4 - 5 ()
Grades 6 - 8 r)
Grades 9 - 12 () High School Laboratories () Vocational Education Laboratories ()
Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS
Regular Programs Category I () Category II () Category 111 () Category IV () Sub-Total - Regular Category V (Gifted) () Total Special Education Programs
REMEDIAL EDUCATION PROGRAM tl
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs () Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1996 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 1,177,650.00 3,117,092.00
$ 4,294,742.00 1,560,782.00 2,448,464.00 1,749,680.00 637,268.00 619,684.00
$ 11,310,620.00

$ 1,059,885.00 $

2,805,382.80

90 $ 3,865,267.80 $

90

1,404,703.80

90

2,203,617.60

90

1,574,712.00

90

573,541.20

90

557,715.60

$ 10,179,558.00 $

0.00 0.00
0.00

$ 2,272,990.00

$ 2,045,691.00 $

0.00

$ 2,272,990.00

212,105.00

$ 2,485,095.00

$

382,544.00

$ 14,178,259.00

90 $ 2,045,691.00 $

90

190,894.50

$ 2,236,585.50 $

90 $

344,289.60 $

$ 12,760,433.10 $

$

398,012.00 90 $

358,210.80 $

102,319.00 90

92,087.10

$

500,331.00

$

450,297.90 $

$ 14,678,590.00

$ 13,210,731.00 $

0.00
0.00 0.00 0.00
0.00 0.00
0.00

$

41,229.00

125,964.00

$

41,229.00 $

125,964.00

$

167,193.00 100 $

167,193.00 $

(2) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

0.00 0.00
0.00

- 48 -

SCHEDULE "10"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,059,885.00 $ 1,113,207.65 $

30,664.31 $ 1,143,871.96

2,805,382.80

3,799,402.17

175,395.41

3,974,797.58

$ 3,865,267.80 $ 4,912,609.82 $

206,059.72 $ 5,118,669.54 $

0.00

1,404,703.80

1,376,607.15

61,182.00

1,437,789.15

0.00

2,203,617.60

2,340,918.20

233,899.93

2,574,818.13

0.00

1,574,712.00

1,777,910.35

204,758.03

1,982,668.38

0.00

573,541.20

740,762.16

17,102.53

757,864.69

0.00

557,715.60

546,118.49

109,072.90

655,191.39

0.00

$ 10,179,558.00 $ 11,694,926.17 $

832,075.11 $ 12,527,001.28

$ 2,045,691.00 $

$ 2,045,691.00 $

190,894.50

$ 2,236,585.50 $

$

344,289.60 $

$ 12,760,433.10 $

521,853.03 $ 761,800.61 1,187,097.20
75,082.61
2,545,833.45 $
286,729.08
2,832,562.53 $
339,544.21 $
14,867,032.91 $

3,086.98 $ 1,653.77 109,058.39 8,185.50

524,940.01 763,454.38 1,296,155.59
83,268.11

121,984.64 $ 2,667,818.09

10,011.18

296,740.26

131,995.82 $ 2,964,558.35

113.34 $

339,657.55

964,184.27 $ 15,831,217.18

0.00 0.00
4,632.05

$

358,210.80 $

498,310.35

$

498,310.35

0.00

92,087.10

$

120,427.42

120,427.42

0.00

$

450,297.90 $

498,310.35 $

120,427.42 $

618,737.77

$ 13,210,731.00 $ 15,365,343.26 $ 1,084,611.69 $ 16,449,954.95 $

4,632.05

$

41,229.00

125,964.00

$ ==1=6=7=1,=9=3.=00=

$

102,551.94 $

102,551.94

48,000.64

48,000.64

$

150,552.58 $

150,552.58 $ =====1=6=,6=4=0=.4=2

- 49 -

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

SCHEDULE

11 11

11

BOARD MEMBER ADDRESS
Mr. C. Earnest Yearwood, Chl;lirman (*) 136 Meier Circle, S. E. Milledgeville, Georgia 31061
Ms. Katherlene Browder-Hawkins (*) 109 Deerwood Drive Milledgeville, Georgia 31061
Mr. Allen C. Nelson (*) 128 Nathaniel 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

$

2,400.00 $

612.62

3,600.00

3,600.00

530.75

1,200.00

3,600.00

$

14,400.00 $ ====1=,14=3.3=7

(*) Denotes Board Members Serving as of June 30, 1996

See notes to the general purpose financial statements. - 50 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 25, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Baldwin County Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Baldwin County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 25, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Baldwin County Board of Education is the responsibility of the 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 of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

96CRL-10

The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
L~
Claude L. Vickers State Auditor
CLV:gp 96CRL-10

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 25, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Baldwin County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 25, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

96CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Baldwin County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are 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,

CLV:gp 96CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 25, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Baldwin County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 25, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Baldwin County Board of Education'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, 1996. The management of the Baldwin County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

96CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Baldwin County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
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, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 96CRL-80

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 25, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Baldwin County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 25, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1996 general purpose financial statements of the Baldwin County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. 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 ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Baldwin County Board of Education had not complied, in all material respects, with those requirements.

96CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution ofthis report which is a matter ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 96CRL-120

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 25, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Baldwin County Board of Education
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, 1996, and have issued our report thereon dated June 25, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management 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 of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and
96ICL-4

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 of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of the Baldwin County Board of Education for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable.conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Cash and Cash Equivalents
(2) Expenditures/Liabilities/Disbursements
(3) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness:
General Fixed Assets
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the Baldwin County Board of Education's financial statements and this report does not affect our report thereon dated June 25, 1997.
96ICL-4

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

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 25, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the Baldwin County Board of Education
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, 1996, and have issued our report thereon dated June 25, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 25, 1997.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (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.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures
96ICL-5

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 June 25, 1997.

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 of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation ofpolicies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements

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

For all of the internal control structure 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.

96ICL-5

'
During the year ended June 30, 1996, the Baldwin County Board of Education expended 71% of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which 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.
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 constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. 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. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

CLV:gp 96ICL-5

Claude L. Vickers State Auditor

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, 1996
PRIOR YEAR
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 of $1,054.03. This overpayment was the result of duplicate payments for work performed. The Board has contacted the former employee in an attempt to obtain reimbursement ofthe $1,054.03. However, the former employee indicated a refusal to repay the questioned costs. The Board should consider taking legal action to obtain reimbursement of $1,054.03 for deposit into the General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $25,510.45 Audit Control Number 6051-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$25,510.45 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $25,510.45 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $14,585.76 Audit Control Number 6051-95-02
The audit report for the year ended June 30, 1995, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $14,585.76 for the Staff Development Programs. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $14,585.76 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE program in a subsequent fiscal period.
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BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $4,495.00 Audit Control Number 6051-95-03
The audit report for the year ended June 30, 1995, reported that the Baldwin County Board of Education overpaid an employee in the amount of$6,695.00. This overpayment was the result ofthe Board's incorrectly paying a supplement to an employee for a full twelve months when the individual's contract specified that the supplement only be paid for six months out of the year. The Board collected $600.00 during the 1995 fiscal year and $1,600.00 during the year under review in reimbursement from the employee, leaving a balance in the amount of $4,495.00 at June 30, 1996. The Board should continue to seek reimbursement for the remainder of this overpayment for deposit into the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Local Matching Funds Financial Statements Finding Resolved Audit Control Number 6051-95-04
The audit report for the year ended June 30, 1995, stated that the Board failed to transfer local matching funds from the General Fund to the Capital Projects Fund as required for the approved State Capital Outlay Projects for the 1995 fiscal year. Both the instructions on Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA) and the agreements signed by the Board to receive funding through the Georgia State Financing and Investment Commission (GSFIC project) and the Georgia Department of Education (Lottery project) require that the Board transfer required local matching funds by year end and designate those funds by project name and number. In the year under review, the local funds were transferred and designated as required.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 6051-95-05
The audit report for the year ended June 30, 1995, stated that the Board's property management records maintained for the Elementary and Secondary Education Act - Chapter I - Grants to Local Educational Agencies (CFDA 84.010) were incomplete and failed to meet Federal property management standards as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA). In the year under review, it was noted that property management records were maintained as required.
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BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
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, 1995, noted that the management of the Baldwin County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in .the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, 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 6051-93-03
The audit report for the year ended June 30, 1995, noted several deficiencies in control procedures and supporting documentation for the Minority Students in Teacher Training Scholarship Program between Georgia College & State University and the Baldwin County Board of Education. (See Note 14 for a description ofthe program.) An examination of the records for the year under review, revealed the following deficiencies:
(1) The Board could not document that two recipients with outstanding balances who left Georgia College & State University had signed promissory notes agreeing to the repayment/cancellation terms of the program.
(2) Repayments were not correctly recorded against the individual loan balances.
(3) The Board could not document the outstanding balances for four of the recipients.
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BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS fuadequate Control Procedures/Documentation Financial Statements Reportable Condition Audit Control Number 6051-93-03
These deficiencies occurred because the Board personnel did not maintain accurate files of the student recipients nor did they verify that promissory notes were signed by the student before the scholarship funds were disbursed to Georgia College & State University. Appropriate internal controls should be established by the Board to ensure that all recipients have a signed promissory note on file, that records are updated on a timely basis, that all funds distributed for awards are properly accounted for and that an annual review is performed verifying the current status of each participant.
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 6051-95-01
The audit report for the year ended June 30, 1995, stated that the Board failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any one time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section... The aggregate of the face value of such surety bond, the face or par value of securities pledged, and the amount of deposit insurance shall be equal to not less than 110 percent of the public funds being secured... after the deduction of the amount of deposit insurance."
In the year under review, the Board again failed to have its bank balances fully collateralized. This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement adequate procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments.
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BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996

CURRENT YEAR

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $21,272.47 Audit Control Number 6051-96-0 I

For the year under review, the Baldwin County Board of Education reported to the Georgia Department of Education on DE form 0420 underexpenditures of Quality Basic Education (QBE) funds of $4,632.05 for the Remedial Education Program and $16,640.42 for the Staff Development Programs. The underexpenditures of these QBE Programs occurred because the Board expended less than the minimum expenditure requirement for these QBE Programs. 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.

EXPENDITURES/LIABILITIES/DISBURSEMENTS Delinquent Completion Reports Financial Statements Nonmaterial Noncompliance Audit Control Number 6051-96-02

For the year under review, the Board failed to submit completion reports by the required dates, in accordance with regulations established by the Georgia Department of Education forthe following State programs:

DUE DATE

DATE SUBMITTED

State Preschool Handicapped Program

September 30, 1996

June 10, 1997

Lottery Programs (FY 95 report)

July 31, 1996

March 7, 1997

These instances of noncompliance occurred because of management's failure to adequately monitor these State programs. Procedures should be implemented to ensure that completion reports are submitted in a timely manner, as required.

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BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996

CURRENT YEAR

FEDERAL FINANCIAL REPORTS Failure to Submit Completion Reports By Due Date Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6051-96-03

A review of program project completion reports submitted by the Board to the Georgia Department of Education for the year under review revealed that the required reports were not submitted by the due dates in accordance with regulations established by the Georgia Department ofEducation as listed below:

DUE DATE

DATE SUBMITTED

Elementary and Secondary Education Act Title I Education of Children with Disabilities
In State Operated or Supported
Schools (CFDA 84.009)

September 30, 1996

December 2, 1996

Individuals with Disabilities Education Act Part B - Special Education Flow Through (CFDA 84.027) Preschool (CFDA 84.173)

September 30, 1996 September 30, 1996

October 28, 1996 January 15, 1997

Vocational Education - Basic Grants to States

High School Program

Basic Grant (CFDA 84.048)

September 30, 1996

December 13, 1996

These situations occurred because the Board failed to establish procedures to ensure timely submission of the project completion reports as required by the Georgia Department of Education. Appropriate procedures should be implemented by the Board to ensure that each completion report is submitted by the required due date.

FEDERAL FINANCIAL REPORTS Expired Grant Balance/Questioned Cost Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $11,725.76 Audit Control Number 6051-96-04

The Financial Status Report for the Head Start Program (CFDA 93.600), 1996 Project, submitted by the Board to the U. S. Department of Health and Human Services reported expenditures for this project in the

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BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR FEDERAL FINANCIAL REPORTS Expired Grant Balance/Questioned Cost Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $11,725.76 Audit Control Number 6051-96-04 amount of $871,471.00. Actual expenditures for this project were $862,092.59. As a result, an unexpended grant balance for this project in the amount of $9,378.41 remained on hand at June 30, 1996. Also on hand at June 30, 1996, was a beginning fund balance of$2,347.35 that was an unexpended grant balance from the prior fiscal year. The total unexpended grant balances of $11,725.76 at June 30, 1996, occurred because, for two years, the Board reported budgeted expenditures instead of actual expenditures on the Financial Status Report. Instructions pertaining to the Report require that only actual expenditures be reported to the U.S. Department of Health and Human Services. Procedures should be implemented to ensure that actual expenditures, supported by the accounting records, are reported on the Financial Status Report. The Board should submit an amended Financial Status Report for this program, and $11,725.76 should be refunded to the U.S. Department of Health and Human Services.
Note: The Baldwin County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.
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