Audit report, Bulloch County Board of Education, Statesboro, Georgia, year ended June 30, 1997

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AUDIT REPORT BULLOCH COUNTY BOARD OF EDUCATION
STATESBORO, GEORGIA YEAR ENDED JUNE 30, 1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

BULLOCH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

21

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

26

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

27

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

29

5

BY PROGRAM

30

BULLOCH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Bulloch County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Bulloch County Board of Education, as of and for the year ended June 30, 1997, as listed in the table of contents. These generalpurpose financial statements are the responsibility of the Bulloch County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1997, 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:

97ARL-13

* The general-purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general-purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Bulloch County Board of Education as of June 30, 1997, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated May 1, 1998, on our consideration of the Bulloch County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Bulloch County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the fmancial schedules ~Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general-purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 97ARL-13

BULLOCH COUNTY BOARD OF EDUCAnON

BULLOCH COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1997

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

4,680,362,07 $

90,937,50 $ 12,648,059.32

2,000,000.00

340,179,58

10,000,000.00

4,355,561.66

709,948.94

2,322,526.77

2,468.00

83,935.85 9,570.25

Total Assets

$ 11,035,923,73 $ 1,237,040.12 $ 24,970,586.09

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation ofFederal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

1,190,698.69 $

3,375,852.08

8,276.94

65,864,03 340,928,93
7,304,77 $

609,662.30

$

4,574,827.71 $

414,097.73 $ _ _-=6.=.;09::.z..,6::.,:6:,::2;.;:.3-=..0

$

$

6,461,096,02

$

6,461,096.02 $

83,935.85 9,570.25 $
729,436.29 822,942.39 $

17,951,549.81 4,617,481.23
1,791 ,892.75
24,360,923.79

Total Liabilities and Fund Equity

$ 11,035,923.73 $

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

- 2-

1,237,040.12 $

24,970,586.09

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30, 1997 JUNE 30, 1996

$

74,917.63

$ 17,494,276.52 $ 6,050,842.47

12,340,179.58

4,018,459.73

7,388,037.37

4,234,212.24

2,468.00

1,890.00

83,935.85 9,570.25

103,946.11 18,658.67

$

74,917.63

74,917.63

19,385,082.37 421,877.92

19,385,082.37 421,877.92

740,801.77

$===7;,,;4;;o;,9~1,,;,,7';,;;;6~3 $

19,881,877.92 $ 57,200,345.49 $ 15,168,810.99

$ 1,256,562.72 $

852,953.38

3,716,781.01

3,578,353.51

15,581.71

49,075.35

609,662.30

$

421,877.92

421,877.92

740,801.77

19,460,000.00

19,460,000.00

$

19,881,877.92 $ 25,480,465.66 $ 5,221,184.01

$

74,917.63

0.00

$

74,917.63

$

1,641.38

$

74,917.63

19,020.79

83,935.85 9,570.25
17,951,549.81 4,617,481.23
8,982,425.06
$ 31,719,879.83 $

103,946.11 18,658.67
611,839.00 9,192,521.03
9,947,626.98

$

74,917.63 $

19,881,877.92 $ 57,200,345.49 $ 15,16M10.99

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BULLOCH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1997

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Accrued Interest on Bonds Sold Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value Discount on Bonds Sold Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1 (Restated - See Note 1)
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
The notes to the general purpose financial statements are an integral part of this statement.
-4-

GENERAL FUND

SPECIAL REVENUE
FUND

$ 28,338,176,53 $ 89,090,90
14,028,722,15 610,150,26
$ 43,066,139,84 $

678,928,58 3,843,531,21
858,138.42
5,380,598,21

$ 25,489,709.39 $ 1,687,896.36

2,002,707.68 906,207,78 944,437.41 381,362.26
2,213,890.91 255,119.52
2,955,127.58 1,986,163.69
353,247,34 76,058.62
621,066.81

211,911,69 103,729.64 43,733,77
88,113,52 5,865.04
526,60
60,338,85 3,017,205.48

313,769,31 38,519,25

$ 38,185,098.99 $ 5,571,609.51

$ 4,881,040,85 $ -191,011,30

$ $ -2,978,934,17
$ -2,978,934,17 $

228,934,17 228,934,17

$ 1,902,106,68 $ 4,558,989,34

37,922,87 814,118.20

-20,010,26 -9,088.42

$ 6,461,096,02 $====8=22=,9==4=2=.3==9

EXHIBIT"B"

CAPITAL
PROJECTS FUND

DEBT
SERVICE FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$ 5,594,864.12
758,847.79 $ $ 6,353,711.91 $

$ 613.02

34,611,969.23 $ 3,932,622.11 14,028,722.15
2,227,749.49

28,710,572.49 3,901,379.72
13,397,171.76
1,465,014.93

613.02 $ 54,801,062.98 $ 47,474,138.90

$

$

235,889.06

8,532,467.10
$ 8,768,356.16 $ $ -2,414,644.25 $

0.00 $ 27,177,605.75 $ 26,598,223.52

2,214,619.37 1,009,937.42
988,171.18 469,475.78 2,219,755.95 491,008.58 2,955,654.18 1,986,163.69 353,247.34 136,397.47 3,017,205.48 9,153,533.91

1,916,833.67 966,470.09
1,028,545.93 446,672.48
2,250,270.59 113,456.83
3,486,876.84 2,086,159.76
324,074.01 188,085.25 2,923,390.90 1,577,744.07

313,769.31 38,519.25

223,198.23 42,231.39

0.00 $ 52,525,064.66 $ 44,172,233.56

613.02 $ 2,275,998.32 $ 3,301,905.34

$

$

904.90

19,460,000.00 -9,856.30

2,750,000.00

$ 22,201,048.60 $

$ 19,786,404.35 $ 4,574,519.44

74,304.61 $

74,304.61 904.90

19,460,000.00 -9,856.30 $
2,978,934.17 -2,978,934.17

964,000.00 3,877,624.06 -3,877,624.06

74,304.61 $ 19,525,353.21 $

964,000.00

74,917.63 $ 21,801,351.53 $

0.00

9,947,626.98

4,265,905.34 5,693,445.26

-20,010.26 -9,088.42

-9,468.22 -2,255.40

$ 24,360,923.79 $

74,917.63 $ 31,719,879.83 $ 9,947,626.98

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THIS PAGE LEFT BLANK

BULLOCH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1997

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 26,671,836,54 $ 28,338,176,53

59,796,00

89,090,90

12,526,891,00 14,028,722,15

185,000,00

610,150,26

Total Revenues

$ 39,443,523,54 $ 43,066,139,84

EXPENDITURES

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

$ 26,412,111,82 $ 25,489,709,39

1,739,395.36 926,921,91
1,047,359,38 432,857.67
2,355,059.31 242,489,02
3,142,770,60 2,131,872.42
312,858,94 74,160,62

2,002,707,68 906,207,78 944,437.41 381,362.26
2,213,890,91 255,119,52
2,955,127.58 1,986,163,69
353,247.34 76,058,62

687,409,87

621,066,81

Total Expenditures

$ 39,505,266.92 $ 38,185,098,99

Excess of Revenues over (under) Expenditures

$

-61,743.38 $ 4,881,040,85

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

46,782,00

-1,992,632,00 $ -2,978,934.17

Total Other Financing Sources (Uses)

$ -1,945,850,00 $ -2,978,934,17

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -2,007,593.38 $

1,902,106.68

FUND BALANCE JULY 1, 1996

4,940,990,09

4,558,989,34

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

-33,905,99

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

690,172.24 $

678,928,58

3,985,337,00

3,843,531,21

870,500,00

858,138,42

$ 5,546,009,24 $ 5,380,598,21

$ 1,910,297,26 $ 1,687,896,36

450,512.50 68,946,00 43,614,51
107,234.49 4,000.00 2,500,00
121,015,59

211,911,69 103,729,64
43,733.77 88,113,52
5,865,04
526.60

64,555,00 3,184,929.13

60,338,85 3,017,205.48

352,288,56

$ 5,957,604.48 $ 5,571,609,51

$ -411,595.24 $ -191,011.30

$

288,920.00 $

228,934.17

-24,517,87

$

264,402,13 $

228,934,17

$ -147,193,11 $ 852,647.42 -29,105,02

37,922,87 814,118,20
-20,010,26 -9,088,42

FUND BALANCE JUNE 30, 1997

$ 2,899,490,72 $ 6,461,096,02

$

676,349,29 $ =====8=22=.,9;",4=2=,3=9

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

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Bulloch County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its fmancial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
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 fmancial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all fmancial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
-8-

BULLOCH COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device 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.
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, local option sales taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1996 and ending in early June 1997. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1996 and ending in August 1997. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
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BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prior years, the Board's Nursing Program was reported as a Special Revenue Fund. This program had a fund balance of $75,766.93 at June 30, 1996. For fiscal year 1997, this fund has been reported as a part of the General Fund. The fund balance at July 1, 1996 has been restated as appropriate.
BUDGET
The Bulloch County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(l) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
- 10-

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants 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 Bulloch County Board of Commissioners fixed the property tax levy for the 1996 tax year (calendar year) on October 1, 1996 (levy date). Taxes were due on December 20, 1996. The lien date for property taxes was January 1, 1996. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1997 since their collection meets the criteria ofGASB codification section P70.103. The Bulloch County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1996 tax year (calendar year) for the Bulloch County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

10.4 mills

SALES TAXES

Local Option Sales Tax collected by the State and remitted to the Board during the fiscal year amounted to $6,000,059.92 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the Board.

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BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1997, are recorded as prepaid items.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented onlyto facilitate fmancial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
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BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(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.

- 13 -

BULLOCH COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS At June 30, 1997, the bank balances were $21,514,879.73. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1997, as follows:

Risk Category

Bank Balance

1

$ 500,000.00

2

3,604,400.00

3

17,410,479.73

Total

$21,514,879.73

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

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

At June 30, 1997, the carrying amount of the Board's total investments was $12,340,179.58 and the market value of these investments was $12,563,497.19. The investments are classified as to risk categories as follows:

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BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 2: DEPOSITS AND INVESTMENTS

Type of Investment
U. S. Government Repurchase Agreements
Total

Risk Categories 2

$ 340,179.58

$

$12.000,000.00

$ 34017958 $1200000000 $

Carrying

Market

3

Amount

Value

0.00 $ 340,179.58 $ 343,039.46 12,000,000.00 12.220,457.73

000 $12340 17958 $12563.49719

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. However, the errors or omissions policy excludes coverage for discrimination. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to these risks in the past three years.

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

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

1996 1997

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

0.00 $

$

0.00 $

1,748.00 $

Claims Paid

End ofYear Liability

0.00 $

0.00

1,748.00 $

0.00

- 15 -

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 4: RISK MANAGEMENT

The Board has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent Each Principal Chief Financial Officer

$ 20,000.00 $ 20,000.00 $ 20,000.00

Note 5: GENERAL LONG-TERM DEBT

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

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

Purpose

Interest Rates

Amount

General Government - Series 1996 General Government - Series 1997

3.80% - 5.20% 3.60% - 5.30%

$ 9,460,000.00 10,000,000.00

$19.460,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1997, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1996

$ 740,801.77 $

0.00 $ 740,801.77

Additions

19,460,000.00 19,460,000.00

Deductions Payments Cancellations

313,769.31 5,154.54

313,769.31 5,154.54

Balance June 30, 1997

$ 421.877.92 $19.460,000.00 $19,881.877.92

- 16 -

BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 5: GENERAL LONG-TERM DEBT

At June 30, 1997, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1998 1999 2000 2001 2002 2003 - 2007 2008 - 2012 2013 - 2017

$ 352,288.56 $ 1,645,375.83 $ 1,997,664.39 88,072.14 1,640,640.00 1,728,712.14 1,625,590.00 1,625,590.00 1,613,890.00 1,613,890.00 1,600,240.00 1,600,240.00 7,927,295.00 7,927,295.00 7,982,340.00 7,982,340.00 8,150,025.00 8,150,025.00

Total Principal and Interest

$ 440,360.70 $32.185,395.83 $32,625.756.53

Deduct: Imputed Interest

18,482.78

Net Present Value of Future Minimum Lease Payments

$ 421.877.92

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $747,346.25 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$611,043,49

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $23,279.76

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$113,023.00

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BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1997, together with funding available:

Project
Mattie Lively Elementary and Sallie Zetterower Elementary Renovations Nevils Elementary Renovations Statesboro High Renovations Stilson Elementary Renovations GSFIC 94/94S-6l6-004, 95/96-616-008 and GSFIC 97-616-004 GSFIC 95/96-616-007 GSFIC 97/97S-616-057

Unearned Executed Contracts

Funding Available From State

$ 91,587.00 26,419.92
1,736,403.01 28,731.00

5,473,879.99 1,933,811.44
144,306.04

$ 3,438,112.38 253,331.00
2,427,570.00

$ 9.435,138.40 $ 6,119,013.38

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

Note 8: CONTINGENT LIABILITIES

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

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

Note 9: 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 defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

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BULLOCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 9: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 2,879,247.51 $ 2,741,356.70 $ 2,484,914.09

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BULLOCH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1997

EXHIBIT"E"

Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTIERY

FEDERAL

PROGRAMS PROGRAMS

OTHER

TOTALS

PROGRAMS JUNE 30, 1997 JUNE 30, 1996

$ 545,880.55 $

7,521.26

$ 553,401.81 $ 889,489.21

340,179.58

340,179.58

26,764.21

$ 632,553.24 $

50,631.49

709,948.94

453,201.10

618.00

1,850.00

2,468.00

1,890.00

83,935.85 9,570.25

83,935.85 9,570.25

103,946.11 18,658.67

Total Assets

$ 1,006,948.44 $

7,521.26 $ 634,403.24 $

50,631.49 $ 1,699,504.43 $ 1,467,185.09

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable

$ 24,353.39 $ 159,652.66

Total Liabilities

$ 184,006.05 $

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

$

Purchased Food

Unreserved

Undesignated

83,935.85 9,570.25
729,436.29 $

Total Fund Equity

$ 822,942.39 $

$ 216.49
7,304.77

412,310.84 $ 40,816.13 181,276.27

7,521.26 $ 634,403.24 $

0.00 $ 0.00 $

0.00 $ 0.00 $

50,153.47 $ 478.02
50,631.49 $

462,464.31 $ 65,864.03
340,928.93 7,304.77
876,562.04 $

215,900.22 53,257.27
334,834.05 49,075.35
653,066.89

$

1,641.38

$
0.00 0.00 $

83,935.85 9,570.25
729,436.29
822,942.39 $

103,946.11 18,658.67
689,872.04
814,118.20

Total Liabilities and Fund Equity $ 1,006,948.44 $

7,521.26 $ 634,403.24 $

50,631.49 $ 1,699,504.43 $ 1,467,185.09

See notes to the general purpose financial statements.

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BULLOCH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1997

EXHIBIT"F"

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996

REVENUES

State Funds Federal Funds Other Funds

$ 204,628,00 $ 1,994,003,31 858,138,42

284,367,58

$

$ 1,849,527,90

189,933,00 $ 678,928.58 $ 1,764,606,79

3,843,531,21 3,822,090,94

858,138.42

823,993.36

Total Revenues

$ 3.056,769,73 $ 284,367.58 $ 1,849.527,90 $ 189,933,00 $ 5,380,598,21 $ 6,410,691,09

EXPENDITURES

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

School Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Other Support Services

Food Services Operation

$ 3,017,205.48

Debt Service

Principal

Interest

102,616.26 $ 1,401,481,69 $

13,027.78 10,216,52

167,955.87 103,729.64
43,733,77 77,897,00
1,310,00

526.60

60,338.85

313,769.31 38,519.25

183,798.41 $ 1,687,896,36 $ 2,912,399,74

30,928,04 4,555.04

211,911.69 103,729,64
43,733,77 88,113,52
5,865.04
526.60
60,338,85 3,017,205.48

261,689,95 86,941.36 43,883.51 77,994.71 7,918.62 12,262.43
469,149.93 122,681,54 118,393.25 2,923,390.90

313,769,31 38,519,25

222,352.77 41,863.65

Total Expenditures

$ 3,017,205.48 $ 478,149,12 $ 1,856,973.42 $ 219,281.49 $ 5,571,609.51 $ 7,300,922,36

Excess of Revenues over (under) Expenditures

$ 39,564.25 $ -193,781.54 $ -7,445.52 $ -29,348.49 $ -191,011.30 $ -890,231,27

OTHER FINANCING SOURCES

Capital Leases Operating Transfers In

$ 193,781,54 $

5,804,14 $

$ 29,348.49 $ 228,934,17

958,000.00 15,470.06

Total Other Financing Sources

$ 193,781.54 $

5,804.14 $ 29,348.49 $ 228,934,17 $ 973,470,06

Excess of Revenues and Other Financing

Sources over (under) Expenditures

$

39,564.25 $

0,00 $ -1,641,38 $

0,00 $ 37,922.87 $

83,238,79

FUND BALANCE JULY 1

812,476.82

0,00

1,641.38

0.00

814,118,20

742,603.03

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-20,010,26 -9,088.42

-20,010.26 -9,088.42

-9,468.22
~2,255.40

FUND BALANCE JUNE 30

$ 822,942,39 $

0,00 $

0.00 $

0.00 $ 822,942.39 $ 814,118,20

See notes to the general purpose financial statements,

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BULLOCH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1997

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOTTERY PROJECT

TOTALS JUNE 30, 1997 JUNE 30, 1996

$ 1,830,148,79 $ 7,536,684,04 $

3,606,462,68

$ 12,973,295,51 $ 3,384,117.64

10,000,000,00

10,000,000.00

1,017,768.06

414,865,77

1,582.424.81 $ 325,236.19

2,322,526.77

172,633.74

$ 1,830,148.79 $ 17,951 ,549.81 $

5,188,887.49 $ 325,236,19 $ 25,295,822.28 $ 4,574,519,44

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Retainages Payable

$ 38,256.04

$

Total Liabilities

$ 38,256,04

$

FUND EQUITY

Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated

$ 17,951,549,81 $

$ 1,791,892,75

0,00

Total Fund Equity

$ 1,791,892,75 $ 17,951 ,549,81 $

$ 571,406,26
571.406,26 $

325,236,19 $ 325,236,19 $

325,236.19 609,662,30
934,898.49

4,617,481.23 0.00 $
4,617,481,23 $

$ 17,951,549.81 4,617,481,23 $

611,839,00

0,00

1,791,892,75

3,962,680,44

0,00 $ 24,360,923,79 $ 4,574,519,44

Total Liabilities and Fund Equity $ 1,830,148,79 $ 17,951,549,81 $

5,188,887.49 $ 325,236,19 $ 25,295,822.28 $ 4,574,519.44

See notes to the general purpose financial statements.

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BULLOCH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1997

EXHIBIT"H"

See notes to the general purpose financial statements.

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BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURESOF FEDERAL AWARDS
YEAR ENDED JUNE 30,1997

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U, S. Department of Direct Food and Nutrition Program Summer Food Service Program for Children 1997 Grant Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1997 Grant National School Lunch Program 1997 Grant Food Distribution Program (1)
Total U. S, Department of Agriculture
Education, U, S, Department of Pass-Through From First District Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1997 Grant Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1997 Grant TitleU Eisenhower Professional Development 1996 Grant 1997 Grant Title VI Innovative Education Program Strategies 1997 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1997 Grant Preschool 1997 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1997 Grant Tech-Prep Education 1997 Grant
Total U. S, Department of Education
Justice, U. S. Department of Pass-Through From Children and Youth Coordinating Council Juvenile Justice Delinquency Prevention and Treatment 95J-01-9504-0030
OTHER FEDERAL ASSISTANCE
Defense, U. S, Department of Direct Department of the Army R.OTC. Program
Total Federal Financial Assistance
= N/A Not Available

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10,559

$

72,240,00

(2)

10,553
10.555 10,550

N/A
N/A N/A
$

433,210,09
1,284,520.46 $ 204,032,76
1,994,003,31 $

(2)
2,813,172.72 (3) 204,032,76
3,017,205,48

84.011

N/A $

12,877.73 $

12,877.73

84,010

N/A

84,281

N/A

84,281

N/A

84,298

N/A

1,285,987,25
21,069.08 14,701,15
43,835,00

1,285,987,25
23,219,21 (3) 14,701.15
43,835,00

84.027

N/A

84,173

N/A

312,299.78 41,113.94

313,387,90 (3) 41,113,94

84,048 84,243

N/A N/A
$

81,643,97 36,000,00 1,849,527.90 $

83,652,36 (3) 38,198.88 (3) 1,856,973.42

16,540

N/A $

7,540,32 $

7,540.32

- 24-

$

81,550.58

(4)

$

3,932,622.11 $

4,881,719.22

BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1997
Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Summer Food Service Program for Children and the School Breakfast Program were not maintained separately and are included in the 1997 National School Lunch Program.
.(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Bulloch County Board of Education and is presented on the modified accrual basis of accounting which is the same basis of accounting used in the presentation of the general purpose financial statements.

SCHEDULE "1"

See notes to the general purpose financial statements.

- 25-

BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1997

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Midterm Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Advanced Placement Exams Altemative Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program National Teacher Certification Grant Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Exceptional Growth-Capital Outlay Instructional Technology
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 16,660,630,00 3,020,556,00 535,777.00 702,425.00 217,177,00 4,546,873.00
911,824,00 301,649.00 211,857.00 560,090.00 160,990,00 347,477.00
770.00 50,092,00 102,436.00 -3,083,592.00 -3,085,189,00 3,654,471.00 1,657,846,00
$ 58,135,52
654,16
38,665,61 1,000.00
611,043.49 4,980,00 1,568.00 2,381.00
9,286.99 23,279.76

204,628,00 96,400.00
93,533.00 $
163,080,00

$ 1,115,306.25

16,660,630,00 3,020,556,00 535,777,00 702,425.00 217,177.00 4,546,873.00
911,824.00 301,649,00 211,857,00 560,090.00 160,990,00 347,477.00
770.00 50,092.00 102,436,00 -3,083,592.00 -3,085,189.00 3,654,471,00 1,657,846,00 204,628,00 58,135.52
654,16 96,400.00 38,665,61
1,000,00 611,043.49
4,980.00 1,568,00 2,381,00 93,533.00 9,286,99 23,279.76
1,115,306,25 163,080.00

113,023,00

121,287.58

4,479,557.87

4,479,557.87 121,287,58 113,023,00

$ 28,338,176,53 $

678,928,58 $

5,594,864,12 $ 34,611,969,23

See notes to the general purpose financial statements,

- 26-

BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTIERY PROGRAMS YEAR ENDED JUNE 3D. 1997

SCHEDULE "3"

EXPENDITURES
Current Instruction Support Services Pupil Services General Administration Debt Service

INSTRUCTIONAL TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

$

4,572.98 $

352,288.56

98,043.28 $
13,027.78 10,216.52

102,616.26
13,027.78 10,216.52 352,288.56

Total Expenditures

$

356,861.54 $

121,287.58 $ ===4,;,,;78~,,;,,;14=9,;,,;.1=:2

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Instructional Technology Pre-Kindergarten Program

$

117,823.55

356,861.54 3,464.03

$

478,149.12

See notes to the general purpose financial statements.

- 27-

THIS PAGE LEFT BLAHK

BULLOCH COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30,1997

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$ 21,211.032.00 $

5_90~,0_5_9_.0_0

$ 22,171.742.22 2.388,236.64 $ _--=2:...;,.1..:...95:..:.,,3.:...;0""'1,;..7..~9
$ 24.559,978.86

-307.965.45 $ 24.252,013.41

Amount of Underexpenditure for Total Allotment

$

0.00 $======0=.0=0

Note: (1) Salary accruals (July and August 1997 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1996 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

See notes to the general purpose financial statements. - 29 -

BULLOCH COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1997

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (0) Grades 1 - 3 (0) Sub-Total- K-3 Grades 4 - 5 (0) Grades 6 - 8 (0) Grades 9 - 12 (0) High School Laboratories (0) Vocational Education Laboratories (0) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (0) Category II (0) Category III (0)
r) Category IV
Sub-Total- Regular Category VI (Gifted) (0)
Total Special Education Programs REMEDIAL EDUCATION PROGRAM (0)
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Fourteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (0) Identifies Fourteen Weighted Programs. (1) Salary accruals (July and August 1997 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
See notes to the general purpose financial statements.

- 30 -

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 1,858,990.00

$ 1,673,091.00 $ 141,576.10

4,757,555.00

4,281,799.50

-29,227.50

$ 6,616,545.00 90 $ 5,954,890.50 $ 112,348.60

2,203,299.00 90

1,982,969.10

-100,501.20

3,628,361.00 90

3,265,524.90

107,896.00

2,119,466.00 90

1,907,519.40

-50,179.50

1,281,632.00 90

1,153,468.80

46,651.00

811,327.00 90

730,194.30

-3,816.90

$ 16,660,630.00

$ 14,994,567.00 $ 112,398.00

$ 2,842,201.00

$ 2,557,980.90 $

0.00

$ 2,842,201.00 90 $ 2,557,980.90 $

178,355.00 90

160,519.50

$ 3,020,556.00

$ 2,718,500.40 $

$ 535,777.00 90 $ 482,199.30 $

$ 20,216,963.00

$ 18,195,266.70 $

0.00 15,875.00 15,875.00 157,661.00 285,934.00

$ 569,679.00 90 $ 512,711.10 $

132,746.00 90

119,471.40

$ 702,425.00

$ 632,182.50 $

3,741.00 1,969.00
5,710.00

$ 20,919,388.00

$ 18,827,449.20 $ 291,644.00

$

60,440.00

156,737.00

$

60,440.00 $

156,737.00

1,178.00 0.00

$ 217,177.00 100 $ 217,177.00 $===1=,1=7=8.=0=0

(2) Salary accruals (July and August 1996 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

SCHEDULE "5"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,814,667.10 $ 1,940,120.23 $ 137,459.97 $ 2,077,580.20

4,252,572.00

4,446,313.45

528,359.20 4,974,672.65

$ 6,067,239.10 $ 6,386,433.68 $ 665,819.17 $ 7,052,252.85 $

0.00

1,882,467.90

2,324,586.73

240,317.73 2,564,904.46

0.00

3,373,420.90

3,656,266.12

574,521.97 4,230,788.09

0.00

1,857,339.90

2,535,218.26

215,253.21 2,750,471.47

0.00

1,200,119.80

1,438,804.37

117,814.03 1,556,618.40

0.00

726,377.40

1,041,361.03

193,410.00 1,234,771.03

0.00

$ 15,106,965.00 $ 17,382,670.19 $ 2,007,136.11 $ 19,389,806.30

$ 2,557,980.90 $

158,011.27 $ 634,180.56 2,169,708.66 191,751.04

1,643.50 $ 2,188.65 31,086.62 1,989.41

159,654.77 636,369.21 2,200,795.28 193,740.45

$ 2,557,980.90 $ 3,153,651.53 $

36,908.18 $ 3,190,559.71

0.00

176,394.50

263,275.90

10,820.62

274,096.52

0.00

$ 2,734,375.40 $ 3,416,927.43 $ 47,728.80 $ 3,464,656.23

$ 639,860.30 $ 548,979.00 $ 140,436.88 $ 689,415.88

0.00

$ 18,481,200.70 $ 21,348,576.62 $ 2,195,301.79 $ 23,543,878.41

$ 516,452.10 $ 823,165.60

$ 823,165.60

0.00

121,440.40

$ 192,934.85

192,934.85

0.00

$ 637,892.50 $ 823,165.60 $ 192,934.85 $ 1,016,100.45

$ 19,119,093.20 $ 22,171,742.22 $ 2,388,236.64 $ 24,559,978.86 $

0.00

$ 61,618.00 156,737.00
$ 218,355.00

$ 161,328.29 $ 161,328.29

57,055.31

57,055.31

$ 218,383.60 $ 218,383.60 $=====~O;;;.O;,;;,O

- 31 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 1,1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Bulloch County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the fmancial statements of Bulloch County Board of Education as of and for the year ended June 30, 1997, and have issued our report thereon dated May 1, 1998. 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 the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1997, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Bulloch County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.

97YB-40

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Bulloch County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Bulloch County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6161-97-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the 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 over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 97YB-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Bulloch County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Bulloch County Board of Education with the types of compliance requirements described in the Us. Office ofManagement and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1997. Bulloch County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Bulloch County Board of Education's management. Our responsibility is to express an opinion on Bulloch County Board ofEducation's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-B3, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-B3 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Bulloch County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Bulloch County Board of Education's compliance with those requirements.

97SA-I0

In our opinion, the Bulloch County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1997.
Internal Control Over Compliance
The management of Bulloch County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Bulloch County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-13 3.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.

CLV:cm 97SA-10

Claude L. Vickers State Auditor

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

BULLOCH COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6161-93-03 6161-94-01 6161-96-01

Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6161-93-03

The Board is interested in implementing a General Fixed Assets Account Group within the formal accounting records however, due to budgetary and software constraints, recording of General Fixed Assets was not pursued. The Board is evaluating a timely and cost-effective approach to the General Fixed Assets Account Group.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6161-96-02

Previously Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
I SUMMARY OF AUDITOR'S RESULTS
. 1. Type of Report Issued on the Financial Statements The auditor's opinion on the Bulloch County Board of Education's financial statements was qualified for a scope limitation and various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Bulloch County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Bulloch County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Bulloch County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Bulloch County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51OCa) of OMB Circular A-B3 The Bulloch County Board of Education's audit disclosed did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Bulloch County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
- 1-

BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6161-97-01 The Bulloch County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: The Board is interested in implementing a General Fixed Assets Account Group within the formal accounting records however, due to budgetary and software constraints, recording of General Fixed Assets was not pursued. The Board is evaluating a timely and cost-effective approach to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIQNED CQSTS No matters were reported.
-2-