Audit report, Barrow County Board of Education, Winder, Georgia, year ended June 30, 1996

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1995-96

AUDIT REPORT BARROW COUNTY BOARD OF EDUCATION
WINDER, GEORGIA YEAR ENDED JUNE 30, 1996

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

BARROW COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
V

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

29

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

30

L

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

-AGENCY FUNDS

31

BARROW COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

32

2 CASH AND CASH EQUNALENTS

33

3 INVESTMENTS

34

4 ACCOUNTS RECEIVABLE

35

5 DEBT SERVICE REQUIREMENTS TO MATURITY

36

SCHEDULE OF REVENUE

6

STATE

38

7

TAXES AND OTHER

39

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

40

9

LOTTERY PROGRAMS

41

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

43

11

BY PROGRAM

44

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

46

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Barrow County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Barrow 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 Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were improperly recorded in the year ended June 30, 1996. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, 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 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 Barrow County Board ofEducation as of June 30, 1996, and the results ofits operations and the cash flows ofits nonexpendable trust fund 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 March 10, 1997, on our consideration ofthe Board's internal control structure and a report dated March 10, 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 Barrow County Board of Education taken as a whole. The combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Barrow 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 of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
96ARL-13

A copy ofthis report has been filed as a pennanent record in the office ofthe 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:cm 96ARL-13

Claude L. Vickers State Auditor

BARROW COUNTY BOARD OF EDUCATION - 1-

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

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2,433,647.39 $ 824,612.79 $

8,563.63

9,544,822.48

247,648.25

245,863.51

46,280.61 14,480.18

$ 2,681,295.64 $ 1,131,237.09 $ 9,553,386.11

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Funds Held for Others General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Debt Service For Endowment Corpus For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects
Unreserved Un designated
Total Fund Equity

$

70,204.08 $

70,036.40

208,196.90

16,396.22

$

15,121.00

$

70.204.08 $ 294.629.52 $

151121.00

$

92,450.18

$

12,185.55

$

92,450.18 $

215181641.38 $ 2.611.091.56 $

46,280.61 14,480.18
$
72,946.34 $ 763.661.23 836,607.57 $

7,636,275.49 1.901.865.72
9,538, 141.21
123.90
9,538,265.11 ,;

Total Liabilities and Fund Equity

$ 2,681,295.64 $ 1,131,237.09 $ 9,553,386.11

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

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS {Memorandum Onl~l JUNE 301 1996 JUNE 3011995

$ 3,665,792.55 $

55,351.03

$ 6,987,967.39 $ 5,909,698.16

9,544,822.48

125,195.67

37,258.44

530,TT0.20

611,856.21

46,280.61 14,480.18

45,671.74 13,304.02

$

3,703,050.99

3,703,050.99

2,851,733.68

17}41.949.01 17}41,949.01

8,503,266.32

$ 3,703,050.99 $

55,351.03 $

21,445,000.00 $ 38,569,320.86 $ 18,060,725.80

$

140,240.48 $

144,804.73

208,196.90

190,850.98

16,396.22

6,427.90

15,121.00

$

8,602.85

8,602.85

9,681.71

$

2114451000.00 211445,000.00 11.355,000.00

$

8,602.85 $

2\4451000.00 $ 21,833,557.45 $ 11 .706,765.32

$ 3,703,050.99 $
$ 3,703,050.99 $ 0.00
$ 3,703,050.99 $ $ 3,703,050.99 $

14,914.68
14,914.68 31,833.50 46,748.18

$

92,450.18 $

75,765.86

12,185.55

6,641.72

3,703,050.99

2,851,733.68

14,914.68

14,914.68

46,280.61 14,480.18 7,636,275.49 1,901,865.72
$ 13,421,503.40 $
3,314.260.01
$ 16,735,763.41 $

45,671.74 13,304.02 125,402.96
3, 133,434.66
3,220.525.82 61353,960.48

55,351.03 $

21,445,000.00 $ 38,569,320.86 $ 18,060,725.80

-3-

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

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES}
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Refunding Bond Issuance Cost Proceeds of Refunding Bonds
Par Value Payments to Refunded Bond Escrow Agent 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
FUND BALANCE JULY 1
Food Inventory Net Change in Period Donated Commodities Purchased Food
Adjustment to Prior Year Retainage Payable
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

$ 20,858,514.11 $ 9,682.72
9,375,751.86

878,844.90 2,167,719.46
868,825.71 $

$ 30,243,948.69 $ 3,915,390.07 $

256,247.85 256,247.85

$ 20,099,489.55 $ 1,311,920.38

708,783.02 686,781.30 726,192.97 523,439.29 2,228,971.66 417,085.79 2,531,598.09 1,547,357.02 240,550.09
872.26 309.00 138,472.63 186,162.06

150,669.97 45,772.43 34,927.18 91,586.05
$ 118,207.11 43,631.22
142,922.80 2,070,311.44

169,556.64 673,952.96

$ 30,036,064.73 $ 4,009,948.58 $

$

207,883.96 $

-94,558.51 $

843,509.60 -587,261.75

$ 10,000,000.00

$

24,244.22

$

-24,244.22

$

-24,244.22 $

24,244.22 $ 10,000.000.00

$

183,639.74 $

2,427,451.82

-70,314.29 $ 905,136.83

9,412,738.25 125,526.86

608.87 1,176.16

$ 2,611,091.56 $

"
836,607.57 $ 9,538,265.11

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

EXHIBIT"B"

"' DEBT SERVICE
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 301 1996 JUNE 301 1995

$ 21,737,359.01 $ 18,969,837.70

2,1TT,402.18

2, 188,809.80

$ 2,011,994.88 12.512,820.30 11,032.493.75

$ 2,011,994.88 $ 36,427.581.49 $ 32,191.141.25

$ 21,411,409.93 $ 19,330,611.46

859,452.99 732,553.73 761,120.15 615,025.34 2,228,971.66 586,642.43 2,649,805.20 1,590,988.24 240,550.09 143,795.06 2,070,620.44 138,472.63 860,115.02

807,731.80 582,346.65 696,867.68 562,151.40 1,797,451.90 511,712.96 2,314,257.38 1,3n,121.os 169,485.06 171,012.68 1,918,642.95
39,241.17 162,896.86

$ 575,000.00 698,444.39 3,086.54

575,000.00 698,444.39
3,086.54

430,000.00 697,181.75
2,587.95

$ 1,276,530.93 $ 36,166,053.84 $ 31,566,300.70

$ 735,463.95 $

261,527.65 $

624.840.55

$ 115,853.36 $

115,853.36

-122,501.65

10,000,000.00 -122,501.65

5,960,000.00 -5,837,498.35

5,960,000.00 -5,837,498.35
24,244.22 $ -24,244.22

$ 115,853.36 $ 10,115,853.36 $

12,554.06 -12,554.06
0.00

$

851,317.31 $ 10,3TT,381.01 $

624,840.55

2,851,733.68

6,309,849.19

5,539,007.99

608.87 1,176.16

-1,433.53 -1,876.82
149,311.00

$ 3,703,050.99 $ 16,689,015.23 $ 6,309,849.19

-5-

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

EXHIBITc

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 19,702,620.00 $ 20,858,514.11

52,000.00

9,682.72

8,556,662.00 9,375,751.86

Total Revenues

$ 28,311,282.00 $ 30,243,948.69

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 Community Service Operations
Capital Outlay

$ 19,256,202.00 $ 20,099,489.55

631,701.00 538,600.00 762,350.00 560,264.00 2,071,025.00 516,000.00 2,189,500.00 1,398,040.00 180,600.00
32,000.00
175,000.00

708,783.02 686,781.30 726,192.97 523,439.29 2,228,971.66 417,085.79 2,531,598.09 1,547,357.02 240,550.09
872.26 309.00 138,472.63 186,162.06

Total Expenditures

$ 28,311,282.00 $ 30,036,064.73

Excess of Revenues over (under) Expenditures

$

0.00 $ 207,883.96

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -24,244.22

Total Other Financing Sources (Uses)

$ -24,244.22

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

0.00 $ 183,639.74

FUND BALANCE JULY 1, 1995

2,437,559.81 2,427,451.82

Adjustments

60,823.23

FUND BALANCE JUNE 30, 1996

$ 2,498,383.04 $ 2,611,091.56

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 655,845.03 $ 878,844.90

1,938,100.00 2,167,719.46

813,840.00

868,825.71

$ 3,407?85.03 $ 3,915,390.07

$ 959,884.00 $ 1,311,920.38

83,159.00 36,497.72 34,905.00 88,090.00

150,669.97 45,n2.43 34,927.18 91,586.05

131,113.03 48,n1.oo
146,129.00 1,885,878.00

118,207.11 43,631.22
142,922.80 2,070,311.44

$ 3,414,426.75 $ 41009,948.58 $ -6,641.72 $ -94,558.51

$ 24,244.22

$ -24,244.22

$ -6,641.72 $ -70,314.29

904,821.53

905,136.83

-61,708.18

1,785.03

$ 836,471.63 $ 836,607.57

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

BARROW COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30, 1996

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Dues and Fees Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Total Income
FUND BALANCE JULY 1

BARROW COUNTY, GEORGIA BOARD
OF EDUCATION SCHOLARSHIP
FUND, INCORPORATED

TOTALS {Memorandum Onlt)
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

0.00 $

0.00 $

0.00

$

15.00 $

15.00 $

15.00

$

-15.00 $

-15.00 $

-15.00

2,651.89

2,651.89

1,870.53

$

2,636.89 $

2,636.89 $

1,855.53

44,111.29

44,111.29

42,255.76

FUND BALANCE JUNE 30

$

46,748.18 $

46,748.18 $ ===4=4,1=11=.2=9

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

BARROW COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1996

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Dues and Fees
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

BARROW COUNTY, GEORGIA BOARD
OF EDUCATION SCHOLARSHIP
FUND, INCORPORATED

TOTALS {Memorandum Onlt}
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

-15.00 $

-15.00 $

-15.00

2,651.89

2,651.89

1,870.-53

$

2,636.89 $

2,636.89 $

1,855.53

44,111.29

44,111.29

42,255.76

$

46,748.18 $

46,748.18 $ ====4=4,=11=1.=29=

The notes to the general purpose financial statements are an integral part of this statement. -8-

BARROW COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

I,
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Barrow 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 ofthe Board's accounting policies are described below.

REPORTING ENTITY

In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Barrow County Board ofEducation.

Based upon the application ofthe above criteria, the Barrow County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Barrow County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.

Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.

FUND ACCOUNTING

The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.

A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

- 9-

BARROW COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLETRUSTFUND Barrow County, Georgia Board of Education Scholarship Fund, Incorporated - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to administer, secure and manage funds and assets to provide educational scholarships for students in Barrow County and for other general purposes.
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
}\

- 10 -

BARROW COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1996, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid
- 11 -

BARROW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Barrow County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting 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.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including certificates of deposit, savings and N.0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more

- 12 -

BARROW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUM:MARY 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
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at co~t. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

- 13 -

BARROW COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Barrow County Board ofCommissioners fixed the property tax levy for the 1995 tax year (calendar year) on October 20, 1995 (levy date). Taxes were due on December 20, 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 Barrow 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 Barrow County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

16.67 mills 3.35 mills

20.02 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (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.

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, gene_ral 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.

....

- 14 -

BARROW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction 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:
(I) 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, no!es, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
- 15 -

BARROW COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTMENTS

(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $9,223,918.49. 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 hy 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
1 2 3
Total
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Bank Balance
$ 317,443.98 664,331.86
8,242,142.65
$9,223,918.49

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's

M~.

A

Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or

agent in the Board's name.

Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust

department or agent but not in the Board's name.

- 16 -

BARROW COUNTY BOARD OF EDUCATION .

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\.ffiNTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTl\.ffiNTS

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

At June 30, 1996, the carrying amount of the Board's total investments was $9,544,822.48 and consisted of $9,464,948.83 offunds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services and $79,873.65 in an government security investment pool account with Reliance Trust Company. None of these investments are required to be categorized since the Board did not own any specific identifiable securities in either pool. The investment policy of the State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEl\.ffiNT

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 and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has elected to self-insure for all losses related to errors and omissions, which includes, among other risks, risks for sexual harassment and discrimination. In addition, the Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to these risks in the past three years.

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

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

B~tnning o Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1995 1996

$

0.00 $

9 565.00 $

9 565.00 $

0.00

$

0.00 $

6 154.26 $

6 154.26 $

0.00

- 17 -

BARROW COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\IBNTS

JUNE 30, 1996

Note 4: RISK MANAGEl\IBNT

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss.

Note 5: GENERAL LONG-TERM DEBT

ADVANCE REFUNDING During the year under review, the Barrow County Board of Education issued $5,960,000.00 in General Obligation Refunding Bonds to advance refund $5,295,000.00 of outstanding bonds. The bond issue of $5,960,000.00 less underwriters and bond issue cost of$122,501.65 provided net proceeds of $5,837,498.35. The total net proceeds of $5,837,498.35 were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on portions ofthe 1990 Bond issue. As a result, portions of the 1990 Series Bonds are considered defeased, and the liability for these portions has been removed from the General Long-Term Debt Account Group. The Barrow County Board of Education refunded the aforementioned bonds to reduce its total Debt Service payments over fourteen years beginning subsequent to fiscal year 1996 by $614,459.00 and to obtain an economic gain (difference between the present values of total debt service payments and the old and new debt) of$476,011.00.

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

Purpose

Interest Rates

Amount

General Government - Series 1995A General Government - Refunding - Series 1995B General Government - Refunding - Series 1993 General Government - Series 1990 General Government - Series 1973

4.00%-5.40% 3.90% - 5.40% 3.15%-4.75% 5.90% - 7.05% 5.00%- 6.00%

$10,000,000.00 5,840,000.00 4,665,000.00 355,000.00 585,000.00

$21,445,000.00

- 18 -

BARROW COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: GENERAL LONG-TERM DEBT

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

Balance July 1, 1995
Additions Deductions
Payments Balance June 30, 1996

General Obligation
Bonds $11,355,000.00
15,960,000.00
5,870,000.00
$21 445 000 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
1997 1998 1999 2000 2001 2002 and thereafter
Total Principal and Interest

General Obligation
Bonds
$ 1,708,532.50 1,725,007.50 1,743,680.00 1,759,415.00 1,775,457.50
26,302,810.00
$35 014 902,50

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal years 1993 and 1996, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. . Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. (During fiscal year 1996, the balance of bonds defeased in fiscal year 1993 were retired.) At June 30, 1996, $5,295,000.00 of bonds are outstanding and are considered defeased.

Note 7: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of $551,627.50 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 $438,324.68

- 19 -

BARROW COUNTY BOARD OF EDUCATION

EXIllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 7: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System {TRS} Employer's Cost In the amount of$24,514.82

Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$88,788.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as ofJune 30, 1996:

Project

Unearned Executed Contracts

Winder-Barrow High School Winder-Barrow Middle School Statham Elementary School Various Schools

$ 29,450.00 20,000.00 10,000.00 1,700.00

$ 61,150.00

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

Note 9: CONTINGENT LIABILITIES

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

Note I 0: 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).

- 20 -

BARROW COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 10: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years ofcreditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $19,024,457.95; total payroll was $21,936,441.60.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TR.Sare required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $3,198,014.98, of which $2,246,788.17 was made by the Board and $951,226.81 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB)that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salruy increases. A stand_ardized measure ofthe pension benefit obligation was adopted by the GASB to enable

- 21 -

BARROW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 10: RETIREMENT PLANS

readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as ofJune 30, 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, i995.
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 $2,246,788.17 was actuarially determined and represented .3699% 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 contrib1:1tions 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 the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 22 -

BARROW COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1996

Note 10: RETIRE:MENT PLANS
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years ofcreditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 243 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $7,540.00. 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 11: SURETY BONDS
The School Superintendent, Mr. Daniel H. Cromer, is bonded in the amount of$100,000.00 with the Utica Mutual Insurance Company, New Hartford, New York, their Bond No. SUI 794340, on which premium was paid through August 31, 1996.

- 23 -

BARROW 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

ELEMENTARY AND SECONDARY EDUCATION

TITLEI

GRANTS TO

STATE

TITLEII

LOCAL

SCHOOL

EISENHOWER

EDUCATIONAL IMPROVEMENT PROFESSIONAL

AGENCIES

GRANTS

DEVELOPMENT

$ 872,511.80 $ 6,676.85

$

12,185.55

18,876.30

15,884.46 $ 121,064.52 $

4,695.00

46,280.61 14,480.18

Total Assets

$ 952,148.89 $ 22,561.31 $ 121,064.52 $

------ 4,695.00 $

12,185.55

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable

$ 36,760.79 $ 90,966.08

Total Liabilities

$ 127,726.87 $

FUND EQUITY

Fund Balances Reserved For Continuation of Federal Program For Inventories Food Donated Commodities Purchased Food

$ 46,280.61 14,480.18

Unreserved Undesignated

$ 60,760.79 763,661.23 $

Total Fund Equity

$ 824,422.02 $

$ 5,354.66 17,206.65 22,561.31 $
0.00 $ 0.00 $

15,416.35 $ 20,943.74 76,635.74
8,068.69 121,064.52 $
0.00 $ 0.00 $

4,695.00 4,695.00
$
$ 0.00 0.00 $

12,185.55
12,185.55 0.00
12,185.55

Total Liabilities and Fund Equity

$ 952, 148.89 $ 22,561.31 $ 121,064.52 $

4,695.00 $

12,185.55

See notes to the general purpose financial statements.

-24-

V

ACT TITLE VI
INNOVATIVE EDUCATION PROGRAM STRATEGIES

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

VOCATIONAL EDUCATION
FEDERAL

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

0.00

$

12,903.39 $

0.00

$ 904,277.59 $ 1,001,585.74

$ 38,171.34

$ 47,171.89

245,863.51

247,219.94

46,280.61 14,480.18

45,671.74 13,304.02

$ ====o=.oo= $ 38,111.34 $

12,903.39 $===-==0..0..0=$ 47,171.89 $ 1,210,901.89 $ 1,307,781.44

$ 20,268.04 4,045.21 $
11,175.10 2,682.99
$ 38,171.34 $

1,648.04 5,610.81 5,644.54
12,903.39

$ 39,285.41 $ 1,283.96 6,602.52
$ 47,171.89 $

79,664.80$ 70,036.40
208,196.90 16,396.22
374,294.32 $

121,384.23 83,981.50 190,850.98 6,427.90
402,644.61

$

12,185.55 $

6,641.72

46,280.61 14,480.18

45,671.74 13,304.02

$

72,946.34 $

65,617.48

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

763,661.23

839,519.35

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 836,607.57 $ 905,136.83

$ = = = =0.= 00 $ 38,171.34 $

12,903.39 $===0.=00=$ 47,171.89 $ 1,210,901.89 $ 1,307,781.44

-25-

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY EDUCATION

TITLE I

GRANTS TO

STATE

TITLEII

LOCAL

SCHOOL

EISENHOWER

EDUCATIONAL IMPROVEMENT PROFESSIONAL

AGENCIES

GRANTS

DEVELOPMENT

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 151,198.00 $ 727,646.90

974,429.61

$

868,825.71

690,995.83 $

4,695.00 $

25,147.00

Total Revenues

$ 11994,453.32 $ 727,646.90 $ 690,995.83 $

4,695.00 $

25,147.00

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation

$ 533,208.58 $

41,612.66 2,539.82

220.80

118,207.11 38,769.02

$ 2,070,311.44

419.22

580,210.71 $
17,474.90 84,389.92
1,530.27 7,717.12

1,399.50 $
2,292.04
1,003.46

298.00 19,254.90
50.27

Total Expenditures

$ 2,070,311.44 $ 734,9TT.21 $ 691,322.92 $

4,695.00 $

19,603.17

Excess of Revenues over (under) Expenditures $ -75,858.12 $ -7,330.31 $

-327.09 $

0.00 $

5,543.83

OTHER FINANCING SOURCES

Operating Transfers In

7,330.31

327.09

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

$ -75,858.12 $

0.00 $

0.00 $

0.00 $

5,543.83

FUND BALANCE JULY 1

898,495.11

0.00

0.00

0.00

6,641.72

Food Inventory - Net Change in Period Donated Commodities Purchased Food

608.87 1,176.16

FUND BALANCE JUNE 30

s 824,422.02 s===o=.oo= $

0.00 $

0.00 $

12, 185.55

-==""==-=

See notes to the general purpose financial statements.

-26-

EXHIBIT H"

ACT TITLE VI
INNOVATIVE EDUCATION PROGRAM STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTS

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

SAFE AND DRUG-FREE SCHOOLS

VOCATIONAL EDUCATION
FEDERAL

TOTALS YEAR ENDED JUNE 301 1996 JUNE 301 1995

$

35,005.00 $ 263,148.35 $

$

35,005.00 $ 263,148.35 $

52,455.46 $ 52,455.46 $

26,875.00 $ 26,875.00 $

$ 878,844.90 $ 719,780.30

94,968.21 2,167,719.46 2,072,840.15

868,825.71

798,722.63

94,968.21 $ 3,915,390.07 $ 3,591,343.08

$ 71,018.43 $

46,105.12

4,210.TT

$

34,927.18

TT.82

6,TT9.00

3,252.03 131,783.00

$

35,005.00 $ 263,148.35 $

$

0.00 $

0.00 $

37,197.18 15,178.38 $
79.90
52,455.46 $ 0.00 $

$ 88,885.98 $ 1,311,920.38 $ 1,381,322.85

26,806.76 68.24

20,669.05 2,000.00

150,669.97 45,TT2.43 34,927.18 91,586.05
118,207.11 43,631.22
142,922.80 2,070,311.44

137,158.74 41,212.08
25,661.38 1,423.TT 7,138.96
21,700.48 1,126.64
137,600.95 1,917,893.66

26,875.00 $ 111,555.03 $ 4,009,948.58 $ 3,672,239.51

0.00 $ -16,586.82 $ -94,558.51 $ .-80,896.43

$

0.00 $

0.00 $

0.00

0.00

$====0.=00=$===0=.00=$

0.00 $ 0.00

16,586.82

24,244.22

12,554.06

0.00 $ 0.00

0.00 $ 0.00

-70,314.29 $ 905,136.83

-68,342.37 976,789.55

608.87 1,176.16

-1,433.53 -1,876.82

o.oo $===0=.00=$-==o=.00=$ 836,607.57$ 905,136.83

-27 -

BARROW COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30. 1996

EXHIBITT

ASfil Cash and Cash Equivalents Investments

REGULAR

1990 BOND ISSUE
FUND

1995 BOND ISSUE
FUND

LOTTERY PROJECT 97-607-001

TOTALS JUNE 30, 1996 JUNE 301 1995

$ 123.90 $

207.29 $

8,232.44 $

0.00 $

8,563.63 $

331.19

79,873.65 7,547,962.11 1,916,986.72 9,544,822.48

125,195.67

Total Assets

$

123.90 $ 80,080.94 $ 7,556,194.55 $ 1.916,986.72 $ 9,553,386.11 $

125,526.86

LIABll,,IIl!;;S AND FUND EQUITY
LIAalLIIIES
Cash Overdraft
FUNDEOUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects

Unreserved

Undesignated

$

Total Fund Equity

$

$ 15,121.00 $

15,121.00

$ 80,080.94 $ 7,556,194.55

$ 7,636,275.49 $

$ 1.901.865.72 1,901,865.72

$ 80,080.94 $ 7,556,194.55 $ 1,901,865.72 $ 9,538,141.21 $

123.90 123.90 $

0.00

0.00

0.00

123.90

80.080.94 $ 7,556,194.55 $ 11901 1865.n s 9,538,265.11 $

125,402.96 125,402.96
123.90 125,526.86

Total Liabilities and Fund Equity $

123.90 $ 80,080.94 $ 7,556,194.55 $ 11916,986.72 $ 9,553,386.11 $

125,526.86

See notes to the general purpose financial statements.

-28-

BARROW COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND
VEAR ENDED JUNE 30 1996

EXHIBIT"J'

.,..

REGULAR

1990 BOND ISSUE
FUND

1995 BOND ISSUE
FUND

LOTTERY PROJECT 97-607-001

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

REVENUES Taxes and Other Funds

$

1.98 $ 5,910.51 $ 250,335.36 $

0.00 $ 256,247.85 $

6,378.56

EXPENDITURES
Current Support Services Business Administration Bond Issuance Cost Other Expenditures
Capital Outlay Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures

$ $ 497,341.00 $ 497,341.00 $
$ -497,339.02 $

$ 4,571.85 46,660.68 51,232.53 $
-45,322.02 $

164,984.79

$

$ 129,951.28 164,984.79 $ 129,951.28 $

164,984.79 4,571.85 $
673,952.96
843,509.60 $

85,350.57 $ -129,951.28 $ -587,261.75 $

6,572.78 40,000.00 46,5n.78
-40,194.22

OT!:!l;;R FINANCING QURCES {.YSES}

Proceeds from General Obligation Bonds

Par Value

Operating Transfers In

$

Operating Transfers Out

497,339.02

$ 10,000,000.00

$ 10,000,000.00

$ 2,031,817.00

2,529,156.02

-2,529,156.02

-2,529, 156.02

Total Other Financing Sources

(Uses)

$ 497,339.02

$ 7,470,843.98 $ 2,031,817.00 $ 10,000,000.00

Excess of Revenues and Other Financing

Sources over (under) Expenditures and

Other Financing Uses

$

0.00 $ -45,322.02 $ 7,556,194.55 $ 1,901,865.72 $ 9,412,738.25 $

F!.!ND BALANCE JULY 1

123.90 125,402.96

0.00

0.00

125,526.86

Adjustment Prior Year Retainage Payable

-40,194.22 16,410.08
149,311.00

FUND BALANCE JUNE 30

$

123.90 $ 80,080.94 $ 7,556,194.55 $ 1,901,865.72 $ 9,538,265.11 $ 1251526.86

See notes to the general purpose financial statements.

-29-

BARROW COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1996

EXHIBIT K"

ASSETS Cash and Cash Equivalents

NONEXPENDABLE TRUST FUND
BARROW COUNTY, GEORGIA BOARD OF EDUCATION
SCHOLARSHIP FUND,
INCORPORATED

AGENCY FUNDS

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

46748.18 $

8,602.85 $

55,351.03 s _ _531_793....,.o.o..

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

Total Liabilities and Fund Equity

$

$

8,602.85 $

8,602.85 $

9,681.71

14,914.68 31,833.50 46748.18
46748.18 $

$

14,914.68 $

14,914.68

31,833.50

29,196.61

$

46,748.18 $

44,111.29

8,602.85 $

s _ _ _ 55,351.03

53.......,,793-.oo-

See notes to the general purpose financial statements.

-30-

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

V
BOARD MEMBER'S SPECIAL ACCOUNT ASSETS
Cash and Cash Equivalents

BALANCE JULY 1, 1995

ADDITIONS

DEDUCTIONS

BALANCE
JUNE 301 1996

$

6,585.75 $

12,984.47 $

14,092.54 $

51477.68

LIABILITIES Funds Held for Others

$

6,585.75 $

12,984.47 $

14 092.54 $ _ _ _5_4_77_.s_s_

1

1

MURRAY KENNEDY MEMORIAL FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

$

2,940.73 $

56.87 $

$

2,940.73 $

56.87 $

----- 0.00 $

2,997.60

o.oo $ ___2_,99_7._so_

SUNSHINE FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
TOTALS - AGENCY FUNDS ASSETS
Cash and Cash Equivalents

$

155.23 $

$

155.23 $

21.16 $ 21.16 $

----- 48.82 $

127.57

----- 48.82 $

127.57

$

9,681.71 $

13,062.50 $

14 141.36 $ _ _ _8_,_602_.8_5

LIABILITIES Funds Held for Others

$

9,681.71 $

13,062.50 $

14,141.36 $ ___8_,_602_.as_

See notes to the general purpose financial statements.

-31 -

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

FUNDING AGENCY
PROGRAM/GRANT
Agriculture, u. s. Department of
Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1996Grant Food Services School Breakfast Program 1996Grant National School Lunch Program 1996Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1996Grant State School Improvement Grants 1996Grant Trtlell Eisenhower Professional Development 1995 Regular 1996Grant TrtleVI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996Grant Preschool 1996Grant Safe and Drug-Free Schools 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant Through Northeast Georgia Regional Educational Service Agency Goals2000 State and Local Education Systematic Improvement Grants 1996 Grant
Total U.S. Department of Education

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.558 $

2,289.14

(2)

10.553
* 10.555 10.550
$

171,683.66
656,092.52 $ 144.364.29
974.429.61 $

(2)
1,925,947.15 (3) 144.364.29
2.010.311.44

* 84.010 $ 84.218

690,995.83 $ 4,695.00

691,322.92 (3) 4,695.00

84.281

25,147.00

6,641.n 12,961.45

84.298

35,005.00

35,005.00

84.027 84.173 84.186

263,148.35 52,455.46 26,875.00

263,148.35 52,455.46 26,875.00

84.048 84.243

~.968.21 8,000.00

103,540.63 (3) 8,014.40 (3)

84.276

9 16 8 2 . n

$ 1120219n.s1 $

9.669.22 112141329.15

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

s 21111i402.18 s

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

See notes to the general purpose financial statements.

3,284,640.59

- 32 -

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

SCHEDULE "2"

I,
NONINTEREST BEARING ACCOUNTS
Nations Bank, Winder, Georgia
Peoples Bank, Winder, Georgia
INTEREST BEARING ACCOUNTS
Main Street Savings Bank, FSB Winder, Georgia
Money Market Account (2.80%) Super N.O.W. Account (1.50%) Certificates of Deposit
No. 5585 (5.55%) No. 5586 (5.55%) No. 5594 (5.51 %) No. 5595 (5.41%) No. 5638 (5.56%) No. 2130001106 (4.25%)
Nations Bank, Winder, Georgia
Business Interest Checking (1.04%)
Peoples Bank, Winder, Georgia
Regular N.O.W. Accounts (1.50%) Super N.O.W. Accounts (1.55%)
Regions Bank, Winder, Georgia
Interest Bearing Account Certificates of Deposit
No. 801 (8.85%) No. 101024750 (5.46%) No. 95000338 (6.00%) No. 9500050337 (6.00%)

$

8,470.80

127.57

$

8,598.37

$ 100,000.00 -101,345.25

1,000,000.00 1,000,000.00
500,000.00 500,000.00 1,000,000.00
41,060.53 $

4,039,715.28

8,685.25

$

6,465.49

723,435.21

729,900.70

$

1,067.79

100,000.00 100,000.00 1,000,000.00 1,000,000.00

2,201,067.79

6,979,369.02

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

$ 6,987,967.39

BARROW COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1996
BOND PROCEEDS TRUST ACCOUNT POOLED INVESTMENTS
Reliance Trust Company, Atlanta, Georgia
Investment Pool Account (Variable Rate)
INVESTMENT POOL
Office of Treasury and Fiscal Services Local Government Investment Pool (5.361 %)

SCHEDULE "3"
$ 79,873.65 9,464,948.83
$ 9,544,822.48

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

BARROW COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "4"

V
Barrow County Tax Commissioner County Wide Bond Tax County Wide School Tax
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education State Federal Other State Programs Apprenticeship Program At-Risk Summer School Program Remedial Summer School Program Lottery Program Instructional Technology Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies State School Improvement Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through
Northeast Georgia Regional Educational Service Agency Planning Grant for School Improvement
Office of the Governor Georgia Challenge Program
Office of School Readiness Lottery Program Pre-Kindergarten Program
Other City of Winder Reimbursement for Summer Feeding Program Various Tuition for After School Program Vendor Refunds

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 190,881.89

$ 37,258.44 $ 37,258.44 190,881.89

$ 1,443.50 9,423.97

1,077.05

47,171.89

16,606.91 21,031.11
5,972.69

582.87

1,443.50 9,423.97
1,077.05 47,171.89
16,606.91 21,031.11
5,972.69
582.87

121,064.52 4,695.00
38,171.34
9,097.72
1,660.00

121,064.52 4,695.00
38,171.34
9,097.72
1,660.00

15,231.00

15,231.00

510.41 810.47

8,008.83 70.59

8,008.83
510.41 881.06

$ 247,648.25 $ 245,863.51 $ 37,258.44 $ 530,770.20

See notes to the general purpose financial statements.

- 35 -

PAYMENTS DUE IN FISCAL YEAR
ENDING JUNE 30
1997 1998 1999 2000 2001
2002 2003 2004 2005 2006
2007 2008 2009 2010 2011
2012 2013 2014 2015

BARROW COUNTY BOARD Of EDUCAJJQN DEBT SERVICE REQUIREMENTS JO MATURITY
JUNE 30. 1996

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

1995AISSUE

INTEREST

PRINCIPAL

$ 1,708,532.50 $ 1,118,532.50 $

1,725,007.50

1,090,007.50

1,743,680.00

1,058,680.00

1,759,415.00

1,024,415.00

1,nS,457.50

990,457.50

590,000.00 $ 635,000.00 685,000.00 735,000.00 785,000.00

548,070.00 $ 545,670.00 544,840.00 543,1>.00 540,747.50

60,000.00 20,000.00 l,000.00 55,000.00 75,000.00

1,795,525.00 1,817,010.00 1,834,540.00 1,857,315.00 1,876,155.00

955,525.00 917,010.00 874,540.00 827,315.00 ns,1ss.oo

840,000.00 900,000.00 960,000.00 1,030,000.00 1,100,000.00

537,410.00 533,315.00 527,735.00 521,085.00 512,755.00

90,000.00 120,000.00 14">,000.00 170,000.00 195,000.00

1,876,155.00 1,882,250.00 1,878,810.00 1,885,970.00 1,917,800.00

721,155.00 662,250.00 598,810.00 530,970.00 457,800.00

1,155,000.00 1,220,000.00 1,280,000.00 1,355,000.00 1,460,000.00

503,005.00 492,805.00 481,885.00 470,490.00 457,800.00

200,000.00 210,000.00 215,000.00 235,000.00 1,460,000.00

1,916,0>.00 1,919,800.00 1,923,520.00 1,921,920.00

376,0>.00 289,800.00 198,520.00 101,920.00

1,540,000.00 1,630,000.00 1,725,000.00 1,820,000.00

376,0>.00 289,800.00 , 198,520.00 101,920.00

1,540,000.00 1,630,000.00 1,725,000.00 1,820,000.00

$ 35,014,902.50 $ 13,569,902.50 $ 21,445,000.00 $ 8,727,032.50 $ 10,000,000.00

CHANGES IN GENERA!. LQNG-TERM Qf;f;}T Bonds Payable at July 1, 1995 Bonds Issued During Period Bonds Retired During Period Bonds Defeased During Period
Bonds Payable at June 30, 1996

TOTAL

1995AISSUE 19958 ISSUE

1993 ISSUE

$ 11,355,000.00

$ 4,695,000.00

15,960,000.00 $ 10,000,000.00 $ 5,960,000.00

575,000.00

120,000.00

30,000.00

5,295,000.00

$ 21,445,000.00 $ 10,000,000.00 $ 5,840,000.00 $ 4,665,000.00

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

FEB 1 AUG 1 FEB 1

FEB 1 -AUG 1 FEB 1

FEB 1 AUG 1 FEB 1

See notes to the general purpose financial statements.

36

SCHEDULE"5"

1995B ISSUE

;INTEREST

PRINCIPAL

1993 ISSUE

INTEREST

PRINCIPAL

1990.ISSUE INTEREST PRINCIPAL

1973 ISSUE INTEREST PRINCIPAL

$ 298,417.50 $ 45,000.00 $ 214,350.00 $ 220,000.00 $ 23,180.00 $ 80,000.00 $ 34,515.00 $ 185,000.00

296,617.50

45,000.00

206,100.00'

290,000.00 18,020.00

85,000.00 23,600.00 195,000.00

294,750.00

50,000.00

194,500.00

300,000.00 12,495.00

90,000.00

12,095.00

205,000.00

292,625.00

50,000.00

182,050.00

530,000.00

6,600.00 100,000.00

290,450.00

150,000.00

159,260.00

560,000.00

283,ns.oo 276,495.00 269,055.00 260,980.00 252,650.00

160,000.00 160,000.00 170,000.00 170,000.00 690,000.00

134,340.00 107,200.00
n,1so.oo
45,250.00 10,750.00

590,000.00 620,000.00 650,000.00 690,000.00 215,000.00

218,150.00 169,445.00 116,925.00 60,480.00

955,000.00 1,010,000.00 1,065,000.00 1, 120,000.00

$ 3,380,815.00 $ 5,840,000.00 $ 1,331,550.00 $ 4,665,000.00 $ 60,295.00 $ 355,000.00 $ 70,210.00 $ 585,000.00

1990 ISSUE

1986 ISSUE

1973 ISSUE

$ 5,725,000.00 $ 175,000.00 $ 760,000.00

75,000.00 5.295.000.00

175,000.00

175,000.00

s 3ss,ooo.oo s _ _ _ _o_.oo_ s sas,000.00

FEB 1 - AUG 1 FEB 1 - AUG 1 FEB 1 AUG 1

FEB 1

FEB 1

FEB 1

- 37 -

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

SCHEDULE "6"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Training Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teacher Program Mentoring Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Instructional Technology Model Technology Schools Pre-Kindergarten Program Safe Schools Grant Technology Installation
Office of the Governor Georgia Challenge Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Leadership Development Program
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 11,773,578.00 2,138,183.00 316,270.00 515,435.00 171,762.00 3,312,272.00
782,535.00 149,536.00 436,240.00 838,605.00 105,993.00 38,170.00 77,295.00 545,809.00 -2,443, 109.00 1,341,728.00
$ 5,603.10
59,762.68 31,873.89
1,500.00 438,324.68
12,090.00 8,000.00
62,842.40 7,312.54 24,514.82

$ 11,773,578.00 2, 138,183.00 316,270.00 515,435.00 171,762.00 3,312,272.00

151,198.00

782,535.00 149,536.00 436,240.00 838,605.00 105,993.00 38,170.00 77,295.00 545,809.00 -2,443, 109.00 1,341,728.00 151,198.00
5,603.10

59,762.68 31,873.89
1,500.00 438,324.68
12,090.00 8,000.00
62,842.40 7,312.54 24,514.82

143,751.00 206,859.79 158,835.00 38,666.00 99,883.11

143,751.00 206,859.79 158,835.00
38,666.00 99,883.11

16,600.00

16,600.00

79,652.00

79,652.00

88,788.00

88,788.00

1,000.00

1,000.00

$ 20,858,514.11 $ 878,844.90 $ 21,737,359.01 - 38 -

BARROW COUNTY BOARD OF EDUCATION SCHEDULE OFTAXES AND OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE"r

V
Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Sources Background Checks Commodity Rebates Donations Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Rents Sales Adult Meals Contracted Meals Lunches Supplemental School Assets Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 8,927,680.54 4,147.48
49,130.78

$ 1,846,152.97 $
749.30 9,954.98

1,846,152.97 8,927,680.54
4,896.78 59,085.76

2,017.95 $
97,936.32

203.82

23,381.57 84,139.11
6,789.55 4,039.70

28,419.99 $ 256,247.85

17,716.62 119,355.72
39,416.52

78,282.47 50,854.32 613,899.19 97,165.92

155,137.63

2,017.95 203.82
97,936.32
23,381.57 523,944.58
6,789.55 4,039.70
78,282.47 50,854.32 613,899.19 97,165.92 17,716.62 119,355.72 39,416.52

$ 9,375,751.86 $ 868,825.71 $ 256,247.85 $ 2,011,994.88 $ 12,512,820.30

See notes to the general purpose financial statements.

- 39 -

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

SCHEDULE "8"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 20,436,059.40 $ 1,500,382.20 $ 21,936,441.60

6,061,684.65

411,565.97

6,473,250.62

62,699.72

23,219.36

85,919.08

131,048.64

44,511.68

175,560.32

18,432.69

18,432.69

69,249.83

2,023.00

71,272.83

281,255.33

53,192.46

334,447.79

171,183.59

171,183.59

39,909.84

39,909.84

125,005.05

1,054.99

126,060.04

11,498.08

11,498.08

22,830.50

131,783.00

154,613.50

17,735.22

197.39

17,932.61

1,169,993.69

379,155.44

1,549,149.13

796,334.46

796,334.46

982,315.08

982,315.08

290,912.09

5,082.16

295,994.25

49,742.41

22,943.14

72,685.55

4,675.06

4,675.06

23,381.57

23,381.57

12,748.03

4,097.98

16,846.01

274,564.53

413,545.08

688,109.61

Total Expenditures

$ 30,036,064.73 $ 4,009,948.58 $ 34,046,013.31

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

BARROW COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 3Q 1996

SCHEOULE"9"

.,,

MODEL

SAFE

INSTRUCTIONAL TECHNOLOGY PRE-KINDERGARTEN SCHOOLS TECHNOLOGY

TECHNOLOGY SCHOOLS

PROGRAM

GRANT

INSTALLATION

TOTAL

EXPENDITURES

Operating Costs

Salaries

Employee Benefits

Travel of Employees

Supplies

$

Books, Textbooks and Periodicals

Dues and Fees

Other Expenditures

14,202.08 $

$ 6,706.83

157,857.07 45,032.84
2,193.09 17,502.95 $
1,309.22 155.00
1,443.16

38,666.00

$ 157,857.07 45,032.84 2,193.09
n.on.86
1,309.22
155.00 1,443.16

Nonoperating Costs Equipment

129,548.92

200,152.96

20,323.98

$

99,883.11 449,908.97

Total Expenditures

$ 143,751.00 $ 2061859.79 $

245,817.31 $ 381666.00 $

991883.11 $ 73419n.21

See notes to the general purpose financial statements.

- 41 -

THIS PAGE LEn BLANK

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

SCHEDULE 10

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 15,289,275.00 $

484,604.00

$ 17,712,451.99 846,861.61 $ _ _ _7_5_0.;;..:,_5_2--3_.3__1
$ 18,559,313.60

-195,279.89 $ 18,364,033.71

$

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

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

BARROW COUNJY BOARD Of EDUCATION ANALYSIS Of MINIMUM ExpENPIJURE REQUIREMENTS - BY PBQGRAM
GENERAL FUND OUALIJY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 3Q 1996

GENERAL AND CAREER EpuCA!IQN PBQ!:.!RAMS Kindergarten (") Grades 1-3(") Sub-Total- K-3 Grades4-5(") Grades6-8(") Grades 9 - 12 (") High School Laboratories (") Vocational Education Laboratories (") Total General and Career Education Programs
SPECl81, EDUCATION PROGRAMS Regular Programs Category I(") Category II (") Category Ill(") Category IV (") Sub-Total - Regular Category V (Gifted) (") Total Special Education Programs
REMED!ab EDUCATION PROGRAM(~ Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

'II,

ORIGINAL

MID-TERM

$ 1,425,549.00

$ 1,282,994.10 $

3,431,363.00

3,088,226.70

$ 4,856,912.00 90 $ 4,371,220.80 $

1,604,301.00 90

1,443,870.90

2,585,444.00 90

2,326,899.60

1,257,410.00 90 758,642.00 90

1,131,669.00
682,m.so

710,869.00 90

639,782.10

$ 11,773,578.00

$ 10,596,220.20 $

116,432.00 72,101.00 188,533.00 25,213.00
0.00 0.00 0.00 106,676.00 320,422.00

$ 1,999,253.00

$ 1,799,327.70 $

200,000.00

$ 1,999,253.00 90 $ 1,799,327.70 $

138,930.00 90

125,037.00

$ 2,138,183.00

$ 1,924,364.70 $

$

316,270.00 90 $

284,643.00 $

$ 14,228,031.00

$ 12,805,227.90 $

200,000.00 25,387.00 225,387.00 0.00 545,809.00

$

409,241.00 90 $

368,316.90 $

0.00

106,194.00 90

95,574.60

0.00

$

515,435.00

$

463,891.50 $

0.00

$ 14,743,466.00

$ 13,269,119.40 $

545,809.00

STAFF QEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development (") Identifies Thirteen Weighted Programs.
See notes to the general purpose financial statements.

$

42,378.00

129,384.00

$

42,378.00 $

129,384.00

$

171,762.00 100 $

171,762.00 $

0.00 0.00
_... 0.00

- 44 -

SCHEDULE "11"

, .
TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDER EXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,399,426.10 $ 1,661,838.32 $

44,070.98 $ 1,705,909.30

3,160,327.70

3,861,263.76

96,928.74

3,958,192.50

$ 4,559,753.80 $ 5,523,102.08 $

140,999.72 $ 5,664,101.80 $

0.00

1,469,083.90

2,085,887.29

82,700.70

2,168,587.99

0.00

2,326,899.60

2,891,730.75

129,016.42

3,020,747.17

0.00

1,131,669.00

1,782,003.68

208,211.36

1,990,215.04

0.00

682,7TT.80

899,662.98

569.26

900,232.24

0.00

746,458.10

816,081.51

140,238.60

956,320.11

0.00

$ 10,916,642.20 $ 13,998,468.29 $

701,736.06 $ 14,700,204.35

$ 1,999,327.70 $

76,689.19 $ 494,307.03 1,867,901.25 137,264.06

202.72 $ 8,708.88 33,723.26
199.19

76,891.91 503,015.91 1,901,624.51 137,463.25

$ 1,999,327.70 $ 2,576,161.53 $

42,834.05 $ 2,618,995.58

0.00

150,424.00

215,408.78

5,015.07

220,423.85

0.00

$ 2,149,751.70 $

2,791,570.31 $

47,849.12 $ 2,839,419.43

$

284,643.00 $

308,036.80 $

938.13 $

308,974.93

0.00

$ 13,351,036.90 $ 17,098,075.40 $

750,523.31 $ 17,848,598.71

$

368,316.90 $

614,376.59

$

614,376.59

0.00

95,574.60

$

96,338.30

96,338.30

0.00

$

463,891.50 $

614,376.59 $

96,338.30 $

710,714.89

$ 13,814,928.40 $ 17,712,451.99 $

846,861.61 $ 18,559,313.60 $

0.00

$

42,378.00

129,384.00

$ _ _1_1_1.1_62_.00_

$

47,698.95 $

47,698.95

124,063.05

124,063.05

$

171,762.00 $

111,162.00 s_ _ _ _ _ _0.0..0_

45

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

SCHEDULE 12"

BOARD MEMBER ADDRESS
Mr. Randall Holland, Chairman (*) 287 First Street Statham, Georgia 30666
Mrs. Carol Burbulis (*) 1451 Cains Road Auburn, Georgia 30203
Mr. Charles Colbert (*)
P. 0. Box70
Winder, Georgia 30680
Mr. Bob Dixon (*) 588 Green Valley Drive Winder, Georgia 30680
Mr. Mike Foran (*)
P. 0. Box 1141
Winder, Georgia 30680
Mr. Joe Hutchins (*) 1165 Bankhead Highway Winder, Georgia 30680
Mrs. Beth Magness (*) 102 Buena Vista Winder, Georgia 30680
Mr. Jeff Smith (*) 1649 Union Grove Church Road Auburn, Georgia 30203
Mrs. Vickie Hilbrook Smith (*) 281 Crescent Court Winder, Georgia 30680
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

1,800.00 $

350.29

1,900.00

738.n

1,000.00

718.56

1,400.00

898.34

1,400.00

270.32

1,800.00

271.27

1,800.00

1,171.86

1,100.00

1,450.00

363.28

$

13,650.00 $ ====4=7=82=.6=9

See notes to the general purpose financial statements.

- 46 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Barrow County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Barrow County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 10, 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 Barrow County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
96CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
t:f~~
Claude L. Vickers State Auditor
CLV:cm 96CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Barrow County Board ofEducation as of and

for the year ended June 30, 1996, and have issued our report thereon dated March 10, 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 Barrow County Board of Education's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1996:

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office 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 Board'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 test~, nothing came to our attention that caused us to believe that the Barrow County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
d.__,....
Claude L. Vickers State Auditor
CLV:cm 96CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Barrow County Board ofEducation

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Barrow County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 10, 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 Barrow County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the Barrow 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 oftl}e United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
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 ofthis report.
In our opinion, the Barrow 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.

CLV:cm 96CRL-80

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Barrow County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 10, 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 ofthe fiscal year 1996 general purpose financial statements of the Barrow 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 A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal :financial assistance programs for the year ended June 30, 1996. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governmg:

( 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 Barrow County Board of Education'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 Barrow 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 of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:cm 96CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Barrow County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Barrow County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 10, 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 Barrow County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that
96ICL-3

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 perfonning our audit ofthe general purpose financial statements ofthe Barrow County Board ofEducation for the year ended June 30, 1996, we obtained an understanding ofthe 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 detennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
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 or management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Accounting Controls (Overall)
(2) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements b~ing audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Barrow County Board of Education's financial statements and this report does not affect our report thereon dated March 10, 1997.
96ICL-3

This report is intended for the information of management, the Federal cognizant audit agency and other
Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a
matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 96ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 10, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Barrow County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Barrow County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 10, 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 Barrow County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated March 10, 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 ofthe 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 Barrow 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
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procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose finavcial statements in a separate report dated March 10, 1997.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1996, the Barrow County Board of Education expended 62% of its total Federal financial assistance under major Federal financial assistance programs.

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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 prexenting or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Barrow County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated March 10, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
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SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

BARROW COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Accounting Procedures Financial Statements Finding Resolved Audit Control Number 6071-95-01
The audit report for the year ended June 30, 1995, stated that the Board's June 1995 bank reconciliation for the operating account did not agree with the general ledger, in the amount of $421.40. In the year under review, the board properly reconciled the bank statements to the accounting records.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 6071-95-03
The audit report for the year ended June 30, 1995, reported that the Board failed to submit a copy ofthe 1994 audit report to the Georgia Department ofHuman Resources from whom the Board received Inclusion Grant (CFDA 93.630) funds. Paragraph 13fofOMB Circular A-128 requires that recipients ofFederal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance. The audit report was submitted during the year under review.
AUDIT FOLLOW-UP/RESOLUTION Failure to Document Low Income Children in Attendance Areas Federal Financial Assistance Finding Resolved Audit Control Number 6071-95-04
The audit report for the year ended June 30, 1995, reported that the Board failed to document the number of low income children used in the ranking ofTitle I attendance areas as required by 34 CFR 200.30. This finding was reviewed by the Georgia Department of Education Title I section, and it was determined that no refund was required. During the year under review, the Board documented the number oflow income children used in the ranking of Title I attendance areas as required.
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BARROW COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6071-93-01
The audit report for the year ended June 30, 1995, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, the Board made some improvements regarding separation ofemployee's duties for the School Food Services Fund, but still did not achieve an adequate degree of internal control. This deficiency was a result ofmanagement's decision to limit the number ofadministrative staffmade responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff.
Note: Federal financial assistance programs affected by this finding are as follows: School Food Services Fund (CFDA 10.550, 10.553 and 10.555) Title I Program (CFDA 84.010)
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6071-93-02
The audit report for the year ended June 30, 1995, noted that the management ofthe Barrow County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the . General Fixed Assets Account Group.
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BARROW COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR
EMPLOYEE COMPENSATION Incorrect Salary Payments Financial Statements Nonmaterial Noncompliance Audit Control Number 6071-95-02
The audit report for the year ended June 30, 1995, disclosed that a sample of employee compensation revealed two instances where employees were overpaid in the amount of$592.70. The overpayments were the result of the Board incorrectly calculating the amount of excess leave taken to be deducted from one individual's wages and incorrectly calculating a pay raise for another individual. During the year under review, no reimbursements were collected for these overpayments. Subsequent to June 30, 1996, the Board received reimbursement of$331.76 through monthly payroll deductions leaving a balance of$260.94 to be collected.
For the year under review, a sample ofcompensation payments to 60 employees revealed three instances where employees were underpaid and two instances where payments for extra work could not be documented. The underpayments totaled $582.66 and were a result of the Board incorrectly calculating the pay rates for two individuals and incorrectly calculating the number of hours worked for one individual. The undocumented payments totaled $516.38 and were a result of the Board's failure to provide sufficient documentation to support the reason for payment. The Board should pay the individuals involved in the underpayments and establish policies and procedures to ensure that all salary payments are accurately calculated and adequately documented.
CURRENT YEAR
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Nonmaterial Noncompliance Audit Control Number 6071-96-01
For the year under review, the Board received approval for State capital outlay project funding through Georgia Department ofEducation for the 1996 fiscal year. Both instructions in Chapter 41 of the Financial Management for Local Units of Administration as published by the Georgia Department of Education and the agreement signed by the Board to receive this funding require that the Board transfer required local matching funds to the Capital Projects fund by June 30, 1996, and designate those funds by project name and number. This transfer was not made by the Board at June 30, 1996. A correcting audit adjustment was necessary to transfer $2,031,817.00 from the 1995 Bond Issue Projects Fund to Lottery Project No. 97-607-001 as required.
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BARROW COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

CURRENT YEAR

FEDERAL FINANCIAL REPORTS Project Completion Reports Not Supported by Accounting Records Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6071-96-02

A comparison ofthe Board's project completion report for the Vocational Education Program (CFDA 84.048 and 84.243) to the accounting records revealed that the project completion report was not supported by expenditures recorded in the accounting records, as indicated below:

Actual Expenditures

Project Completion
Report

1996 Vocational Education Program

$ 111,555.03 $ 68,970.71

This condition occurred because non-financial records were utilized to obtain financial information for the project completion report rather than the accounting records. Procedures should be implemented to ensure that project completion reports are accurate and verifiable to the accounting records.

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SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

BARROW COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1996
EMPLOYEE COMPENSATION Incorrect Salary Payments Financial Statements Nonmaterial Noncompliance Audit Control Number 6071-95-02 The underpayment amount of$582.66 has been paid to the employees to whom it was due and was done prior to the completion of the audit.
Note: The Barrow County Board of Education has elected not to provide comments for inclusion in this report other than the above.