Audit report, Brantley County Board of Education, Nahunta, Georgia, year ended June 30, 1994

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

AUDIT REPORT BRANTLEY COUNTY BOARD OF EDUCATION
NAHUNTA, GEORGIA YEAR ENDED JUNE 30, 1994

BRANTLEY 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 AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES -ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

6

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE- NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

10

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

FIDUCIARY FUND TYPES

COMBINING BALANCE SHEET

27

BRANTLEY COUNTY BOARD OF EDUCATION TABLE OF CONTENTS

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

28

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

31

3 ACCOUNTSRECENABLE

32

4 DEBT SERVICE REQUIREMENTS TO MATURITY

34

SCHEDULE OF REVENUE

5

STATE FUNDS

35

6

LOCAL AND OTHER FUNDS

36

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

37

8

LOTTERY PROGRAMS

38

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

39

10

BY PROGRAM

40

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

42

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 12, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Brantley County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) ofthe Brantley 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.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estiniates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
94ARL-14

* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 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 ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Brantley County Board ofEducation as of June 30, 1994, and the results ofits operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board changed its method ofaccounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Brantley County Board ofEducation taken as a whole. The combining statements (Exhibits G through I) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Brantley 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 effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the forth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
94ARL-14

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,
L%4L
Claude L. Vickers State Auditor
CLV:djf 94ARL-14

BRANTLEY COUNTY BOARD OF EDUCATION - 1-

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of:
Bond Debt Capi1al Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 719,638.18 $ 233,786.91

80,661.61

75,253.53 $ 417,463.00

21,525.56 8,394.07

Total Assets

$ 800,299.79 $ 338,960.07 $ 417 463.00

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Deferred Revenue Capi1al Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capi1al Outiay Projects
Unreserved Designated for Equipment Purchases Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

42,261.29 $

$ 71,314.26 81,614.30 8,896.95
2,316.00

257,641.18

$

42,261.29 $ 164,141.51 $ 257,641.18

$

64,884.66

$

23,135.32

1,020.13

21,525.56 8,394.07
$

159,821.82

$

65,904.79 $

53,054.95 $ 159,821.82

692,133.71 758,038.50 $

121,763.61

0.00

174,818.56 $ 159,821.82

800,299.79 $ 338,960.07 $ 417 463.00

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

EXHIBIT"A"

TYPES DEBT
SERVICE FUND

FIDUCIARY FUND TYPE TRUST FUNDS

$

165,854.55 $

10,000.00

7,384.07

615.26

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

!Memorandum Onlr)

JUNE 30, 1994

JUNE 30, 1993

1,129,279.64 $

383,577.02

581,377.47

417,999.79

21,525.56 8,394.07

23,615.05 9,244.64

$

173,238.62

173,238.62

132,161.94

1,396,761.38 389,288.32

1,396,761.38 389,288.32

1,522,838.06

$

173 238.62 $

10615.26 $

1 959288.32 $ 3,699 865.06 $ 2489 436.50

389,288.32 1,570,000.00

257,641.18 113,575.55 $
81,614.30 8,896.95
2,316.00 389,288.32 1,570,000.00

37,489.86 76,513.78 37,855.05 17,612.57
1,655,000.00

$

1,959,288.32 $ 2,423,332.30 $ 1,824,471.26

$

173,238.62

$

173,238.62 $

0.00

$

173,238.62 $

$

173 238.62 $

10,000.00
10,000.00 615.26 0.00
10,615.26 10615.26 $

64,884.66 $ 23,135.32 173,238.62 10,000.00
1,020.13

21,525.56 8,394.07
159,821.82

$

462,020.18 $

615.26 813,897.32

1,276,532.76 $

50,570.54 38,446.03 132,161.94
6,212.34
23,615.05 9,244.64
260,250.54
404,714.70 664,965.24

1 959 288.32 $ 3,699,865.06 $ 2,489,436.50

-3 -

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

~
State Funds Federal Funds t.,ocal and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation al Plant Student Transportation Services Central Support Services Olher Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues <Ne< (under) Expenditures
OTHER FINANCING SOURCES {USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Olher Financing Sources (Uses)
Excess of Revenues and Olher Financing Sources <Ne< (under) Expenditures and Olher Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfers

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 7,443,416.80 $

155,820.15 $

49,164.60

1,050,587.46

1839659.63

225602.82

$ 9332241.03 $ 1 432 010.43 $

417,463.00 417 463.00

$ 5,892,831.24 $
138,672.50 288,974.18 285,197.75 135,113.32 559,612.44
57,006.65 730,378.71 651,751.33
37,292.11
81,376.06 155,767.50
23,013.49 24,527.65

709,706.65
22,634.19 60,821.09
2,295.76 21,459.00
2,342.50
2,953.24 19,435.26
0.00 4,278.82 821,573.16
$
65,940.00

240,029.24

$ 9 061 514.93 $ 1 733 439.67 $

$

270726.10 $ -301 429.24 $

240029.24 177 433.76

$ 247,430.81 $ 230,811.00 479.60 $
-62637.02

$

184 793.79 $

231 290.60 $

0.63 0.63

455,519.89 $ 262,357.02

-70,138.64 $ 247,897.26

177,434.39 0.00

40161.59

-2,089.49 -850.57

-17612.57

FUND BALANCE JUNE 30

$

758,038.50 $

174.818.56 $

159 821.82

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

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS
(Memorandum Onlll YEAR ENDED
JUNE30 1994 JUNE30 1993

$ 8,016,699.95 $

1,099,752.06

$ 173407.39

2238669.84

$ 173407.39 $ 11 355121.85 $

0.00 $

8,016,699.95 $ 1,099,752.06 2238669.84

8,901,674.48 1,068,317.22 2213637.24

0.00 $ 11 355121.85 $ 12183 628.92

$ 6,602,537.89 $

161,306.69 349,795.27 287,493.51 156,572.32 561,954.94
57,006.65 733,331.95 671,186.59
37,292.11 4,278.82
821,573.16 81,376.06 395,796.74

$

85,000.00

108,843.75

643.75

173,953.49 133,371.40
643.75

194487.50 $ 11 229 471.34 $

$ -21 080.11 $ 125 650.51 $

0.00 $ 6,602,537.89 $ 5,750.171.79

161,306.69 349,795.27 287,493.51 156,572.32 561,954.94
57,006.65 733,331.95 671,186.59
37,292.11
4,278.82 821,573.16
81,376.06 395,796.74

125,199.50 343,490.00 288,137.62 136,437.47 465,703.71
53,822.07 579.012.45 643,363.70
41,569.96
640,642.31 10,9n.23 3,239,648.39

173,953.49 133,371.40
643.75

80,000.00 114,412.50
650.25

0.00 $ 11229471.34 $ 12 573 233.95

0.00 $

125650.51 $ -389605.03

$ 478,241.81

$

62,156.79

62,637.02

-62637.02

$

62156.79 $

478241.81

$

41,076.68 $ 603,892.32 $

132,161.94

642,416.22

-2,089.49 -850.57
22549.02

$

478,241.81

62,637.02 $

903,784.05

-62637.02

-903784.05

$

478241.81 $

0.00

0.00 $ 22,549.02

603,892.32 $ 664,965.24

-389,605.03 1,055,553.53

-22549.02

-2,089.49 -850.57

-774.37 -208.89

$ 173238.62 $ 1 265917.50 $

0.00 $ 1,265917.50 $

664.965.24

-5-

rmarm I ! ! ~ Jt:m: DQABl2 QE e12uCAIIQ!I
QQM&!Nf:C! llA~MEtfi QE BMN!.!f:~ eieENQD].!BE ~Q Q~E~ lt:I E~~t:IQ ~QI:~ ACTUAL ~Q ~!1:U;;~~~ -~~RNMfitfi&i F!.!N(2 ~~ VEAR ENDED J!.!NE :3Q 1994

EXHIBIT"C"

~
State Funds Federal Funds Local and Other Funds

Total Revenues

e~~RE~

Current Instruction SupportPupillmprowement or Instructional Services Educational Media Services
General AdministraUon School Administration Businegs Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Support Operations

Food -

Operation

Other Operations or Nc,n.lnstructional Services

CapilalOutlay

DeblSefvice

Total Expenditures

Excess or Revenue& over (under) Expenditures

OTHER FINANCING SOUR!:;~S (llSEfil

Other Sources oti-u.e.

Total other Ftnancing Sources (Uses)

Excess of Revenues and other Financing Sources ewer (under) Expenditures and other Financing Uses

F!JHQ B ~ E ~U& Y 1 1993

ADJYS~NTS

Prior Year (Net)

FQQQ l~NTORY - NET CHANGE IN P~RIOD

Donated Commodities Purchased Food

Rl;SIDlJAL EQUITY TRANSFERS

ACTUAi. PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAi. PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (!!NFAVORAB~

8,016,699.95 $ 1,099,752.06 2,238,669.84
11,355,121.85 $

0.00 $ 0.00 $

8,016,699.95 $ 1,099,752.06 2,238,669.84

2,138,894.00 $ 951,440.00
7,368,843.68

11,355,121.85 $ 10,458,9TT.68 $

5,8TT,805.95 149,312.06
-5, 129,973.84
896,14<4.17

6,602,537.89 $
161,306.89 3-49,795.27 287,493.51 156,572.32 561,954.94
57,006.65 733,331.95 671,186.59 37,292.11
4,278.82 0.00
821,573.16 81,376.06 395,796.74 307968.84
11,229,471.34 $
125,650.51 $

0.00 $
0.00 $ 0.00 S

6,602,537.89 $ 6,060,664.74 $

161,306.89 3-49,795.27 287,493.51 156,572.32 561,954.94 57,006.65 733,331.95 671,186.59 37,292.11
4,278.82 0.00
821,573.16 81,376.06
395,796.74 307,968.84

149,038.00 341,285.00 330,999.00 175,019.00 588,762.00 149,330.00 829,898.00 638,085.00 ,000.00
7,844.00 2,000.00 705,203.13 81,s.OO 215,658.00 193,844.00

11,229,471.34 S 10,511,074.87 $

125,650.51 $ -52,097.19 $

-541,873.15
-13,268.89 -8,510.27 43,505.G 18,446.68 26,807.06 91,323.35 96,566.06
-33,101.59 6,707.89 3,565.18 2,000.00
-116,370.03 68.94
-180,138.74 -114,124.84
-718,396.47
177,747.70

540,878.83 -62,637.02 478,241.81
803,892.32 $ 642,416.22

0.00 S --32,859.69

540,878.83 $ -62,637.02
478,241.81 $

0.00 $ 0.00 $

603,892.32 S
609,556.53

-52,097.19 $ 599,728.10

540,878.83 -62,637.02 478,241.81
655,989.51 9,828.43

-76.87

76.87

-2,089.49 -850.57
22,549.02

2,089.49 850.57

0.00 0.00
22,549.02

0.00 0.00
22,549.02

F!JNQ ~ ANQF JUNE ;}Q 1994

1,265,917.50 S

-29,919.63 S 1,235,997.87 S 547.554.04 S

688.3.83

The noles to the general purpo&e financial statements are an integral part of this statement. -6-

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30 1994

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Scholarships Operating Income (Loss)
NONOPERATING REVENUE Interest Earned Total Income
FUND BALANCE JULY 1 1993 Retroactive Restatement Of Prior Year Balance

ENDOWMENT FUNDS
WILLIAMM. ROBERSON SCHOLARSHIP
FUND
$ - - - - -0.0-0

$ _ _ _7_4_1_.1_0

$

-741.10

741.10

$

0.00

0.00

10,615.26

FUND BALANCE JUNE 30 1994

$ ===10=,6=1=5=.2==6

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

BRANTLEY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Scholarships Net Cash Provided (Used) by Operating Activities
Cash Flows from Investing Activities: Interest Received on Investments Net Cash Provided by Investment Activities
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1, 1993
Retroactive Restatement of Prior Year Balance

ENDOWMENT FUND
WILLIAMM. ROBERSON SCHOLARSHIP
FUND

$

-741.10

$

-741.10

$

741.10

$

741.10

$

0.00

$

0.00

10,000.00

Cash and Cash Equivalents - June 30, 1994

$

10,000.00

The notes to the general purpose financial statements are an integral part of this statement. - 9-

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Brantley County Board ofEducation (Board) was established under the laws 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 ofthe Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Brantley County Board ofEducation.
Based upon the application of the above criteria, the Brantley 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 Brantley County, Georgia. The Board is not included in any other governmental ireporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results 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. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

- 10 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities for GSFIC Project No. 91-613-006/94-613-007.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the trust fund used to account for assets held by a government unit in a trustee capacity. This fund includes:

- 11 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NONEXPENDABLE TRUST FUND William M. Roberson Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to a graduating Senior ofthe Brantley County School System.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
The nonexpendable trust fund is accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of this fund are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes and intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.

- 12 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\IBNTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share 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 Brantley 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 ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including certificates of deposit, savings and N. 0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more

- 13 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

RECEIVABLES

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

PROPERTY TAXES

The Brantley County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 7, 1993 (levy date). Taxes were due on December 31, 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. 103. The Brantley County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% oftaxes collected as a fee for tax collection, and remits the balance oftaxes collected to the Board.

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

School Operations School Bonds

15.70 mills 1.45 mills

.1.1..ll mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

- 14 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbunelnents of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/ expenses in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral in an amount ofnot less than 110 percent of the public

- 15 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 2: DEPOSITS
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 ofany one of or any combination ofthe following:
(I) Surecy bond signed by a surecy company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities of the State ofGeorgia,
(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 $969,012.58. The amounts of the total bank balances are classified into three categories of credit risk:
Category l - 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 - U ncollateralized 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.)
- 16 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

The Board's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category
1 2 3
Total
Note 3: NON-MONETARY TRANSACTIONS

Bank Balance $ 100,000.00
869,012.58 0.00
$ 969 0)2 58

1be 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

1be 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 $56.70 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Brantley County Board ofEducation has entered into various lease agreements as lessee for computers and athletic equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$

0.00 $ 1,655,000.00 $ 1,655,000.00

Additions

478,241.81

478,241.81

Deductions

88 953.49

85 000.00

173 953.49

Balance June 30, 1994

$ 389 288 32 $ 1570000 00 $ l,959 288 32

- 17 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1995 1996 1997 1998 1999 2000 and therafter

$ 164,773.44 $ 192,937.50 $ 357,710.94

164,773.44

191,693.75

356,467.19

121,276.98

190,112.50

311,389.48

10,111.70

193,025.00

203,136.70

190,431.25

190,431.25

1329325.00 1329325.00

Total Principal and Interest

$ 460,935.56 $ 2 287 52!! 00 S 2 748 460 S6

Deduct: Imputed Interest

71 647.47

Net Present Value ofFuture Minimum Lease Payments

$ 389 288 09

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$246,354.14 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery funds in the amount of $246,267.63 are available to fund these encumbrances. The revenues and expenditures associated with these encumbrances will be recogniz.ed in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

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

$ 2,401.04
25,107.33 1,570.81
84,037.56 133 237.40

$ 246 354 14

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

- 18 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 7: CONTINGENT LIABil..ITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 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).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after IO 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 ofyears 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 of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $5,642,459.43, total payroll was $6,566,741.14.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

- 19 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS

Total contnbutionsmade during fiscal year 1994 amounted to $1,004,923.80, of which $666,374.11 was made by the Board and $338,549.69 was made by employees. These contributions represented 11.81 % (Board) and 6% (employees) of covered payroll.

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

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ I 090 292 000 00

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 ofassets 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 $666,374. ll was actuarially determined and represented .1278% oftotal contributions made by all participating employers.

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

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 ofGeorgia (PSERS). All employer's contributions are made by the State of Georgia.

- 20 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 8: RETIREMENT PLANS
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for nonnal service retirement after IO 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. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 75 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $2,664.00. 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. James A. Ferguson, is bonded in the amount of $100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 18276786, on which premium was paid through August 2, 1994.

- 21 -

BRANTLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE30 1994

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

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 160,331.12 $

0.00 $

1,106.80

$

62,685.41

3,544.80

54,536.37 $

15,237.32

21,525.56 8,394.07

Total Assets

$ 193,795.55 $

0.00 $ 55,643.17 $

15,237.32 $

62,685.41

LIABILITIES AND FUND EQUITY

LIABILITIES

cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue

$ 10,088.99 32,023.32

Total Liabilities

$ 42,112.31

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

$ 21,525.56

Purchased Food

8,394.07

Unreserved Undesignated

$ 29,919.63 121,763.61 $

Total Fund Equity

$ 151,683.24 $

Total Liabiltties and Fund Equtty $ 193,795.55 $

$ $ 53,209.95
117.22 2,316.00
$ 55,643.17 $

13,064.12 396.32 $
1,776.88
15,237.32 $

5,410.01 26,072.20
8,067.88
39,550.09

$

23,135.32

0.00 $ 0.00 $

0.00 $ 0.00 $

$ 0.00 0.00 $

23,135.32 0.00
23,135.32

0.00 $ 55,643.17 $ 15,237.32 $

62,685.41

See notes to the general purpose financial statements.

-22-

EXHIBIT"G"

AND SECONDARY EDUCATION ACT

TITLEII-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

0.00

$

12,481.97 $

10,655.85 $

247,261.15 $

147,797.83

$

410.12

1,524.92

75,253.53

262,865.09

21,525.56 8,394.07

23,615.05 9,244.64

$

0.00 $

410.12 $

14,006.89 $

10,655.85 $

352,434.31 $

443,522.61

$

410.12

$

13,474.24 $

62,602.39

$

531.68 $

1,677.31

71,314.26

19,188.07

12,866.40

8,875.50

81,614.30

75,979.84

608.81

103.04

8,896.95

37,855.05

2,316.00

$

410.12 $

14,006.89 $

10,655.85 $

177,615.75 $

195,625.35

$

23,135.32 $

38,446.03

21,525.56 8,394.07

23,615.05 9,244.64

$

53,054.95 $

71,305.72

$

0.00 $

0.00 $

0.00 $

0.00

121,763.61

176,591.54

$

0.00 $

0.00 $

0.00 $

0.00 $

174,818.56 $

247,897.26

0.00 $

410.12 $

14,006.89 $

10,655.85 $

352,434.31 $

443,522.61

-23-

BRANTLEY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF RFlli;NUES EXPENDITURES AND CHANGES IN FUND BALANCES
~PEQlllL lm'.Etl!JE E!Jtll:1 YEAR E['ll:lfl:1 JUNF 30 1994

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

~

State Funds Federal Funds Local and other Funds

$ 54,274.00 $ 486,868.41 225,602.82

28,895.00 $ 72,651.15 $

21,663.72 $

272,137.79

Total Revenues

$ 766,745.23 $

28,895.00 $ 72,651.15 $

21,663.72 $

272,137.79

EXPENrnTURES

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

$

28,895.00 $ 57,516.39 $

2,295.76

821,573.16

2,394.00 10,905.80

7,343.82 $
13,438.70 900.00

421,447.68
21,398.35 2,342.50
559.24 2,292.91 4,278.82
65,940.00

Total Expenditures

$ 821,573.16 $

28,895.00 $ 73,111.95 $

21,682.52 $

518,259.50

Excess of Revenues over (under) Expenditures $ -54,827.93 $

0.00 $

-'l60.80 $

-18.80 $

-246,121.71

QTHER FINANCIN!, iilQ\IRCES

capital Leases Operating Transfers In

$

460.80 $

$ 18.80

230,811.00

Total other Financing Sources

$

460.80 $

18.80 $

230,811.00

Excess of Revenues and other Financing Sources

over (under) Expendlures

$ -54,827.93 $

0.00 $

0.00 $

0.00 $

-15,310.71

FUNQ !!ALANCE JULY 1

209,451.23

0.00

0.00

0.00

38,446.03

Food Inventory - Net Change in Period Donated Commod~ies Purchased Food

-2,089.49 ~-57

FUNQ 1:!ALANCE JUNE 30

151,683.24 $

0.00 $

0.00 $

0.00 $

23,135.32

See noles to the general purpose financial statements.

-24-

EXHIBIT"H"

AND SECONDARY EDUCATION ACT

TITLEII-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

155,820.15 $

83,804.00

$

19,074.00 $

11,907.12 $ 151,299.11 $

87,637.31

1,050,587.46

1,046,917.40

225,802.82

207,454.29

$

19,074.00 $

11,907.12 $ 151,299.11 $

87,637.31 $ 1,432,010.43 $ 1,338,175.69

19,029.34$

2,644.14 $

98,193.53 $

74,636.75 $

709,706.65 $

547,612.45

44.66

9,246.99 15.99

6,634.80 40,234.23
6,236.55

2,560.69 10,439.87

22,634.19 60,821.09
2,295.76 21,459.00
2,342.50
2,953.24. 19,435.26
4,278.82 821,573.16

9,341.37 72,539.17
20,174.00
3,081.63 3,158.30 9,385.88
186.51
640,642.31

65,940.00

19,074.00 $

11,907.12 $ 151,299.11 $

87,637.31 $ 1,733,439.67 $ 1,306,121.62

$

0.00 $

0.00 $

0.00 $

0.00 $

-301,429.24 $

32,054.07

$

230,811.00

479.60

$

231,290.60

$

0.00 $

0.00 $

0.00 $

0.00 $

-70,138.64 $

32,054.07

0.00

0.00

0.00

0.00

247,897.26

216,826.45

-2,089.49 -850.57

-774.37 -208.89

$

0.00 $

0.00 $

0.00 $

0.00 $

174,818.56 $

247,897.26

.25.

BRANTLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30 1994

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Accounts Receivable

NONEXPENDABLE TRUST FUND WILLIAM M. ROBERSON SCHOLARSHIP FUND

EXPENDABLE TRUST FUND SELF-INSURED EMPLOYEE BENEFIT FUND UNEMPLOYMENT COMPENSATION
FUND

TOTALS

JUNE 30 1994

JUNE 30 1993

$

10,000.00 $

0.00 $

10,000.00 $

22,549.02

615.26

615.26

Total Assets

$

10,615.26 $

0.00 $

10,615.26 $

22,549.02

FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Designated for Scholarships Undesignated

$

10,000.00

615.26 0.00 $

$ 0.00

10,000.00
615.26 0.00 $

22,549.02

Total Fund Equity

$

10,615.26 $

0.00 $

10,615.26 $

22,549.02

See notes to the general purpose financial statements.

-27-

BRANTLEY COUNTY BOARD Of EDUCATION
C!:!ED!,!LI;; Of f!;;QERAL f!Ne,NCIAL ASSlTANCE
YEAR fNQfQ J!,!Nf 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 Sen/ices School Breakfast Program 1993Grant 1994Grant National School Lunch Program 1993 Grant 1994Grant Food Distribution Program (1)

10.553 10.553 $

$ 94,691.06

10.555 ' 10.555
10.550

337,524.23 54653.12

18,188.30 95,297.63 $

94,691.06

45,163.07 333,979.43 N/A

337,524.23 $ 54653.12

(2)
766,920.04 (3) 54653.12

Total U.S. Department of Agriculture

$ 486868.41 $

492628.43 $ 486868.41 $

821 573.16

Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1992 Carry-Over 1993Regular 1993Summer 1993 Carry-OVer 1994Regular 1994Summer Chapter2 Block Grant - Flow Through 1994Regular Tollell Eisenhower Mathematics and Science Education 1993Regular 1994Regular Individuals with Disabilfties Education Act Title VI, B Flow Thr0<1gh 1992 Carry-OVer 1993 Regular 1993 carry-Over 1994Regular Preschool Program 1992 carry-Over 1993 Regular 1993 Carry-Over 1994Regular Through Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant Consumer and Homemaking Education 1994 Contract

84.010 84.010 84.010 84.010 84.010 84.010
84.151
84.164 84.164
84.027 84.027 84.027 84.027 84.173 84.173 84.173 84.173
84.048 84.049

$ 53,705.00 248,649.00 58,630.00 19,074.00
9,270.00
40,796.00 136,268.00
30,741.00 63,624.00
34,694.60 14,470.00

31,434.00 47,629.68 32,117.67 $ 53,705.00 213,534.00 35,000.00

-22,033.33 $ 53,705.00 205,466.12 35,000.00

16,412.70 53,705.00 205,466.12 (5) 11,864.68

19,074.00

19,074.00

19,074.00

11,497.00

11,497.00 410.12

11,497.00 410.12

463.00 16,430.80 40,796.00 109,587.00
2,258.00 4,859.19 30,741.00 56,999.35

40,796.00 110,503.11
30,741.00 56,896.31

40,796.00 110,503.11
30,741.00 56,896.31

34,694.60

34,694.60

(4)

14,470.00

14,470.00

(4)

- 28 -

BRANTLEY COUNTY BOARQ Of EQL/CATION SCHEDULE OF FEnERAL FINANCIAL ASSISTANCE
YEAR ENQEQ JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U . S . ~ of Through Okefenokee Regional Educational Service Agency Drug.Free Schools and Communities Act 1993Call}'-O,ler 1994 Grant
Total U.S. Department of Education

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.186 $ 84.186

5,046.00 $

600.00 $

19198.00 _ _ _ _5~826_.4_0

5,046.00 $ 16617.72

$ 734 165.60 $

761 716.69 $ 612 883.65 $

5,046.00 16 636.52 (3)
579048.56

Total Federal Financial Assistance

$ 1 221 034.01 $

1 254345.12 $ 1 099752.06 $ 1 400621.72

The major program is identified by an asterisk (") in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Bn,akfast Program were not maintained separately and are included in the 1994
National School Lunch Program. (3) Ei<penditures for this program include State, and/or Local and other Funds.
Expenditures are not maintained by fund source.
(4) Expendlturas on this program were not maintained by fund source.
(5) This amount does not include expenditures of $230,811.00, associated with the inception of a capital lease.

See notes to the general purpose financial statements.

- 29 -

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

SCHEDULE 2

NONINTEREST BEARING ACCOUNTS
Southeastern Bank, Nahunta, Georgia
INTEREST BEARING ACCOUNTS
Southeastern Bank, Nahunta, Georgia
Certificates of Deposit No. 411601 {7.15%) No. 420030 (3.75%)
Money Market Account (2.70%) N.O.W. Accounts (2.50%)
OTHER
Petty Cash

$ 4,033.37

$ 10,000.00 20,000.00
166,113.44 671,431.65

867,545.09

60.00

$ 871,638.46

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

BRANTLEY COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

Brantley County Tax Commissioner County Wide Bond Tax County Wide School Tax
Education, Georgia Department of Food Services National School Lunch Program Lottery Programs Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant Federal Programs ESEA-Trtlell Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act Title VI, B - Flow Through
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Okefenokee Regional Educational Service Agency Drug-Free Schools and Communities Act
Southeastern Bank Interest Earned
Ware County Board of Health At-Risk Program

GENERAL FUND

GOVERNMENTAL SPECIAL REVENUE FUND

$

76,642.74

$

3,544.80

34,839.31 5,000.00 3,597.26
11,099.80

410.12 1,524.92

15,237.32 4,018.87

$

80,661.61 $==75..,2=5=3.=53=

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

SCHEDULE "3"

FUND TYPES CAPITAL
PROJECTS FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

TOTAL

$

7,384.07

$

7,384.07

76,642.74

3,544.80
34,839.31 5,000.00 3,597.26
11,099.80

410.12 1,524.92

$ 417,463.00

$

$ 417,463.00 $

7,384.07 $

417,463.00

615.26

15,237.32 615.26
4,018.87

615.26 $===58=1=,3=7=7.=47=

- 33 -

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

SCHEDULE "4"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

TOTAL DEBT SERVICE

1979 ISSUE

INTEREST

PRINCIPAL

$ 192,937.50 $ 102,937.50 $

90,000.00

191,693.75

96,693.75

95,000.00

190,112.50

90,112.50

100,000.00

193,025.00

83,025.00

110,000.00

190,431.25

75,431.25

115,000.00

192,331.25

67,331.25

125,000.00

188,725.00

58,725.00

130,000.00

189,612.50

49,612.50

140,000.00

189,825.00

39,825.00

150,000.00

189,362.50

29,362.50

160,000.00

188,225.00

18,225.00

170,000.00

191,243.75

6,243.75

185,000.00

$ 2,287,525.00 $ 717,525.00 $ 1,570,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Retired During Period Bonds Payable at June 30, 1994

TOTAL $ 1,655,000.00
85,000.00 $ 1,570,000.00

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

FEB 1-AUG 1 AUG 1

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

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

SCHEDULE 5

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Fiscal Year 1993 1994 Local Fair Share Educational Equafization Funding Grant Food Services Vocational Education Other State Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Lottery Programs Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
OTHER Education, Georgia Department of Reimbursement for Computer Supplies

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 4,125,313.00 599,677.00 72,350.00 176,961.00 59,853.00
1,247,430.00
382,542.00 125,300.00 139,265.00 120,003.00
62,984.00

2,586.00 224,058.00 -628,676.00 657,220.00
$ 65,420.80
6,480.00

54,274.00 28,895.00

1,150.00

52,954.09 5,000.00 3,597.26
11,099.80

$ 4,125,313.00 599,677.00 72,350.00 176,961.00 59,853.00
1,247,430.00
382,542.00 125,300.00 139,265.00 120,003.00
62,984.00
2,586.00 224,058.00 -628,676.00 657,220.00
54,274.00 65,420.80
6,480.00 28,895.00
1,150.00
52,954.09 5,000.00 3,597.26
11,099.80

$ 417,463.00

417,463.00

3,500.00

3 500.00

$ 7,443,416.80 $ 155,820.15 $ 417 463.00 $ 8,016,699.95

See notes to the general purpose financial statements.

35

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

SCHEDULE "6"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
other At-Risk Program Ware County Board of Health Interest Earned Rents Sales Contracted Meals Lunches and Breakfasts Supplemental Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 1,776,200.53 12,177.10 2,958.91

$ 171,868.43 $ 171,868.43 1,776,200.53 12,177.10 2,958.91

4,018.87 12,663.33 $

3,578.92 75.00

11,018.23 20,622.66

9,383.65 195,805.41
14,245.62
2,514.22

1,538.96

4,018.87 17,781.21
75.00
9,383.65 195,805.41
14,245.62 11,018.23 23,136.88

$ 1,839,659.63 $ 225,602.82 $ 173,407.39 $ 2,238,669.84

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

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

SCHEDULE "7''

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

EXPENDITURES

Operating Costs

Salaries

$ 5,941,227.11 $ 625,514.03

$

Employee Benefrts

1,270,852.58

110,576.52

Travel of Employees

13,606.93

5,297.09

Professional and Technical Services

84,804.93

8,098.38

Compensation and Travel of Board Members

12,007.00

Water, Sewer and Cleaning Services

11,571.58

3,685.00

Repair and Maintenance Services

92,504.61

9,915.03

Insurance

78,612.05

Communications

27,112.11

4,323.15

Commodity Hauling

4,530.99

other Purchased Services

83,232.77

280.10

Supplies

401,918.51

113,211.14

Energy

231,380.39

17,644.35

Food Usage

369,691.12

Books, Textbooks and Periodicals

76,575.45

8,299.34

Dues and Fees

7,675.06

3,682.23

Interest Expense

4,277.77

other Expenditures

14,444.54

503.67

Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment

47,541.14 147,267.50
8,500.00 506,402.90

65,940.00 $
382,247.53

2,000.00 238,029.24

TOTAL
6,566,741.14 1,381,429.10
18,904.02 92,903.31 12,007.00 15,256.58 102,419.64 78,612.05 31,435.26 4,530.99 83,512.87 515,129.65 249,024.74 369,691.12 84,874.79 11,357.29 4,277.77 14,948.21
113,481.14 149,267.50 246,529.24 888,650.43

Total Expenditures

$ 9,061,514.93 $ 1 733,439.67 $ 240,029.24 $ 11,034,983.84

See notes to the general purpose financial statements.

- 37 -

BRANTLEY COUNTY BOARD OF EDUCATION CHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE"B"

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

SAFE SCHOOLS
GRANT

EXPENDITURES

Operating Costs Repairs and Maintenance Services Supplies

$

2,200.00

$

1,994.00 $

$

2,295.76

Nonoperating Costs Equipment

$

52954.09

3260.80

1301.50

9105.80

TOTAL
4,194.00 2,295.76 66622.19

Total Expend~ures

$

52.954.09 $

5460.80 $

3.597.26 $

11 099.80 $

73111.95

See notes to the general purpose financial statements.

- 38 -

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

SCHEDULE "9"

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

$ 5,166,745.00 $

60,509.00

$ 5,229,690.83 489,494.31 $
$ 5,719,185.14 $

61,468.19 61,468.19

-103,226.33

$ 5,615,958.81 $

-959.19 60,509.00

$

0.00 $

0.00

See notes to the general purpose financial statements. - 39 -

BRAND EY QQ\ lNTV BOARD OF fQl JCATIQN ANALYS1SOF M1N1MUM EXPENPm.JRE REQLJIBE;MfNT -BY PROGRAM
GENERAi r:LJNP-QlJAI llY BASIC EDUCATION PROGRAMS YEAR fNQEQ JUNE 30 1994

GENERAi ANQ CAREER EQI. ICATIQN ffiPGRAMS
Sub-Total - K-3 Grade& 4- 5 (") Grade& 6 8 (1 Grade&9-12(") H;gh School L.aboratoneo (") Vocational Education Laboratories C,
Total General and Career Education Programs SPECIAi fQI ICATIQN PROGRAMS
Regular Programs categay I(") Calegayll (")
categay Ill (1 categay IV (1
Itinerant Suppiemental Speech
Sub-Total - Regular categay V (Gifted) (1
Total Special Education Programs
REMfQIAI fQUCATIQN PROGRAM r,
MFQIA CENTER PROGRAMS
Totaf Thirteen Weighted and Media Center
- ISTAFF OEVFI OPMENT PROGRAM {1) Cost of Instruction De,etopment
Total Stall Development
(*) Identifies Thirteen Weighted Programs Note: (1) $5,541.18 of the allotment for Professional
Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL

~

ORIGINAL

Mll>TERM

REQUIRED

402,463.00

362,216.70

1062622.00

956 359.80 $

1,465,085.00 90 $ 1,318,576.50 $

599,955.00 90

539,959.50

8S9,384.00 90

809,445.60

584,030.00 90

525,627.00

251,160.00 90

226,044.00

325 699.00 90

293129.10

$ 4125 313.00

3 712 781.70 $

362,216.70

109 068.00

1 065 427.80

109,068.00 $ 1,427,644.50

539,959.50

82,093.00

891,538.60

525,627.00

226,044.00

293129.10

191161.00 $ 3 903 942.70

532,169.00

478,952.10 $

0.00 $

478,952.10

532,169.00 90 $ 67 508.00 90 599 677.00 72 350.00 90 $ 176 961.00 90 $

478,952.10 $ 60 757.20 539 709.30 $ 65115.00 $ 159,264.90 $

0.00 $
0.00 $ 0.00 $ 1 283.00 $

478,952.10 60 757.20 539 709.30 65,115.00 160547.90

4,974,301.00

4,476,870.90 $

192,444.00 $ 4,669,314.90

18,998.18 100 $ 40 854.82 100

18,998.18 $ 40 854.82

59,853.00

59,853.00 $

656.00 $

19,654.18 40 854.82

656.00 s _ _s_o._.so_9_.oo_

5,034 154.00

$ 4,536,723.90 $

193100.00 $ 4,729 823.90

40.

SCHEDULE "'10"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBLmON BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDm.JRE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDm.JRE

FOR REQUIRED

ACTUAL

ALLOTMENT

352,717.20 $

406,725.68

1 025910.10
1,378,627.30 s

1188 955.20 1,595,680.88 $

523,124.10

616,522.41

867,100.90

971,365.83

502,065.90

532,689.90

215,951.40

226,953.29

254453.40

397 942.22

$ 3 741 323.00 $ 4 341154.53 $

9,499.50 $

14,884.97

39 517.70

59,102.17

0.00

49,017.20 $

73,987.14 $

0.00

16,835.40

25,064.47

0.00

24,437.70

86,490.59

0.00

23,561.10

34,654.34

0.00

10,092.60

112,062.38

0.00

38,675.70

86 791.45

0.00

162,619.70 $

419 050.37 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

7,085.70 $ 65,406.60 351,452.70 37,791.00
1,948.50 2 424.60
466,109.10 $
59 046.10
525157.20 s
63 963.90 s
122 858.50 s

24,590.40 23,389.93 407,630.70 32,375.01
487,986.04 $ 80 789.99 $
568ns.o3 87 672.37 $
232,087.90 $

s s 4 453,302.60

5,229,690.83 $

369.90 $ 1,423.80 9,733.50 1,315.80

3,164.44 7,440.46 4,115.28 3,330.76

0.00

12,843.00 $

18,050.94 $

0.00

1,709.10

1 792.14 $

14,552.10 $

19,843.08

0.00

1151.10 $

1 218.43 $

0.00

37,689.40 $

49,382.43 $

0.00

216,012.30 $

489,494.31 $

0.00 0.00
0.00 0.00
0.00

19,654.18 $

20,613.37 $

0.00

40,854.82

40 854.82

0.00

60,509.00 $

61,468.19 $

0.00

$ 4,453,302.60 $ 5,229,690.83 $

0.00

276,521.30 $

550,962.50 $

0.00

- 41 -

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

SCHEDULE "11

BOARD MEMBER ADDRESS
Mr. John I. Lee, Chairman C-)
Route 1, Box 126 Nahunta, Georgia 31553
Mr. William Kyser C-)
Route 2, Box 93-8 Nahunta, Georgia 31553
Mr. David Lee C-)
Route 1, Box 39-D Hoboken, Georgia 31543
Mr. Claude Smith C-)
P.O. Box 173 Nahunta, Georgia 31553
Mr. Robert Willis C-)
P.O.Box71 Hoboken, Georgia 31542

COMPENSATION

TRAVEL

$

2,275.00 $

94.66

2,275.00

354.38

2,275.00

2,250.00

2,300.00

182.96

C-) Denotes Board Members Serving as of June 30, 1994

$

11,375.00 $

632.00

See notes to the general purpose financial statements. - 42 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 12, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Brantley 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 Stiitements ofthe Brantley County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Brantley County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective ofour 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.

94CRL-10

The results ofour tests indicate that, with respect to the items tested, the Brantley 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.
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.
z:A
Claude L. Vickers State Auditor
CLV:djf 94CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 12, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Brantley 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 Brantley County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Brantley County Board ofEducation 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:

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of ari 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 ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Brantley 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,
d'~~~
Claude L. Vickers State Auditor
CLV:djf 94CRL-50

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta. Georgia 30334-8400
July 12, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Brantley County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance program, which is identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, I994. The management of the Brantley County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-90

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the talcing ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
The results of our audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above which is described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph.
In our opinion, the Brantley 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 program 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,
~
Claude L. Vickers State Auditor
CLV:djf 94CRL-90

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 12, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Brantley County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

( 1) Types of Services Allowed or Unallowed

(3) Applicable Special Tests and Provisions

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Brantley 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 Brantley County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
tf~~
Claude L. Vickers State Auditor
CLV:djf 94CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 12, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Brantley 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 Brantley County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit ofthe general purpose financial statements of the Brantley 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 Brantley 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 ofinternal control structure policies and procedures.
94ICL-3

The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because ofchanges 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 of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk.

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

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

(1) Accounting Controls (Overall)

(2) General Ledger

(3) General Fixed Assets

94ICL-3

A material weakness is a reportable condition in which the design or operation of one or more ofthe specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Brantley County Board of Education's financial statements and this report does not affect our report thereon dated July 12, 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,

CLV:djf 94ICL-3

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
$TATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 12, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Brantley 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 Brantley County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to it's major Federal financial assistance program and have issued our opinion thereon dated July 12, 1995.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Brantley County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 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
94ICL-12

major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 12, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

94ICL-12

During the year ended June 30, 1994, the Brantley County Board of Education expended 56% of its total Federal financial assistance under a major Federal financial assistance program and the following nonmajor Federal financial assistance program:
Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children
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 the Board's major Federal financial assistance program, which is identified in the Schedule of Federal Financial Assistance, and the aforementioned nonmajor program. 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 a reportable condition that is also considered to be a material weakness:
Administrative Requirements
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Brantley County Board of Education's compliance with requirements applicable to its major Federal financial assistance program for the year ended June 30, 1994, and this report does not affect our report thereon dated July 12, 1995.
94ICL-12

This report is intended for the infonnation 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:djf 94ICL-12

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED nJNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6131-93-01
The audit report for the year ended June 30, 1991, stated that the Brantley County Board ofEducation had an underexpenditure of Quality Basic Education (QBE) funds of $5,192.21 for the Staff Development Program. For the year under review, adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund the underexpenditure as required.
AUDIT FOLLOW-UP RESOLUTION Unearned Payments to Board Members Financial Statements Amount: $25.00 Audit Control Number 6131-93-02
The audit report for the year ended June 30, 1992, stated that a Board Member received a per diem payment in excess ofamounts earned. In the year under review, no reimbursement was received for this overpayment. Reimbursement of$25.00 should be secured for deposit to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $934.40 Audit Control Number 6131-93-05
The audit report for the year ended June 30, 1993, stated that the Brantley County Board ofEducation had an underexpenditure of Quality Basic Education (QBE) funds of$934.40 for the operations portion of the Special Education Programs. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$934.40 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $85.73 Audit Control Number 6131-93-06
The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Program had an underexpenditure of Quality Basic Education (QBE) funds of $85.73 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$85.73 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6131-93-03
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. 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 ofinternal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" of this report are affected by this finding.

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-93-04
The audit report of the year ended June 30, 1993, noted that the management of the Brantley County Board ofEducation had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Lease Agreement Financial Statements Nonmaterial Noncompliance Audit Control Number 6131-94-01
The Board entered into a lease agreement with Trust Company Bank of Southeast Georgia for computer equipment, beginning May 24, 1994, and continuing to November 24, 1997, this agreement does not contain the required governmental escape clause. The Board's attention is directed to the Official Code of Georgia Annotated (OCGA) Section 20-2-506 which provides, in part as follows:
"(a) Except as otherwise provided in this Code section, each county, independent, or area school system in this State shall be authorized to enter into multiyear lease, purchase, or lease purchase contracts ofall kinds for the acquisition of goods, materials, real and personal property, services, and supplies, provided that any such contract shall contain provisions for the following:
(1) The contract shall terminate absolutely and without further obligation on the part of the school system at the close of the calendar year in which it was executed and at the close of each succeeding calendar year for which it may be renewed as provided in this Code section;

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSE.MENTS Improper Lease Agreement Financial Statements Nonmaterial Noncompliance Audit Control Number 6131-94-01
(2) The contract may provide for automatic renewal unless positive action is taken by the school system to terminate such contract, and the nature ofsuch action shall be determined by the school system and specified in the contract;...".
This noncompliance occurred because management was not aware of the provisions ofOCGA Section 20-2506. The Board should amend this lease agreement to include provisions as required by State Laws and should institute procedures to ensure that all future lease or lease-purchase agreements contain the required escape provisions.
EMPLOYEE COMPENSATION Salary Overpayments Financial Statements Nonmaterial Noncompliance Amount: $1,686.00 Audit Control Number 6131-94-02
In the year under review, the Board made payments to various employees totaling $1,686.00 for unused vacation, which is in violation of Board policy.
Appropriate action should be taken by the Board to ensure that all professional personnel are paid in accordance with Board policies for work actually performed. Reimbursement of $1,686.00 should be secured and deposited to the Board's General Fund.
EMPLOYEE COMPENSATION Salary Underpayment Financial Statements Nonmaterial Noncompliance Amount: $184.17 Audit Control Number 6131-94-03
In the year under review, the Board underpaid an employee in the amount of$184.17. This underpayment was a result of a miscalculation by payroll personnel.
Appropriate action should be taken by the Board to ensure that all professional personnel are paid in accordance with the contracted salaries for work actually performed. Payment of $184.17 should be made to the employee involved.

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EMPLOYEE COMPENSATION - Financial Statements ALLOWABLE COST/COST PRINCIPLES - Federal Financial Assistance Salary Overpayment Major Program Nonmaterial Noncompliance Amount: $128.07 Audit Control Number 6131-94-04
In the year under review, the Board overpaid an employee of the School Food Service Fund (CFDA 10.553 and 10.555) in the amount of $128.07. This overpayment was the result of a miscalculation by payroll personnel. Appropriate action should be taken by the Board to ensure that all professional personnel are paid in accordance with the contracted salaries for work actually performed. Reimbursement of$128.07 should be secured and deposited to the Board's School Food Service Fund.
GENERAL LEDGER Failure to Record Accounting Activity Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-94-05
During the year under review, the Board failed to record the financial activity of the William M. Roberson Scholarship Fund within the Board's accounting records as required by generally accepted accounting principles. The financial statements include audit adjustments to reflect the transactions and balances of this fund. The Board should implement procedures to ensure that the financial activity of all fiduciary funds is recorded in the formal accounting records.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmajor Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 6131-94-06
A review of cash management procedures for the Elementary and Secondary Education Act - Chapter I Education ofDeprived Children Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 1994, the program had an average cash balance of $30,255.86 with excessive ending monthly cash balances in nine months. The excessive cash balances are a result of management's failure to adequately forecast the cash needs ofthis program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the Board.

BRANTI.EY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6131-94-07
The Board failed to submit a copy ofthe 1993 audit report to the Ware County Board ofHealth, from whom the Board received Drug Free Schools Program (CFDA 84.186) funds. Paragraph 13fof 0MB Circular A128 requires that the recipients of Federal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing of this report distribution responsibility by the Department of Audits, management claimed it was unaware of this audit distribution requirement. Procedures should be implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements.
REPORTING Delinquent Program Report Federal Financial Assistance Nonmajor Program Nonmaterial Noncompliance Audit Control Number 6131-94-08
A review of program reports submitted by the Board to the Georgia Department of Education for the Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children program (CFDA 84.010) for the year under review revealed that Georgia Department of Education DE form 0467, Chapter 1 Comparability Report was not filed by the required due date.
This noncompliance occurred because of management's failure to adequately monitor reporting requirements for this program. Appropriate procedures should be established and implemented by the Board to ensure that each program report is submitted by the required due date.

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
OTHER REQUIREMENTS CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Sign Daily Reports Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6131-94-09
A review of daily reports prepared by the Board for the Food and Nutrition Program - Food Services National School Lunch Program (CFDA 10.555) for the year under review, revealed that the Georgia Department of Education DE form 0118, "Daily Record of Number of Lunches Served", reports were not signed by the Program Manager/Director as required by the Georgia Department of Education School Nutrition Program Record Keeping Guide. This noncompliance occurred because of management's failure to adequately monitor reimbursement procedures for the program. The Board should implement adequate procedures to monitor daily reports to ensure compliance with Georgia Department ofEducation guidelines.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6131-93-01
We concur with this finding. This finding will be resolved through a future increase in the Board's local fair share portion of QBE allotments.
AUDIT FOLLOW-UP RESOLUTION Unearned Payments to Board Members Financial Statements Amount: $25.00 Audit Control Number 6131-93-02
We concur with this finding. The Board of Education will make every attempt to collect the money owed to us either through reimbursement or reduction of future payments.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $934.40 Audit Control Number 6131-93-05
We concur with this finding. This finding will be resolved through a future increase in the Board's local fair share portion ofQBE allotments.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $85.73 Audit Control Number 6131-93-06
We concur with this finding. This finding will be resolved through an increase in the Board's local fair share portion ofQBE allotments.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6131-93-03
We concur with this finding. Changes have already been made which affect the year ended 6-30-95.

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-93-04
We concur with this finding. Due to budgetary considerations the Board has decided not to pursue the recording of general fixed assets on the financial statements at this time.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Lease Agreement Financial Statements Nonmaterial Noncompliance Audit Control Number 6131-94-01
We concur with this finding. We will resolve this finding by re-negotiating the current lease to include an acceptable termination clause. Upon the initial negotiation of this lease, Trust Company Bank assured the Board ofEducation that this lease did adhere to all requirements for leases by state agencies.
EMPLOYEE COMPENSATION Salary Overpayments Financial Statements Nonmaterial Noncompliance Amount: $1,686.00 Audit Control Number 6131-94-02
We concur with this finding. The Brantley County Board of Education, by consensus, agreed to pay these individuals for vacation time not taken during FY94.
EMPLOYEE COMPENSATION Salary Underpayment Financial Statements Nonmaterial Noncompliance Amount: $184.17 Audit Control Number 6131-94-03
We concur with this finding. The individual was repaid this amount in FY96.

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
EMPLOYEE COMPENSATION - Financial Statements ALLOWABLE COST/COST PRINCIPLES - Federal Financial Assistance Salary Overpayment Major Program Nonmaterial Noncompliance Amount: $128.07 Audit Control Number 6131-94-04
We concur with this finding. We will attempt to collect this overpayment from the individual. We may be hindered by the fact that this employee is no longer employed by the Board of Education.
GENERAL LEDGER Failure to Record Accounting Activity Financial Statements Reportable Condition - Material Weakness Audit Control Number 6131-94-05
We concur with this finding in reluctant fashion. The William M. Roberson scholarship is handled by Southeastern Bank as is The Dewitt Moody scholarship. The Board ofEducation was appointed administrator of the trust in name only. The bank is the true administrator of this scholarship fund. Therefore, substance should be considered in this instance rather than its form.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Nonmajor Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 6131-94-06
We concur with this finding. We will better forecast our cash needs with respect to all funds received.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6131-94-07
We concur with this finding. We will ensure thay all grantor agencies receive a copy of our annual audit each year.

BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEARENDEDJUNE30 1994
REPORTING Delinquent Program Report Federal Financial Assistance Nonrnajor Program Nonmaterial Noncompliance Audit Control Number 6131-94-08
We concur with this finding. In the future, we will file this report in a timely manner.
OTHER REQUIREMENTS CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Sign Daily Reports Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6131-94-09
are We concur with this finding. In the future we will ensure that all reports signed by authorized personnel.