GA A.)00 . RI E.2'b B4 l995--l1b AUDIT REPORT BEN IIlLL COUNTY BOARD OF EDUCATION FITZGERALD, GEORGIA YEAR ENDED JUNE 30, 1996 STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 BEN Hll.,L COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE EXIBBITS 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 AND EXPENDABLE TRUST FUND 4 C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 8 E STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 9 F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 11 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND G COMBINING BALANCE SHEET 26 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 30 CAPITAL PROJECTS FUND I COMBINING BALANCE SHEET 34 J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 36 K FIDUCIARY FUND TYPES COMBINING BALANCE SHEET 38 BEN IIlLL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 39 2 CASH AND CASH EQUIVALENTS 41 3 ACCOUNTS RECEIVABLE 42 4 DEBT SERVICE REQUIREMENTS TO MATURITY 43 SCHEDULE OF REVENUE 5 STATE 44 6 TAXES AND OTHER 45 SCHEDULE OF EXPENDITURES BY OBJECT 7 GENERAL AND SPECIAL REVENUE FUNDS 47 8 LOTTERY PROGRAMS 48 9 FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND 50 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 10 OVERALL 51 11 BY PROGRAM 52 12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 54 SECTION IT 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 BEN IIlLL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION ill 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 AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 26, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members ofthe Ben Hill County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Ladies and Gentlemen: We have audited the general purpose financial statements (Exhibits A through F) of the Ben Hill 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. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: * The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 96ARL-13 * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. * The Board did not recognize as expenditures, in the year ended June 30, 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 of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 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 on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Ben Hill County Board of Education as of June 30, 1996, and the results of its operations and the cash flows of its 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 August 26, 1997, on our consideration of the Board's internal control structure and a report dated August 26, 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 Ben Hill County Board ofEducation taken as a whole. The combining statements (Exhibits G through K) 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 ofthe general purpose financial statements of the Ben Hill 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 effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:cm 96ARL-13 BEN HILL COUNTY BOARD OF EDUCATION - 1- BEN HILL COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1996 ASSETS Cash and Cash Equivalents Accounts Receivable Notes Receivable Due from Other Funds Inventories Food Donated Commodities Purchased Food Amount Available in Debt Service Fund Amount to be Provided in Future Years For Payment of Bond Debt GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 1,070,021.13 $ 178,640.07 $ 527,218.81 79,764.94 355,695.75 26,352.00 3,500.00 7,633.45 1,579.35 Total Assets $ 1,153,286.07 $ 543,548.62 $ ==55=3=,5=7=0=.8=1 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Due to Other Funds General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undesignated Total Fund Equity $ 43,340.18 $ 43,780.80 3,450.00 151,964.64 65,488.39 28,448.16 $ 26,295.00 $ 112,278.57 $ 224,193.60 $ 26,295.00 $ 24,554.50 $ 3,205.10 $ 3,205.10 $ 30,967.31 1,006,835.09 $ 1,041,007.50 $ 7,633.45 1,579.35 $ 33,767.30 $ 285,587.72 319,355.02 $ 527,275.81 527,275.81 0.00 527,275.81 Total Liabilities and Fund Equity $ 1,153,286.07 $ The notes to the general purpose financial statements are an integral part of this statement. -2 - 543,548.62 $ 553,570.81 EXHIBIT"A" DEBT SERVICE FUND FIDUCIARY FUND TYPES TRUST FUNDS ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30, 1995 $ 230,754.13 $ 12,962.29 $ 2,019,596.43 $ 2,539,121.98 8,142.76 7.59 469,963.04 754,851.22 3,500.00 8,500.00 80,320.23 7,633.45 1,579.35 12,772.50 1,360.21 $ 238,896.89 238,896.89 129,410.79 3,166,103.11 3,166,103.11 3,480,589.21 $ 238,896.89 $ 12,969.88 $ 3,405,000.00 $ 5,907,272.27 $ 7,006,926.14 $ 87,120.98 $ 221,147.50 155,414.64 105,164.86 93,936.55 7,103.43 8,211.80 26,295.00 552,887.57 80,320.23 $ 3,405,000.00 3,405,000.00 3,610,000.00 $ 3,405,000.00 $ 3,767,767.17 $ 4,584,835.39 $ 238,896.89 $ $ 238,896.89 $ 0.00 $ 238,896.89 $ $ 238,896.89 $ 2,000.00 2,000.00 10,969.88 12,969.88 12,969.88 $ $ 24,554.50 $ 4,440.22 238,896.89 129,410.79 2,000.00 2,000.00 3,205.10 3,530.22 7,633.45 1,579.35 527,275.81 12,772.50 1,360.21 683,541.71 $ 805,145.10 $ 837,055.65 30,967.31 1,303,392.69 34,167.21 1,550,867.89 $ 2,139,505.10 $ 2,422,090.75 3,405,000.00 $ 5,907,272.27 $ 7,006,926.14 -3- BEN HILL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1996 REVENUES State Funds Federal Funds Taxes and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services Capital Outlay Debt Service Principal Interest Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers .out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food Residual Equity Transfer GENERAL FUND GOVERNMENTAL FUND SPECIAL REVENUE CAPITAL PROJECTS FUND FUND $ 11,735,181.49 $ 27,984.68 3,7511639.29 669,867.27 $ 1,935,876.40 315,587.47 1,388,858.47 985.21 $ 15,514,805.46 $ 2,921,331.14 $ 1,389,843.68 $ 10,829,168.73 $ 1,395,327.47 462,866.38 382,187.63 408,454.28 601,460.18 1,079,663.67 73,061.61 1,057,883.60 660,377.91 14,153.48 109,272.64 5,353.51 136,826.24 70,317.98 38,885.96 27,659.67 83,285.33 751.18 47,943.09 29,837.33 59,775.00 1,222,089.24 65,597.61 $ 1,349,689.92 $ 15,891,047.84 $ 2,971,151.88 $ 11349,689.92 $ -376,242.38 $ -49,820.74 $ 40,153.76 $ 17,722.67 $ 19,189.03 $ -36 911.70 $ -36,911.70 $ 17,722.67 $ 19,189.03 $ -413,154.08 $ 1,164,284.00 -32,098.07 $ 356,373.00 59,342.79 757,810.60 289,877.58 -5,139.05 219.14 -289,877.58 FUND BALANCE JUNE 30 $ 1,041,007.50 $ The notes to the general purpose financial statements are an integral part of this statement. -4- 319,355.02 $ 527,275.81 EXHIBIT"B" TYPES DEBT SERVICE FUND TOTAL FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 301 1996 JUNE 30, 1995 $ 13,793,907.23 $ 13,793,907.23 $ 16,558,718.10 1,963,861.08 1,963,861.08 1,662,641.22 $ 481z702.70 4,549,914.67 $ - - ~6,3-43.24 4,556,257.91 4,519,867.99 $ 481,702.70 $ 20,307,682.98 $ _ _..6.a,..3=.43.24 $ 20,314,026.22 $ 22,741,227.31 $ 12,224,496.20 $ 501,752.34 409,847.30 408,454.28 684,745.51 1,080,414.85 73,061.61 1,105,826.69 690,215.24 14,153.48 169,047.64 1,222,089.24 70,951.12 136,826.24 1,420,007.90 $ 205,000.00 166,395.00 821.60 205,000.00 166,395.00 821.60 $ 3721216.60 $ 2015841106.24 $ $ 109,486.10 $ -2761423.26 $ 7,739.67 $ 12,232,235.87 $ 10,742,977.34 501,752.34 409,847.30 408,454.28 684,745.51 1,080,414.85 73,061.61 1,105,826.69 690,215.24 14,153.48 169,047.64 1,222,089.24 70,951.12 136,826.24 1,420,007.90 478,539.09 398,566.45 354,337.39 665,035.07 910,795.22 72,835.71 922,266.59 587,559.07 25,106.05 59,066.06 1,006,455.92 39,810.91 104,306.11 10,136,351.91 205,000.00 166,395.00 821.60 200,000.00 172,495.00 903.56 7 739.67 $ 20,591,845.91 $ 26,877,407.45 -1 396.43 $ -277,819.69 $ -4,136,180.14 $ 36,911.70 -36,911.70 $ 0.00 $ 109,486.10 $ -276,423.26 $ 129,410.79 2,407,878.39 -5,139.05 219.14 0.00 $ 36,911.70 $ 842,564.01 -36,911.70 -842,564.01 $ 0.00 $ 0.00 -1,396.43 $ 11,330.58 -277,819.69 $ -4,136,180.14 2,419,208.97 6,563,291.78 -5,139.05 219.14 0.00 -8,208.13 305.46 $ 238,896.89 $ 2,126,535.22 $ 9,934.15 $ 2,136,469.37 $ 2,419,208.97 -5- THIS PAGE LEFT BLANK BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - {NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1996 EXHIBIT"C" GENERAL FUND ACTUAL (BUDGET BUDGET BASIS} REVENUES State Funds Federal Funds Taxes and Other Funds $ 11,435,470.00 $ 11,735,181.49 92,333.00 27,984.68 4,101,413.00 3,751,639.29 Total Revenues $ 15,629,216.00 $ 15,514,805.46 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 Other Operations of Non-Instructional Services Capital Outlay $ 10,943,816.00 $ 10,829,168.73 481,036.00 371,602.00 430,087.00 455,842.00 972,822.00 73,537.00 1,020,372.00 744,146.00 28,807.00 12,161.00 462,866.38 382,187.63 408,454.28 601,460.18 1,079,663.67 73,061.61 1,057,883.60 660,377.91 14,153.48 109,272.64 113,618.00 157,799.00 5,353.51 136,826.24 70,317.98 Total Expenditures $ 15,805,645.00 $ 15,891,047.84 Excess of Revenues over (under) Expenditures $ -176,429.00 $ -376,242.38 OTHER FINANCING SOURCES {USES) Other Sources Other Uses $ -600,000.00 $ -36,911.70 Total Other Financing Sources (Uses) $ -600,000.00 $ -36,911.70 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -776,429.00 $ -413, 154.08 FUND BALANCE JULY 1, 1995 2,420,118.90 1,164,284.00 Adjustments Residual Equity Transfer 35,083.51 289,877.58 FUND BALANCE JUNE 30, 1996 $ 1,678,773.41 $ 1,041,007.50 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS} $ 488,622.00 $ 669,867.27 1,479,765.00 1,935,876.40 272,600.00 315,587.47 $ 2,240,987.00 $ 2,921,331.14 $ 1,128,125.00 $ 1,395,327.47 16,446.00 34,104.00 38,885.96 27,659.67 88,882.00 83,285.33 751.18 26,412.00 15,993.00 47,943.09 29,837.33 48,126.00 875,795.00 59,775.00 1,222,089.24 65,597.61 $ 2,233,883.00 $ 2,971,151.88 $ 7,104.00 $ -49,820.74 $ 17,722.67 $ 17,722.67 $ 7,104.00 $ -32,098.07 432,826.53 342,240.29 $ 439,930.53 $ 310,142.22 The notes to the general purpose financial statements are an integral part of this statement. -7- BEN HILL 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 None Recorded Operating Income NONOPERATING REVENUES Interest Earned Total Income FUND BALANCE JULY 1 FUND BALANCE JUNE 30 ENDOWMENT FUND CUMBEE-MCCALL FUND TOTALS (Memorandum Onll) YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 153.95 153.95 113.28 $ 153.95 $ 153.95 $ 113.28 2,881.78 2,881.78 2,768.50 $ 3,035.73 $ 3,035.73 $ ====2,8=81=.7=8 The notes to the general purpose financial statements are an integral part of this statement. - 8- BEN HILL 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: Net Cash Provided (Used) by Operating Activities Cash Flows from Investing Activities: Interest Received on Investments Net Increase in Cash Cash and Cash Equivalents - July 1 ENDOWMENT FUND CUMBEE-MCCALL FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 $ 0.00 $ 0.00 $ 0.00 146.36 146.36 113.28 $ 146.36 $ 146.36 $ 113.28 2,881.78 2,881.78 2,768.50 Cash and Cash Equivalents - June 30 $ 3,028.14 $ 3,028.14 $ ====2=,88=1=.7=8 The notes to the general purpose financial statements are an integral part of this statement. -9- TIDS PAGE LEn BLANK BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Ben Hill County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in 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 ofthe Ben Hill County Board of Education. Based upon the application of the above criteria, the Ben Hill County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Ben Hill County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards. Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval. FUND ACCOUNTING The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. - 11 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances ofthese accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 ofEducation 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 funds used to account for assets held by a government unit in a trustee capacity. These funds include: NONEXPENDABLETRUSTFUND Cumbee-McCall Fund - 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 for the purpose of providing for the care and support of underprivileged children. - 12 - BEN HILL COUNTY BOARD OF EDUCATION EXIIlBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES EXPENDABLE TRUST FUND Fitzergerald High School Preparatory Trust Fund - the fund used to account for income distributed by the Trustee and used to provide for expenditures pursuant to recommendations of an advisory committee. 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 and expendable trust 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. 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. Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. Expenditures are generally recognized when the related fund liability is incurred. - 13 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 of these contracts. During fiscal year 1996, a substantial number of personnel ofthe 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 in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As of June 30, 1996, compensation under these employment contracts had been earned, but two ofthe 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 ofthe 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 of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. BUDGET The Ben Hill County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, 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 of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report: - 14 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Special Revenue Fund FUND BALANCE JULY 1, 1995 $ 356,373.00 Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods -12,772.50 -1,360.21 Fund Balance July 1, 1995 (Budget Basis) $ 342,240.29 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses -32,098.07 FUND BALANCE JUNE 30, 1996 (Budget Basis) $ 310,142.22 CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more 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. RECEIVABLES Receivables consist of grant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. 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. - 15 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY TAXES The Ben Hill County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on September 27, 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 Ben Hill 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 Ben Hill County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations School Bonds 18.00 mills 2.25 mills 20.25 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. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group. - 16 - BEN HILL 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 of interfund 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. Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity. Operating transfers are recorded for all interfund transactions other than residual equity transfers and 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 of this data. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia, - 17 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 2: DEPOSITS (4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia, (5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, (6) Industrial revenue bonds and bonds ofdevelopment 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 $3,390,788.77. The amounts of the total bank balances are classified into three categories of credit risk: Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 1996, as follows: Risk Category 1 2 3 Total Note 3: NON-MONETARY TRANSACTIONS Bank Balance $ 400,000.00 2,990,788.77 0.00 $ 3,390,788.77 The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories - 18 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 4: RISK MANAGEMENT The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; unemployment compensation and dental coverage. The Board has obtained commercial insurance for risk of loss associated with torts, assets and job related illness or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. The Board has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years. The Board is self-insured with regard to unemployment compensation claims. A premium is charged by the General Fund when needed to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims 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: 1995 1996 Beginning of Year Liability Claims and Changes in Estimates $ 0.00 $ 1,296.00 $ $ 0.00 $ 10,734.84 $ Claims Paid End ofYear Liability 1,296.00 $ 9,962.84 $ 0.00 772.00 The Board has established a limited risk-management program for dental coverage of its employees and their dependents. Estimated claims are budgeted by management based on known claims and prior experience. The Board contributes the employees' share to the fund and the employees contribute the dependents' share to the fund. Changes in the dental claims liability during the last two fiscal years are as follows: 1995 1996 Beginning of Year Liability Claims and Changes in Estimates $ 0.00 $ 114,019.14 $ $ 0.00 $ 121,616.82 $ Claims Paid End ofYear Liability 114,019.14 $ 0.00 121,616.82 $ 0.00 - 19 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 5: GENERAL LONG-TERM DEBT GENERAL OBLIGATION BONDS OUTSTANDING General Obligation Bonds curr~ntly outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1993 2.65%- 5.35% $3,405,000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows: General Obligation Bonds Balance July 1, 1995 $ 3,610,000.00 Deductions 205,000.00 Balance June 30, 1996 $3,405,000.00 At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 General Obligation Bonds 1997 1998 1999 2000 2001 2002 and thereafter $ 374,630.75 371,997.50 378,637.50 379,120.00 378,707.50 2,720,120.00 Total Principal and Interest $4,603,213.25 Note 6: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of $257,824.19 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. -20- BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 6: ON-BEHALF PAYMENTS Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$215,683.57 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $11,199.62 Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$30,941.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996, together with funding available: Project Unearned Executed Contracts Funding Available From State 95/94S-609-002 $ 91,735.17 $ 642,945.18 The amounts described in this note are not reflected in the general purpose financial statements. Note 8: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. - 21 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 9: RELATED PARTY TRANSACTIONS During the fiscal year 1996, the Ben Hill County Board of Education employed the services of L. E. Harper Construction Company. L. E. Harper Construction Company is owned and operated by L. E. Harper, the son ofLouis E. Harper, Superintendent ofthe Ben Hill County Board ofEducation. During the year, the following contracts between the Ben Hill County Board of Education and L. E. Harper Construction Company (low bidder) were executed: A contract for $609,500.00 was signed on December 14, 1994 for additions to the Ben Hill Elementary School. Current year expenditures were $211,747.00. A second contract for $103,900.00 was signed on June 2, 1995, for construction of a special education modification at the high school. Current year expenditures were $79,630.00. A third contract for $539,500.00 was signed on February 13, 1996, for the Ben Hill County Elementary School, Phase Il. Current year expenditures were $493,609.00. A fourth contract for $1,407,000.00 was signed on March 18, 1997 for High School renovations, modifications, and additions. No expenditures were made on this contract in the current fiscal year. Mr. Louis E. Harper retired from the Superintendent position on June 30, 1996. He continued to be employed by the Board as a part-time consultant in the subsequent year. Note 10: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. -22 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 10: RETIREMENT PLANS 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 of employer contributions occurs, but the member's contributions are refunded with interest. The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $10,441,405.96; total payroll was $11,624,790.43. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board 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 $1,754,793.36, of which $1,232,722.33 was made by the Board and $522,071.03 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll. TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. - 23 - BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 10: RETIREMENT PLANS 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, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $1,232,722.33 was actuarially determined and represented .203% of total contributions made by all participating employers. Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute. PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears ofcreditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. -24- BEN HILL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 10: RETIREMENT PLANS Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. There were 86 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 of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $2,760.00. 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: OTHER FINANCIAL NOTE The Ben Hill County Board of Education established a Minority Teacher Recruitment Program policy to provide, annually, two assistantships for minority students, and if otherwise suitable, one candidate that is not of a minority race. The assistantships are for students in teacher training programs at a cost to the school system ofup to $3,000.00 per year ($1,000.00 per student). The Board's contributions is in the form of loans which earn a minimum interest rate of 9% per annum beginning immediately upon completion of the individual's study or upon termination of his/her training and education. For each year of practicing in the Ben Hill County School System, the applicant shall receive credit for the amount of the scholarship received during any year in school. An analysis of the status of this program is as follows: Balance July 1, 1995 Additions: Assistantships During the Year Deductions: Cancellation - Teaching Service Balance June 30, 1996 Note 12: SURETY BONDS $ 8,500.00 1,000.00 6,000.00 $ 3,500.Q0 Mr. Louis E. Harper, School Superintendent through June 30, 1996, was bonded in the amount of $100,000.00 with the State Farm Fire and Casualty Company, Bloomington, Illinois, their Bond No. 91-322693-7. The School Superintendent, Mr. Lacy B. Frye III, effective July 1, 1996, is bonded in the amount of $100,000.00 with the State Farm Fire and Casualty Company, Bloomington, Illinois, their Bond No. 91-322693-7, on which premium is paid through November 20, 1997. - 25 - BEN HILL 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 Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Program For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity See notes to the general purpose financial statements. - 26 - SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 337,312.17 9,292.35 $ 202,584.35 7,633.45 1,579.35 $ 355,817.32 $ 202,584.35 $ 156,894.99 $ 12,931.62 10,207.12 48,085.18 32,727.98 2,754.26 $ 61,016.80 $ 202,584.35 $ 7,633.45 1,579.35 $ 9,212.80 285,587.72 $ 0.00 $ 294,800.52 $ 0.00 $ 355,817.32 $ 202,584.35 EXHIBIT"G" Page 1 STATE PRESCHOOL HANDICAPPED PROGRAM NEXT GENERATION SCHOOLS ELEMENTARY AND SECONDARY EDUCATION ACT TITLE I TITLE VI GRANTS TO TITLE II INNOVATIVE LOCAL EISENHOWER EDUCATION EDUCATIONAL PROFESSIONAL PROGRAM AGENCIES DEVELOPMENT STRATEGIES $ 0.00 $ 0.00 $ 98,096.71 $ 5,735.05 $ 25,389.00 $ 0.00 $ 0.00 $ 98,096.71 $ 5,735.05 $ 25,389.00 ========= $ 5,486.91 $ 20,642.06 71,151.48 816.26 $ 98,096.71 $ 5,735.05 $ 25,389.00 5,735.05 $ 25,389.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $- - - -0.-00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ - - - -0.-00 $ 0.00 $====0=.0=0 $ 98,096.71 $ 5,735.05 $ 25,389.00 ========= - 27 - BEN HILL 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 INDIVIDUALS WITH DISABILITIES EDUCATION ACT PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL $ 0.00 $ 0.00 Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Program For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity See notes to the general purpose financial statements. -28- $ 0.00 $ =====0.0=0 $ 0.00 $- - - - -0.0-0 $ 0.00 $- - - - -0.0-0 $ 0.00 $ 0.00 ====== EXHIBIT"G" Page2 SAFE AND DRUG-FREE SCHOOLS VOCATIONAL EDUCATION FEDERAL SCHOOL AGE PROGRAM SERVE AMERICA PROGRAM PROJECT TOTALS OPPORTUNITY JUNE 30, 1996 JUNE 30, 1995 $ 0.00 $ 24,877.64 $ 18,132.59 $ 380,322.40 $ 380,546.39 6,421.91 $ 2,989.55 $ 5,186.83 355,695.75 254,160.29 7,633.45 1,579.35 12,772.50 1,360.21 $ 0.00 $ 24,877.64 $ 24,554.50 $ . 2,989.55 $ 5,186.83 $ 745,230.95 $ 648,839.39 $ 24,877.64 $ 24,877.64 $ 2,989.55 $ $ 2,989.55 $ 5,186.83 $ 5,186.83 $ 201,682.33 $ 43,780.80 151,964.64 28,448.16 425,875.93 $ 98,426.30 81,771.80 105,164.86 7,103.43 292,466.39 $ 24,554.50 $ 0.00 $ $ 0.00 $ $ 24,554.50 0.00 0.00 $ 0.00 $ 24,554.50 $ 0.00 $ 0.00 $ $ 24,554.50 $ 4,440.22 $ 0.00 0.00 $ 7,633.45 1,579.35 33,767.30 $ 285,587.72 319,355.02 $ 12,772.50 1,360.21 18,572.93 337,800.07 356,373.00 $ 0.00 $ 24,877.64 $ 24,554.50 $ 2,989.55 $ 5,186.83 $ 745,230.95 $ 648,839.39 - 29 - BEN HILL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996 REVENUES State Funds Federal Funds Taxes and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Service Operations Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory- Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 See notes to the general purpose financial statements. - 30- SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 75,992.00 $ 545,816.27 799,088.04 293,660.45 $ 1,168,740.49 $ 545,816.27 $ 417,512.14 38,885.96 10,284.90 9,467.46 $ 1,220,952.84 47,943.09 19,682.99 903.33 1, 136.40 $ 1,220,952.84 $ 545,816.27 - - - - - $ -52,212.35 $ 0.00 $ -52,212.35 $ 0.00 351,932.78 0.00 -5,139.05 219.14 $ 294,800.52 $ ========0-.-0-0= EXHIBIT"H" Page 1 STATE PRESCHOOL HANDICAPPED PROGRAM NEXT GENERATION SCHOOLS ELEMENTARY AND SECONDARY EDUCATION ACT TITLE I TITLE VI GRANTS TO TITLE II INNOVATIVE LOCAL EISENHOWER EDUCATION EDUCATIONAL PROFESSIONAL PROGRAM AGENCIES DEVELOPMENT STRATE GIES $ 38,059.00 $ 10,000.00 $ 817,176.53 $ 5,735.05 $ 25,389.00 $ _ _ _38~,0_5_9._00_$ _ _ _10......0_0_0_.0_0$ 817,176.53 $ _ _ _,....5,_73_5_.0_5 $ _ _ _2_5..;..,3_8_9._0_0 $ 38,059.00 $ 695,868.43 $ $ 10,000.00 62,436.43 58,871.67 $ 5,697.82 37.23 24,130.60 1,185.98 72.42 $ 38,059.oo $ _ _ _1.0..,._. oo_o_.o_o $ 817,176.53 $ 5,735.05 $ ___2_5~,3_a_s_.o_o $ 0.00 $ _ _ _ _ 0.00 $ o.oo $ _ _ _ _ _o_.o_o $ _ _ _ _ _o_.o_o $ 0.00 $ 0.00 0.00 $ 0.00 0.00 $ 0.00 0.00 $ 0.00 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 $ - 31 - 0.00 $ 0.00 ====== BEN HILL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996 REVENUES State Funds Federal Funds Taxes and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Service Operations Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 See notes to the general purpose financial statements. - 32 - INDIVIDUALS WITH DISABILITIES EDUCATION ACT PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL $ 89,846.00 $ $ 89,846.00 $ 42,900.00 42,900.00 $ 79,405.31 $ 42,900.00 286.35 10,154.34 $ 89,846.00 $ $ 0.00 $ 42,900.00 0.00 $ 0.00 $ 0.00 0.00 0.00 $ o.oo $ ==-=-==-=-===o=.o=o EXHIBIT"H" Page2 SAFE AND DRUG-FREE SCHOOLS VOCATIONAL EDUCATION FEDERAL SCHOOL AGE PROGRAM SERVE AMERICA PROGRAM PROJECT OPPORTUNITY TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 $ 16,637.00 $ $ 16,637.00 $ 72,030.36 $ 72,030.36 $ 39,133.88 $ 21,927.02 61,060.90 $ 2,989.55 $ 2,989.55 $ $ 24,950.99 669,867.27 $ 316,958.11 1,935,876.40 1,566,289.99 315,587.47 292,984.40 24,950.99 $ 2,921,331.14 $ 2,176,232.50 $ 16,598.51 $ 80,853.48 38.49 7,201.42 $ 946.95 751.18 300.00 $ 40,646.62 $ 16,637.00 $ $ 0.00 $ 89,753.03 $ -17,722.67 $ 40,946.62 $ 20,114.28 $ 2,989.55 $ 2,989.55 $ 0.00 $ $ 1,395,327.47 $ 814,258.29 24,950.99 38,885.96 27,659.67 83,285.33 751.18 47,943.09 29,837.33 59,775.00 1,222,089.24 65,597.61 22,519.09 58,947.79 6,535.00 84,436.69 68,396.90 19,764.40 8,030.00 1,006,455.92 19,501.83 3,000.00 24,950.99 $ 2,971,151.88 $ 2,111,845.91 0.00 $ -49,820.74 $ 64,386.59 $ 17,722.67 $ 17,722.67 $ 0.00 $ 0.00 0.00 $ 0.00 20,114.28 $ 4,440.22 0.00 $ 0.00 $ 17,722.67 $ $ 17,722.67 $ 2,476.88 -545.00 1,931.88 0.00 $ 0.00 -32,098.07 $ 356,373.00 66,318.47 297,957.20 -5,139.05 219.14 -8,208.13 305.46 $ 0.00 $ = = =0.= 00 $ 24,554.50 $ 0.00 $ 0.00 $ 319,355.02 $ 356,373.00 - 33 - BEN HILL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1996 ASSETS Cash and Cash Equivalents Accounts Receivable REGULAR GEORGIA STATE FINANCING PROJECT PROJECT 93/92S-609-005A 93/92S-609-005B $ 0.00 $ 0.00 $ 510,175.78 57.00 Total Assets $ 0.00 $ o.oo $ ===5=1=0=23=2=7.===8 LIABILITIES AND FUND EQUITY LIABILITIES Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reseived For State Capital Outlay Projects Unreseived Undesignated Total Fund Equity $ 510,232.78 $ o.oo $ _____-'-o_.o_-'-o 0.00 $ 0.00 $ 0.00 $ _ _ _51_0_._,2_3_2_.7_8 Total Liabilities and Fund Equity $ 0.00 $ 0.00 $ ====5=10=,2=32=.7=8 See notes to the general purpose financial statements. - 34- EXHIBIT"!" AND INVESTMENT COMMISSION PROJECT PROJECT 94-609-003 95/94S-609-002 HAZARD AND DEPRECIATION RESERVE FUND TOTALS JUNE 30, 1996 JUNE 30, 1995 $ 0.00 $ 17,043.03 $ 0.00 $ 527,218.81 $ 952,399.40 26,295.00 26,352.00 366,510.57 $ 0.00 $ 43,338.03 $ 0.00 $ 553,570.81 $ 1,318,909.97 $ ____2__.6,"""29"--5_.o_o $ _ _ _26_.,2_9_5_.o_o $ $ ____2-'-'6,...;.29_5_.0--0 $ 26,295.00 $ 8,2.11.80 552,887.57 561,099.37 $ $ _ _ _---"o.;_;;.o_o_ $ 0.00 $ 17,043.03 $ 527,275.81 $ o.oo $ _ _ _ _...a.o..;;.o_o_ _ _ _...;.o...;._o_o_ 17,043.03 $ 0.00 $ 527,275.81 $ 683,541.71 74,268.89 757,810.60 $ 0.00 $ 43,338.03 $ 0.00 $ 553,570.81 $ 1,318,909.97 - 35- BEN HILL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1996 REVENUES State Funds Taxes and Other Funds Total Revenues EXPENDITURES Current Support Services Business Administration Capital Outlay Land and Land Improvements Building and Building Improvements Equipment Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Residual Equity Transfers REGULAR GEORGIA STATE FINANCING PROJECT PROJECT 93/92S-609-005A 93/92S-609-005B $ 0.00 $ 436,063.00 $ $ 0.00 $ 436,063.00 $ 11,625.54 11,625.54 $ 0.00 $ 14,938.91 $ 70,599.29 87,450.68 4,280.00 105,864.00 $ 0.00 $ 172,988.88 $ 110,144.00 $ 0.00 $ 263,074.12 $ -98,518.46 $ 0.00 $ 26,618.74 -26,618.74 $ $ 263,074.12 $ 0.00 -263,074.12 99,732.55 99,732.55 1,214.09 509,018.69 FUND BALANCE JUNE 30 $ 0.00 $ 0.00 $ =====51=0=,2=32=.7=8 See notes to the general purpose financial statements. - 36- EXHIBIT"J" AND INVESTMENT COMMISSION PROJECT PROJECT 94-609-003 95194S-609-002 HAZARD AND DEPRECIATION RESERVE FUND TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 $ 273,002.43 $ 668,167.50 $ 1,388,858.47 $ 5,357,783.71 - - - - - - $ _ _ _ _98_5_.2_1 985.21 119,030.07 $ 273,002.43 $ 668,167.50 $ _______98_5_,=.2..;...1 $ 1,389,843.68 $ 5,476,813.78 $ 20,552.66 239,089.48 $ 32,549.32 $ 774,365.58 $ 292,191.46 $ 774,365.58 $ $ -19,189.03 $ -106,198.08 $ $ 106.44 0.00 $ 39,771.57 1,189,918.35 120,000.00 476,763.83 9,286,615.29 0.00 $ 1,349,689.92 $ 9,763,485.56 985.21 $ 40,153.76 $ -4,286,671.78 $ 19,189.03 $ -51,281.91 $ $ 19,189.03 $ -51,281.91 $ $ 0.00 $ -157,479.99 $ 0.00 174,523.02 $ -48,450.64 -48,450.64 $ 118,921.58 $ 4,668,946.51 -99,732.55 -3,829,404.38 19,189.03 $ 839,542.13 -47,465.43 $ 47,650.15 -184.72 59,342.79 $ -3,447,129.65 757,810.60 4,204,940.25 -289,877.58 $ 0.00 $ 17,043.03 $ = == 0.00 === $ 527,275.81 $ 757,810.60 - 37- ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets FUND EQUITY Fund Balances Reserved For Endowment Corpus Unreserved Undesignated Total Fund Equity BEN HILL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1996 EXHIBIT 111<'' NON EXPENDABLE TRUST FUND CUMBEE-MCCALL FUND EXPENDABLE TRUST FUND FITZGERALD HIGH SCHOOL COLLEGE PREPARATORY FUND TOTALS JUNE 301 1996 JUNE 301 1995 $ 3,028.14 $ 9,934.15 $ 12,962.29 $ 14,212.36 7.59 7.59 $ 3 035.73 $ 9,934.15 $ 12,969.88 $ _ _ _14..,,2_1_2_.3_6 $ 2,000.00 $ 2,000.00 $ 2,000.00 1 035.73 $ _ _ _..a9..9-'-34-'-."-'-1-"-5 10,969.88 12,212.36 $ 3,035.73 $ 9,934.15 $ 12,969.88 $.....,_.1.4...,,2_1_2_.3_6 See notes to the general purpose financial statements. - 38- BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 1996 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1) Total U.S. Department of Agriculture Corporation for National and Community Service Through Georgia Department of Education Learn and Serve America - School and Community Based Programs 1996 Grant Education, U.S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1996 Grant Title II Eisenhower Professional Development 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Safe and Drug-Free Schools 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant Through Georgia Department of Human Resources Safe and Drug-Free Schools 1996 Grant Total U.S. Department of Education Health and Human Services, U.S. Department of Through Georgia Department of Human Resources Child Care and Development Block Grant 1995 Contract No. 472-93-51343 1996 Contract No. 472-93-61423 Total U.S. Department of Health and Human Services , - 39 - CFDA NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10.553 $ * 10.555 10.550 $ 161,909.43 570,318.07 $ 66,860.54 799,088.04 $ (2) 1,154,092.30 (3) 66,860.54 1,220,952.84 94.004 $ 2,989.55 $ 2,989.55 * 84.010 $ 817,176.53 $ 817,176.53 84.281 5,735.05 5,735.05 84.298 25,389.00 25,389.00 84.027 84.173 84.186 89,846.00 42,900.00 15,107.00 89,846.00 42,900.00 15,107.00 84.048 84.243 20,881.65 51,148.71 25,221.12 (3) 64,531.91 (3) 84.186 1,530.00 $ 1,069,713.94 $ 1,530.00 1,087,436.61 93.575 $ 93.575 $ 18,428.08 $ 20,705.80 39,133.88 $ 18,428.08 22,518.54 (3) 40,946.62 BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 1996 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Justice, U.S. Department of Through Office of the Governor Juvenile Justice and Delinquency Prevention Allocation to States Project Opportunity 1996 Grant OTHER FEDERAL ASSISTANCE Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program 1996 Grant CFDA NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 16.540 $ 24,950.99 $ 24,950.99. $ 27,984.68 (4) Total Federal Financial Assistance $ 1,963,861.08 $ 2,377,276.61 Major Programs are identified by an asterisk (*) in front of the CFDA number. (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities distributed to the system by the Georgia Department of Education. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program. (3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. See notes to the general purpose financial statements. - 40 - BEN HILL COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1996 SCHEDULE "2" NONINTEREST BEARING ACCOUNT SouthTrust Bank, Atlanta, Georgia INTEREST BEARING ACCOUNTS The Bank of Fitzgerald, Fitzgerald, Georgia Certificates of Deposit No. 24965 (5.15%) No. 25014 (4.85%) N.O.W. Account (2.79%) Nations Bank of Georgia, N. A., Fitzgerald, Georgia Certificates of Deposit No. 974569 (4.75%) No. 1247606 (4.89%) No. 1272765 (4.42%) N.O.W. Account (Variable) SouthTrust Bank, Atlanta, Georgia Certificates of Deposit No. 99511158 (5.12%) No. 99511159 (5.12%) No. 99511160 (5.12%) No. 99511161 (5.12%) $ 312,058.77 $ 511,575.17 307,957.67 436,245.25 3,028.14 187,666.17 42,000.00 19,065.26 50,000.00 50,000.00 50,000.00 50,000.00 1,707,537.66 $ 2,019,596.43 See notes to the general purpose financial statements. - 41 - BEN HILL COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996 SCHEDULE "3" GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND DEBT SERVICE FUND FIDUCIARY FUND TYPE NON EXPENDABLE TRUST FUND TOTAL Ben Hill County Tax Commissioners County Wide Bond Tax County Wide School Tax $ 54,551.67 $ 7,241.93 $ 7,241.93 54,551.67 Communities in Schools Salary and Travel Reimbursement 7,126.62 7,126.62 Defense, U. S. Department of Department of the Army R.O.T.C. Program 7,068.66 7,068.66 Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Other State Programs At-Risk Summer School Program Remedial Summer School Program Lottery Program Model Technology Federal Programs Elementary and Secondary Education Act Trtlel Grants to Local Educational Agencies TiUe II Eisenhower Professional Development TrtleVI Innovative Education Program Strategies Serve America Program $ 3,833.44 4,951.00 6,471.12 2,576.47 12,500.00 98,096.71 5,735.05 25,389.00 2,989.55 3,833.44 4,951.00 6,471.12 2,576.47 12,500.00 98,096.71 5,735.05 25,389.00 2,989.55 Georgia State Financing and Investment Commission Reimbursement on Construction Projects $ 26,295.00 26,295.00 Human Resources, Georgia Department of School Age Program 6,421.91 6,421.91 Office of the Governor Project Opportunity 5,186.83 5,186.83 Office of School Readiness Pre-Kindergarten Program 190,084.35 190,084.35 University of Georgia Reimbursement for Substitute Teachers 127.04 127.04 Various Sources Interest Earned Vendor Overpayment 1,683.36 160.00 507.91 57.00 900.83 $ 7.59 2,591.78 724.91 $ 79,764.94 $ 355,695.75 $ 26,352.00 $ 8,142.76 $ 7.59 $ 469,963.04 See notes to the general purpose financial statements. - 42 BEN HILL COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30, 1996 SCHEDULE "4" PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TOTAL DEBT SERVICE 1993 ISSUE INTEREST PRINCIPAL $ 374,630.75 $ 371,997.50 378,637.50 379,120.00 378,707.50 382,360.00 384,940.00 386,402.50 386,702.50 390,952.50 393,700.00 395,062.50 159,630.75 $ 151,997.50 143,637.50 134,120.00 123,707.50 112,360.00 99,940.00 86,402.50 71,702.50 55,952.50 38,700.00 20,062.50 215,000.00 220,000.00 235,000.00 245,000.00 255,000.00 270,000.00 285,000.00 300,000.00 315,000.00 335,000.00 355,000.00 375,000.00 $ 4,603,213.25 $ 1,198,213.25 $ 3,405,000.00 CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired During Period Bonds Payable at June 30, 1996 1993 ISSUE $ 3,610,000.00 205,000.00 $ 3,405,000.00 MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date DEC 1 - JUN 1 JUN 1 See notes to the general purpose financial statements. - 43 - BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1996 SCHEDULE "5" 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 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Health Insurance Mentoring Program Mentor Teacher Program Next Generation Schools Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Distant Leaming Instructional Technology Model Technology Schools Pre-Kindergarten Program Safe Schools Grant Technology Installation Georgia State Financing and Investment Commission Reimbursement on Construction Projects 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 OTHER Education, Georgia Department of Student Information Systems See notes to the general purpose financial statements. GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 6,772,469.00 777,953.00 300,763.00 285,375.00 91,106.00 1,911,063.00 269,089.00 81,865.00 264,310.00 386,035.00 74,287.00 20,162.00 25,765.00 -879, 100.00 1,014,397.00 $ 5,000.00 75,992.00 41,175.61 22,761.57 215,683.57 4,500.00 585.00 6,296.12 11,199.62 10,000.00 38,059.00 1,014.00 27,154.96 12,500.00 280,543.12 4,950.00 32,316.00 $ 6,772,469.00 777,953.00 300,763.00 285,375.00 91,106.00 1,911,063.00 269,089.00 81,865.00 264,310.00 386,035.00 74,287.00 20,162.00 25,765.00 -879,100.00 1,014,397.00 75,992.00 5,000.00 41,175.61 22,761.57 215,683.57 4,500.00 585.00 10,000.00 38,059.00 6,296.12 11,199.62 1,014.00 27,154.96 12,500.00 280,543.12 4,950.00 32,316.00 $ 1,388,858.47 187,338.19 30,941.00 1,388,858.47 187,338.19 30,941.00 1,000.00 1,000.00 500.00 500.00 $ 11,735,181.49 $ 669,867.27 $ 1,388,858.47 $ 13,793,907.23 - 44 - BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE YEAR ENDED JUNE 30, 1996 SCHEDULE "6" GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND DEBT SERVICE FUND FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND TOTAL Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax $ 3,395,454.89 6,730.38 6,393.68 $ 461,846.57 831.84 790.23 $ 461,846.57 3,395,454.89 7,562.22 7,183.91 Other Sources Ben Hill County Commissioners Reimbursement for Paving Costs Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Insurance Premiums - Dental Interest Earned Rents Sales Breakfast and Lunches School Assets Tuition Other 36,579.96 22,037.39 10,345.27 $ 4,000.00 7,272.14 127,968.20 73,483.54 14,450.00 6,912.77 $ 382.72 30,297.15 20,243.97 286,747.68 17,927.02 985.21 18,234.06 $ 6,343.24 36,579.96 22,037.39 14,345.27 7,272.14 127,968.20 105,958.82 14,450.00 286,747.68 382.72 48,224.17 20,243.97 $ 3,751,639.29 $ 315,587.47 $ 985.21 $ 481,702.70 $ 6,343.24 $ 4,556,257.91 See notes to the general purpose financial statements. - 45 - THIS PAGE LEFT BLANK BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1996 SCHEDULE '7" EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Tuition Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures Nonoperating Costs Building and Building Improvements Equipment Total Expenditures GENERAL FUND SPECIAL REVENUE FUND TOTAL $ 10,292,127.27 $ 1,329,258.60 $ 11,621,385.87 3,212,113.26 391,338.65 3,603,451.91 41,801.08 18,051.14 59,852.22 260,180.13 25,393.51 285,573.64 8,609.70 8,609.70 145,907.10 4,803.25 150,710.35 106,364.30 115,344.38 221,708.68 93,047.55 312.50 93,360.05 62,230.50 62,230.50 39,320.27 1,264.55 40,584.82 105.00 105.00 4,383.37 4,383.37 60,699.05 60,699.05 24,242.10 4,405.49 28,647.59 506,463.43 217,196.32 723,659.75 351,962.65 12,150.00 364,112.65 614,608.19 614,608.19 167,441.85 1,036.71 168,478.56 22,262.40 9,951.08 32,213.48 7,272.14 7,272.14 10,947.95 2,292.11 13,240.06 70,317.98 414,904.27 212,089.89 70,317.98 626,994.16 $ 15,891,047.84 $ 2,971,151.88 $ 18,862,199.72 See notes to the general purpose financial statements. - 47 - BEN HILL COUNTY BOARD OF EDUCATION . SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1996 EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer and Cleaning Services Repair and Maintenance Services Communications Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures Nonoperating Costs Equipment Total Expenditures DISTANT LEARNING MODEL INSTRUCTIONAL TECHNOLOGY TECHNOLOGY SCHOOLS $ 1,014.00 $ 1,904.36 2s,2so.so $ ___1_2.._,s_oo_._00_ $ 1,014.00 $ 27,154.96 $ ====1=2,=50=0=.0=0 See notes to the general purpose financial statements. - 48 - SCHEDULE "8" PRE-KINDERGARTEN PROGRAM SAFE SCHOOLS GRANT TECHNOLOGY INSTALLATION TOTAL $ 245,494.61 $ 245,494.61 72,301.99 72,301.99 3,090.26 3,090.26 570.00 570.00 784.45 1,798.45 $ 30,316.00 30,316.00 928.72 928.72 3,859.33 3,859.33 102,239.37 $ 4,950.00 109,093.73 12,150.00 12,150.00 1,136.40 1,136.40 1,036.71 1,036.71 605.00 605.00 81.00 81.00 23,603.47 2,000.00 63,354.07 $ 467,881.31 $ 4,950.00 $ 32,316.00 $ 545,816.27 - 49 - BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1996 EXPENDITURES Operating Costs Salaries Employee Benefits Professional and Technical Services Rents Supplies Total Expenditures SCHEDULE 911 11 $ 3,404.56 305.96 1,760.00 300.00 1,969.15 $ ===7=,7=39=.6=7 See notes to the general purpose financial statements. - 50 - BEN HILL COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996 SCHEDULE "1 O" 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 $ 8, 136,560.00 $ 267,296.00 $ 9,277,448.62 737,692.08 $ _ __:6=3=8=93::..;;8.;..;.4~0 $ 10,015,140.70 -117, 133.08 $ 9,898,007.62 $ 0.00 $=====0=.0=0 See notes to the general purpose financial statements. - 51 - BEN HILL COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1996 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 r> High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category II (*) Category Ill (*) r) Category IV Sub-Total - Regular r) Category V (Gifted) Total Special Education Programs REMEDIAL EDUCATION PROGRAM (*l 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 ~ ORIGINAL MID-TERM $ 686,679.00 $ 618,011.10 $ 0.00 1,665,665.00 1,499,098.50 $ 2,352,344.00 90 $ 2,117,109.60 $ 0.00 889,121.00 90 800,208.90 1,575,846.00 90 1,418,261.40 709,570.00 90 638,613.00 723,021.00 90 650,718.90 522,567.00 90 470,310.30 $ 6,772,469.00 $ 6,095,222.10 $ 0.00 $ 682,814.00 $ 614,532.60 $ 0.00 $ 682,814.00 90 $ 614,532.60 $ 0.00 95,139.00 90 85,625.10 $ 777,953.00 $ 700,157.70 $ 0.00 $ 300,763.00 90 $ 270,686.70 $ 0.00 $ 7,851,185.00 $ 7,066,066.50 $ 0.00 $ 227,272.00 90 $ 204,544.80 $ 0.00 58,103.00 90 52,292.70 $ 285,375.00 $ 256,837.50 $ 0.00 $ 8,136,560.00 $ 7,322,904.00 $ 0.00 STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development Programs (*) Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements. $ 22,491.00 $ 22,491.00 $ 0.00 68,615.00 68,615.00 0.00 $ 91,106.00 100 $ 01.1os.oo s=======o=.o=o - 52 - SCHEDULE "11" TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 618,011.10 $ 754,123.00 $ 34,043.75 $ 788,166.75 1,499,098.50 1,729,110.25 127,554.73 1,856,664.98 $ 2,117,109.60 $ 2,483,233.25 $ 161,598.48 $ 2,644,831.73 $ 0.00 800,208.90 1,002,072.94 44,539.27 1,046,612.21 0.00 1,418,261.40 1,705,761.44 125,381.61 1,831,143.05 0.00 638,613.00 965,425.48 140,175.97 1,105,601.45 0.00 650,718.90 829,747.82 14,210.49 843,958.31 0.00 470,310.30 603,806.47 96,081.56 699,888.03 0.00 $ 6,095,222.10 $ 7,590,047.40 $ 581,987.38 $ 8,172,034.78 $ 614,532.60 $ 322,752.66 $ 555,789.81 116,485.11 20,780.54 $ 16,446.73 13,688.07 343,533.20 572,236.54 130,173.18 $ 614,532.60 $ 995,027.58 $ 50,915.34 $ 1,045,942.92 0.00 85,625.10 108,305.48 2,435.90 110,741.38 0.00 $ 700,157.70 $ 1,103,333.06 $ 53,351.24 $ 1,156,684.30 $ 270,686.70 $ 280,313.76 $ 3,599.78 $ 283,913.54 0.00 $ 7,066,066.50 $ 8,973,694.22 $ 638,938.40 $ 9,612,632.62 $ 204,544.80 $ 303,754.40 $ 303,754.40 0.00 52,292.70 $ 98,753.68 98,753.68 0.00 $ 256,837.50 $ 303,754.40 $ 98,753.68 $ 402,508.08 $ 7,322,904.00 $ 9,277,448.62 $ 737,692.08 $ 10,015,140.70 $ 0.00 $ 22,491.00 68,615.00 $ ===9.,.1,=10=6=.0=0 $ 42,644.57 $ 42,644.57 48,790.14 48,790.14 $ 91,434.71 $ 91,434.71 $ ======O=.O=O - 53 - BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30, 1996 SCHEDULE "12" BOARD MEMBER ADDRESS Mr. Harrison McNease, Chairman (*) 515 North Grant Street Fitzgerald, Georgia 31750 Mr. Joe Compton (*) 189-8 Daffodil Road Fitzgerald, Georgia 31750 . Mr. Ulysses Cummings (*) 811 East Ocmulgee Street Fitzgerald, Georgia 31750 Ms. Sherry Sue Davis (*) 201 South Monitor Drive Fitzgerald, Georgia 31750 Mr. Ted Mitchell (*) 264 Adamson Road Fitzgerald, Georgia 31750 Mr. Gary Smith (*) 124 South Grant Street Fitzgerald, Georgia 31750 Ms. Debbie Troupe (*) 442 Broxton Highway Fitzgerald, Georgia 31750 (*) Denotes Board Members Serving as of June 30, 1996 COMPENSATION TRAVEL $ 750.00 750.00 700.00 $ 984.00 800.00 940.50 800.00 512.20 700.00 492.50 700.00 480.50 $ 5,200.00 $ =====3=,4=09=.7=0 See notes to the general purpose financial statements. - 54 - SECTION II COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 26, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members ofthe Ben Hill County Board of Education COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Ben Hill County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 26, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to Ben Hill County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 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, ~ c:;L Claude L. Vickers State Auditor CLV:cm 96CRL-10 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 26, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education and Superintendent and Members ofthe Ben Hill County Board of Education SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Ben Hill County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 26, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have applied procedures to test the Ben Hill County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996: (1) Political Activity (5) Allowable Costs/Cost Principles (2) Civil Rights (6) Drug-Free Workplace Act (3) Cash Management (7) Audit Follow-Up/Resolution (4) Federal Financial Reports (8) Administrative Requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 96CRL-40 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 ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that Ben Hill County Board of Education had not complied, in all material respects, with those requirements. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:cm 96CRL-40 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 26, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Ben Hill County Board of Education SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Ben Hill County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 26, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Ben Hill County Board ofEducation's compliance with the requirements governing: (1) Types of Services Allowed or Unallowcd (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 Ben Hill 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 We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Ben Hill County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, d'~ Claude L. Vickers State Auditor CLV:cm 96CRL-80 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 26, 1997 Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education and Superintendent and Members ofthe Ben Hill County Board of Education SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Ladies and Gentlemen: We have audited the general purpose financial statements of the Ben Hill County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 26, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. In connection with our audit of the fiscal year 1996 general purpose financial statements of the Ben Hill County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung: (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 Ben Hill 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 Ben Hill 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 ill INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 26, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Ben Hill County Board of Education REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Ben Hill County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 26, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of the Ben Hill 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 of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the Ben Hill County Board of Education for the year ended June 30, 1996, we obtained an understanding of the internal control 96ICL-3 structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. We noted certain matters invoJving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (1) Accounting Controls (Overall) (2) General Fixed Assets A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that 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 Ben Hill County Board of Education's financial statements and this report does not affect our report thereon dated August 26, 1997. 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 AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 26, 1997 Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education and Superintendent and Members of the Ben Hill County Board of Education SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Ben Hill County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 26, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Ben Hill County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated August 26, 1997. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Ben Hill County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated August 26, 1997. 96ICL-7 The management ofthe Ben Hill County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation ofpolicies 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 of Effort, and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements (5) Applicable Special Tests and Provisions (6) Other Requirement Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1996, the Ben Hill County Board of Education expended 71% of its total Federal financial assistance under major Federal financial assistance programs. We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which 96ICL-7 are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accquntants. 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 ofperforming 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. Tbis condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the Ben Hill County Board of Education'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 August 26, 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. Tbis 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-7 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1996 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6091-93-05 The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $325.12 for the Staff Development -Professional Development Stipends Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund the underexpenditure as required. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $3,205.10 Audit Control Number 6091-94-02 The audit report for the year ended June 30, 1994, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $3,205.10 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required. The underexpenditure of $3,205.10 should be returned to the Georgia Department ofEducation through an increase in Board's local fair share for the QBE programs in a subsequent fiscal period. AUDIT FOLLOW-UP/RESOLUTION Unearned Per Diem Payments Financial Statements Amount: $50.00 Audit Control Number 6091-95-01 The audit report for the year ended June 30, 1995, disclosed that a payment in the amount of $50.00 was made in error to a Board Member for attendance ofmeetings in excess ofthe number ofmeetings actually attended. The Board should secure reimbursement of the $50.00 for deposit to the Board's General Fund. - 1- BEN IIlLL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1996 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $163.06 Audit Control Number 6091-95-02 The audit report for the year ended June 30, 1995, revealed two instances where employees were overpaid in the amount of$163.06. These overpayments were the result of errors made by the Board in calculating the amount of excess leave taken to be deducted from the individuals' wages. The Board should seek reimbursement ofthese overpayments for deposit into the Board's General Fund. AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Local Matching Funds Financial Statements Finding Resolved Audit Control Number 6091-95-03 The audit report for the year ended June 30, 1995, stated that the Board failed to transfer local matching funds from the General Fund to the Capital Projects Fund as required for the approved State Capital Outlay Project for the 1995 fiscal year. Both the instructions in Chapter 41 ofthe Financial Management for Georgia Local Units of Administration and the agreement signed by the Board to receive the funding through Georgia State Financing and Investment Commission require that the Board transfer local matching funds by year end and designate those funds by project name and number. In the year under review, the local funds were transferred as required. PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 6091-93-01 The audit report for the year ended June 30, 1995, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. In the year under review, no improvement in adequate separation of employee duties was noted. This condition was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule II I II of this report, are affected by this finding. -2- BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1996 PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6091-93-02 The audit report for the year ended June 30, 1995, noted that the management of the Ben Hill County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted account 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 of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. CURRENT YEAR INVENTORIES Unlocated Lottery Equipment Financial Statements Nonmaterial Noncompliance Audit Control Number 6091-96-01 A review of equipment purchases funded by Lottery funds disclosed that the Board could not provide a detailed inventory listing of equipment purchased with Lottery funds. As a result, current year equipment purchases funded with Lottery funds could not be located for physical inspection. This condition occurred because management disregarded the requirements of the Georgia Department of Education with respect to maintaining equipment inventory listings by location. The Board should implement procedures to insure that all equipment purchased can be accounted for and located for inspection. The Georgia Department of Education should review this matter and determine if a reclaim of lottery funds is appropriate. -3 - SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS BEN HILL COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1996 AUDIT FOLLOW-UP/RESOLUTION Unearned Per Diem Payments Financial Statements Amount: $50.00 Audit Control Number 6091-95-01 We concur with this finding and the amount was collected in December of 1996. AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $163.06 Audit Control Number 6091-95-02 We concur with this finding and this was corrected in the 97 school year. ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 6091-93-01 We concur with this finding, however due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6091-93-02 We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff the Board has decided not to pursue the recording of general fixed assets on the financial statements. - 1- BEN HILL COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1996 INVENTORIES Unlocated Lottery Equipment Financial Statements Nonmaterial Noncompliance Audit Control Number 6091-96-01 We concur with this finding. Due to the completion of two new schools and the renovation of two other schools, the Technology Director is in the process of getting every piece of equipment inventoried and in its proper location. Note: The Ben Hill County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments other than the above for inclusion in this report. -2-