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

AUDIT REPORT BURKE COUNTY BOARD OF EDUCATION
WAYNESBORO, GEORGIA YEAR ENDED JUNE 30, 1994

BURKE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

21

SCHEDULES

l SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

22

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

24

3 ACCOUNTS RECEIVABLE

25

SCHEDULE OF REVENUE

4

STATE FUNDS

26

5

LOCAL AND OTHER FUNDS

27

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

29

7

LOTTERY PROGRAMS

30

BURKE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

33

9

BY PROGRAM

34

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

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

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

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

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Burke County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Burke County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
94ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Burke County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Burke County Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 10 which include the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements of the Burke County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
"'a:_:a ..

CLV:cm 94ARL-13

Claude L. Vickers State Auditor

BURKE COUNTY BOARD OF EDUCATION - 1-

EXHIBIT"A"

~
~ a n d ~ Equlvalenla
Accounbs Receivable
lnventorieo Food Donated Commodities Purchaaed Food

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS !Memorandum Cln!l'.) JUNE30 1994 JUNE30 1993

$ 15,018,032.20 $ 147,1-46.42 $ 7,147,002.04 $ 22,310,180.86 $ 23,604,812.22

118,538.02

641,405.92

1,382,753.98

2,142,697.92

708,396.33

27,615.-46 14203.95

27,615.46 14203.95

19,8TT.22 9338.65

Total Aa8el&

$ 15134 570.22 $ B30371.75 $ 8 529 756.02 $ 24 494 697.99 $ 24 340 224.42

Ll6fiiHLIII~ a~~ E~NQ EQ~ITY

~

Acc:ounlaPayable Salarieo Payable
CExopnirtredadGsrPaanyt a-ble Retainages Payable Defen'ed Rew,nue

Payable

$

22,756.83 $

Tola! Liabilities

$

22756.83 $

fUNDEOUllY

Fund-

Reoerved

For Continuation of Federal Programs

For Expired Grant Balances

0.-tionedCools

$

For lnventorieo

Food

Donated Commodities

Purchased Food

For Stale capital OUtlay Projects

$ 34,342.94

Un<eoerved Undeoignated

$

34,342.94 $

150TT470.o45

Total Fund Equity

$ 15111 813.39 $

30,400.91 108,038.28
3,348.24 $
175569.76
315357.19 $

$
225,038.23 86,102.-45
311140.68 $

53,157.74 $ 108,038.28
3,348.24 225,038.23
86,102.-45 175569.76
649~.70 $

52,349.33 105,903.29
371,432.94
529685.56

876.57

$

876.57

34,342.94 $

20,744.73

27,615.-46 14,203.95
$
42,695.98 $
4n31s.ss
515014.56 $

2 455137.13 2,455,137.13 $ 5 763 478.21 8218615.34 $

27,615.-46 14,203.95 2455137.13
2,532,176.05 $
21 313 267.24
23 845 443.29 $

19,8TT22 9,338.65
1642 709.68
1,692,670.28
22117 868.58
23 810 538.86

Total Liabilities and Fund Equity $ 15134 570.22 $ B30371.75 $ 8 529 756.02 $ 24494697.99 $ 24 340 224.42

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

~B~E QQ!..!tilY aQABC! Q EDUCATION @Mal~C! ~MEtfi QE B~N~~i; E2!;eENC!IIUBE ~Q ~~E 1H FUNC! ~ ~~E
~BNMEtfi&. EUNQ !:!EE
YEAB ENDEP JUNE 30 1994

EXHIBIT"B"

~
State Funds F-.IFunds Local and Other Funds
TotalRev.,ues
EXPENPIWRES
Current lnslruc:tion Support Services Pupil Services Improvement d Instructional SeMces Educational Media Services ~IAdministllllion School Administration Business Administration Malnfllnance and Operation d Plant S - . t Tn1nspor1alion Services Cenlnll Support Services Other Support Services Food Services Operation Community Serw:e Opendions Other Operations d Non-Instructional SeNic:as
Capital Oullay
TolalE_,clitures
Excess of Revenues....- (under) E_,clitures
Qil:tfB FINANCIN!i SQ!.!B~fS a.!El
Operating Tn,,_. In Operating Tra..-. Out
Total Other Financing Sources (Useo)
Excess of Revenues and Other Financing Sources owr (under) E_,clitures and Other Financing Uses
FUND BALANCE JULY 1
Food lnwnto<y Nol Change In Period Donalod Commodities Purchased Food
Rniduol Equity Tra..,_

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS
(M!morandum OnM
YEAR ENDED
JUNE30 1994 JUNE30 1993

3,873,874.00 $ 84,384.93
15961 081.29

383,039.99 $ 2,692,928.34
112399.60

1,011,321.04 $ 123353.89

5,248,235.03 $ 2,757,313.27 16 196 834.78

5,265,646.46 2,503,256.78 19 458 905.68

19 899 340.22 $ 3168 367.93 $ 1134 674.93 $ 24~383.08 $ 27 227 808.92

10,832,790.99 $ 1,453,589.12

12,286,380.11 $ 11,482,655.33

540,611.15 297,009.22 440,902.62 797,649.59 1,326,261.58
68,826.38 2,048,846.20 1,392,408.88
60,540.27 2,818.76
57,498.24 107,486.44

25,471.79 86,118.26 28,941.01 100,155.84
21,660.44 3,600.00
88,544.05 1,458,218.36

2959033.00

566,082.94 383,127.48 469,843.63 897,805.43 1,326,261.58
68,926.38 2,070,506.64 1,396,008.88
60,540.27 71,362.81 1,458,218.36 57,498.24 107,486.44 2 959033.00

559,917.43 298,750.30 411,630.87 803,085.39 1,163,509.84 178,925.35 1,507,713.68 1,346,100.97 79,205.27 46,168.39 1,516,417.25
110,367.85 4 032 282.55

17 974 750.32 $ 3246~.87 $ 2 959 033.00 $ 24180082.19 $ 23 539 731.28

1 924 589.90 $ -TT930.94 $ -1 824 358.07 $

22300.89 $ 3 688 0TT.64

$ -3150 742.63
-3150 742.63 $

742.63 $ 3,150,000.00 $ 3,150,742.63 $ -3150 742.63

742.63 $ 3150000.00 $

0.00 $

251,935.27 -251 935.27
0.00

-1,226,152.73 $ 16,326,861.07

-TT,188.31 $ 1,325,641.93 $

22,300.89 $ 3,688,0TT.64

590,704.38

6,692,973.41

23,810,538.86

20,118,337.37

11105.05

7,738.24 4,865.30 -11105.05

7,738.24 4,865.30
0.00

1,815.05 2,308.80

EYNP BALANCE JUNE 30

$ 15111 813.39 $ 515014.56 $ 8a18 615.34 $ 23 845 443.29 $ 23 810 538.86

The notes to the gerMHal pu,pose financial statements are an integral part of thtS statement -3-

BURKE COI..JNTV BOARD Of EQUCADQN COMBINED STATEMENT OF REVENUES EXPENOITIJRES AND CHANGES IN FUND RAJ ANCES
AQTIJAL ANP BUDGET GOVERNMENTAL FUND TYPES YEAR fNQEQ JUNE 30 1994

EXHIBIT "C"

~
S-Funds Fecloral Funds ~ and Other Funds
Total Rwenues
EXPENDITURES
Current Instruction Support Services Pupil Services lml)fOWfflOnl d lnotruclional Services Educational Madia Services General Administration
School Administration Business Administration Maintanance and Operation d Plant Student Transportation Services Contra! Support Services Other Support Services Food Services Operation Community Service Operations Other Operations d Non-lnmuc:tional Services Capital Outlay
Total Expenditures
Exeess of Revenues over (under) Expenditures
Q]]jfB B~lt& SQUBQES CY.~l
Other Sources OtherlJMs
Tola! Other Fonancing Sources (Uses)
Excess of Revenues and Other Financing Sources <NOr (ura<) ~ - and Other Financing Uses
B.!NC2 BALANCE JUL! 1 l ~
ADJUSTMENTS
Prior v.., (Not)
FQQQ l~!!!IQ!ll'.. ~ET !.HANG~ IN ~R!QQ
Donnd Commodities Purchased Food

ACTUAL
PER EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

5,248,235.03 $ 2,757,31327 16,196834.78
24202 383.08 $

0.00 $ 0.00 $

5,248,235.03 $ 5,235,546.00 $ 2,757,31327 3,075,798.00 16196 834.78 16,033 844.09
24,202 383.08 $ 24,345,188.09 $

12,689.03 -318,484.73 162,990.69
-142805.01

12,286,380.11 $
566,082.94 383,127.48 469,843.63 897,805.43 1,326,261.58
69,926.38 2,070,506.64 1,396,008.88
60,54027 71,362B1 1,458,218.36 57,49824 107,486.44 2,959,033.00
24,180,082.19 $
22,300.89 $

0.00 $
0.00 $ 0.00 $

12,286,380.11 $ 13,013,996.04 $

566,082.94 383,127.48 469,843.63 897,805.43
1,326,261.58 69,926.38
2,070,506.64 1,396,008.88
60,54027 71,362.81 1,458,218.36 57,49824 107,486.44 2,959,033.00

697,488.79 403,935.00 453,874.60 846,996.00 1,265,990.00 67,269.64 1,823,104.50 1,490,685.03 60,126.00 91,259.00 1,840,938.00
98,984.00 2,8TT477.52

24,180,082.19 $ 25,032,004.12 $

22,300.89 $ .-,816.03 $

n1,615.93
131,405.85 20,707.52 -15,969.03 -50,809.43 -60,271.58 -2,656.74 -247,402.14 94,656.15
-414,27 19,896.19 382,719.64 -57,49824 -8,502.44 -81,555.48
851,921.93
709,116.92

3,150,742.63 $ -3,150,742.63
0.00 $
22,300B9 $ 23,810,538.88

0.00 $ 0.00 $

3,150,742.63 $ -3,150,742.63
0.00 $

0.00 $ 0.00 $

0.00 $ -29,215.87

22,300.88 $ .-,818.03 $ 23,781,322.98 23,616,45524

3,150,742.63 -3,150,742.63
0.00
709,116.92 164,867.75

0.00

0.00

182,056.59

-182,056.59

7,73824

-7,73824

0.00

0.00

4,685.30

-4,685.30

0.00

0.00

FUNQ BALANCE JUNE 30 1994

$ 23,845,44329 $

-41,819.41 $ 23,803,623.88 $ 23,111,695.80 $

691,928.08

The notes to the general puq)ON financial statements are an integral part of this statement. -5-

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\fENTS

JUNE 30 1994

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

- 6-

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most 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 ofeducation.
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.
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.

- 7-

BURKE COUNTY BOARD OF EDUCATION

EXlilBIT "D"

NOTES TO TIIB GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation 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 Burke County Board of Education 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.
- 8-

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates ofdeposit 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 Burke County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 28, 1993 (levy date). Taxes were due on December 30, 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 ofGASB codification section P?0.103. The Burke County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

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

School Operations

Mmills

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

- 9-

BURKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund 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.
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 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.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one ofor 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,
- 10 -

BURKE COUNTY BOARD OF EDUCATION

EXlilBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State ofGeorgia,

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

(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe 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 ofindebtedness, 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 Banlc, the Federal Home Loan Bank, the Federal Intermediate Credit Banlc, 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 $23,353,952.05. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Bank Balance
$ 500,065.64 12,194,518.75 10 659 367.66
$23 353 952 os

- 11 -

BURKE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of $9,210.78 was paid in claims.

Note 5: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of $175,839.84 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 $175,569.76 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

Computers in Classrooms
Distant Learning Media Center and Library Equipment

$ 70,123.94 3,277.00
102 438.90
S )75 839 84

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

Project

Unearned Executed
Contracts

Funding
Available From State

92/92S-617-012

$ 2 029 S9S 42 $ 1 079 2s0 42

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

Note 6: 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.

- 12 -

BURKE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\.fENTS

JUNE 30 1994

Note 6: CONTINGENT LIABILITIES
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.
Note 7: RETIREl\.fENT 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 ofcreditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number 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 ofdisability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $10,949,899.23; total payroll was $12,671,326.09.
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.S00/4.

- 13 -

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: RETIREMENT PLANS

Total contributions made during fiscal year 1994 amounted to $1,951,100.07, of which $1,293,756.49 was made by the Board and $657,343.58 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) ofcovered 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 standardiz.ed 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, wasas 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 $1,293,756.49 was actuarially determined and represented .2480% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

- 14 -

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: RETIREMENT PLANS
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for nomial service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number 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 ifthe employee had retired at age 65 as Jong as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat 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 of employer contributions occurs, but the member's contributions are refunded with interest.
There were 147 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 contnbutions from employees ofthe Board made during fiscal year 1994 amounted to $4,904.00. 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 8: SURETY BONDS
The School Superintendent, Mr. Carl Douglas Day, is bonded in the amount of$20,000.00 with the Gulf Insurance Company, Irving, Texas, their Bond No. 831695, on which premium was paid through December 31, 1995.

- 15 -

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
lnwntcries Food Donated Cornrnocfities Purchased Food

SCHOOL FOOD
SERVICES FUND

ADULT EDUCATION

AFTER SCHOOL PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 456,471.13

$

0.00 $ 178,918.00

15,847.45 $ 8,055.62

$

17,310.92

27,615.46 14203.95

Tclal Assets

$ 514,137.99 $ 8,055.62 $

0.00 $ 178,918.00 $

17,310.92

LIAILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUNDEOUITY
Fund Balances Reserved
For Continuation or Federal Programs
For lnventcries Food Donated Commodities Purchased Food
U""""""8d Undesignated
Tclal Fund Equity

$
$
$ 27,615.46 14,203.95
$ 41,819.41 472,318.58 $
$ 514,137.99 $

4,678.53 286.41
3,090.68 8,055.62
0.00 $ 0.00 $

Total Liabilities and Fund Equity

$ 514,137.99 $ 8,055.62 $

$
$ 3,348.24 175,569.76
$ 178,918.00 $

17,310.92 17,310.92

0.00 $

0.00 $

0.00

0.00 $

0.00 $

0.00

0.00 $ 178,918.00 $

17,310.92

See notes to the general purpose financial statements.

-16-

EXHIBIT"E"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEII-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT - AND SCIENCE

CHILDREN

FLOW THROUGH

EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

876.57

$

636,265.70 $ 537,551.41

$

551,405.58 $

5,697.23

38,463.46 $

4,625.66

641,405.92

160,751.14

27,615.46 14,203.95

19,877.22 9,338.65

551,405.58 $

5,697.23 $

876.57 $

38,463.46 $

4,625.66 $ 1,319,491.03 $ 727,518.42

$

418,343.48 $

30,114.50

102,947.60

$

551,405.58 $

5,697.23 5,697.23

$

38,463.46 $

38,463.46 $

4,625.66 $ 4,625.66 $

489,119.28 30,400.91 $
106,038.28 3,348.24
175,569.76
804,476.47 $

30,910.75 105,903.29
136,814.04

$

0.00 $

$

0.00 $

$

551,405.58 $

$
$ 0.00 0.00 $ 5,697.23 $

876.57
876.57 0.00 $
876.57 $

0.00 $ 0.00 $

876.57

0.00 0.00 $

27,615.46 $ 14,203.95
42,695.98 $ 472,318.58 515,014.56 $

19,877.22 9,338.65
29,215.87 561,488.51
590,704.38

876.57 $

38,463.46 $

4,625.66 $ 1,319,491.03 $ 727,518.42

-17-

BURKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENPIIURES AND CHANGES IN FUND BAI ANCES
SPECIAL RE\{ENUE FUND
YEAR ENDED JUNE 3Q 1994

~
Slate Funds Federal Funds Local and Other Funds
Total Revenues
EXPENQITllRES
Current Instruction Support Sefvices Pupil Sefvices Improvement of ln&lruclional Sefvices Educational Media Sefvices General Adminlslralion Maintenance and Operation of Plant St.- Transportation Sefvices Central SUpport Sefvices Other SUpport Sefvices Food Services Operation Community Service Operations
Total Expenditures
Excess of Revenues _,. (under) Expenditures
QTtJER EINANCINS. SQURCES
Operating Transfers In
Excess of Revenues and other Financing Sources ow,r {under) Expenditures
El/NP BALANCE JULY 1
Food Inventory- Net Change In Period Donated Commodities Purchased Food
Residual Equity Transfer

SCHOOL FOOD
SERVICES FUND

ADULT EDUCATION

AFTER SCHOOL PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 110,182.00 $ 1,156,719.59 112,399.60
$ 1,379,301.19 $

37,510.20 $ 17,678.53
55,188.73 $

0.00 $ 215,347.79 $
0.00 $ 215,347.79 $

52,746.54 52.746.54

$ 55,117.53 $ 213.83 600.00

$ 1,457,366.07

$ 1,457,366.07 $ $ -78,064.88 $

55,931.36 $ -742.63 $

0.00 $ 146,987.84 $
12,916.04 3,703.36 28,941.01
21,060.44

1,248.62 490.48

0.00 $ 215,347.79 $

0.00 $

0.00 $

602.79 51,997.75
146.00
52,746.54 0.00

742.63

$ -78,064.88 $

0.00 $

0.00 $

0.00 $

0.00

579,599.33

0.00

11,105.05

0.00

0.00

7,738.24 4,865.30

-11,105.05

FUND BALANCE JUN!; 30

$ 514,137.99 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-18-

EXHIBIT"F"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEII-

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT - AND SCIENCE

CHILDREN

FLOW THROUGH

EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

1,2'45,228.55 $

$

1 2'45,228.55 $

48,419.16 $ 48,419.16 $

26,236.30 $ 120,215.70 $

$ 25,683.97

26,236.30 $ 120,215.70 $ 25,683.97 $

363,039.99 $ 2,692,928.34
112,399.60
3,168,367.93 $

116,199.54 2,483,982.04
175,863.22
2,776,044.80

$

1,105,764.59 $

1,126.31 2,455.82

68,224.59

67,295.43 361.81

$

1,2'45,228.55 $

$

0.00 $

$

0.00 $

0.00

0.00 $

48,269.16 $
150.00
48,419.16 $ 0.00 $

$ 25,359.73

74,763.24 $
11,429.44 2,387.77
31,635.25

25,359.73 $ 120,215.70 $

876.57 $

0.00 $

22,083.97 $
3,600.00 25,683.97 $
0.00 $

1,453,589.12 $
25,471.79 86,118.26 28,941.01 100,155.84 21,660.44
3,600.00
68,544.05 1,458,218.36
3,248,298.87 $
-77,930.94 $

1,177,597.56 66,814.24 5,200.00 88,927.90
22,658.08 1,516,417.25
48,169.39 2 923,784.42
-147,739.82

0.00 $ 0.00

876.57 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

742.63

1,935.27

-77,188.31 $ 590,704.38

-1 '45,804.35 732,384.88

7,738.24 4,865.30 -11,105.05

1,815.05 2,308.80

0.00 $

876.57 $

0.00 $

0.00 $

515,014.56 $

590,704.38

-19-

BlJBKE GQl INJY ROABP 9f fpt JCADQN COUR1N1NG RAJ ANCf SHEET CAPITAL PROJECTS BJNQ
RlNf 39 1994

EXHIBIT"'G''

=m
cash and Ce8h Equivalent& Accounts Receivable

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

90J90S-617-008 911918-617-005 921928-617-012

TOTALS JUNE 30 1994 JUNE 30 1993

s 5,763,478.21 s 1,950,sn.29 s

60,180.00

$ 7,774,235.50 $ 6,875,407.01

521 724.40

861 029.58 1 382753.98

388 999.34

S 5 763 478.21 $ 2 472 301.69 $

60 180.00 $ 861 029.58 $ 9156 989.48 S 7 264 406.35

LIARII ITTES AND Ft JNP EQUITY
~
CoshOYeroraft Contracts Payable Retainages Payable
Total Liabilities
~
Fund Balances R....-..d For State eap;tal Outlay Projects lJnrMelWd Undeoignated
Total Fund Equity

S 5 763 478.21 S 5 763 478.21 S

n,344.56 n344.56

627,233."16 $ 147,693.67 86102.45
861 029.58 $

627,233.46 225,038.23 86102.45 $
938374.14 $

371 432.94 371 432.94

2,394,957.13 $

60,180.00

S 2,455,137.13 $ 1,642,709.68

0.00 ---~o=.oo~s _ ___,o=.oo~ 5 763 41e.21

5 250 263.73

2 394 957.13 S

601eo.oo s _ ___,o~.oo"-s 8 21e s1s.34 s 6 992 973.41

Total Liabilities and Fund Equity

$ 5763478.21 S 2472301.69 S

60 180.00 S 861 029.58 $ 9156 989.48 $ 7 264 406.35

See notes to the general purpose financial statements

-20-

BURKE COI.JNJY BQARQ 9f EDUCATION COMBINING STATfMENT 9f REYfNUfS EXPfNQffiJBfS AND CHANGES IN R.JNP BALANCES
QAPfTAt PRO,JFCTS F( NP YEAR ENDER JllNf ;m 1994

EXHIBIT"H''

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

90190S-617-008 91191S-617-005 92/92S-617.012

TOTALS JUNE 30 1994 JUNE 30 1993

~

state Funds Local and Other Funds

$ 123 353.89

150,291.-46 $

0.00 $

861,029.58 S 1,011,321.04 $ 123 353.89

2,570,108.92 223 061.06

Total Revenues

S 123 353.89 $

150291.46 S _ _ __;0c,.00,cS

861 029.58 $ 1134 674.93 $ 2 793 169.98

EXPfNPm IRES

Cu.-
-SuppartSeMces Bulinea Administration Professional and Technical
Supplieo capital Outlay
BYilcfing and Build"1g ,.,,.,....,,_ $ Equipmern

108,133.88 $

1,399,279.98 210 718.40

0.00

82,n6.oa

18,367.45

1,240,900.74 $

2,748,314.60 210 718.40

4,032,282.55

Total Expenditures

$ 108133.88 S 1609998.38 $

0.00 S 1240900.74 $ 2 959 033.00 $ 4133 426.08

Excess rl Revenues OYer (under) Expenditunls

15 220.01 $ -1 459 706.92 S

0.00 S

-379871.16 $ -1 824 358.07 $ -1 340 256.10

QllifR FINA~ING SQ!.IR~S 11SfSl
Operating Tranafers In ClpelatingT,.,_.Out

s 674,435.33 $
-176 440.86

2,331,244.37

320,761.16 S 3,326,440.86 $ 2,067,093.72

-176 440.86

-1817093.72

Total other Financing Sources

(~)

s

497 994.47 $

2 331 244.37

320761.16 $ 3 150 000.00 $

250 000.00

Excess d Revenue& and other Financing

Sources a.er (under) Expenditures and

Other Financing U&e6

$

513,214.48 $

871,537.45 $

0.00 S

--59,110.00 $ 1,325,641.93 $ -1,090,256.10

A.JNQ BAL ANCf llJ! Y 1

5 250 263.73

1523419.68

60 180.00

59110.00

6 892 973.41

7 983 229.51

F!.lNP ~~ J!.!NE ~

$ 5 763 478.21 $ 2394957.13 S

60180.00 S

0.00 $ 8 218 615.34 S 6 892 973.41

See notes to the general purpoae financial statementt.

-21

SL!Bts:E ~QU~TY ~Q~BQ QE ECL!~~IIQ~
:i!.!:lfC!ULf QF FEC!EBllL Elt!lllt!l!.llll ll:i:ilfilllt!l!.f
Yf/\B Et,IC!EC! /Ut,IE 3Q 1994

SCHEDULE "1

FUNDING AGENCY PBQGMM{GBllt!II
Agricultu,e, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Child and AdUlt care Food Program 1994 Contract Food Services School Breakfast Program 1993 Grant 1994Grant National School Lunch Program 1993Grant 1994Grant Food Distribution Program (1)

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OFREFUNDSl

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.558 $

1,229.60 $

10.553 10.553
10.555 10.555 10.550

43,473.62
987,545.67 124470.70

1,229.60 $

1,229.60

(2)

1,142.99 38,366.92
9,170.85 976,804.92 N/A

43,473.62

(2)

987,545.67 $ 124470.70

1,332,895.37 (3) 124470.70

Total U. S. Department of Agriculture

$ 1156 719.59 $

1 026 715.28 $ 1 156 719.59 $ 1457386.07

Education, U. S. Department of

Through Georgia Department of Education

Drug-Free Schools and Communities Act

1993Grant

84.186

1994 Grant

84.186 $

Elementary and Secondary Education Act

Chapter!

Education of Deprived Children

1992 carry-0,er

84.010

1993 Ragular

84.010

1993 CBny-Over

84.010

1994 Ragular

84.010

1994SUmmer

84.010

Chapter2

Block Grant Flow Through

1994 Ragular

84.151

Tille II

E - Mathematics and Science

Education

1994 Ragular

84.164

Individuals wilh Disabilities Education Act

Tille VI, B

Flow Through

1992C8ny-Over

84.027

1993 Ragular

84.027

1993 carry-O;er

84.027

1994Ragular

84.027

Preschool Program

1992 car,y-0ver

84.173

1993 Regular

84.173

1993 cany-Over

84.173

1994Regular

84.173

Vocallonal Education Basic Grants to states

High School Program

Basic Grant

1994Grant

84.048

supplementary State Grants for Facilities,

Equipment and other Program

Improvement Activities

1994Grant

84.253

$ 55,104.00
56,995.00 291,378.00 1,061,437.00 182,624.00 50,136.00
28,682.00
17,162.00 108,884.00
9,751.00 31,812.00
40,766.13
2,756.00

748.40 35,435.62 $

52,746.54 $

52,746.54

56,995.00 100,448.65 137,142.78 499,685.19
42,721.93

56,995.00
268,649.19 911,231.80
8,352.56
48,419.16

56,995.00
268,649.19 911,231.80
8,352.56
48,419.16

26,236.30

26,236.30

25,359.73

16,945.00 19,001.50 17,162.00 64,590.24
6,688.37 2,712.03 9,751.00 11,307.31

17,162.00 103,053.70
9,751.00 15,932.97

17,162.00 103,053.70
9,751.00 15,932.97

40,766.13

40,766.13

(4)

2,756.00

2,756.00

(4)

22.

BURKE COUNTY BOARD Of EQlJCATION SCHEDULE Of FEDERAL FINANCIAL ASSISTANCE
YEAR ENPEP JUNE 30 1994

SCHEDULE "1

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Through Augusta Technical Institute Adult Education 1991 Grant 1992 Grant 1993 Grant 1994Grant
Total U. S. Department of Education
Defenee, U. S. Department of Through Department of the Air Force R.O.T.C. Program 1994 C'"1tract
-nee Total F- Financial

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.002 84.002 84.002 84.002 $

$ 19671.72

$ 1 957 158.85 $

$
2,311.21 14864.29

-124.15 -165.97
17968.65 $

1108 268.95 $ 1 579 730.88 $

55 931.36 (3) 1573585.01

$ 20862.80 $

20862.80 $ 20862.80

(4)

$ 3134741.24 $

2 155 847.03 $ 2 757 313.27 $ 3030951.08

Major Program& are idenlifNld ti an asterisk (") in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program , . - the Federally assigned value of nonmonelary
...-nee for donated commodilie& received and/or consumed tJ the system during the current fiscal year. (2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program _,, not maintained
oeparately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and other Funds.
Expenditures are not maintained ti fund source. (-4) "-1ditunis on this program were not maintained ti fund source.

See notes to the general purpose financial statements.

- 23 -

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

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
First National Bank, Waynesboro, Georgia
INTEREST BEARING ACCOUNTS
Bank of Burke County, Sardis, Georgia
N.O.W. Account (2.78%)
First National Bank, Waynesboro, Georgia
N.O.W. Accounts (2.00%) Certificates of Deposit
No. 14281 (3.30%) No. 15428 (3.70%)
First National Bank and Trust, Louisville, Georgia
Certificates of Deposit No. 20942 (3.60%) No. 22307 (3.35%)
First Union National Bank of Georgia, Waynesboro, Georgia
Certificates of Deposit No. 8768878 (3.49%) No. 8768887 (3.68%) No. 8768917 (4.00%)

$

70,202.22

$ 456,471.13
809,897.90 15,362.66
4,047,864.90

1 ,000 ,000 .00 1,697,713.TT

2,480,224.21 7,631,981.92 4,100,461.95

22,239,978.44

$ 22,310,180.66

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

BURKE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3"

Augusta Technical Institute Adult Education Federal State
Burke County Tax Commissioner County Wide School Tax
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Federal Programs Drug-Free Schools and Communities Act ESEA - Chapter 1 Education of Deprived Children ESEA - Chapter 2 Individuals with Disabilities Education Act-Title VI, B Flow Through Preschool Program
Georgia 5 - Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 3,104.36 4,951.26
$ 118,538.02

$

3,104.36

4,951.26

118,538.02

5,106.70 10,740.75
17,310.92
551,405.58 5,697.23

5,106.70 10,740.75
17,310.92
551,405.58 5,697.23

38,463.46 4,625.66

38,463.46 4,625.66

- - - - $ 1,382,753.98 1,382,753.98

$ 118,538.02 $ 641405.92 $ 1 382753.98 $ 21142,697.92

See notes to the general purpose financial statements.

- 25 -

BURKE COUNIY BOARD OF EDUCATION SCHEDUl E OF STATE REVENUE
YEAR ENPEP IUNE 30 1994

SCHEDULE "4"

AGFNCV/FUNPING

GRANTS

Education, Georgia Dopal1menl al

Quality Basic Education

General and CarNr Education Programs

Speoial Education Programs

Remedial Education Program

Media Center Programs

Stall Development Programs

Indirect Coot

Pupil Transportation

Regular

Bus Roplac:ement

Middle School lnc:entiw

Speoial Instructional Assistance

In-School Suspenoion

Mid-term Adjustment

FIICIIIYr

1993

1994

Local Fair Share

Food Services

Vocational Education
011w S - Programs

Gowrnor's Emergency Funds (1)

-TNChor Program

PrelChool Handic:appod Program

Supe,,,iaion nd -

al Student and

Beginning Tchers and p-....,_

-

Crtification

Lottory Programs

Algol>raClessrooms

Compulor$ in Classrooms

Distant Leaming

Media Center and Library Equipment

Pre-Kindrgarten Program

Safa Schools Grant

Aug.a Technical Institute Adutt Education

Financing and Investment Commission, GeorgiaSReimbu"""""'11 on Cons1n1c:1ion Projects

Georgia Public Telecommunications Commission Lollory Program Distant Leaming
Humn Resourooo, Georgia Dpol1menl al Through Aug.a Technical Institute PEACH Plojeet (Adutt Education)

OTHER Education, Georgia Dpol1menl al 1993 FTE Adjustment

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

7,343,051.00 796,826.00 370,762.00 321,986.00 106,058.00
2,248,122.00
653,905.00 175,636.00 212,096.00 231,624.00 82,691.00

343.00 122,153.00 -8,850,546.00
4,660.00
2,500.00 16,560.00
52,1 0.00

110,182.00

3,050.00

2,305.18 36,6 .00
3,69 .35 1,48.13 1 5,951.54 20,78.58

11,82.80

$ 7,343,051.00 796,826.00 370,762.00 321,986.00 106,058.00
2,2-48,122.00
653,905.00 175,636.00 212,096.00 231,624.00 62,691.00
343.00 122,153.00 -8,850,546.00 110,182.00
4,660.00
2,500.00 16,560.00
52,1 0.00
3,050.00
2,305.18 36,6 .00 3,694.35
1,48.13 1 5,951.54
20,78.58
11,82.80

$ 1,011,321.04

1,011,321.04

4,735.00

4,735.00

25,667.0

25,667. 0

257.00

257.00

(1) Fo, Burlol County Communilieo in Schools Program

3,873,874.00 $ 363,039.99 $ 1,011,321.04 $ 52-48,235.03

See notes to the general purpose financial -ements.

26.

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

SCHEDULE "5"

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax

$ 15,334,749.22 168.92
8,419.06

$ 15,334,749.22 168.92
8,419.06

Other Anti-Trust Milk SeWement Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Rents Sales Breakfast Lunches School Assets Shared Service Contributions Georgia Cities in Schools, Incorporated Tuition Other

$ 76,589.00
75.00

2,743.75

20,409.89 408,596.93
3,235.99 2,498.00

12,141.94 $ 123,353.89

15,640.00

17,490.34 80,023.57

27,184.98 1,681.30
61,833.00

2,743.75 76,589.00
75.00
20,409.89 544,092.76
3,235.99 2,498.00
17,490.34 80,023.57 15,640.00
27,184.98 1,681.30
61,833.00

$ 15,961,081.29 $ 112,399.60 $ 123,353.89 $ 16,196,834.78

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

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

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 11,306,628.17 $ 1,364,697.92 $ 12,671,326.09

2,949,208.65

324,091.21

3,273,299.86

38,036.50

5,059.45

43,095.95

339,889.48

16,950.96

356,840.44

25,783.50

25,783.50

85,917.40

363.00

86,280.40

80,451.68

12,254.35

92,706.03

600.00

600.00

196,161.00

196,161.00

51,982.12

1,117.47

53,099.59

9,341.44

9,341.44

24,921.00

24,921.00

56,260.02

23,721.92

79,981.94

1,269,403.14

340,537.79

1,609,940.93

681,859.66

19,573.78

701,433.44

764,969.90

764,969.90

196,831.45

17,806.49

214,637.94

15,239.99

8,510.60

23,750.59

20,409.89

20,409.89

26,728.81

1,266.00

27,994.81

629,447.75

315,026.70

944,474.45

Total Expenditures

$ 17,974,750.32 $ 3,246,298.87 $ 21,221,049.19

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

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

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

EXPENDITURES

Operating Costs

Salaries

Employee Benefrts

Travel of Employees

Professional and Technical Services

other Purchased Services

Supplies

$

Food Usage

Books, Textbooks and Periodicals

Dues and Fees

other Expenditures

2,305.18 $

2,329.77 $

3,694.35 $

1,448.13

Nonoperating Costs Equipment

34 134.23

Total Expenditures

$

2,305.18 $

36,464.00 $

3,694.35 s _ _ _ _1.;..44~s~.1~3

See notes to the general purpose financial statements.

- 30 -

SCHEDULE "T'

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

G.P.T.C. DISTANT LEARNING

TOTAL

$

34,709.49

$

34,709.49

7,032.72

7,032.72

622.67

622.67

750.00

750.00

1,248.62

1,248.62

61,615.61 $

11,852.60 $

4,735.00

87,980.64

490.48

490.48

10,828.48

10,828.48

300.00

300.00

378.47

378.47

27 975.00

8 896.99

71 006.22

$

145,951.54 $

20 749.59 $

4 735.00 $ 215,347.79

- 31 -

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

SCHEDULE "8"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$

8,950,100.00 $

106,500.00

$

9,978,160.47

846,269.28 $

$

10,824,429.75 $

109,134.04 109,134.04

-118,760.00

s

10,705,669.75 $

-16,232.25 92,901.79

$

0.00 $

13 598.21

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

BURKE cqt,JNTY BOARD OF fpt )CATION ANALYSIS OF Lt1N1Ml lM EXPFNPm.JRE REQ IIRFMENTS - RY ffiOGBAM
GENfRAL FLJNP - OI JAL llY RA.SIC EQI JCATJQN PBQGRAM
VEAR NPfp JUNE 3Q 1994

GENERAi ANP CAREER EDI. JCAT1QN ffiOGRAMS Kindergarten rJ G..-1-3(")
Sub-Total - K-3 G..-4-5(")
Grade& 6 - 8 rJ G..-9-12(1 High School l.abonltolies (1
Vocational Education Laboratories M
TOUII General and career Education Programs
SPECIAL EQI.JCATIQN pROGRAMS Regular Programs Catego,y I rJ categayll (1 categaylll (1 Catego,y IV (1 ttinerant
Suppjemenlal Speech SUb-Tolal - Regular
Catego,y V (Gifted) rJ
Total Special Education Programs
RfMEQIAJ fQUCATIQN ffiOORAU (j MEQIA CENTER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF PfYf\ QPMfNT PRQGRAMS (1) Cost d Instruction
--..1C11M11opment
Total Staff CIIM!lopment
(j Identifies Thirteen Weighted Programs Nole: (1) $12,327.75oftheallotmentforPro!essional
OeYek1pment has been transferred to Cost d 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

MID-TERM

REQUIRED

791,706.00 1834836.00 2,626,542.00
964,500.00 1,844,262.00 1,169,035.00
292,685.00 446 027.00 7 343 051.00

90 $ 90 90 90 90 90

712,535.40 $

0.00 $

1 651 352.40

2,363,887.80 $

0.00 $

868,050.00

1,659,835.80

1,052,131.50

263,416.50

401 424.30
6 608 745.90 $ _ _ __,o"'.oo"'" s

712,535.40 1 651 352.40 2,363,887.80
868,050.00 1,659,835.80 1,052,131.50
263,416.50 401 424.30 6 608 745.90

TT2,633.00

695,369.70 S 117,475.00 S 812,844.70

n2,633.oo 24193.00 796 826.00 370 762.00 321 986.00

90 $ 90
90 $ 90

695,369.70 S 21 TT3.70 717143.40 $ 333 685.80 $ 289 787.40 S

117,475.00 $
117 475.00 $ 0.00 S 0.00

812,844.70 21 n3.70 834 618.40 333 685.80 289 787.40

$ 8,832,625.00

7,949,362.50 S 117,475.00 $ 8 066,837.50

36,200.75 100 S 69 857.25 100

36,200.75 S 69 857.25

442.00 $

36,642.75 69 857.25

106,058.00

106,058.00 $

442.00 $

106,500.00

8,938,683.00

8,055,420.50 S

117,917.00 $ 8173,337.50

- 34 -

SCHEDULE ''9"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENOITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

693,782.10 $

850,388.79

18,753.30 $

40,455.74

1598588.10

2150 571.02

52 764.30

107 669.18

2,292,370.20 S 3,000,959.81 $

0.00

71,517.60 $

148,124.92 s

0.00

840,883.70

1,013,363.99

0.00

27,186.30

51,354.92

0.00

1,609,500.60

2,120,936.61

0.00

50,335.20

249,786.67

0.00

1,004,759.10

1,381,489.39

0.00

47,372.40

165,926.82

0.00

251,603.10

329,198.11

0.00

11,813.40

14,041.80

0.00

348 245.10

479 389.53

0.00

53179.20

81 967.44

0.00

s $ 6 347 341.80

8 325 337.44 $

0.00

261 404.10 $

711 202.57 s

0.00

3,527.10 487,399.40 S 259,540.20
37,614.60 1,515.60 3 031.20

219,881.37 615,615.40
67,518.67

184.50
11,494.70 s
7,221.60
1,315.80

6,652.53 16,091.12
5,326.09

792,628.10 $

903,015.44 $

0.00

20,216.60 s

s 28,069.74

0.00

21158.10

46 415.09 $

0.00

615.60

3458.12 S

0.00

813 786.20 $

949 430.53

20 832.20 $

31 527.86

327 768.30 s

359 514.83 $

0.00

5 917.50 S

6 670.52 $

0.00

=534.90 s 343Bn.67 s

0.00

67 252.50 s

96 868.33 s

0.00

s 7 711 43i.20

9,978 ,so.47 $

0.00

355 406.30 $

846,269.28 $

0.00

7,711 43i.20 $ 9,978, 160.47 $

36,642.75 s
69 857.25

s 52,875.00
56 259.04

0.00 i3 598.21

106,500.00 $

109134.04 $

13,598.21

0.00

461,906.30 $

955,403.32 s

13,598.21

35

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
VEAR ENDED JUNE 30 1994

SCHEDULE "10"

BOARD MEMBER ADDRESS
Mr. John M. Jenkins, Chairman (') 232 Dogwood Drive Waynesboro, Georgia 30830
Mr. Arnold Bell (') 12932 Highway 23, South Sardis, Georgia 30456
Mrs. Anne W. Perry (') 9638 Highway 56, South Midville, Georgia 30441
Mrs. Lela Stone (') P.O. Box18 Waynesboro, Georgia 30830
Mr. Paul Williams(') 579 Old Waynesboro Road Waynesboro, Georgia 30830

COMPENSATION

TRAVEL

$

3,000.00 $

2,317.70

2,400.00

3,612.12

2,400.00

2,933.73

2,400.00

3,062.18

2,400.00

1,257.77

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

$

12,600.00 $

13,183.50

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

SECTION IT COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR (404) 556-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1995

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

94CRL-10

This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,

CLV:cm 94CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1995

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

We have applied procedures to test the Burke County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Burke County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule of Findings 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,
~~/4
Claude L. Vickers State Auditor
CLV:cm 94CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1995

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

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

Ladies and Gentlemen:

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

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

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994. The management of the Burke 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-80

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1995

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

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

Ladies and Gentlemen:

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

In connection with our audit ofthe fiscal year 1994 general purpose financial statements of the Burke 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 of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(I) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Burke County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing

94CRL-120

came to our attention that caused us to believe that the Burke 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 ofthis report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Burke 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 Burke County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 30, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of the Burke 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 ofthe Burke County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, 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
94ICL-4

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

(1) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

For all ofthe internal control categories listed above, we obtained an understanding of the design ofrelevant 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 ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

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

(1) Accounting Controls (Overall)

(2) Cash and Cash Equivalents

(3) Employee Compensation

(4) General Fixed Assets

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

94ICL-4

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, as descnbed in the Schedule ofFindings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses:
(I) Accounting Controls (Overall)
(2) General Fixed Assets
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Burke County Board of Education's financial statements and this report does not.affect our report thereon dated June 30, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted, ~
&;,~/~
Claude L. Vickers State Auditor
CLV:cm 94ICL-4

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Burke 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 Burke County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 30, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Burke County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 30, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState 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 Burke County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration 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 June 30, 1995.
94ICL-7

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

During the year ended June 30, 1994, the Burke County Board ofEducation expended 81% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as descnbed above that are applicable to each of the Board's major Federal financial assistance programs, which

94ICL-7

are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public 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 descnbed in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation ofone or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit ofthe Burke County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated June 30, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
:zw;~

CLV:cm 94ICL-7

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994

PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Incorrect Payments to Board Members Financial Statements Finding Deleted Audit Control Number 6171-93-01
The audit report for the year ended June 30, 1988, disclosed that payments of$650.00 were made to Board members for "out of county" meetings held in December, 1986 and June, 1988 that were not approved in advance by the Board as required by the Official Code of Georgia Annotated Section 20-2-55. In addition, the audit report for the year ended June 30, 1990, disclosed that for the period April 1, 1990, through June 30, 1990 overpayments (net) of$200.00 were made to Board members.

A summary of net overpayments to Board members is as follows:

Board Members
Bell,Amold Jenkins, John M. Perry, Anne W. Stone, Lela Williams, George

Overpayment/ Underpayment

$

350.00

150.00

-50.00

350.00

50.00

$===85'='0='0=0
The questioned cost had not been resolved at June 30, 1994. The Board should secure reimbursement of these funds for deposit to the Board's General Fund. The underpayment should be corrected by making payment to the appropriate individual.
Reference to this finding will be deleted from audit reports in subsequent years. However, the Board is not relieved of their responsibility to secure reimbursement for overpayments and correct the underpayment.

AUDIT FOLLOW-UP/RESOLUTION Payroll Reporting Financial Statements Finding Resolved Audit Control Number 6171-93-03
The audit reports for the years ended June 30, 1992 and 1993, disclosed that the Board made payments to employees without making payroll deductions from these salaries or compensation, or issuing appropriate W2's. For the year under review, the Board implemented procedures to ensure that all salaries paid were subject to payroll withholdings and appropriate W-2's.

BURKE 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: $20,744.73 Audit Control Number 6171-93-05
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $20,744.73 for the StaffDevelopment - Professional Development Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$20,744.73 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 period.
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 6171-93-02
The audit report for the year ended June 30, 1993, stated that the Burke County Board of Education failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any one time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given a bond to the public body as set forth in this Code section... The aggregate ofthe face value of such surety bond and the face or par value of securities pledged shall be equal to not less than 11Opercent ofthe public funds being secured after the deduction of the amount of deposit insurance ... "
In the year under review, the Board again failed to have its bank balances fully collateralized. This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments.

BURKE 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 6171-93-04
The audit report for the year ended June 30, 1993, noted that the management of the Burke County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6171-94-01
Our audit disclosed that the Board had not provided for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds. This deficiency was a result of management's decision to rotate certain accounting functions. Management should review its accounting functions to determine ifemployee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule "1 " of this report are affected by this finding.

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $13,598.21 Audit Control Number 6171-94-02
For the year under review, the Board reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $52,875.00 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment of funds for the Professional Development Stipends for Staff Development - Cost of Instruction program purposes resulting in an underexpenditure of$13,598.21 for the minimum required allotment of $69,857.25 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
EMPLOYEE COMPENSATION Payroll Errors Financial Statements Reportable Condition Nonmaterial Noncompliance Amount: $421.44 (Net) Audit Control Number 6171-94-03
For the year under review, errors in the area ofemployee compensation were noted as indicated below:
I. Salary overpayments in the amount of$237.09 were made which resulted from the Board's failure to deduct excess sick and personal leave taken by employees.
2. A salary underpayment in the amount of$161.00 was made which resulted from the deduction of unapproved sick and personal leave from an employee's salary which was subsequently approved.
3. A salary underpayment in the amount of $497.53 was made which resulted from an error in calculating the employee's salary.
Procedures should be implemented by the Board to ensure that salaries are properly calculated and adjusted for excess sick and personal leave taken by employees. The Board should secure reimbursement of $237.09 for the salary overpayments and remit $658.53 to the appropriate employees for the salary underpayment.

BURKE 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 Nonmajor Program Nonmaterial Noncompliance Audit Control Number 6171-94-04
The Board failed to submit a copy ofthe 1993 audit report to the Augusta Technical Institute from whom the Board received Adult Education Program (CFDA 84.002) funds, within 30 days of receipt of the audit report. Paragraph 13fofOMB Circular A-128 requires that recipients ofFederal financial assistance submit copies ofsingle audit reports to those agencies providing Federal financial assistance within 30 days after the receipt ofthe audit report. Management stated that it was unaware ofthis audit distribution requirement. Procedures should be implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements.
Note: The Burke County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.