Audit report, Berrien County Board of Education, Nashville, Georgia, year ended June 30, 1994

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

AUDIT REPORT BERRIEN COUNTY BOARD OF EDUCATION
NASHVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

BERRIEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS- OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

21

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

22

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

24

3 ACCOUNTS RECEIVABLE

25

SCHEDULE OF REVENUE

4

STATE FUNDS

26

5

LOCAL AND OTHER FUNDS

27

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

28

7

LOTTERY PROGRAMS

29

BERRIEN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

31

9

BY PROGRAM

32

10 SCHEDULE OF COMPENSATION OF BOARD MEMBERS

34

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

SECTION III
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

BERRIEN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION! FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 20, 1995

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

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. 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 Berrien County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note I to the general purpose financial statements, during fiscal year I994, the Board changed its method ofaccounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Berrien County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Berrien County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 94ARL-14

BERRIEN COUNTY BOARD OF EDUCATION - 1-

BERRIEN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE30 1994

EXHIBIT"A"

Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS (Memorandum Only) JUNE 30 1994 JUNE 30 1993

$ 1,922,409.89 $ 35,300.82 $ 428,941.72 $ 2,386,652.43 $ 2,970,128.11

95,158.53

207,976.55

272,009.90

575,144.98

262,093.46

9,447.73 6500.54

9,447.73 6500.54

13,306.09 5621.48

$ 2,017,568.42 $ 259,225.64 $ 700,951.62 $ 2977745.68 $ 3,251149.14

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue

$

19,912.09 $ 11,966.46

56,658.36

10,212.08

$

606.05

Total Liabimies

$

19912.09 $ 79442.95 $

FUND EQUITY

Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodtties Purchased Food For State Capttal Outlay Projects

34,995.78 $
35,246.79

1,502.60

9,447.73 6,500.54
$

Unreserved Undesignated

70,242.57 $ 17,450.87 $

1,927 413.76

162331.82

Total Fund Equtty

1 997 656.33 $ 179782.69 $

$
192,221.10 29,709.40
221930.50 $

31,878.55 $ 56,658.36 10,212.08 192,221.10 29,709.40
606.05
321~85.54 $

26,390.86 59,550.22 13,950.91
30,000.00
129891.99

$

34,995.78 $

69,612.78

1,502.60

1,998.32

35,246.79

12,783.86

1846.79

9,447.73 6,500.54 1846.79

13,306.09 5,621.48
33942.95

1,846.79 $

89,540.23 $ 137,265.48

477174.33

2566919.91

2983991.67

479021.12 $ 2656460.14 $ 3121257.15

Total Liabifrties and Fund Equtty

$ 2,017,568.42 $ 259,225.64 $ 700,951.62 $ 2,977 745.68 $ 3,251 149.14

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

BEBB!EN ~Q!.!tm'.'. ~BQ QE EQ!JQ!IIQf!I ~M61NEO SIAI.EMEW:QE BE~l;NY!;i EiP!;NQII~JBE ~NO ~t:l.!iN~E~ 11:J Ftlt:JQ BAL.!iN~t;S
~QVEBNMf;NI6L FYNQ JYeES YEAR ENDED JUNE 30 1994

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS {Memorandum On~
YEAR ENDED JUNE 30 1994 JUNE30 1993

.BEllENl.!.E

State Funds Federal Funds Local and Other Funds

7,660,535.48 $ 173,623.78 $

47,706.83 2,264,769.22

2159 707.50

269660.69

669,817.25 $ 20 091.52

8,503,976.51 $ 2,312,476.05 2 449 459.71

9,159,664.68 1,993,205.54 2 560 972.13

Total Revenues

$ 9867949.81 $ 2 708 053.69 $ 689908.77 $ 13 265 912.27 $ 13 713 842.35

EXPENDITURES

CUrrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operatk>n of Plant Student Transportation Services Central Support Services other Support Services Food Services Operation other Operaliona of Non-Instructional Services
Capital Outlay

$ 6,310,867.63 $
163,328.72 199,919.48 286,743.29 267,560.57 677,797.39
73,127.37 942,664.06 581,709.59
74,349.57 87,630.25
1,760.29
82,868.83 137345.82

597,563.31
191,587.86 155,743.95
434.86 166,069.30
56,626.11
49,618.73 663,438.76 829,499.01

$ 6,908,430.94 $ 6,411,198.44

354,916.58 355,663.43 287,178.15 433,629.87 677,797.39
73,127.37 999,290.17 581,709.59 123,968.30 751,069.01 831,259.30

323,874.29 321,788.35 300,761.09 382,488.23 572,314.77
77,350.22 858,364.16 586,747.83 204,845.21 404,261.89 669,357.50

1129475.23

82,868.83 1266821.05

72,849.15 2162 087.43

Total Expenditures

$ 9 887 672.86 $ 2 710 581.89 $ 1129 475.23 $ 13 727 729.98 $ 13 348 288.56

Excess of Revenues over (under) Expenditures

$ -19 723.05 $

-2 528.20 $ -439 566.46 $ -461 817.71 $

365553.79

Qil::tEB EINeiN~IN!:2 SQ!.!B~i;S (!.!SESl

Operating Transfers In Operating Transfers Out

$ $ -19892.33

19,892.33

$

19,892.33 $ 353,428.84

-19 892.33

-353428.84

Total other Financing Sources (Uses) $ -19892.33 $ 19 892.33

$

0.00 $

0.00

Excess of Revenues and other Financing Sources

over (under) Expenditures and Other Financing

u...

$

-39,615.38 $

17,364.13 $ -439,566.46 $ -461,817.71 $

365,553.79

E!.!t:JQ B.!iL.6NQE J!.!U l

2,037,271.71

165,397.86

918,587.58

3,121,257.15

2,736,775.79

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-3,858.36 879.06

-3,858.36 879.06

13,306.09 5621.48

Elit:lP llALAN!;;E JUNE 30

$ 1 997 656.33 $ 179 782.69 $ 479 021.12 $ 2656460.14 $ 3121257.15

The notes to the general purpose ftnancial statements are an integral part of this statement. -3

l;IERRl~N CQUNTY aQABQ OF EQU~ATIQH QQMalN!;Q ~TATf;ME~T QF R~~ENY!i; EiPENQII!JB& A~Q t:HA!:4GES I~ EY!:iD aA~N~~
~TUAI,, A~0 auggET - GO~l;RNMENTAI F!:!NQ TYP~S
YEAR ENDED JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~

State Funds Federal Funds Local and Other Funds

$ 8,503,976.51 $ 2,312,476.05 2,449,459.71

0.00 $

8,503,976.51 $ 2,312,476.05 2,449,459.71

9,733,550.47 $ 2,227,868.95 2,179,091.00

1,229,573.96 84,607.10
270,368.71

Total Revenues

13,265,912.27 $

0.00 $ 13,265,912.27 $ 14,140,510.42 $

-874,598.15

~PENDITUB ES

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 Seivices Operation Other Operations of Non-Instructional Services
Capital Outlay

6,908,430.94 $
354,916.58 355,663.43 287,178.15 433,629.87 677,797.39
73,127.37 999,290.17 581,709.59 123,968.30 751,069.01 831,259.30 82,868.83 1,266,821.05

0.00 $

6,908,430.94 $ 6,836,857.98 $

354,916.58 355,663.43 287,178.15 433,629.87 677,797.39
73,127.37 999,290.17 581,709.59 123,968.30 751,069.01 831,259.30 82,868.83 1,266,821.05

362,115.20 350,813.47 294,916.80 437,113.47 587,413.94
78,379.n 930,871.12 592,264.10 73,424.02 811,924.00 752,436.88 82,332.82 2,808,871.34

-71,572.96
7,198.62 -4,849.96 7,738.65 3,483.60 -90,383.45 5,252.35 -88,419.05 10,554.51 -50,54428 60,854.99 -78,822.42
-536.01 1,542,050.29

Total Expenditures

13,n7.n9.98 $

0.00 $ 13,727,n9.98 $ 14,999,734.86 $ 1,2n,004.88

Excess of Revenues over (under) Expenditures

-461,817.71 $

0.00 $

-461,817.71 $ -859,224.44 $

397,406.73

OTHER FINAN!,ING Q!.!R!:;ES (USES}

Other Sources Other Uses

$

19,892.33 $

-19,892.33

0.00 $

19,892.33 $ -19,892.33

16,267.14 $ -16,267.14

3,625.19 -3,625.19

Total Other Financing Sources (Uses)

0.00 $

0.00 $

0.00 $

0.00 $

0.00

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

-461,817.71 $

0.00 $

-461,817.71 $ -859,224.44 $

397,406.73

FUND BALANC~ !i!lJLY 1 1993

3,121,257.15

-18,927.57

3,102,329.58

3,042,459.37

59,870.21

,!iQJ!JSTMl;NTS
Prior Year (Net)
EOOQ IN~ENTORY - N~I ~HAliGE IN P~BIQQ
Donated Commodities Purchased Food

-3,858.36 879.06

3,858.36 -879.06

-23,167.99
0.00 0.00

23,167.99
0.00 0.00

F!,!ND !;!ALANs;E JUNE 30 1994

$ 2,656,460.14 $

-15,948.27 $

2,640,511.87 $ 2,160,066.94 $

480,444.93

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

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Berrien County Board of Education (Board) was established under the Jaws of the 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 the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Berrien County Board of Education.
Based upon the application of the above criteria, the Berrien County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Berrien County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

- 5-

BERRIEN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal govenunent to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.

- 6-

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Berrien County Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
- 7-

BERRIEN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.

CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist 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 ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other granters for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES

The Berrien County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on September 2, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70. l 03. The Berrien 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.

The tax millage rate levied for the 1993 tax year (calendar year) for the Berrien County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

JO so mills

INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time

- 8-

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
For fiscal year 1994, the Board began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the Board. The reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or resuits of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, orby collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one 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,
- 9-

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $3,291,946.34. 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, 1994, as follows:

Risk Category

Bank Balance

1

$ 460,200.01

2

1,702,966.72

3

1 128 779.61

Total

$ 3 29) 946 34

- 10 -

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$6,856.85 was paid in claims.

Note 5: OPERATING LEASES

The Berrien County Board ofEducation has entered into a lease as lessee for building space for the Migratory Education Program. This lease is considered for accounting purposes to be an operating lease.. Lease expenditures for the year ended June 30, 1994, amounted to $12,768.00. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

1995 1996 1997 1998 1999 2000

$ 12,768.00 13,566.00 13,566.00 13,566.00 13,566.00 13 566.00

Total

$ 80 598 00

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of $282,561.05 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with Lottery Programs. Lottery funds in the amount of $281,579.02 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

- 11 -

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: SIGNIFICANT COMMITMENTS

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

$

967.89

69,328.82

5,999.40

105,185.33

101 079.61

$ is2 Sgl QS

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

Project

Unearned Executed Contracts

Funding Available From State

92/92S-610-006 92/92S-6 I0-007

$ 577,435.20 691 557.40
$ I 268 992 60

$ 325,373.60 239 006.90
$ 561 380 so

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

Note 7: CONTINGENT LIABILITIES

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

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

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

- 12 -

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $6,763,305.31; total payroll was $7,657,154.50.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $1,200,183.10, of which $794,490.09 was made by the Board and $405,693.01 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
- 13 -

BERRIEN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

'NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost Unfunded pension benefit obligation

12 821 722 000.00
$ I 090 292 ooo oo

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$794,490.09 was actuarially detennined and represented .1523% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with IO 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 of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as 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. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.

Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

- 14 -

BERRIEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
There were 81 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarialfy determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $2,740.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. Gerald C. Griffin, is bonded in the amount of$20,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60105399, on which premium was paid through December 31, 1994.

- 15 -

BERRIEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994

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

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 154,182.02 $

767.53

$

3,770.70

7,382.27

4,366.50 $ 35,499.36

9,447.73 6,500.54

Total Assets

$ 177,512.56 $

5,134.03 $ 35,499.36 $

3,770.70

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Accounts Payable

$

Salaries Payable

Expired Grant Balances Payable

Deferred Revenue

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Program

For Inventories

Food

Donated Commodities

$

Purchased Food

9,447.73 6,500.54

Unreserved Undesignated

$ 15,948.27 161,564.29 $

Total Fund Equity

$ 177,512.56 $

$ 775.04 3,591.46
4,366.50 $

34,893.31 $
606.05 35,499.36 $

767.53 $ 767.53 $

0.00 $ 0.00 $

670.82 3,099.88 3,770.70
0.00 0.00

Total Liabilities and Fund Equity $ 177,512.56 $ See notes to the general purpose financial statements.
-16 -

5,134.03 $ 35,499.36 $

3,770.70

EXHIBIT"E"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE 11-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

MIGRANT BLOCK GRANT - AND SCIENCE

CHILDREN

PROGRAM FLOW THROUGH EDUCATION

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

0.00 $

1,502.60 $ 160,222.85 $

96,781.49

$

110,195.00 $ 50,533.42

207,976.55

135,628.04

9,447.73 6,500.54

13,306.09 5,621.48

$

110,195.00 $ 50,533.42 $

0.00 $

1,502.60 $ 384,147.67 $ 251,337.10

$

39,495.30 $ 50,533.42

10,520.60

49,967.02

10,212.08

$

110,195.00 $ 50,533.42

$ 124,922.03 11,966.46 $ 56,658.36 10,212.08 606.05
$ 204,364.98 $

12,438.11 59,550.22 13,950.91
85,939.24

$

0.00 $

0.00 $

$

0.00 $

0.00 $

$

110,195.00 $ 50,533.42 $

$
$ 0.00 0.00 $

1,502.60 $

1,502.60 $

1,998.32

1,502.60 $ 0.00
1,502.60 $

9,447.73 6,500.54 17,450.87 $
162,331.82 179,782.69 $

13,306.09 5,621.48
20,925.89 144,471.97 165,397.86

0.00 $

1,502.60 $ 384,147.67 $ 251,337.10

-17-

BERRIEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1994

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

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 59,770.00 $ 515,931.97 269,660.69
$ 845,362.66 $

40,180.47 $

73,673.31 $

40,180.47 $ 73,673.31 $

25,209.00 25,209.00

$

39,800.60 $ 38,872.32

$

45,044.96

434.86

34,422.50

$ 827,882.68 $ 827,882.68 $ $ 17,479.98 $

39,800.60 $ 379.87 $

73,729.68 $ -56.37 $

45,044.96 -19,835.96

$ 17,479.98 $ 163,011.88
-3,858.36 879.06

379.87 $ 387.66

56.37
0.00 $ 0.00

19,835.96
0.00 0.00

FUND BALANC!; JUNE 30

$ 177,512.56 $

767.53 $

0.00 $

0.00

See notes to the general purpose financial statements.

-18 -

EXHIBIT"F"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II -

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER 2

MATHEMATICS

DEPRIVED

MIGRANT BLOCK GRANT - AND SCIENCE

CHILDREN

PROGRAM FLOW THROUGH EDUCATION

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

452,179.92 $ 1,239,724.33 $

20,852.00 $

$

452,179.92 $ 1,239,724.33 $ _ _ _2_0~,8_5_2._00_$

$ 10,872.00

173,623.78 $ 2,264,769.22
269,660.69

87,404.40 1,993,205.54
274,613.28

10,872.00 $ 2,708,053.69 $ 2,355,223.22

$

351,056.06 $ 147,031.26 $

3,759.78

146,542.90 142,644.67

45,685.51

120,304.96 22,203.61

49,618.73 1,816.59 243.25

661,622.17 1,373.08

$

452,179.92 $ 1,241,722.65 $

$

0.00 $ -1,998.32 $

20,803.07 $
48.93
20,852.00 $ 0.00 $

$ 597,563.31 $ 661,611.17

9,339.50 29.90

191,587.86 155,743.95
434.86 166,069.30
56,626.11
49,618.73 663,438.76 829,499.01

160,884.24 154,840.52
10,203.45 136,733.78
15,979.87 36,975.36 47,622.80 404,261.89 667,288.24

9,369.40 $ 2,710,581.89 $ 2,296,401.32

1,502.60 $

-2,528.20 $

58,821.90

$

0.00 $ -1,998.32 $

0.00

1,998.32

$

0.00 $

0.00 $

0.00 $ 0.00

19,892.33

7,653.94

1,502.60 $ 0.00

17,364.13 $ 165,397.86

66,475.84 74,173.41

-3,858.36 879.06

13,306.09 5,621.48 5,821.04

0.00 $

1,502.60 $ 179,782.69 $ 165,397.86

-19 -

~BBIF~ QQ!.!liD'. aQABQ QE Emi!QAIIQ~ QQMBl~ING ~I~!; ~!jl;l;I ~IT~! PBOJl;QI F~J!jQ JUNF 3Q 1994

EXHIBIT"G"

~ Cash and Cash Equivalent& Accounts Receivable
Total Assets

~

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

92192S-610-006 92192S-610-007 94-610-004

TOTALS JUNE30 1994 JUNE 30 1993

$ 477,174.33 $

7,543.80

1,846.79 $ <486,564.92 $ 918,587.58

103 780.80 $

168 229.10

272 009.90

30 000.00

$ 477 174.33 $

111 324.60 $

168 229.10 $

1 846.79 $ 758574.82 $ 948587.58

L,IABILITII; ~p FUND EQUITY
l.!@!lJI!lal;
Cash Overdraft Contracts Payable Retainages Payable
Tolal Liabilitt86
FLJNQfQUITY
Fund Balances Re&eMld For State Capital Outlay Projects Unre&eMld Undesignated
Total Fund Equity

s 4n 114_33 s
$ 477174.33 $

$ 97,407.00 13 917.60 111 324.60 $
0.00 $ 0.00 $

57,62320 94,814.10 15791.80 168J29.10
0.00 0.00 $

57,62320 192,221.10 29 709.40 $
279553.70 $

30 000.00 30 000.00

1,846.79 $ 0.00
1 846.79 $

1,846.79 $ 477174.33 479 021.12 $

33,942.115 684644.63 918 587.58

Total Liabilities and Fund Equity

$ 477174.33 $

111,324.60 $

168 229.10 $

1 846.79 $ 758 574.82 $ 948 587.58

See note& to the general purpose financial statements.

-20

BERRIEN CQVNIX BOABP Of EDUCATION COMBINING STATEMENT OF BE\/ENYliS l;XPENPITLJBES ANP CHANGES IN BJNP BALANCES
CAPJIAI PROJECTS EUNP YEAR fNPEQ JUNE 30 199"1

EXHIBIT"H"

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COM',1JSSION

PROJECT

PROJECT

PROJECT

92192S-610-006 92/92S-610-007 94-610-004

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30 1993

~
State Funds Local and Other Funds
Total Revenues

$ 13457.60 $ 13 457.60 $

138,215.40 $ 138 215.40 $

168,229.10 $ 363,3n.15 s
6633.92
168229.10 $ 370006.67 $

669,817.25 $ 1,593,998.31

20.091.52

34.944.66

689908.n s 1628942.97

fXPl;NQffiJRES
-Capital Outlay Purchased Professional and Technical
BuikUng and Building Improvement& Equipment

448.00

14,812.40 $ 139,176,00

20,199.00 $ 157,917.10

35,059.00 $ 463,307.10 298 556.63

70,070.40 $ 760,848.20 298 556.63

53,155.00 2,108,932.43

Total Expenditures
Excess of Revenues over (under) Expenditures QiljfB EINANQING SQ~IBCES (t.!SESl
Operating Transfers In Operaling Transfers Out

~$ $ 13 009.60 $

153 988.40 $
-15m.oo s

178116.10 $ 796 922.73 $ 1129 475.23 $ 2 162 087.43 .9 887.00 $ -426916.06 $ -439 566.46 $ -533144.46

$ -420 479.90

$ 420,479.90 $ 420,479.90 $ -420 479.90

345,n .so

Total Other Financing Sources (Uses) $ -420 479.90

Exce&$ or Revenues and Other Financing Sources
OYer (under) Expenditures and Other Financing
u.e.

-407,470.30 $

-15,773.00 $

$ 420479.90 $

0.00 $

345n.so

9,887.00 $ -6,436.16 $ -439,566.46 $ 187,369.56

FUNQ BALANCE JUI Y1
Residual Equity Transfer

884,644.63

15,m.oo

9,887.00

8,282.95

918.587.58

1,114,813.38 -8 856.2

E~NQ ~ c g J~NE ~

$ 477 174.33 $

0.00 $

0 . 0 0 $ ~ $ 479021.12 $ 918 587.58

See noles to the general purpose financial statements.

-21

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program
Food Services School Breakfast Program
1994Grant National School Lunch Program
1993 Grant 1994Grant Food Distribution Program (1)

10.553
10.555 10.555 10.550

90,530.72 $
365,331.90 60.069.35

86,883.88 $

90,530.72

2,948.04 361,596.47 NIA

365,331.90 $ 60069.35

(2)
767,813.33 (3) 60069.35

Total U. S. Department of Agriculture

$ 515 931.97

451 428.39 $ 515 931.97 $

827882.68

Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1994Grant Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1992 Carry-Over 1993 Regular 1993 Carry-Over 1994Regular Migrant Education 1993 Regular 1994Regular Chapter2 Block Grant - Flow Through 1994Regular Title II Eisenhower Mathematics and Science Education 1994Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant Consumer and Homemaking Education 1994 Contract

84.186 $

25,209.00 $

84.010 84.010 84.010 84.010
84.011 84.011

68,497.00 393,895.00
1,350,798.00

84.151

20,852.00

84.164

10,872.00

84.048 84.049

25,902.98 21227.85

Total U. S. Department of Education

$ 1917253.83 $

25,209.00 $

25,209.00 $

45,044.96 (3)

-1.00 78,730.09 68,497.00 283,700.00
439,190.91 790,000.00

68,497.00 383,682.92
399,190.91 840,533.42

68,497.00 383,682.92
401,189.23 840,533.42

20,852.00

20,852.00

20,852.00

10,872.00

10,872.00

9,369.40

13,218.70

25,902.98

(4)

3652.85

21227.85

(4)

1 733 921.55 $ 1795968.08 $ 1.769168.93

- 22 -

BERRIEN COUNTY BOARD OE EQLICATION
SCHEDULE Of FEDERAi EINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Federal Emergency Management Agency Through Office of the Governor Federal Disaster Assistance

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

83.516 $

576.00 $

576.oo $ _ _~57~6~.ooc.:..

(4)

Total Federal Financial Assistance

$ 2 433 761.80 $

2185 925.94 $ 2 312 476.05 $ 2 597 051.61

Major Programs are identified by an asterisk c> in front of the CFDA number.

(1) The amounts shown for the Food Distrtbution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current rascal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

23.

BERRIEN COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Bank of Alapaha, Alapaha, Georgia
The Citizens Bank, Nashville, Georgia
The United Banking Company, Nashville, Georgia
INTEREST BEARING ACCOUNTS
Bank of Alapaha, Alapaha, Georgia
N.O.W. Accounts (3.00%)
The Citizens Bank, Nashville, Georgia
Certificate of Deposit No. 31255 (5.00%) N.O.W. Accounts (3.25%)
The United Banking Company, Nashville, Georgia
Certificate of Deposit No. A12231 (3.90%) Certificate of Deposit No. A12232 (3.90%) N.O.W. Accounts (3.25%)

$

10,767.53

2,646.48

-34,794.90

$

-21,380.89

$ 1,194,784.60

200,000.00 84,085.22

100,000.00 200,000.00 629,163.50

2,408,033.32

$ 2,386,652.43

See notes to the general purpose financial statements. - 24 -

BERRIEN COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE"3"

Berrien County Tax Commissioner County Wide School Tax
Cook County Board of Education state Preschool Handicapped Program
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Funds Lottery Programs Computers in Classrooms Media Center and Library Equipment Safe Schools Grant Federal Programs ESEA - Chapter 1 Education of Deprived Children Migratory Education Program
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

10,134.89

$

10,134.89

$

4,366.50

4,366.50

54,764.36 30,259.28

3,646.84 3,735.43
642.00 434.86 34,422.50

110,195.00 50,533.42

3,646.84 3,735.43
54,764.36 30,259.28
642.00 434.86 34,422.50
110,195.00 50,533.42

$ 272,009.90

272,009.90

$

95,158.53 $ 207,976.55 $ 272,009.90 $ 575,144.98

See notes to the general purpose financial statements.

- 25 -

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE QF STATE REVENUE
YEAR ENPEP JUNE 30 1994

SCHEDULE"4"

AGENCY/FUNDING

GRANTS

Education, Georgia Department d

ea,.., Quality Basic Education

Gene!111 and

Education Programs

Speoial Education Programs

Remedial Education Program

Media Center Programs

Staff Devel<>prnont Programs

Indirect Cost

Pupil Transportation

Regular

Bus Replaoemenl

Middle School Incentive

Special Instructional Assistance

In-School Suspension

Mid-term Adjustment

Local Fair Share

Educational Equalization Funding Grant

Food Services

Vocational Education

Other State Programs

Governor's Emergency Funds (1)

Innovative Programs

Mentor Teacher Program

Supervision and Assessment ol Student and

Beginning Teachers and Performance-

Based Certification

Teachers' Retirement

Lottery Programs

Algebra Cb.S51'ooms

Computo,s in Classrooms

Media Center and Libraoy Equipment

Salo Schools Grant

F"anancing and Investment Commis&ion, GeorgiaSReimbursement on Construction Projects

Transportation, Georgia Department d
Through Berrien County Board d C o m -
Paving ~

OTHER Community Mails, Georgia Department d Pavement d Traci< and Fiakt Cook County Board d Education State Pr85Chool Program Human Resourceo, Georgia Department d Through LDwodoo County Health Planning
Commission District Health Planning
Education, Georgia Department d Governor's ~ Leadership lmtitute Grant
student Information Systems

(1) Bernon County High School Band Unifcrms See nolN to the general purpooe financial statemenl$.

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 4,588,920.00 701,851.00 234,929.00 199,649.00 64,975.00
1,392,800.00
317,131.00 92,011.00 96,502.00 28,516.00 67,310.00 107,935.00 -828,722.00 556,692.00
109,672.36
1,000.00 4,980.00 1,440.00
200.00 4,256.27

59,TT0.OO
1,709.95 37,106.00
434.86 34,422.50

4,588,920.00 701,851.00 234,929.00 199,649.00 64,975.00
1,392,800.00
317,131.00 92,011.00 96,502.00 28,516.00 67,310.00 107,935.00 -828,722.00 556,692.00 59,770.00 109,672.36
1,000.00 4,980.00 1,440.00
200.00 4,256.27
1,709.95 37,106.00
434.86 34,422.50

557,957.10

557,957.10

111,860.15

111,860.15

5,000.00

40,180.47

5,000.00 40,180.47

2,350.00
637.85 500.00

2,350.00
637.85 500.00

$ 7 660,535.48 $ 173,623.78 $ 669,817.25 $ 8 503 976.51

26.

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

SCHEDULE "5"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Antitrust Milk Companies Lawsuit Canning Plant Operations Compensation for Loss of Assets Donations Amoco Oil Company Indirect Cost Special Revenue Fund Interest Earned Rents Sales Breakfast Lunches School Assets Other Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 1,979,838.63 96.93
4,293.16

$ 1,979,838.63 96.93
4,293.16

$ 2,756.12 2,059.46

1,026.37

12,000.00

25,220.00 56,604.21
5,225.00

3,827.25 $ 13,198.60

14,299.65 57,314.34

21,857.74 231,059.62
11,840.77 48.94

6,633.92 259.00

1,026.37 2,756.12 2,059.46
12,000.00
25,220.00 73,630.06
5,225.00
21,857.74 231,059.62
14,299.65 18,474.69 57,622.28

$ 2,159,707.50 $ 269,660.69 $ 20,091.52 $ 2,449,459.71

See notes to the general purpose financial statements. - 27 -

BEBRIEN COUNTY BOARD OF EDUCt,TIO~ SCHEDULE OF EXPENDITURES BY OBJECI
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE "6"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation 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 Expendttures
Nonoperating Costs Building and Building Improvements Equipment
Total Expendttures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 6,743,031.81 $ 1,515,237.37 43,321.86 32,847.38 5,800.00 49,619.56 67,522.16 3,011.53 44,705.68 36,276.81
92,63025
489,479.72 360,152.09
11,335.66 12,046.00
9,418.55

914,122.69 $ 224,609.58
32,489.12 110,664.41
2,384.60 6,727.30 12,868.00
10,877.68 4,709.50 4,749.77
34,435.14 617,255.09 217,017.67
4,531.94 388,482.01
1,949.00 25,220.00 36,473.59

7,657,154.50 1,739,846.95
75,810.98 143,511.79
5,800.00 52,004.16 74,249.46 15,879.53 44,705.68 47,154.49 4,709.50
4,749.77 127,065.39 617,255.09 706,497.39 364,684.03 388,482.01
11,335.66 13,995.00 25,220.00 45,892.14

137,345.82 233,890.61

61,014.80

137,345.82 294,905.41

$ 9,887,672.86 $ 2,710,581.89 $ 12,598,254.75

See notes to the general purpose financial statements. - 28 -

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE 7"

EXPENDITURES
Operating Cos1s Supplies
Nonoperating Costs Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

MEDIA CENTER AND
LIBRARY EQUIPMENT

SAFE SCHOOLS
GRANT

TOTAL

$

1,709.95 $

5,354.37 $

31,808.00

434.86 $

24,255.40 $ 10,167.10

31,754.58 41,975.10

Total Expenditures

1709.95 $

37,162.37 $

434.86 $

34422.50 $

73 729.68

See notes ID the general purpose financial statements.

- 29 -

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

SCHEDULE "8"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 5,843,284.00 $

64,975.00

$ 5,884,543.10 298,390.59 $
$ 6,182,933.69 $

65,431.57 65,431.57

-87,094.29

$ 6,095,839.40 $

-24,625.40 40,806.17

$

0.00 $

24,168.83

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

BERRlfN COUNTY BOARD OF fpt JCATIQN ANALYSIS OF MINIM[ JM EXPfNQITIJRf RfO(JIRfMfNJS - RY PROORAM
Gl;NERAL FLJND-QUAL!lY ASIC EQUCATIQN PROGRAM
YfAR ENQf;P JUNE 30 19Q4

GENERAi ANO CARl;;fR ft&!CATl9t::!: PROGRAM l(;.-g&rten(1 Grades 1 3 (1 Sub.Total - K-3 Grades 4 5 (1 Grades 6 8 (1 Grades 9-12 (1 High School Laboratories (1
Vocational Education Laboratories (i
Total General and Career Education Programs SPl;CIAI l;:OUCATION PROGRAMS
Regular Programs Catego,y I (1 Calego,y II (1 Catego,y 111 (1 Catego,y IV (1 Itinerant Supplemental Speech Sub.Total - Regular Catego,y V (Gifted) (") Total Special Education Programs
RfMfQIAI !;Q! !&;ATION PROGRAM ()
MfQIA CFNTFR PRQGRAM
Total Thirteen Weighted and Media Center
TAEf ~Vfl QPM~NT ffiOORAMS (1) Cost rA Instruction Prolessional OeYelopment
Total Staff Development
M Identifies Thirteen Weighted Programs. Nole: (1) S7,554.75 dthe allotment for Professional
Dewlopment has been transferred to Cost cl Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statements.

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

~

ORIGINAL

MIO-TERM

TOTAL REQUIRED

458,429.00

412,586.10 $

1154 524.00

1039071.60

1,612,953.00 90 $ 1,451,657.70 $

574,044.00 90

516,639.60

966,840.00 90

870,156.00

836,946.00 90

753,251.40

292,536.00 90

263,282.40

315,601.00 90

284 040.90

4 598 920.00

4,139,028.00 $

0.00 $

412,586.10

1039071.60

0.00 $ 1,451,657.70

516,639.60

112,023.70

982,179.70

-4,088.70

749,162.70

263,282.40

284 040.90

107 935.00 $ 4.246 963.00

589,508.00

530,557.20 $

0.00 $

530,557.20

589,508.00 112,343.00 701 851.00 234.929.00 199 649.00

90 $ 90
90 $ 90 $

530,557.20 $ 101,108.70 631 665.90 $ 211 436.10 $ 179,684.10 $

0.00 $
0.00 $ 0.00 $ 0.00 $

530,557.20 101108.70 631 665.90 211 436.10 179 684.10

5,735,349.00

$ 5,161 814.10 $

107,935.00 $ 5,269 749.10

22,164.75 100 $ 42 810.25 100

22,164.75 $ 42,810.25

0.00 $

22,164.75 42 810.25

64,975.00

64,975.00 $

0.00 $

64,975.00

5,800,324.00

5,226,789.10 $

107,935.00 $ 5,334 724.10

32

SCHEDULE "9"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNOEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNDEREXPENOITURE
FOR REQUIRED ALLOTMENT

402,299.10 $

500,935.32

10,287.00 $

15,665.40

1 007,632.80

1,086,425.44

31 438.80

36125.32

1,409,931.90 $ 1,587,360.76 $

0.00

41,725.80 $

51,790.72 $

0.00

501,522.30

587,486.70

0.00

15,117.30

31,808.15

0.00

950,876.10

1,021,992.31

0.00

31,303.60

43,805.02

0.00

721,566.00

722,302.51

0.00

27,596.70

27,596.70

0.00

252,251.10

303,847.92

0.00

11,031.30

11,060.53

0.00

248 672.70

388 927.96

0.00

35,368.20

51 484.31

0.00

4 084 820.10 $ 4 611 918.16 $

0.00

162,142.90 $

217,525.43 $

0.00

18,931.50 $ 209,697.30 266,548.50 20,194.20
822.60 1,602.00

3,410.49 248,807.71 403,647.86
25,915.66

923.40 4,272.30 $ 6,907.50
657.90

4,993.57 10,537.52
2,432.91

517,796.10 $

681,781.72 $

0.00

12,761.10 $

17,964.00 $

0.00

98 442.00

109190.73 $

0.00

2 666.70

3 508.15 $

0.00

616 238.10 $

790 972.45

15 427.80 $

21,472.15

207 885.60 $

248 415.41 $

0.00

3 550.50 $

5,886.80 $

0.00

139 581.90 $

233 237.08 $

0.00

40102.20 $

53 506.21 $

0.00

5,048,525.70 $ 5,884.543.10 $

0.00

221,223.40 $ 298,390.59 $

0.00

5,048,525.70 $ 5,884,543.10 $

22,164.75 $ 42,810.25

46,790.15 $ 18641.42

0.00 24168.83

64,975.00 $

65,431.57 $

24,168.83

0.00

286,198.40 $

363,822.16 $

24,168.83

- 33 -

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994
BOARD MEMBER ADDRESS
Mr. George W. Rowan, Jr., Chairman (*) Route 3 Nashville, Georgia 31639
Ms. Lillian P. Houston, Vice-Chairperson (*) Ray City Highway Nashville, Georgia 31639
Mr. Terry Danforth(*) Route 1, Box 523 Lenox, Georgia 31637
Mr. Steve Dixon (*) Route 1 Alapaha, Georgia 31622
Mr. Robert E. Griffin (*) Route 1, Box 238 Nashville, Georgia 31639
Mr. Rudy Hancock(*) P. 0. Box672 Nashville, Georgia 31639
Mr. Ricky Tucker(*) Route 1 Enigma, Georgia 31749

SCHEDULE "10''

$

950.00

700.00

850.00

800.00

850.00

800.00

850.00

$

5,800.00

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

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 20, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Berrien County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Berrien County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 20, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfonn 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 Berrien 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 perfonned tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. _However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests indicate that, with respect to the items tested, the Berrien County Board ofEducation complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 20, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Berrien County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated April 20, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Berrien 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 ofFederal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-50

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

C!AUDE L. VICKERS
STATE AUDITOR {404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 20, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Berrien County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 20, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Berrien County Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

(2) Eligibility

(6) Monitoring Subrecipients

(3) Matching, Level ofEffort, and/or Earmarking
(4) Reporting

(7) Other Requirement Claims for Advances and Reimbursements

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

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Berrien County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Berrien County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
c::1~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-80

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 20, I995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Benien County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 20, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1994 general purpose financial statements of the Benien County Board ofEducation and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(I) 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 Benien County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Berrien 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,
~4~
Claude L. Vickers State Auditor
CLV:gp 94CRL-120

SECTION III INTERNAL CONTROL

C!AUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 20, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Berrien County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Berrien County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 20, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit ofthe general purpose financial statements of the Berrien County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Berrien 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
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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.

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

(1) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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

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

(1) Accounting Controls (Overall)

(2) Cash and Cash Equivalents

(3) General Fixed Assets

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

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

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However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses:
(1) Accounting Controls (Overall)
(2) Cash and Cash Equivalents
(3) General Fixed Assets
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Berrien County Board of Education's financial statements and this report does not affect our report thereon dated April 20, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94ICL-4-

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 20, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Berrien County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Berrien County Board of Education as cifand for the year ended June 30, 1994, and have issued our report thereon dated April 20, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Berrien County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated April 20, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Berrien 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, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion 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 ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have
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addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated April 20, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

(5) Applicable Special Tests and Provisions
(6) Monitoring Subrecipients

(7) 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.

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During the year ended June 30, 1994, the Berrien County Board of Education expended 89% of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the 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, reportable conditions were noted in the following control categories:
(1) Cash Management
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes reportable conditions that are also considered to be material weaknesses:
Administrative Requirements
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Berrien County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated April 20, 1995.
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This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94ICL-8

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inaccurate Indirect Cost Calculation Federal Financial Assistance Amount: $1,705.90 Audit Control Number 6101-93-01 Finding Resolved
The audit report for the year ended June 30, 1993, stated that a review ofthe Board's indirect cost calculations revealed an error in the calculation which resulted in an overpayment of$1,705.90 by the Elementary and Secondary Education Act - Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) and the Migratory Education Program (CFDA 84.0ll) in the amounts of$821.28 and $884.62, respectively. These overpayments had not been refunded to the Georgia Department of Education at June 30, 1994. However, refund of$1,705.90 was made by the Board, from the General Fund, in the subsequent fiscal period and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", ofthis report.
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Audit Control Number 6101-93-04 Finding Resolved
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter 1 - Migratory Education Program (CFDA 84.011) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations for this program.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $11,077.96 Audit Control Number 6101-93-06
The audit report for the year ended June 30, 1993, stated that the Berrien County Board of Education had underexpenditures of Quality Basic Education (QBE) funds of $ll,077.96 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 ofEducation to refund the underexpenditures as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Delinquent Completion Report Federal Financial Assistance Audit Control Number 6101-93-07 Finding Resolved
The audit report for the year ended June 30, 1993, stated that the Board failed to file a final completion report by the required date for the Drug-Free Schools and Communities Act Program (CFDA 84.186) in accordance with regulations established by the Georgia Department of Education. In the year under review, the final completion report for the program was filed as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Perform Physical Inventory Federal Financial Assistance Audit Control Number 6101-93-08 Finding Resolved
The audit report for the year ended June 30, 1993, reported that the Board had not performed a physical inventory ofproperty used in the National School Lunch Program (CFDA 10.555). Chapter 8 of the Georgia Financial Accounting Handbook states that the Board is responsible for performing an annual physical inventory of National School Lunch Program equipment. During the year under review, the Board implemented procedures to ensure that a physical inventory is taken annually.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6101-93-02
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures for all funds. In the year under review, no improvements in adequate separation of employee duties were noted. This deficiency 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: Federal financial assistance programs affected by this finding are as follows: School Food Services Fund (CFDA 10.550, 10.553 and 10.555) Chapter 1 Program (CFDA 84.010) Chapter 1 - Migrant Education Agency (84.011)

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6101-93-05
The audit report for the year ended June 30, 1993, stated that the Board's accounting procedures were insufficient to provide for adequate internal control over the bank reconciliation process. Deficiencies continued to exist during the year under review and are summarized as follows:
(1) The monthly bank statements for one account were not reconciled to the general ledger. Adjustments were necessary to reconcile the accounting records with the bank statements.
(2) Book adjustments requiring cash to be transferred between bank accounts were carried as reconciling items for extended periods oftime.
(3) Monthly bank reconciliations were not performed on all bank accounts held by the Board.
These deficiencies resulted from the untimely posting ofreconciling items and management's failure to monitor accounting procedures to ensure that all bank reconciliations are performed on a timely basis. The Board should establish controls to ensure that monthly bank statements are reconciled with the accounting records and that needed adjustments are recorded on a timely basis.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6101-93-03
The audit report for the year ended June 30, 1993, noted that the Board had chosen not to maintain a systemwide 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 ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 6101-94-01
As of June 30, 1994, the Berrien County Board of Education failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any one time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section. . . The aggregate of the face value ofsuch surety bond, the face or par value ofsecurities pledged, and the amount of deposit insurance shall be equal to not less than 110 percent of the public funds being secured. . .after the deduction of the amount of deposit insurance".
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances.to ensure compliance at all times with State laws governing deposits and investments.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $24,168.83 Audit Control Number 6101-94-02
For the year under review, the Berrien County Board ofEducation reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $46,790.15 for the Staff Development - Cost oflnstruction Program. A review of the underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent ofits initial allotment offunds for Professional Development Stipends for Staff Development - Cost oflnstruction Program purposes resulting in an underexpenditure of$24,168.83 for the minimum required allotment of$42,810.25 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Major Program Reportable Condition Nonrnaterial Noncompliance Audit Control Number 6101-94-03
A review of cash management procedures for the Elementary and Secondary Education Program - Chapter 1 - Education of Deprived Children (CFDA 84.010) Program disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 1994, the program had an average cash balance of$17,896.94 with excessive ending monthly cash balances in four months. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds by the Board.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonrnaterial Noncompliance Audit Control Number 6101-94-04
Property management records maintained by the Board for the National School Lunch Program (CFDA 10.555) were incomplete and failed to meet the property management standards as set forth in Chapter 8 of Part I ofthe Georgia Financial Accounting Handbook for Local School Systems (GFAH) or as outlined in 7 CFR 3015. 169. Accounting records maintained by the Board and presented for examination did not contain a manufacturer's serial number or other identifying number and vendor name.
This condition occurred because management claimed it was not aware of the provisions of GFAH. An inventory system should be implemented that provides for the identification of all equipment purchase as outlined in GFAH and 7 CFR 3015.169. Perpetual inventory records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year, when applicable. Periodic physical inventory counts should be made and reconciled to the property records to ensure the accuracy of the Board's inventory records.
Note: The Berrien County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.