Audit report, Burke County Board of Education, Waynesboro, Georgia, year ended June 30, 1995

GA A?Joo .RI
E ;).<::, B95 1994-95
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, 1995

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

ALL GOVERNMENTAL FUND TYPES

3

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

22

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 CASH AND CASH EQUIVALENTS

26

3 ACCOUNTS RECEIVABLE

27

SCHEDULE OF REVENUE

4

STATE

28

5

LOCAL AND OTHER

29

BURKECOUNTYBOARDOFEDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

31

7

LOTTERY PROGRAMS

32

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL.

35

9

BY PROGRAM

36

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

38

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 ID
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 I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members ofthe 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, 1995, 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.
95ARL-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, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, 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, 1994, were improperly recorded in the year ended June 30, 1995. 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 ofthe 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, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated August 7, 1996, on our consideration ofthe Board's internal control structure and a report dated August 7, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements of the Burke County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules l through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements of the Burke County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose :financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24.
t r ~ ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:cm 95ARL-13*

BURKE COUNTY BOARD OF EDUCATION - 1-

BURKE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUNPTYPES JUNE 30. 1995

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

GOVERNMENTALFUNDlYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS {Memorandum On~ JUNE 3011995 JUNE 3011994

$ 16.514.436.31

$ 7,826,207.23 $ 24,340,643.54 $ 22,310,180.66

47,769.08 $ 756,377.07

194,028.00

998,174.15

2,142,697.92

20,459.83 111980.86

20,459.83 111980.86

27,615.46 141203.95

Total Assets

$ 16,562,205.39 $ 788,817.76 $ 8,020,235.23 $ 25,371,258.38 $ 24,494,697.99

LIAEMLmES AN12 FUN12 EOU!D'.

L!A!;!lb!IIES

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

$

$

26,428.85

5,456.56

Total Llabilitles

$

311885.41 $

FUND EQUITY

Fund Balances

Reserved

For Bus Replacement Funds

$

For Continuation of Federal Programs

For Expired Grant Balances/Questioned

Costs

For Inventories

Food

Donated Commodities

Purchased Food

For State Capital Outlay Projects

34,313.55 34,342.94
$

Unreserved Undesignated

$

68,656.49 $

1614611663.49

Total Fund Equity

$ 1615301319.98 $

99.449.05 31,498.25 105,806.78 10,597.59
$

$ 263,490.96

2471351.67 $ 2631490.96 $

99,449.05 57,927.10 $ 105,806.78 16,054.15 263,490.96
542-728.04 $

53,157.74 106,038.28
3,348.24 225,038.23
86,102.45 1751569.76
6491254.70

$

34,313.55

$

876.57

34,342.94

34,342.94

20,459.83 11,980.86
$

711254.00

32,440.69 $

71,254.00 $

5091025.40

716851490.27

s 541-466.09

7-756-744.27 $

20,459.83 11,980.86 711254.00
172,351.18 $
2416561179.16
2418281530.34 $

27,615.46 14,203.95 214551137.13
2,532, 176.05
2113131267.24
231845.443.29

Total Liabilities and Fund Equity $ 16,562,205.39 $ 788,817.76 $ 8,020,235.23 $ 25,371,258.38 $ 24,494,697.99

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

a!.!B~ QQ!.!!fiY E!QABP QE EP!.!QATION
COMa!NEP IAIEMEtil QE BE~N!.!ES EiPENP!I!.!BES ~Q Q!:!Afll~ES IN E!.!NP BALANQES
&.I. ~~RNMENTAL FUNQ MES
YEAR ENDED JUNE 30. 1995

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Ori~}
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

B~NUES
State Funds Federal Funds Local and Other Funds

$ 4,255,530.23 $ 83,271.15
17,501,945.65

810,499.28 $ 3,047,468.05
104,431.75

1,079,250.42 $ 256,399.74

6,145,279.93 $ 3,130,739.20 11,862,m.14

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

Total Revenues

$ 21,840,747.03 $ 3,962,399.08 $ 1,335,650.16 $ 27,138,796.27 $ 24,202,383.08

EXPENDITURES
Current lnstruc:tion Support Services Pupil Services Improvement d Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation d Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations d Non-Instructional Services
Capital Outlay
Total Expenditures
Excess d Revenues over (under) Expenditures

$ 12,144,386.54 $ 1,882,132.09

$ 14,026,518.63 $ 12,286,380.11

749,533.86 319,017.00 -453,487.62 822,652.76 1,433,763.16
81,968.61 1,995,702.79 1,164,077.20
n,139.97 14,190.21
63,867.95 107,452.77

105,507.11 48,852.06 102,079.54 130,047.87
2,801.74 917.52 $
61,258.05 2,000.00
76,226.57 1,510,796.28

3,489.82

3,950.00

2,794,031.41

855,040.97 367,869.06 555,567.16 952,700.63 1,433,763.16
84,770.35 2,000,110.13 1,225,335.25
74,139.97 90,416.78 1,510,796.28 63,867.95 107,452.77 2,797,981.41

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 60,540.27 71,362.81 1,458,218.36 57,498.24 107,486.44 2,959,033.00

$ 19,422,240.44 $ 3,926,568.83 $ 2,797,521.23 $ 26,146,330.50 $ 24,180,082.19

$ 2,418,506.59 $

35,830.25 $ -1,461,871.07 $

992,465.77 $

22,300.89

QTHER FINANC(Ng SQURCES (!.!SE)
Operating Transfers In Operating Transfers Out

$ -1,000,000.00

$ 1,000,000.00 $ 1,000,000.00 $ 3,150,742.63

-1,000,000.00

-3,150,742.63

Total Other Financing Sources (Uses)

$ -1,000,000.00

$ 1,000,000.00 $

0.00 $

0.00

Excess d Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ 1,418,506.59 $

35,830.25 $ -461,871.07 $

992,465.77 $

22,300.89

FUND BALANCE JULY 1
Food Inventory Net Change in Period Donated Commodities Purchased Food

15,111,813.39

515,014.56

8,218,615.34

23,845,443.29

23,810,538.86

-7,155.63 -2,223.09

-7,155.63 -2,223.09

7,738.24 4,865.30

EUND BALANCE JUNE 30

s $ 16!5301319.98 $ 541,466.09 $ 1i7sei744.27

24,828,530.34 $ 23,845,443.29

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

BURKE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 1995

EXHIBITc

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS!

REVENUES

State Funds Federal Funds Local and Other Funds

$ 4,160,325.00 $ 4,255,530.23

32,374.00

83,271.15

16,017,285.88 17,501,945.65

Total Revenues

$ 20,209,984.88 $ 21,840,747.03

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central S1.1pport Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay

$ 12,6n,143.62 $ 12,144,386.54

936,237.37 3n,431.74 615,079.08 666,562.44 1,436,606.80
78,250.78 2,135,937.01 1,543,025.89
64,111.31 29,705.75

749,533.86 319,017.00 453,487.62 822,652.76 1,433,763.16 81,968.61 1,995,702.79 1,164,on.20
72,139.97 14,190.21

100,006.85

63,867.95 101,452.n

Total Expenditures

$ 20,660,098.64 $ 19,422,240.44

Excess of Revenues over (under) Expenditures

$ -450, 113.76 $ 2,418,506.59

OTHER FINANCING (USES)

Other Uses

-1,000,000.00 -1,000,000.00

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

$ -1,450,113.76 $ 1,418,506.59

FUND BALANCE JUl:Y 1, 1994

15,168,568.83 15,111,813.39

Adjustments

-92.14

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS!

$ 120,000.00 $ 810,499.28

2,816,454.00 3,047,468.05

105,600.00

104,431.75

$ 3,042,054.00 $ 3,962,399.08

$ 1,273,910.43 $ 1,882,132.09

53,233.00 16,100.00
120,285.00

105,507.11 48,852.06 102,079.54 130,047.87

44,856.00
75,091.00 1,915,780.00
67.78

2,801.74 917.52
61,258.05 2,000.00
76,226.57 1,510,796.28

3,950.00

$ 3,499,323.21 $ 3,926,568.83

$ -457,269.21 $ 35,830.25

$ -457,269.21 $ 508,909.35 -41,819.41

35,830.25 473,195.15

FUND BALANCE JUNE 30, 1995

$ 13,718,362.93 $ 16,530,319.98

$

9,820.73 $ 509,025.40

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

BURKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Burke County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Burke County Board ofEducation:
Based upon the application ofthe 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.

- 5-

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL Fill') - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds 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 setvices 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.

- 6-

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
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 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. 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's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school

- 7-

BURKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" ofthis report:

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
Fund Balance July 1, 1994
Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods
Fund Balance June 30, 1995 (Budget Basis)

Special Revenue
Fund
$ 35,830.25 515,014.56
-27,615.46 -14,203.95 $ 509,025.40

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 authoriz.e the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other 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.

- 8-

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Burke County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on October 11, 1994 (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. 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 1994 tax year (calendar year) for the Burke County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

9.24 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations 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 of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or 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.

- 9-

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia 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. The aggregate ofthe face value of such surety bond and the market value ofsecurities shall be equal to 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 ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists ofany one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or of the State of Georgia,
(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 ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $25,028,471.83. The amounts of the total bank balances are classified into three categories of credit risk:

- 10 -

BURKE COUNTY BOARD OF EDUCATION

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

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, 1995, as follows:
Risk Category
1
2 3
Total
Note 3: NON-MONETARY TRANSACTIONS

Bank Balance
$ 500,000.00 21,374,181.06 3,154,290.77
$25,028,471.83

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

Note 4: RISK MANAGEMENT

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

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

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

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

- 11 -

BURKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994

$

0.00 $

9,210.78 $

9,210.78 $

0.00

1995

$

0.00 $ 15,535.00 $ 12,700.00 $

2,835.00

Note 5: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as ofJune 30, 1995.

Project

Unearned Executed Contracts

92/92S-617-012

$ 296,083.84

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

Note 6: CONTINGENT LIABILITIES

Amounts received or receivab1e principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to

- 12 -

BURKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS
members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $12,146,109.49; total payroll was $14,137,530.12.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1995 amounted to $2,041,731.54, of which $1,434,455.64 was made by the Board and $607,275.90 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

- 13 -

BURKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS Total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1.058.958.000,00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of$1,434,455.64 was actuarially determined and represented .2538% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.

PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe 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 long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund 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 of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

- 14 -

BURKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS
There were 154 employees covered under PSERS for the year ended June 30, 1995.
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 ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $4,996.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
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 is paid through December 31,
1996.

- 15 -

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

m!B~ COUtfiY BOARD QE EDUCATION
~MBININ~ BALANCE HEET
Pli;;Q!AI,. B~N!.!E F!.!t:Al:2
J!.!NE 30, 1995

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

ADULT EDUCATION

LOTTERY PROGRAMS

ORI.JG.FREE SCHOOLSAND COMMUNffiES
ACT

CHAPTER1

EDUCATION OF

STATE

DEPRIVED

PROGRAM

CHILDREN

IMPROVEMENT

$ 481,725.13

28,690.57$ 12,020.90 $ 24,849.00 $

9,749.42 $

612,495.21 $

272.22

20,459.83 11,980.86

$ 542,856.39 $ 12,020.90 $ 24,849.00 $

9,749.42 $

612,495.21 $

272.22

~ILmE M:AQ F!,!NQ EQUITY

LW3ILmE

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

$

$

98.80

1,291.50

Total Liabilities

$ 1,390.30 $

flJNQ EO!.!IJY

Fund Balances

Reserved

For Continuation d Federal Programs

For Inventories

Food

Donat8d Commodities

$

Purchased Food

20,459.83 11,980.86

Unreserved Undesignated

$ 32,440.69 509,025.40 $

Tolal Fund Equity

$ 541,466.09 $

8,339.33$ 261.61
3,419.96 12,020.90 $
0.00 $ 0.00 $

19,951.61 $ 4,897.39 24,849.00 $
0.00 $ 0.00 $

9,579.52 $ 169.90
9,749.42 $

474,731.75 $ 30,967.94
101,095.32 5,700.20
612,495.21 $

0.00 $ 0.00 $

0.00 $ 0.00 $

Tolal Liabilities and Fund Equity $ 542,856.39 $ 12,020.90 $ 24,849.00 $

9,749.42 $

612,495.21 $

272.22 272.22
0.00 0.00 272.22

See notes to the general purpose financial statements.

-16-

EXHIBIT"E"

SECONDARY EDUCATION ACT

mLEH-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

mLEVl,B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1995 JUNE 30, 1994

$ 481,725.13 $ 636,265.70

$

584.00 $

18,373.62 $

27,725.87 $ 21,616.26

756,3n.01

641,405.92

20,459.83 11,980.86

27,615.46 14,203.95

$

584.00 $

18,373.62 $

27,725.87 $ 21,616.26 $ 1,270,542.89 $ 1,319,491.03

$

584.00 $

18,373.62 $

27,725.87 $ 21,616.26 $ 581,174.18 $ 489,119.28

31,498.25

30,400.91

105,806.78

106,038.28

10,597.59

3,348.24

175,569.76

$

584.00 $

18,373.62 $

27,725.87 $ 21,616.26 $ 729,076.80 $ 804,476.47

$

876.57

$

20,459.83

11,980.86

27,615.46 14,203.95

$

32,440.69 $

42,695.98

$

0.00 $

0.00 $

0.00 $

0.00

509,025.40

472,318.58

$

0.00 $

0.00 $

0.00 $

0.00 $ 541,466.09 $ 515,014.56

$

584.00 $

18,373.62 $

27,725.87 $ 21,616.26 $ 1,270,542.89 $ 1,319,491.03

-17

m.!B~ COU!:lll)'. BOARt;l QE EDUCATION
COMEl!!lll~ SIA~MEffi QE BM!llUES, EXPE!llDITUBES ~D QHANGES I~ B.!~D BAlANQES
S~QI&. BM~UE E!.!lllD
YEAB ENDED JUNE 30, 1995

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

ADULT EDUCATION

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER1

EDUCATION OF

STATE

DEPRIVED

PROGRAM

CHILDREN

IMPROVEMENT

BMNUES
State Funds Federal Funds Local and Other Funds
TolalRevenues

$ 120,250.00 $ 1,321,630.31 104,431.75
$ 1.546.312.06 $

23,835.79 $ 666,413.49

26,878.63

s

50,714.42 $ 666,413.49 $

34,410.10 $ 1,447,230.77 $ 34,410.10 $ 1,447~30.77 $

2n22 2n.22

EXPENOOURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation cAPlant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay
Tolal Expenditures
Excess cA Revenues over (under) Expenditures

$
$ 1,509,605.24 $ 1,509,605.24 $

50,714.42 $ 505,837.76
35,938.31 $
6,667.47 101,525.36
7,396.11 2,801.74
840.00 38.75
1,210.48 207.51
3,950.00
50,714.42 $ 666,413.49 $

$ 36,706.82 S

0.00 $

0.00 S

$ 32,264.10
146.00

1,156,385.44
24,646.90
27,426.49 $ 554.18
104,572.62

2,000.00

77.52 57,568.00
75,016.09 983.53

34,410.10 S 1,447,230.77 $

0.00 $

0.00 $

220.92 51.30
2n.22 0.00

QTH!;R Fl~QING SQURQES

Operating Transfers In

Excess of Revenues and Other Financing

Sources over (under) Expenditures

$

36,706.82 $

FUND BAlANQE JUl,l 1

514,137.99

Food Inventory Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer

-7,155.63 -2,223.09

0.00 $ 0.00

0.00 $ 0.00

0.00 S
0.00

0.00 $

0.00

0.00

0.00

FUNQ BAlANQE JUNE 30

$ 541,466.09 S

0.00 $

0.00 S

0.00 $

0.00 S

0.00

See notes to the general purpose financial statements.

-18-

EXHIBIT"P

SECONDARY EDUCATION ACT

TITLE II-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - ANDSCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVl,B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

810,49928 $ 363,039.99

$

43,442.02 $

18,373.62 $ 117,393.12 $ 37,83726

3,047,468.05

2,692,928.34

104,431.75

112,399.60

$

43,442.02 $

18,373.62 $ 117,393.12 $ 37,837.26 $ 3,962,399.08 $ 3,168,367.93

$

43,442.02 $

7,883.99 $

88,63120 $

29,23726 $ 1,882,132.09 $ 1,-453,589.12

7,657.80

5,000.00

105,507.11

25,471.79

11,36620

3,170.98 17,933.14

'48,852.06 102,079.5-4 130,047.87
2,801.74

86,11826 28,941.01 100,155.84

3,600.00

917.52 61,258.05
2,000.00 76,226.57 1,510,79628
3,950.00

21,660.44 3,600.00
68,544.05 1,458,218.36

$

43,442.02 $

19,250.19 $ 117,393.12 $ 37,83726 $ 3,926,568.83 $ 3,246,298.87

$

0.00 $

-876.57 $

0.00 $

0.00 $

35,83025 $

-n.930.94

742.63

$

0.00 $

-876.57 $

0.00 $

0.00 $

35,83025 $

-TT,188.31

0.00

876.57

0.00

0.00

515,014.56

590,704.38

-7,155.63 -2.223.09

7,738.24 4,865.30 -11,105.05

$

0.00 $

0.00 $

0.00 $

0.00 $

5-41,466.09 $ 515,014.56

-19-

BURKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1995

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

90/90S-617-008 91 /91 S-617-005 92/92S-617-012

$ 7,685,490.27 $

0.00 $

59,755.00 $

69,462.96

194,028.00

Total Assets

$ 7,685,490.27 $

0.00 $

sei755.oo s _ _ _263_._490_.96_

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Contracts Payable Retainages Payable

Total Liabilities

FUND EQUITY

Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated

$
$ 7,685,490.27 $ _ _ _ _ _0_.00_

Total Fund Equity

$ 7,685,490.27 $

0.00 $

$

263,490.96

$ ___263=.;;.:..490.......;'.;;..96~

59,755.00 0.00 $ _ _ _ _ _0_.00_
59,755.00 $ _ _ _ _ _0_.00_

Total Liabilities and Fund Equity

$ 7,685,490.27 $

0.00 $

se,755.oo s _ _ _263_,4_eo_.96_

See notes to the general purpose financial statements.

-20-

EXHIBIT"G"

LOTTERY PROJECT
96195$-617-006

TOTALS

JUNE 30, 1995

JUNE 30, 1994

$

11,499.00 $ 7,826,207.23 $ 7,n4,235.50

194,028.00

1,382,753.98

$

11,499.00 $ 8,020,235.23 $ 9,156,989.48

$

627,233.46

$

263,490.96

225,038.23

86,102.45

$

263,490.96 $ _ _9;..a38.;;.:...37;...4""'.1~4

$

11,499.00 $

71,254.00 $ 2,455,137.13

0.00

7,685,490.27

5,763,478.21

$

11,499.00 $ 7,756,744.27 $ 8,218,615.34

$

11,499.00 $ 8,020,235.23 $ 9,156,989.48

-21 -

BURKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1995

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

90J90S-617-008 91191 S-617-005 92/92$-617-012

REVENUES

State Funds Local and Other Funds

$ $ 256,399.74

0.00 $

0.00 $

1,079,250.42

Total Revenues

$ 256,399.74 $

0.00 $

0.00 $

1,079,250.42

EXPENDITURES

Current Support Services Maintenance and Operation of Plant Salaries Employee Benefits
Capital Outlay Building and Building Improvements Equipment

$

3,306.48

183.34

622,781.31 $

15,824.69 $

425.00 $

2,155,000.41

Total Expenditures

$ 626,271.13 $

15,824.69 $

425.00 $

2,155,000.41

Excess of Revenues over (under) Expenditures

$ -369,871.39 $

-15,824.69 $

-425.00 $ -1,075.749.99

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 2,566,873.41 -274,989.96 $

-2,379,132.44

$

1,075,749.99

Total Other Financing Sources (Uses)

$ 2,291,883.45 $ -2,379, 132.44

$

1,075.749.99

Excess of Revenues and Other Financing Sources

over (under) Expen<fitures and Other Financing Uses $ 1,922,012.06 $ -2,394,957.13 $

-425.00 $

0.00

FUND BALANCE JULY 1

5,763,478.21

2,394,957.13

60,180.00

0.00

FUND BALANCE JUNE 30

$ 7,685,490.27 $

0.00 $

59.755.oo s_ _ _ _o_.oo_

See notes to the general purpose financial statements.

-22-

LOTTERY PROJECT 961958-617-006

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

$

0.00 $ 1,079,250.42 $ 1,011,321.04

256.399.74

123.353.89

$

0.00 $ 1,335,650.16 $ 1.134.674.93

$

0.00 $

3,306.48

183.34

2,794,031.41 $

2,748,314.60 210,718.40

$

0.00 $ 2.797.521.23 $ 2.959.033.00

$

0.00 $ -1.461.871.07 $ -1.824.358.07

$

11,499.00 $ 3,654,122.40 $ 3,326,440.86

-2.654.122.40

-176,440.86

$

11499.00 $ 1,000.000.00 $ 3.150.000.00

$

11,499.00 $ -461,871.07 $ 1,325,641.93

0.00

8.218.615.34

6.892.973.41

$

11,499.00 $ 7,756,744.27 $ 81218,615.34

-23-

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1995

FUNDING AGENCY PROGRAM/GRANT

CFDA

AWARDS

NUMBER IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1995 Contract Food Services School Breakfast Program 1994Grant 1995 Grant National School Lunch Program 1994Grant 1995 Grant Food Distribution Program (1)

10.558 $

3,890.00 $

3,890.00 $

3,890.00

(2)

10.553 10.553
* 10.555 * 10.555
10.550

157,731.15
1,029,786.60 1301222.56

5,106.70 141,133.65
10,740.75 1,017,693.53
NIA

157,731.15

(2)

1,029,786.60 $ 1,379,382.68 (3)

1301222.56

1301222.56

Total U.S. Department of Agriculture

$ 113211630.31 $

111781564.63 $ 113211630.31 $ 115091605.24

Education, U. S. Department of

Through Georgia Department of Education

Drug-Free Schools and Communities Act

1992 Grant

84.186

1993 Grant

84.186

1994 Grant

84.186

$

1995 Grant

84.186 $ 34,580.00

Elementary and Secondary Education Act

Chapter 1

Education of Deprived Children

1993 Carry-Over

* 84.010

1994 Regular

* 84.010

1994 Carry-Over

* 84.010

172,769.00

1994Summer

* 84.010

182,624.00

1995 Regular

* 84.010

1, 178,072.00

1995Summer

* 84.010

83,881.80

State Program Improvement

1995 Grant

* 84.218

4,947.00

Chapter2

Block Grant - Flow Through

1994 Regular

84.151

1994 Carry-Over

84.151

1,716.00

1995 Regular

84.151

42,201.00

Title II

Eisenhower Mathematics and Science

Education

1994 Regular

84.164

1995 Regular

84.164

21,117.00

Individuals with Disabilities Education Act

TitleVl,B

Flow Through

1994 Regular

84.027

1994 Carry-Over

84.027

7,834.00

1995 Regular

84.027

124,146.00

Preschool Program

1994 Regular

84.173

1994 Carry-Over

.84.173

15,879.00

1995 Regular

84.173

29,400.00

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1995 Grant

84.048

55,569.22

$
17,310.92 24,830.58

-50.00 $ ~119.90
34,580.00

-50.00 -119.90
34,580.00

131,506.41 411,546.61
91,426.00 120,933.92 636,428.40

162,979.61 112,581.36 1,170,621.39
1,048.41
272.22

5,697.23 1,716.00 41,142.02

1,716.00 41,726.02

162,979.61 112,581.36 1,170,621.39
1,048.41
272.22
1,716.00 41,726.02

18,373.62

876.57 18,373.62

38,463.46 5,830.00
83,837.25
4,625.66 15,879.00
342.00

7,834.00 109,559.12
15,879.00 21,958.26

7,834.00 109,559.12
15,879.00 21,958.26

42,950.45

55,569.22

(4)

- 24 -

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1995

FUNDING AGENCY PROGRAM/GRANT
Education, U.S. Department of Through Augusta Technical Institute Adult Education 1994 Grant 1995 Grant
Total U.S. Department of Education

CFDA

AWARDS

NUMBER IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.002 84.002 $

$ 261878.63

$ 119811614.65 $

3,104.36 201507.55 $

261878.63 $

1169810TT.82 $ 1?81 A06.96 $

50?14.42 (3) 1,750,550.10

OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program 1995 Contract

$ 27?01.93 $

27?01.93 $ 27,701.93

(4)

Total Federal Financial Assistance

$ 313301946.89 $

219041344.38 $ 31130?39.20 $ 312601155.34

Major Programs are identified by an asterisk r) in front of the CFDA number.
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) . Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

25

BURKE COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS
JUNE 30, 1995

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
Certificates of Deposit
No. 14281 (6.00%) No. 15923 (5.25%) N.O.W. Accounts (2.25%)
First National Bank and Trust, Louisville, Georgia
Certificates of Deposit
No. 23582 (5.00%) No. 22864 (5.80%) No. 22865 (6.20%)
First Union National Bank of Georgia, Waynesboro, Georgia
Certificates of Deposit
No. 8855646 (5.56%) No. 8855682 (5.56%)

$

63,656.78

$ 481,725.13

15,869.63 4,229,298.37 3,194,799.28

1,254,290.77 1,000,000.00 1,000,000.00

9,145,589.25 3,855,965.28

24,177,537.71

$ 24,241,194.49

See notes to the general purpose financial statements.
- 26 -

BURKE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "3"

Augusta Technical Institute Adult Education Federal State
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Other State Programs Alternative School At-Risk Summer School Program Remedial Summer School Program Lottery Programs Alternative School Program Federal Programs Drug-Free Schools and Communities Act ESEA - Chapter 1 Education of Deprived Children State Program Improvement ESEA - Chapter 2 Title II Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act TrtleVl,B Flow Through Preschool Program
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 6,371.08 5,649.82

$ 6,371.08 5,649.82

16,597.50 12,093.07
$ 12,e1a.n
27,393.81 5,034.36 2,722.14
24,849.00
9,749.42
612,495.21 272.22 584.00
18,373.62

16,597.50 12,093.07
12,e1a.n
27,393.81 5,034.36 2,722.14
24,849.00
9,749.42
612,495.21 272.22 584.00
18,373.62

27,725.87 21,616.26

27,725.87 21,616.26

$ 194,028.00 194,028.00

$ 47,769.oa $ 756,3n.o7 $ 194,020.00 $ 998,174.15

See notes to the general purpose financial statements.

- 27 -

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment School Counselors Grades 4 and 5 Local Fair Share Food Services Vocational Education Other State Programs Alternative School Program At-Risk Summer School Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Alternative School Program Applied Technology Labs Distant Leaming Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program
Augusta Technical Institute Adult Education
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 7,491,283.00 9TT,121.00 412,551.00 329,080.00 109,623.00
2,285,735.00

692,TT3.00 194,305.00 330,386.00 290,418.00 64,493.00 99,407.00
19,971.00 -9,235,883.00
$ 5,126.00

120,250.00

89,030.19 23,617.56 17,710.00 47,360.44 11,423.04

130,591.00 99,936.79
3,2TT.OO 70,075.60 101,645.36 260,887.74

23,835.79

$ 7,491,283.00 9TT,121.00 412,551.00 329,080.00 109,623.00
2,285,735.00
692,TT3.00 194,305.00 330,386.00 290,418.00 64,493.00 99,407.00 19,971.00 -9,235,883.00 120,250.00
5,126.00
89,030.19 23,617.56 17,710.00 47,360.44 11,423.04
130,591.00 99,936.79
3,2TT.OO 70,075.60 101,645.36 260,887.74
23,835.79

- - - - - $ 1,079,250.42

1,079,250.42

$ 4,255,530.23 $ 810,499.28 $ 1,079,250.42 $ 6,145,279.93

See notes to the general purpose financial statements.

- 28 -

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

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

$ 16,620,621.37 7,123.85 8,342.26

$ 16,620,621.37 7,123.85 8,342.26

Other Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Sales Adult Meals Supplemental School Assets Shared Service Contributions Georgia Cities in School, Incorporated Tuition Other

30,244.52
719,270.19 $
5,523.50

12,759.94 $ 256,399.74

14,438.58

83,602.60 8,069.21

17,119.12 54,830.00 24,432.26

30,244.52 988,429.87
5,523.50
83,602.60 8,069.21
14,438.58
17,119.12 54,830.00 24,432.26

$ 17,501,945.65 $ 104,431.75 $ 256,399.74 $ 17,862,777.14

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

L:>1~1c
Pct oo

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 1995

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 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 Land and Land Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 12,448,727.74 $ 1,685,495.90 $ 14,134,223.64

3,247,361.38

394,898.96

3,642,260.34

60,642.77

12,651.36

73,294.13

170,818.34

16,995.31

187,813.65

23,519.40

23,519.40

94,998.01

396.00

95,394.01

131,058.20

14,265.52

145,323.72

190,463.00

190,463.00

63,147.59

1,794.86

64,942.45

9,096.93

9,096.93

38,288.25

2,000.00

40,288.25

27,162.03

57,975.54

85,137.57

1,391,346.15

394,952.82

1,786,298.97

664,614.44

20,833.94

685,448.38

788,431.22

788,431.22

271,443.86

20,866.69

292,310.55

23,215.57

9,599.22

32,814.79

30,244.52

30,244.52

20,042.73

5,107.99

25,150.72

555,390.98

3,950.00 457,012.05

3,950.00 1,012,403.03

Total Expenditures

$ 19,422,240.44 $ 3,926,568.83 $ 23,348,809.27

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

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Communications other Purchased Services Supplies Food Usage Books, Textbooks and Periodicals Dues and Fees other Expenditures
Nonoperating Costs Land and Land Improvements Equipment
Total Expenditures

ALTERNATIVE SCHOOL PROGRAM

APPLIED TECHNOLOGY
LABS

DISTANT LEARNING

$

38,381.55 $

12,885.84 $

3,277.00

92,209.45

87,050.95

$

130,591.00 $

99,936.79 $==3=,2=7=7.=00=

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

SCHEDULE "7"

INSTRUCTIONAL TECHNOLOGY

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

TOTAL

$

$

12,275.66

$

16,636.60

23,944.70

53,439.00

65,425.00

$

70,075.60 $

101,645.36 $

118,925.38 $ 27,228.67
5,501.11 2,300.00
676.34 1,166.10 72,907.64
207.51 5,634.74
945.00 1,091.25

118,925.38 27,228.67
5,501.11 2,300.00
676.34 13,441.76 168,033.33
207.51 5,634.74
945.00 1,091.25 .

3,950.00 20,354.00

3,950.00 318,478.40

260,887.74 $ 666,413.49

- 33 -

CvJ) p-CtJ
OJ 5
-+- 0

BURKE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1995

SCHEDULE e

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 9,309,442.00 $

324,560.00

$ 10,932,508.90

--------- 948,780.00 $

860,118.70

$ 11,881,288.90

-124,137.68 $ 11,757,151.22

$

o.oo s=====o=.o=o

See notes to the general purpose financial statements. - 35 -

BURKE COUNTY BOARD Of EDUCATION ANALYSIS Of MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND 0UALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30. 1995

GENER&, ~p QABEER EQ!.!QATIQt:I ffiOGRAMS
Kindergarten (") Grades 1-3 (")
Sub-Total K-3 Grades4-5(") Grades6-8(") Grades 9 12 (") High School Laboratories (") Vocational Education Laboratories (")
Total General and Career Education Programs
SPECIAL EDUCATION ffiOGRAMS
Regular Programs Category II(") CategoryUI (") Category IV (") Sub-Total Regular Category V (Gilled) (") Total Special Education Programs
Rl;MEP!&. El:2!JQAIIQN eRQGRAM 0 Total Thirteen Weighted Programs
MEDIA QENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF peyELOflMENT PROGRAMS
Cost of Instruction Professional Development
Total Staff Development (") ldentifl&S Thirteen Weighted Programs.

Al.L0TMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

783,392.00

$

705,052.80

1,851,514.00

1,666,362.60 $

$ 2,634,906.00 90 $ 2,371,415.40 $

962,no.oo 90

866,493.00

1,883,617.00 90

1,695,255.30

1,207,480.00 90

1,086,732.00

358,479.00 90

322,631.10

444,031.00 90

399,627.90

$ 7,491,283.00

$ 6,742,154.70 $

99,-407.00 99,-407.00
99,-407.00

$

960,541.00

$

864,486.90 $

0.00

$

960,541.00 90 $

864,486.90 $

16,580.00 90

14,922.00

$

977,121.00

$

879,408.90 $

$

412,551.00 90 $

371,295.90 $

$ 8,880,955.00

$ 7,992,859.50 $

0.00
0.00 0.00 99,-407.00

$

254,062.00 90 $

228,655.80 $

0.00

75,018.00 90

67,516.20

$

329,080.00

$

296,1n.oo $

0.00

$ 9,210,035.00

$ 8,289,031.50 $

99,-407.00

$

25,836.00

$

25,836.00 $

0.00

83,787.00

83,787.00

0.00

$

109,623.00 100 $

109,623.00 $

0.00

See notes to the general purpose financial statements.

36

SCHEDULE"9"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

705,052.80 $

897,826.52 $

66,970.93 $

964,797.45

1,765,769.60

2,272,331.13

91,852.56

2,364,183.69

$ 2,470,822.40 $ 3,170,157.65 $

158,823.49 $ 3,328,981.14 $

0.00

866,493.00

1,035,745.78

48,470.84

1,084,216.62

0.00

1,695,255.30

2,355,589.26

161,791.18

2,517,380.44

0.00

1,086,732.00

1,606,224.38

162,569.08

1,768,793.46

0.00

322,631.10

363,522.20

17,901.72

381,423.92

0.00

399,627.90

556,873.35

274,110.04

830,983.39

0.00

$ 6,841,561.70 $ 9,088,112.62 $

823,666.35 $ 9,911,TTB.97

$

864,486.90

$

398,920.91 $ 503,729.86
67,810.91

6,955.89 $ 14,843.93 2,463.61

405,876.80 518,573.79
70,274.52

$

864,486.90 $

970,461.68 $

24,263.43 $

994,725.11

0.00

14,922.00

48,543.40

2,547.83

51,091.23

0.00

$

879,408.90 $

1,019,005.08 $

26,811.26 $ 1,045,816.34

$

371,295.90 $

460,834.82 $

9,641.09 $

470,475.91

0.00

$ 8,092,266.50 $ 10,567,952.52 $

860,118.70 $ 11,428,071.22

$

228,655.80 $

364,556.38

$

364,556.38

0.00

67,516.20

$

88,661.30

88,661.30

0.00

$

296,172.00 $

364,556.38 $

88,661.30 $

453,217.68

$ 8,388,438.50 $ 10,932,508.90 $

948,780.00 $ 11,881,288.90 $

0.00

$

25,836.00

83,787.00

s_ _1_09_,62,_3._oo_

$

48,716.09 $

48,716.09

74,392.64

74,392.64.

$

123,108.73 $

123,108.73 s _ _ _ _ _ _o_.oo_

37

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1995

SCHEDULE N10" .

BOARD MEMBER ADDRESS
Mr. John Jenkins, Chairman (*) 232 Dogwood Drive Waynesboro, Georgia 30830
Mr. Arnold Bell (*) 12932 Highway 23 Sardis, Georgia 30456
Mr. Willie Latimore(*) 831 Blakeney Street Waynesboro, Georgia 30830
Mrs. Anne W. Perry 9638 Highway 56, South Midville, Georgia 30441
Mrs. Lela Stone P. 0. Box 18 Waynesboro, Georgia 30830
Mr. Paul W~liams (*) 579 Old Waynesboro Road Waynesboro, Georgia 30830
Mr. Farris (Buddy) Wren (*) 7658 Highway 305 Louisville, Georgia 30434

COMPENSATION

TRAVEL

$

2,700.00 $

351.80

2,700.00

3,842.92

1,200.00

3,798.72

1,200.00

254.50

1,200.00

549.73

2,400.00

1,401.53

1,400.00

520.20

(*) Denotes Board Members Serving as of June 30, 1995

$

12,800.00 $ ====10=,7=19=.4=0

See notes to the general purpose financial statements.

- 38 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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 ofEducation as ofand for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Burke County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

95CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 95CRL-10

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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 ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. 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, 1995:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office ofManagement 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.

95CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Burke County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
t r ~ ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:cm 95CRL-50

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the 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 ofthe Burke County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. 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 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 Eannarking

(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, 1995. The management ofthe 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.

95CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the 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, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
tf~~
Claude L. Vickers State Auditor
CLV:cm 95CRL-80

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214
Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the 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 ofthe Burke County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. 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 1995 general purpose financial statements of the Burke County Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(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 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.

95CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
ti'~~
Claude L. Vickers State Auditor
CLV:cm 95CRL-120

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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 ofthe Burke County Board ofEducation as ofand for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management 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 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.

95ICL-4

In planning and perfonning our audit ofthe general purpose financial statements of the Burke County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedure for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Accounting Controls (Overall)
(2) Employee Compensation
(3) General Fixed Assets
A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above.
However, as described in the Schedule ofFindings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses:
(1) Accounting Controls (Overall)
(2) 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 ofEducation's financial statements and this report does not affect our report thereon dated August 7, 1996.
95ICL-4

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:cm 95ICL-4

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members ofthe 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 ofthe Burke County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. 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 August 7, 1996.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the 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, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit ofthe general purpose financial statements in a separate report dated August 7, 1996.
95ICL-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

(I) 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) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements

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

For all of the internal control structure categories listed above, we obtained an understanding ofthe 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, 1995, the Burke County Board ofEducation expended 79% of its total Federal financial assistance under major Federal financial assistance programs.

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

95ICL-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 certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course 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 all of the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Burke County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated August 7, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 95ICL-7

SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Financial Statements Finding Resolved Audit Control Number 6171-93-02
The audit report for the year ended June 30, 1994, stated that the Board failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia. In the year under review, the bank balances of the Board were collaterialized in compliance with State laws governing deposits and investments as required.
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, reported that the Board had an underexpenditure ofQuality 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 of Education 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 the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $13,598.21 Audit Control Number 6171-94-02
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$13,598.21 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$13,598.21 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
- 1-

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 6171-94-04
The audit report for the year ended June 30, 1994, stated that the Board failed to submit a copy ofthe 1993 audit report to all providers ofFederal funds within 30 days ofthe receipt ofthe audit report as required by 0MB Circular A-128. During the year under review, the Board submitted a copy of the 1993 and 1994 audit reports to all providers ofFederal funds as required.
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, 1994, noted that the management of the Burke County Board ofEducation had chosen not to maintain a.system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory 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.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6171-94-01
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. In the year under review, no improvement in adequate separation of employee duties was noted. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting
-2-

BURKECOUNTYBOARDOFEDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/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
functions. Management should periodically review this_ decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff.
Note: All Federal Financial Assistance Programs listed in the Schedule of Federal Financial Assistance, Schedule 11 111 ofthis report are affected by this finding.
EMPLOYEE COMPENSATION Payroll Errors Financial Statements Reportable Condition Nonmaterial Noncompliance Amount: $503.66 Audit Control Number 6171-94-03
The audit report for the year ended June 30, 1994 reported errors were made in the calculation of employee compensation. During the year under review, the Board received reimbursements in the amount of$237.09 and made additional payments of$658.53 which resolved all prior year errors. However, for the year under review, a salary underpayment in the amount of$503.66 was noted which resulted from an error in calculating an employee's salary.
Procedures should be implemented by the Board to ensure that salaries are properly calculated. The Board should remit $503.66 to the appropriate employee for the salary underpayment.
CURRENT YEAR
REPORTING - Financial Statements FEDERAL FINANCIAL REPORTS - Federal Financial Assistance Delinquent Completion Reports Major/Nonmajor Programs Nonmaterial Noncompliance Audit Control Number 6171-95-01
For the year under review, management of the Board failed to submit a final completion report by the date required by instructions of the Georgia Department ofEducation for the following programs:
-3-

BURKE COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995

CURRENT YEAR

REPORTING- Financial Statements FEDERAL FINANCIAL REPORTS - Federal Financial Assistance Delinquent Completion Reports Major/Nonmajor Programs Nonmaterial Noncompliance Audit Control Number 6171-95-01

Report Submitted

Due Date

Date Submitted

Elementary and Secondary Education Act, Chapter 1 - Education ofDeprived Children (CFDA 84.010) 1994 Carry-Over 1995 Regular 1995 Summer Grant Chapter 1 - Program Improvement (CFDA 84.218) 1995 Grant Chapter 2 (CFDA 84.151) 1995 Grant Title II - Eisenhower Mathematics and Science Education (CFDA 84.164) 1995 Grant

September 30, 1995 September 30, 1995 September 30, 1995

October 11, 1995 October 11, 1995 November 2, 1995

September 30, 1995 March 18, 1996 September 30, 1995 January 11, 1996

December 31, 1995 January 11, 1996

Exceptional Students Preschool Grant - State

September 30, 1995 January 11, 1996

Georgia Alternative School Program

July 31, 1995

January 11, 1996

This condition occurred as a result ofmanagement's failure to monitor requirements for submitting completion reports. Procedures should be implemented to ensure that final completion reports are filed in a timely manner as required.

-4-

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
FEDERAL FINANCIAL REPORTS Completion Report Not Supported by Accounting Records Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $606.25 Audit Control Number 6171-95-02
Expenditures reflected in the project completion report for the Elementary and Secondary Education Act, Chapter 1 - Education of Deprived Children Program (CFDA 84.010), 1994 Carry-Over Project were not supported by the Board's accounting records. A comparison of the project completion report to the financial records revealed that the Board reported $606.25 in expenditures in excess of amounts documented by the financial records. This condition resulted from management's failure to ensure that the project completion report was prepared from or verified to the Board's General Ledger prior to submission to the Georgia Department ofEducation.
Procedures should be implemented to ensure that information included on project completion reports is accurate and verifiable to the Board's accounting records. The fund balance of $606.25 for this project should be refunded to the Georgia Department ofEducation.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 6171-95-03
Property management records maintained by the Board for the Elementary and Secondary Education Act, Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) were incomplete and failed to meet the property management standards set forth in Chapter 41 ofthe Financial Management for Georgia Local Units ofAdministration (FMGLUA). The inventory records as presented for examination were deficient as follows:
1) The inventory records did not include an acquisition cost for all items listed. 2) The inventory listing included one item with two decal numbers. 3) Two equipment items with an acquisition cost in excess of $1,000.00 were not added to the
inventory listing.
-5-

BURKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 6171-95-03 These deficiencies occurred because management failed to review the program's compliance with applicable regulations. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41 ofthe FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records.
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.
-6-