GA A800 ,RI fj_G, 
593 
1q93-q4 
STATE OF GEORGIA DEPARTMENT OF AUDITS 
254 WASHINGTON STREET ATLANTA. GEORGIA 30334 
 
 AUDIT REPORT BUTTS COUNTY BOARD OF EDUCATION 
JACKSON, GEORGIA YEAR ENDED JUNE 30, 1994 
 
 BUITSCOUNTYBOARDOFEDUCATION  TABLE OF CONTENTS - 
 
SECTION! 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS- OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - ACTUAL AND BUDGET 
 
GOVERNMENTAL FUND TYPES 
 
5 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
6 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
18 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
20 
 
SCHEDULES 
 
I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
22 
 
2 ANALYSIS OF CASH AND CASH EQUIVALENTS 
 
24 
 
3 ACCOUNTS RECEIVABLE 
 
25 
 
4 DEBT SERVICE REQUIREMENTS TO MATURITY 
 
26 
 
SCHEDULE OF REVENUE 
 
5 
 
STATE FUNDS 
 
27 
 
6 
 
LOCAL AND OTHER FUNDS 
 
28 
 
SCHEDULE OF EXPENDITURES BY OBJECT 
 
7 
 
GOVERNMENTAL FUND TYPES 
 
29 
 
8 
 
LOTTERY PROGRAMS 
 
30 
 
 BUTTS COUNTY BOARD OF EDUCATION  TABLE OF CONTENTS. 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS 
 
9 
 
OVERALL 
 
33 
 
10 
 
BY PROGRAM 
 
34 
 
11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
 
36 
 
SECTION II 
COMPLIANCE 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
SECTION III 
INTERNAL CONTROL 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
 BlITTS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
 
 SECTION I FINANCIAL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 5, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Butts 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 Butts County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office ofManagement and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estiniates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
94ARL-13 
 
 * The general purpose financial statements of the Board did not contain a General Fixed Assets 
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
* The Board did not report compensated absences within the general purpose financial statements as 
required by generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries 
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Butts County Board of Education as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. 
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Butts County Board ofEducation taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 11 which includes the Schedule ofFederal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Butts County Board of Education. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect of adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
94ARL-!3 
 
 A copy ofthis report has been filed as a pennanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully submitted, 
L~ 
Claude L. Vickers State Auditor 
CLV:cm 94ARL-13 
 
 BUTTS COUNTY BOARD OF EDUCATION - 1- 
 
 BUTTS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES ANO ACCOUNT GROUP JUNE 30 1994 
 
ASSETS Cash and Cash Equivalents Accounts Receivable Inventories 
Food Donated Commodities Purchased Food 
Amount Available in Debt Service Fund Amount to be Provided in Future Years 
For Payment of Bond Debt 
Total Assets 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 1,793,479.32 $ 
 
271,014.90 $ 
 
104,166.58 
 
862,692.50 
 
143,823.77 
 
16,600.63 12,231.93 
 
$ 2,656,171.82 $ 
 
443,671.23 $ 
 
104166.58 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue General Obligation Bonds Payable 
Total UabUities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commocfrties Purchased Food 
Unreserved Undesignated 
Total Fund Equity 
 
$ 
 
16,977.26 $ 
 
15,908.55 
 
77,374.33 
 
64,958.86 
 
2,260.33 
 
$ 
 
16,977.26 $ 
 
160,502.07 
 
$ 
 
$ 
 
16,736.33 
 
$ 
 
16,736.33 $ 
 
2,622,458.23 
 
$ 2,639,194.56 $ 
 
22,751.58 
16,600.63 12,231.93 51,584.14 231,585.02 $ 283,169.16 $ 
 
104,166.58 104,166.58 
 
Total Liabilities and Fund Equity 
 
$ 2,656,171.82 $ 
 
443,671.23 $ 
 
104,166.58 
 
The notes to the general purpose financial statements are an integral part of this statement. -2- 
 
 EXHIBIT"A" 
 
DEBT SERVICE 
FUND 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS (Memorandum On~ JUNE 30, 1994 JUNE 30, 1993 
 
$ 
 
22,061.97 
 
$ 2,190,722.77 $ 2,209,241.94 
 
14,392.56 
 
1,020,908.83 
 
1,052,479.34 
 
16,600.63 12,231.93 
 
26,089.06 11,862.20 
 
$ 
 
36,454.53 
 
36,454.53 
 
37,887.29 
 
68,545.47 
 
68,545.47 
 
117,112.71 
 
$ 
 
36 454.53 $ 
 
105,000.00 $ 3,345,464.16 $ 3,454,672.54 
 
$ 
 
32,885.81 $ 
 
23,242.65 
 
77,374.33 
 
63,316.13 
 
64,958.86 
 
2,260.33 
 
$ 
 
105,000.00 
 
105,000.00 
 
155,000.00 
 
$ 
 
105,000.00 $ 282,479.33 $ 241,558.78 
 
$ 
 
36,454.53 
 
$ 
 
36,454.53 
 
$ 
 
36,454.53 
 
$ 
 
36 454.53 $ 
 
$ 
 
22,751.58 $ 
 
58,043.05 
 
36,454.53 
 
37,887.29 
 
16,736.33 
 
16,600.63 12,231.93 
 
26,089.06 11,862.20 
 
$ 104,775.00 $ 133,881.60 
 
2,958,209.83 
 
3,079,232.16 
 
$ 3,062,984.83 $ 3,213,113.76 
 
105,000.00 $ 3,345 464.16 $ 3,454,672.54 
 
-3 - 
 
 BUTTS COlJNTY BOARD OF f;QUCATION PQMRINEPSTAJsMENT Qf BfYENUES EXPENPIIlJBFS ANP CHANVJiS IN FUND RA! ANPES 
GQYFBNMENTAL FUND TYPES YsABENPEPJt1NE30 1994 
 
EXHIBIT-a- 
 
~ 
Stale Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENPIDJRES 
Cu1TOnt Instruction SupportSeivicec PupilSeivicec lmproyement of Instructional Services EducaUonal Media Services General Administration Schoo, Administration Business Administration Maintenance and OperaUon or Plant Student Transportation Services Central Suppo,t Services Other Support Services Food Services Operation Other Operations of Non.Instructional Services 
Capital Outlay 
Debi- 
Principal Interest Paying AQent Fees 
Total Expenditures 
Excocs ol ReYonuec ..., (under) Expendijun,o; 
QI!::IER E!NANCING QU~E (Y~} 
Operating Transfers ln Operating Transfers Out 
Total Other F"mancing Sources (Uses) 
Excess or Revenue& and Other Financing 
Sources over (under) Expenditures and Other Financing Use& 
EU~l2 ~ANQ~ JUL! 1 
Food Inventory a Net Change in Period Donated Commodilies Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS __E!lli!L_ 
 
DEBT SERVICE 
FUND 
 
TOTALS IMemoiandum On!r): 
YEAR ENDED JUNE30 1 - JUNE30 1993 
 
7,431,474.23 $ 5<1,811.65 
3147451.82 
 
167,046.69 $ 
 
0.00 
 
1,143,730.35 240429.32 ____ $ 
 
10 633 737.70 $ 1551.206.36 $_____Q,22_ $ 
 
6345<1.74 
 
7,598,520.92 $ 1,198,542.00 3 451 335.88 
 
7,462,082.60 1,293,297.41 3 327 492.32 
 
6345<1.74 $ 12.248 398.80 $ 12 082 872.33 
 
6,748,196.66 $ 
359,461.52 212,457.37 330,817.35 320,639.53 788,657.74 
30,963.12 953,985.58 631,201.68 
109,250.16 38,112.15 
115,550.66 25,145.49 
 
550,212.n 
35,348.60 12.231.17 2,399.00 
7,810.71 
4,192.40 42,976.17 26,163.00 40,094.13 888,654.57 
 
50,000.00 
 
10 664 439.01 $ 1 610 082.52 $ 50 000.00 $ -30 701.31 $ -58 876.16 $ -so 000.00 $ 
 
7,298,4011.43 $ 7,048,997.88 
 
3114,810.12 224,688.5<1 333,216.35 328,450.24 788,657.74 
30,963.12 958,1TT.98 674,1TT.85 
26,163.00 149,344.29 826,766.72 
 
430,703.49 217,198.5<1 328,878.76 299,153.5<1 678,859.64 
35,924.69 870,407.37 599,692.03 121,734.41 
1,STT.13 878,155.32 
 
115,550.86 75,145.49 
 
104,438.25 27,1168.09 
 
50,000.00 14.337.50 
550.00 
 
50,000.00 14.337.50 
550.00 
 
45,000.00 18,500.00 
300.00 
 
64 887.50 $ 12 389 409.03 $ 11707489.14 
 
-1 432.76 $ 
 
-141 010.23 $ 
 
375 383.19 
 
-313.18 -313.18 $ 
 
313.18 313.18 
 
313.18 $ -313.18 
0.00 $ 
 
87.lM -a7.94 
0.00 
 
-31,014.49 $ 2,670,209.05 
 
-58,562.98 $ -50,000.00 $ 
 
350,850.84 
 
154,166.58 
 
-1,432.76 $ -141,010.23 $ 
 
375.383.19 
 
37,887.29 
 
3,213,113.76 
 
2,836,453.84 
 
-9,488.43 369.73 
 
-9,488.43 369.73 
 
2,579.76 a1 303.03 
 
FUND BALANCE !UNE 30 
 
$ 2,639,194.56 $ 283,169.16 $ 104166.58 $ 
 
36 45<1.53 S 3 062 984.83 $ 3 213113.76 
 
The notes to the general purpose financial statements are an integral part of this statement. .4. 
 
 11!.l!m QQ!.l~D:'. ~BC! QE EC!!a:!QMIQ~ QQMU~E~ SIATf;ME~I QE BE~E~!a:!E~ E;!!;eEHt>.II!.lBE~ A~C! Ql::tA~~E~ IN F!a:!HC! DALANQE 
~I!.li!il Al!it! l~UJ~ET  ~~EBNMEHTAL F~JHQ D:'.PE YEAR ENPEP JUNE 30 1QQ4 
 
EXHIBIT"C" 
 
~ 
S-Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENQITLJRES 
Current 1-..ction SupportSelvices Pupil Selvices Improvement d Instructional Services Educational Media Selvices General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Selvices Cenual Support Selvices Other Support Selvices Food Selvices Clpe<ation Other Operations d Non-Instructional Selvices 
Capital Outlay DobtService 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
QT!:tEB FINAN~IN~ ~QUB!;E (USES} 
Other Sources 
Other u... 
Total Other Financing Sources (Uses) 
Excess d Revenues and Other Financing Sources owr (under) Expenditures and Other Financing 
u- 
FUNQ 1!6LIIN!.~ ~~LY 1 1993 
FQQQ INV~NTORY - N~T CHANGE IN PERIOD 
Donated Commodities Pufchased Food 
 
ACTUAL PER 
EXHIBIT"B" 
 
ACTUAL PER 
ADJUSTMENTS BUDGET BASIS 
 
BUDGET 
 
VARIANCE FAVORABLE (UNFAVORABLE) 
 
7,598,520.92 $ 1,188,542.00 3,451,335.88 
12,248,388.80 $ 
 
0.00 $ 
 
7,598,520.92 $ 1,188,542.00 3,451,335.88 
 
7,476,141.00 $ 1, 116,366.00 3,063,892.00 
 
0.00 $ 12,248,388.80 $ 11,656,499.00 $ 
 
122,379.92 82,176.00 387,343.88 
581,899.80 
 
7,288,408.43 $ 
384,810.12 224,688.54 333,216.35 328,450.24 788,657.74 30,963.12 958,177.88 674,177.85 26,163.00 149,344.29 926,766.72 115,550.66 75,145.49 64,887.50 
12,389,408.03 $ 
-141,010.23 $ 
 
0.00 $ 7,288,408.43 $ 7,318,243.00 $ 
 
384,810.12 224,688.54 333,216.35 328,450.24 788,657.74 
30,963.12 958,177.88 674,177.85 
26,163.00 149,344.29 926,766.72 115,550.66 75,145.49 64,887.50 
 
434,961.00 238,678.00 335,211.00 320,633.00 805,660.00 39,697.00 881,692.00 668,758.00 23,163.00 150,374.00 834,228.00 105,461.00 30,000.00 64,800.00 
 
0.00 $ 12,389,408.03 $ 12,351 560.00 $ 
 
0.00 $ -141,010.23 $ -695,061.00 $ 
 
19,833.57 
40,150.88 13,988.46 1,994.65 -7,817.24 17,002.26 8,733.88 23,514.02 -5,418.85 -3,000.00 1,029.71 -92,538.72 -10,089.66 -45,145.49 
-87.50 
-37,849.03 
554,050.77 
 
313.18 $ -313.18 
0.00 $ 
 
0.00 $ 0.00 $ 
 
313.18 $ -313.18 
0.00 $ 
 
1,500.00 $ 1,500.00 $ 
 
-1,186.82 -313.18 
-1,500.00 
 
-141,010.23 $ 3,213,113.76 
 
0.00 $ -141,010.23 $ -693,561.00 $ 
 
-37,951.26 
 
3,175,162.50 
 
2,331,278.49 
 
552,550.77 843,884.01 
 
-9,488.43 
 
9,488.43 
 
0.00 
 
0.00 
 
369.73 
 
-369.73 
 
0.00 
 
0.00 
 
F!,mP ML.aN~E JUNE~ 1~ 
 
3,062,984.83 $ -28,832.56 $ 3,034,152.27 $ 1,637,717.49 $ 1,396,434.78 
 
The notes to the general purpose financ~I statements are an integral part of this statement. -5- 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE30 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The Butts County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. 
The more significant 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 ofthe Butts County Board ofEducation. 
Based upon the application ofthe above criteria, the Butts County Board ofEducation is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Butts County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Fmancial Reporting Standards. 
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval. 
FUND ACCOUNTING 
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. 
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
- 6- 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. 
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities. 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-tenn principal, interest and paying agent fees. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding. 
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. 
- 7- 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. 
Expenditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994_, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
BUDGET 
The Butts County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper 
- 8- 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
of general circulation in the locality. At a subsequent meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. 
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and savings 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. 
PROPERTY TAXES 
The Butts County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on July 1, 1993 (levy date). Taxes were due on September 3, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70. l 03. The Butts 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. 
Tax millage rates levied for the 1993 tax year (calendar year) for the Butts County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): 
 
- 9- 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
School Operations School Bonds 
 
14.38 mills 2.98 mills 
 
17 36 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. 
 
COMPENSATED ABSENCES 
 
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements. 
 
However, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources is material to the general purpose financial statements and has not been recorded in the General Long-Term Debt Account Group. This presentation differs from generally accepted accounting principles. 
 
GENERAL OBLIGATION BONDS 
 
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
 
INTERFUND TRANSACTIONS 
 
The Board has the following types ofinterfund transactions: 
 
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. 
 
- 10 - 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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. 
Note 2: DEPOSITS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one of or any combination of the following: 
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia, 
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
 
- 11 - 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXIIlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1994 
 
Note 2: DEPOSITS 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Bank, the Central Banlc for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 1994, the banlc balances were $2,866,066.32. The amounts of the total banlc balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any banlc balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1994, as follows: 
 
Risk Category 
 
Banlc Balance 
 
1 
 
$ 218,381.89 
 
2 
 
2,647,684.43 
 
3 
 
0.00 
 
Total 
 
$ 2 866 066 32 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
Note4: GENERALLONG-TERMDEBT 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows: 
 
- 12 - 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS 
 
JUNE 30 1994 
 
Note4: GENERALLONG-TERMDEBT 
 
General Obligation 
Bonds 
 
Balance July 1, 1993 
 
$ 155,000.00 
 
Deductions 
 
50 000.00 
 
Balance June 30, 1994 
 
$ 105 000 00 
 
At June 30, 1994, payments due, by fiscal year which includes principal and interest for these items: 
 
Fiscal Year Ended June 30 
 
General Obligation 
Bonds 
 
1995 1996 
 
$ 59,712.50 60 087.50 
 
Total Principal and Interest 
 
$ )19 800 00 
 
Note 5: SIGNIFICANT COMMIT:MENTS 
 
At June 30, 1994, the Board had encumbrances in the amount of$127,089.07 for the unperformed portion 
of purchase orders, contracts and other commitments for goods and services associated with Lottery Programs. Lottery funds in the amount of $124,514.37 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows: 
 
Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment 
 
$ 2,124.65 52,783.19 3,993.90 68 187.33 
 
$ 127 089 07 
 
The amounts described in this note are not reflected in the general purpose financial statements. 
 
- 13 - 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXIIlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1994 
 
Note 6: CONTINGENT LIABil.,ITIES 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
Note 7 : ACCUMULATED EMPLOYEES' LEAVE 
All employees annually earn sick leave days at a rate ofone and one-quarter (1.25) days per school month (for a total of 11.25 days for nine month personnel, 12.50 days for ten month personnel, 13.75 days for eleven mont personnel, and 15 days for twelve month personnel). Unused leave days may be carried over from one year to the next until a total of sixty (60) days is accumulated. 
When an employee, who is eligible for renewal of employment, retires from the Butts County School System with a minimum of five consecutive years of service in the system immediately preceding retirement and is eligible to draw retirement from the applicable State retirement system, said employee shall receive thirty dollars for each day of earned but unused sick leave accumulated at the time of retirement. 
Twelve month employees earn vacation at the rate often days per year (one day per 23 worked for 230 day employees; one day per 24 days worked for 240 day employees). Vacation days may be accumulated from year to year, but only to a maximum oftwenty (20) days. Employees will be paid at their current rate of pay, for vacation days earned but not taken at the time of resignation, retirement, or other termination of employment, up to a maximum often (10) days. See Note 1- Compensated Absences 
Note 8: RETIREMENT PLANS 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). 
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
 
- 14 - 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEJ\1ENTS 
 
JUNE30 1994 
 
Note 8: RETIREJ\1ENT PLANS 
 
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 IO years of service) and compensation up to the time ofdisability or death. 
 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. 
 
The Board's payroll for employees covered by TR.S for the year ended June 30, 1994, was $6,560,336.92; total payroll was $7,599,022.72. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TR.Sare required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%. 
 
Total contributions made during fiscal year 1994 amounted to $1,168,397.15, of which $774,773.44 was made by the Board and $393,623.71 was made by employees. These contributions represented 11.81 % (Board) and 6% (employees) of covered payroll. 
 
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. 
 
Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows: 
 
Total pension benefit obligation 
 
$13,912,014,000.00 
 
Net assets available for benefits, at cost 
 
12 821 722 000.00 
 
Unfunded pension benefit obligation 
 
$ 1 090 292 000 00 
 
- 15 - 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1994 
 
Note 8: RETIREMENT PLANS 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. 
Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $774,773.44 was actuarially determined and represented .1485% oftotal contributions made by all participating employers. 
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. 
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) 
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia. 
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund 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 halfofwhat the employee would have received upon retirement. 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. 
There were 81 employees covered under PSERS for the year ended June 30, 1994. 
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. 
- 16 - 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
EXIIlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE30 1994 
 
Note 8: RETIREMENT PLANS 
Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $2,712.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00. 
Note 9: SURETY BONDS 
The School Superintendent, Dr. Dennis L. Fordham, is bonded in the amount of$25,000.00 with the AutoOwners Insurance Company, Lansing, Michigan, their Bond No. 897618-03001570, on which premium was paid through July 1, 1994. 
 
- 17 - 
 
 BUTTS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994 
 
~ Cash and Cash Equivalents Accounts Receivable I,,_ 
Food 
Donated Commodities 
Purchased Food 
Total Assets 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Defemid Revenue 
Total Liabilities 
FUND EQUITY 
Fund Balarnis Re&eMld For Continuation of Federal Progams For Inventories Food Donated Commodities Purchased Food 
Unreserved Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
STATE PRESCHOOL HANDICAPPED 
PROGRAM 
 
DRUG-FREE SCHOOLS AND COMMUNITIES 
ACT 
 
$ 230,375.27 $ 62,481.04 $ 
 
0.00 $ 
 
5,283.90 
 
19,250.87 
 
2,731.90 
 
16,600.63 12,231.93 
 
$ 278,458.70 $ 65,212.94 $ 
 
0.00 $ 
 
5,283.90 
 
$ 
 
1,282.07 
 
16,759.05 
 
$ 62,952.61 
 
2,260.33 
 
$ 18,041.12 $ 65,212.94 
 
$ 
 
1,083.90 
 
4,290.00 
 
$ 
 
5,283.90 
 
$ 16,600.63 12,231.93 
$ 28,832.56 231,585.02 $ 
260,417.58 $ 
 
0.00 $ 0.00 $ 
 
278,458.70 $ 65,212.94 $ 
 
0.00 $ 
 
0.00 
 
0.00 $ 
 
0.00 
 
0.00 $ 
 
5,283.90 
 
See notes to the general purpose financial statements. 
 
-18 
 
 EXHIBIT"E" 
 
ELEMENTARY AND SECONDARY EDUCATION ACT 
 
TITLEII- 
 
CHAPTER 1 
 
EISENHOWER 
 
EDUCATION OF 
 
CHAPTER2 
 
MATHEMATICS 
 
DEPRIVED 
 
BLOCK GRANT AND SCIENCE 
 
CHILDREN FLOW THROUGH EDUCATION 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
TITLE VI, B 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
TOTALS JUNE 30, 1994 JUNE 30, 1993 
 
$ 
 
0.00 
 
183.02 $ 298,323.23 $ 233,559.96 
 
$ 
 
78,728.00 
 
$ 
 
11,343.00 $ 
 
27,805.00 
 
3,965.00 
 
143,823.TT 
 
1s1,s10.n 
 
16,600.63 12,231.93 
 
26,089.06 11,862.20 
 
$ 
 
78,nB.00 $ 
 
0.00 $ 
 
11,343.00 $ 
 
27,805.00 $ 
 
4,148.02 $ 470,979.56 $ 433,121.94 
 
$ 
 
5,274.93 
 
11,243.01 
 
49,059.83 
 
1,615.83 
 
$ 
 
67,193.60 
 
$ 
 
30.82 $ 
 
22,002.58 
 
$ 
 
27,308.33 
 
95.00 
 
1,359.66 $ 
 
844.91 
 
15,908.55 $ 
 
18,954.97 
 
4,052.34 
 
3,303.11 
 
TT,374.33 
 
63,316.13 
 
390.42 
 
64,958.86 
 
2,260.33 
 
$ 
 
125.82 $ 
 
27,805.00 $ 
 
4,148.02 $ 187,810.40 $ 
 
82,271.10 
 
$ 
 
11,534.40 
 
$ 
 
11,534.40 
 
0.00 $ 
 
$ 
 
11,534.40 $ 
 
$ 1a.na.oo s 
 
$ 
 
11,217.18 
 
$ 0.00 0.00 $ 
 
11,217.18 0.00 $ 
11,217.18 $ 
 
0.00 $ 0.00 $ 
 
$ 
 
22,751.58 $ 
 
58,043.05 
 
$ 0.00 0.00 $ 
 
16,600.63 12,231.93 51,584.14 $ 231,585.02 283,169.16 $ 
 
26,089.06 11,862.20 
95,994.31 254,856.53 350,850.84 
 
0.00 $ 
 
11,343.00 $ 
 
27,805.00 $ 
 
4,148.02 $ 470,979.56 $ 433,121.94 
 
-19- 
 
 BUTTS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1994 
 
REVENUES 
S-Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Currem lnstructior, Support Services Pupil Services Improvement of ll'ISlrUclional Services EdUcatiorial Media Services Ger>eral Admir>istration Maintar>ance ar>d Operatior, of Plar,t Student Trar,sportatior> Services Cer>tral Support Services Other Support Food Services Operation 
TotalElq)enditures 
Excess of Rever,ues over (ur>der) Elq)enditul'es 
OTHER FINANCING SOURCES 
Openatir,g Transfers In 
Excess of Rever,ues ar>d Other Fir>aneir,g Sources over (ur>der) Expenditures 
FUND BALANCE JULY 1 
Food lnver>tory - Net Char,ge in Period Donated Commodities Purchased Food 
FUND BALANCE JUNE 30 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
STATE PRESCHOOL HANDICAPPED 
PROGRAM 
 
DRUG-FREE SCHOOLS AND COMMUNITIES 
ACT 
 
$ 60,986.00 $ 560,574.60 240,429.32 
$ 861,989.92 $ 
 
79,897.69 $ 79,897.69 $ 
 
26,163.00 $ 
26,163.00 $ 
 
25,332.00 25,332.00 
 
$ 
$ 885,261.43 885,261.43 $ 
$ -23,271.51 $ 
 
48,933.44 
5,226.00 321.42 
2,399.00 
4,192.40 18,779.10 
$ 46.33 
79,897.69 $ 
0.00 $ 
 
$ 
26,163.00 26,163.00 $ 
0.00 $ 
 
25,461.21 
25,461.21 -129.21 
 
-23,271.51 $ 292,807.79 
-9,488.43 369.73 
 
0.00 $ 0.00 
 
0.00 $ 0.00 
 
129.21 
0.00 0.00 
 
$ 260,417.58 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
See notes to the general purpose fir>ancial statements. 
 
-20- 
 
 EXHIBIT"F" 
 
ELEMENTARY AND SECONDARY EDUCATION ACT 
 
TITLE II- 
 
CHAPTER 1 
 
EISENHOWER 
 
EDUCATION OF 
 
CHAPTER2 
 
MATHEMATICS 
 
DEPRIVED 
 
BLOCK GRANT - AND SCIENCE 
 
CHILDREN 
 
FLOW THROUGH EDUCATION 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
TITLEVI, B 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993 
 
$ 
 
417,721.17 $ 
 
$ 
 
417,721.17 $ 
 
22,584.00 $ 22,584.00 $ 
 
11,343.00 $ 11,343.00 $ 
 
83,039.58 $ 83,039.58 $ 
 
$ 23,136.00 
 
167,046.69 $ 1,143,730.35 
240,429.32 
 
80,546.00 1,266,658.81 
236,580.63 
 
23,136.00 $ 1,551,206.36 $ 1,583,765.44 
 
$ 
 
372,451.41 $ 
 
6,802.63 10,281.47 
 
7,505.00 
 
22,215.09 
 
40,047.80 3,393.14 
 
$ 462,696.54 $ 
 
$ 
 
-44,975.37 $ 
 
22,530.48 53.52 
22,584.00 $ 0.00 $ 
 
$ 1,628.28 
30.82 
1,659.10 $ 9,683.90 $ 
 
80,836.23 $ 
221.37 1,981.98 
83,039.58 $ 0.00 $ 
 
550,212.77 $ 599,263.66 
 
23,319.97 
 
35,348.60 12,231.17 
2,399.00 7,810.71 4,192.40 42,976.17 26,163.00 40,094.13 888,654.57 
 
69,641.83 30,931.76 10,071.20 
27,024.40 843,030.13 
 
23,319.97 $ 1,610,082.52 $ 1,579,962.98 
 
-183.97 $ -58,876.16 $ 
 
3,802.46 
 
$ 
 
-44,975.37 $ 
 
56,509.77 
 
0.00 $ 0.00 
 
9,683.90 $ 1,533.28 
 
0.00 $ 0.00 
 
183.97 
 
313.18 
 
87.94 
 
0.00 $ 0.00 
 
-58,562.98 $ 350,850.84 
 
3,890.40 345,683.71 
 
-9,488.43 369.73 
 
2,579.76 -1,303.03 
 
$ 
 
11,534.40 $ 
 
0.00 $ 
 
11,217.18 $ 
 
0.00 $ 
 
0.00 $ 283,169.16 $ 350,850.84 
 
-21- 
 
 LH,lII:iii QQ!Jt.i!Y aQ6BQ QE EQ!.!Q!IIQt.i t;t:fEO!JLE QE EEOEB!L Elt.i!t.i~IAI 6~~1~Iat.it;E 
YEAR ENDED JUNE 30 1994 
 
SCHEDULE "1" 
 
FUNDING AGENCY 
PBOGRAMIGRANJ 
Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994Grant National School Lunch Program 1993 Grant 1994Grant Food Distribution Program (1) 
 
CFDA ~ 
 
AWARDS IN PERIOD 
 
FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS) 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
10.553 $ 111,840.44 $ 
 
10.555 10.555 10.550 
 
386,323.60 62410.56 
 
96,477.28 $ 111,840.44 
 
3,300.24 382,435.89 N/A 
 
386,323.60 $ 62410.56 
 
(2) 
822,850.87 (3) 62410.56 
 
Total U.S. Department of Agriculture 
 
$ 560574.60 
 
482213.41 $ 560574.60 $ 
 
885261.43 
 
Education, U. S. Department of 
 
Through Georgia Department of Education 
 
Elementary and Secondary Education Act 
 
Chapter1 
 
Education of Deprived Children 
 
1993 Regular 
 
84.010 
 
1993Summer 
 
84.010 
 
1993 Corry-Over 
 
84.010 $ 
 
1994 Regular 
 
84.010 
 
1994Summer 
 
 84.010 
 
Chapter2 
 
Block Grant - Flow Through 
 
1994Regular 
 
84.151 
 
Tlllell 
 
Eisenhower Mathematics and Science 
 
Education 
 
1993Regular 
 
84.164 
 
1994 Regular 
 
84.164 
 
Individuals with Disabilities Education Act 
 
TilleVl,B 
 
FloW Through 
 
1993 Regular 
 
84.027 
 
1993 Carry-over 
 
84.027 
 
1994 Regular 
 
84.027 
 
Preschool Program 
 
1993Regular 
 
84.173 
 
1994 Regular 
 
84.173 
 
Vocational Education - Basic Grants to States 
 
High School Program 
 
Basic Grant 
 
1993 Grant 
 
84.048 
 
1994Grant 
 
84.048 
 
Consumer and Homemaking Education 
 
1994 Contract 
 
84.049 
 
Supplementary State Grants tor Facilities 
 
1994 Contract 
 
84.253 
 
$ 36,165.00 386,156.00 41,100.00 22,584.00 
11,343.00 
11,130.00 78,892.00 23,136.00 
53,345.47 500.00 966.18 
 
42,407.08 86,025.00 14,609.00 $ 326,000.00 
 
$ 36,165.00 343,556.17 38,000.00 
 
56,509.77 36,165.00 343,556.17 26,465.60 
 
22,584.00 
 
22,584.00 
 
22,584.00 
 
11,343.00 
 
1,533.28 125.B2 
 
14,636.25 11,130.00 44,495.00 
4,461.00 19,171.00 
 
11,130.00 71,909.58 
23,136.00 
 
11,130.00 71,909.58 
23,319.97 (3) 
 
12,431.28 
 
21,003.82 
 
53,345.47 
 
(4) 
 
500.00 
 
500.00 
 
(4) 
 
966.18 
 
966.18 
 
(4) 
 
- 22 - 
 
 BUTTS CQIINIY BQARp QF EDUCATIQN SCHEQIJLE OF FEDERAi FINANCIAL ASSISTANCE 
YEAR ENDED JLJNE 30 1994 
 
SCHEDULE "1. 
 
FUNDING AGENCY 
PRQGRAM{GRANJ 
 
CFDA NUMBER 
 
AWARDS IN PERIOD 
 
FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS) 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Education, U. S. Department of Through Griffin Regional Educational Service A'Jf'f'Cf Drug-Free Schools and Communities Act 1993 Grant 1994Grant 
 
84.186 84.186 
 
25 332.00 
 
10,781.15 25 332.00 $ 
 
25 332.00 $ 
 
25 461.21 (3) 
 
Total U. S. Department of Education 
 
$ 690 649.65 $ 
 
656 532.76 $ 637 967.40 $ _ _,6-"18""7"'60""''-"40'- 
 
Total Federal Financial - n e e 
 
$ 1 251 224.25 $ 
 
1138 746.17 $ 1 198 542.00 $ 1 504 021.83 
 
Major Programs are identified by an asterisk (") in front of the CFDA number. 
 
(1) The amounts ""'""" 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) Expendltun,s for the School Breakfast Program were not maintained separately and are included in the 1994 
 
- 
 
School Lunch Program. 
 
(3) ~ r e s for this program include State, and/or Local and other Funds. 
 
Expendltun,s are not maintained by fund source. 
 
(4) Expenditures on this program were not maintained by fund source. 
 
See notes to the general purpose financial statements. 
 
- 23 - 
 
 BUTTS COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS 
JUNE 30 1994 
 
SCHEDULE "2" 
 
NONINTEREST BEARING ACCOUNTS 
McIntosh State Bank, Jackson, Georgia 
INTEREST BEARING ACCOUNTS 
McIntosh State Bank, Jackson, Georgia 
Passbook Savings Account (3.00%) Commercial Checking Account (Variable) Certificates of Deposit 
No. 12131 (4.16%) No. 11974 (3.31%) 
NationsBank, Jackson, Georgia 
Commercial Checking Account (Variable) Market Investment Account (3.65%) 
 
$ 
 
19,195.50 
 
$ 
 
2,866.47 
 
130,375.27 
 
1,000,000.00 100,000.00 
 
-235,064.07 1,173,349.60 
 
2,171,527.27 
 
$ 2,190,722.77 
 
See notes to the general purpose financial statements. - 24 - 
 
 BUTTS COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994 
 
SCHEDULE "3" 
 
Butts County Tax Commissioner County Wide Bond Tax County Wide School Tax 
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Lottery Programs Algebra Classrooms Media Center and Library Equipment Federal Programs ESEA Chapter 1 - Education of Deprived Children TIiie II - Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act TIiie VI, B Flow Through Preschool Program 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
DEBT 
 
GENERAL REVENUE 
 
SERVICE 
 
FUND 
 
FUND 
 
FUND 
 
$ 830,350.85 
 
$ 14,392.56 $ 
 
$ 15,363.16 3,887.71 
32,341.65 
332.90 2,399.00 
 
78,728.00 11,343.00 
27,805.00 3,965.00 
 
TOTAL 
14,392.56 830,350.85 
15,363.16 3,887.71 
32,341.65 332.90 
2,399.00 
78,728.00 11,343.00 
27,805.00 3,965.00 
 
$ 862,692.50 $ 143,823.77 $ 14,392.56 $ 1,020,908.83 
 
See notes to the general purpose financial statements. - 25 - 
 
 BUTTS COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY 
JUNE 30 1994 
 
SCHEDULE "4" 
 
PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30 
1995 1996 
 
TOTAL DEBT SERVICE 
 
1981 ISSUE 
 
INTEREST 
 
PRINCIPAL 
 
$ 59,712.50 $ 60,087.50 
 
9,712.50 $ 5,087.50 
 
50,000.00 55,000.00 
 
$ 119,800.00 $ 14,800.00 $ 
 
105,000.00 
 
CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Retired During Period 
 
1981 ISSUE 
 
$ 
 
155,000.00 
 
50,000.00 
 
Bonds Payable at June 30, 1994 
 
$ 
 
105,000.00 
 
MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date 
 
APR1-OCT1 APR1 
 
See notes to the general purpose financial statements. - 26 - 
 
 BUTTS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994 
 
SCHEDULE "5" 
 
AGENCY/FUNDING 
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Mentor Teacher Program Preschool Handicapped Program Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant 
Human Resources, Georgia Department of Inclusion Grant 
OTHER Education, Georgia Department of Reimbursement for Computer Supplies 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 4,812,889.00 483,917.00 39,519.00 204,143.00 65,850.00 
1,415,500.00 
244,574.00 79,630.00 177,191.00 
266,917.00 63,498.00 
-1,000,458.00 565,761.00 $ 1,384.00 
5,040.00 
5,286.98 
 
$ 4,812,889.00 483,917.00 39,519.00 204,143.00 65,850.00 
1,415,500.00 
 
60,986.00 
 
244,574.00 79,630.00 
177,191.00 266,917.00 
63,498.00 -1,000,458.00 
565,761.00 60,986.00 1,384.00 
 
26,163.00 
 
5,040.00 26,163.00 
5,286.98 
 
332.90 18,203.67 
1,486.40 2,399.00 39,475.72 18,000.00 
 
332.90 18,203.67 
1,486.40 2,399.00 39,475.72 18,000.00 
 
33225 
 
332.25 
 
500.00 
 
500.00 
 
$ 7,431 474.23 $ 
 
167,046.69 $ 7,598,520.92 
 
See notes to the general purpose financial statements. - 27 - 
 
 BUTTS COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE 
YEAR ENDED JUNE 30 1994 
 
SCHEDULE "6" 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
DEBT 
 
GENERAL 
 
REVENUE 
 
SERVICE 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax 
 
$ 3,043,715.41 122.22 
10,874.70 
 
$ 62,596.69 $ 62,596.69 
 
3,043,715.41 
 
2.53 
 
124.75 
 
225.36 
 
11,100.06 
 
Other After School Program Compensation for Loss of Assets Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Sales Adult Lunches Lunches and Breakfast Supplemental Sales Tuition Other 
 
12,317.77 7,967.01 $ 
 
90.00 
 
6,223.81 56,178A2 
908.52 
 
6,228.43 
 
4,626.00 4,517.96 
 
36,750.40 183,814.39 
13,546.10 
 
630.16 
 
12,317.77 8,057.01 
6,223.81 63,037.01 
908.52 
36,750.40 183,814.39 
13,546.10 4,626.00 4,517.96 
 
$ 3,147,451.82 $ 240,429.32 $ 63,454.74 $ 3,451,335.88 
 
See notes to the general purpose financial statements. - 28 - 
 
 BUTTS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT 
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994 
 
SCHEDULE'7" 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefi1s Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures 
Nonoperating Costs Building and Building Improvements Equipment 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS 
FUND 
 
$ 6,953,415.73 $ 645,606.99 
 
$ 
 
1,945,179.38 
 
156,795.24 
 
11,738.50 
 
3,701.61 
 
26,8TT.27 
 
53,932.51 
 
13,450.12 
 
29,457.60 
 
130,846.84 
 
16,397.52 
 
2,706.00 
 
88,340.36 
 
24,894.67 
 
36.23 
 
4,961.54 
 
97,523.96 
 
23,125.00 
 
7,628.88 
 
34,543.36 
 
501,936.66 
 
82,543.15 
 
358,878.38 
 
447,087.62 
 
152,092.14 
 
2,107.65 
 
15,400.00 
 
2,272.71 
 
6,223.81 
 
16,193.28 
 
4,242.81 
 
290 585.24 
 
$ 123 798.77 
 
50,000.00 
 
TOTAL 
7,599,022.72 2,101,974.62 
15,440.11 80,809.78 13,450.12 29,457.60 147,244.36 
2,706.00 88,340.36 24,930.90 
4,961.54 120,648.96 
42,172.24 584,479.81 358,878.38 447,087.62 154,199.79 
17,672.71 6,223.81 20,436.09 
50,000.00 414 384.01 
 
Total Expenditures 
 
$ 10,664,439.01 $ 1,610,082.52 $ 50,000.00 $ 12,324,521.53 
 
See notes to the general purpose financial statements 
 
- 29 - 
 
 BUTTS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT 
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefits Travel of Employees Repair and Maintenance Services Rents Other Purchased Services Supplies Books, Textbooks and Periodicals 
Nonoperating Costs Equipment 
 
ALGEBRA ClASSROOMS 
 
COMPUTERS IN 
CLASSROOMS 
 
DISTANT LEARNING 
 
$ 
 
1,486.40 
 
$ 
 
332.90 $ 
 
2,510.93 
 
15,692.74 
 
Total Expenditures 
 
$ 
 
332.90 $ 
 
18,203.67 $ 
 
1,486.40 
 
See notes to the general purpose financial statements. - 30 - 
 
 SCHEDULE "8" 
 
MEDIA CENTER AND 
LIBRARY EQUIPMENT 
 
PRE-KINDERGARTEN PROGRAM 
 
SAFE SCHOOLS 
GRANT 
 
TOTAL 
 
$ 
 
$ 
 
2,399.00 
 
$ 
 
2,399.00 $ 
 
13,358.44 1,711.16 613.52 
2,706.00 8,714.19 11,922.46 
449.95 
$ 
 
$ 18,000.00 
 
13,358.44 1,711.16 613.52 1,486.40 2,706.00 8,714.19 
17;165.29 449.95 
33,692.74 
 
39,475.72 $ 
 
18,000.00 $ 
 
79,897.69 
 
- 31 - 
 
  BUTTS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1994 
 
SCHEDULE "9" 
 
Minimum Expenditure Requirements (Total Allotment) 
Expenditures on Combined Program Basis Salaries Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures for Staff Development Programs in Excess of Total Staff Development Allotment for: Cost of Instruction 
Expenditures per Audit 
Amount of Underexpenditure for Total Allotment 
 
THIRTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
STAFF DEVELOPMENT 
PROGRAM 
 
$ 
 
5,540,468.00 $ 
 
65,850.00 
 
$ 
 
6,046,916.36 
 
488,434.34 $ 
 
$ 
 
6,535,350.70 $ 
 
66,089.66 66,089.66 
 
-122,784.09 
 
$ 
 
6,412,566.61 $ 
 
-16,387.41 49,702.25 
 
$ 
 
0.00 $ 
 
16147.75 
 
See notes to the general purpose financial statements. - 33 - 
 
 BlITTS CQl ttfIY BQABQ PE EQl ICATION ANALYSIS Of MINIM\ U,4 EXPfNQffiJRf BfQUIRfUENJ:S - BY PRQGRAM 
GENERAi FUND -OI IAI ITV BASIC fQUCATIQN PROGRAMS YEAR ENPEP JUNE ;w 1m 
 
GENERAi AND CABffR fptJCATIQN PROGRAMS 
Sub-Total - K-3 Grades 4  5 (1 Grades 6  8 (1 Grades 9-12 (") High School Labonltorieg (1 Vocational Education Laboratories (i 
Total General and Career Education Programs 
SPC1AI fQlJQAT]QN PROGRAMS 
Regular Programs category I (1 category II (1 category II1(1 category IV (1 Itinerant Supplemental Speech Sub--Total  Regular category V (Gifted) (1 Total Special Education Programs 
Bf;MfQIA[ fpt.JCATIQN PBQGRAM C, MSQIA CsNTfR PROORAMS 
Total Thirteen Weighted and Media Center 
STAFF PfVEl OPMl;NT PROGRAMS (1) Co&l:rllnstruction 
Tolal staff Dewlopment 
(i Identifies Thirteen Weighted Programs Note (1) S7,653.30dtheal,lotmentforProfessional 
[)eo.,eloprnent has been transferred to Cost of Instruction as authorized by OCGA 20-2-182 
See notes to the general purpose financial statements 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
TOTAL 
 
ORIGINAL _!L 
 
ORIGINAL 
 
MIO-TERM 
 
REQUIRED 
 
490,967.00 
 
441,870.30 S 
 
1306618.00 1,797,585.00 
 
90 s 
 
1175 956.20 1,617,826.50 S 
 
717,225.00 90 
 
645,502.50 
 
1,035,430.00 90 
 
931,887.00 
 
674,452.00 90 
 
607,006.80 
 
290,400.00 90 
 
261,360.00 
 
297 797.00 90 
 
268 017.30 
 
$ 4 612 889.00 
 
4 331 600.10 $ 
 
0.00 $ 441,870.30 
 
1175 956.20 
 
0.00 S 1,617,826.50 
 
0.00 
 
645,502.50 
 
0.00 
 
931,887.00 
 
0.00 
 
607,006.80 
 
0.00 
 
261,360.00 
 
0.00 
 
268 017.30 
 
0.00 $ 4 331 600.10 
 
473,030.00 
 
425,727.00 $ 
 
0.00 $ 
 
425,727.00 
 
473,030.00 10 887.00 
483 917.00 39 519.00 
204143.00 
 
90 s 
90 
90 $ 90 $ 
 
425,727.00 $ 9 798.30 
435 525.30 S 
35 567.10 s 
183 728.70 $ 
 
$ 5,540,468.00 
 
4,986,421.20 $ 
 
0.00 s 
0.00 $ 0.00 $ 
0.00 s 
 
425,727.00 9 798.30 
435 525.30 35 567.10 
183 728.70 
 
0.00 $ 4,986 421.20 
 
22,481.30 100 $ 43 368.70 100 
 
22,481.30 S 43 368.70 
 
65,850.00 
 
65,850.00 $ 
 
5,606,316.00 
 
5,052,271.20 $ 
 
0.00 $ 
 
22,481.30 43 368.70 
 
0.00 $ 
 
65,650.00 
 
0.00 $ 5,052,271.20 
 
 34  
 
 SCHEDULE "10'' 
 
REQUIRED ALLOTMENT 
 
SALARIES ACTUAL 
 
DISTRIBUTION BY RESPECTIVE PORTIONS 
 
AMOUNT OF UNDEREXPENDllURE 
FOR REQUIRED ALLOTMENT 
 
REQUIRED ALLOTMENT 
 
OPERATIONS ACTUAL 
 
AMOUNT OF UNDEREXPENDllURE 
FOR REQUIRED ALLOTMENT 
 
430,353.00 $ 
 
471,340.68 
 
11,517.30 s 
 
15,552.62 
 
1138 746.60 
 
1330741.57 
 
37 209.60 
 
70 475.12 
 
1,569,099.60 $ 1,802,082.25 $ 
 
0.00 
 
48,726.90 s 
 
86,027.74 s 
 
0.00 
 
625,531.50 
 
715,473.99 
 
0.00 
 
19,971.00 
 
24,304.93 
 
0.00 
 
903,970.80 
 
1,258,117.33 
 
0.00 
 
27,916.20 
 
98,202.09 
 
0.00 
 
580,008.60 
 
799,181.52 
 
0.00 
 
26,998.20 
 
75,720.53 
 
0.00 
 
249,780.60 
 
308,770.32 
 
0.00 
 
11,579.40 
 
23,768.01 
 
0.00 
 
232 903.80 
 
317 954.78 
 
0.00 
 
35113.50 
 
51 698.47 
 
0.00 
 
4161 294.90 $ 5 201 580.19 $ 
 
0.00 
 
s 170 305.20 
 
359 721.77 S 
 
0.00 
 
14,287.50 162,654.30 $ 194,304.60 
38,099.70 
 
260,214.05 263,800.84 
 
409,346.10 $ 9 524.70 
418 870.80 $ 34$942.50 $ 
142 029.00 $ 
 
524,014.89 S 43153.90 $ 567168.79 46 891.27 $ 231 276.11 $ 
 
4 757,137.20 $ 6,046,916.36 $ 
 
738.90 $ 3,513.60 5,337.90 1,315.80 2,097.00 3 377.70 
 
538.17 7,736.87 11,914.37 7,628.88 
 
0.00 
 
16,380.90 S 
 
27,818.29 s 
 
0.00 
 
273.60 
 
5 207.28 s 
 
16 654.50 $ 
 
33 025.57 
 
0.00 
 
624.60 $ 
 
38.02 $ 
 
0.00 
 
41 699.70 $ 
 
95 650.98 $ 
 
0.00 
 
229,284.00 $ 
 
488,434.34' $ 
 
0.00 0.00 
588.58 0.00 
588.58 
 
4,757,137.20 $ 6,046,916.36 $ 
 
22,481.30 s 
43,368.70 
 
38,868.71 s 
27 220.95 
 
65,850.00 $ 
 
66,089.66 s 
 
0.00 16147.75 
16,147.75 
 
0.00 
 
295,134.00 $ 
 
554,524.00 $ 
 
16,736.33 
 
- 35 - 
 
 BUTTS COUNTY BOARD OF EDUCATION 
 
SCHEDULE "11" 
 
SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
 
YEAR ENDED JUNE 30 1994 
 
BOARD MEMBER ADDRESS 
Mr. Ernest Battle, Chairman (*} 826 Chestnut Drive Jackson, Georgia 30233 
Mr. Joe Brown, Jr. 2248 West Highway 36 Jackson, Georgia 30233 
Mr. Millard Daniel (*} 461 Four Points Road Jackson, Georgia 30233 
Mr. Jesse Duffey (*) 231 Alta Vista Drive Jackson, Georgia 30233 
Mr. Larry Morgan (*) 263 Jim McMichael Road Jackson, Georgia 30233 
Mrs. Kay Pippen (*) 774 McCaskill Drive Jackson, Georgia 30233 
Mr. Arthur T. Presley 815 Keys Ferry Road Jackson, Georgia 30233 
 
COMPENSATION 
 
TRAVEL 
 
$ 
 
2,700.00 $ 
 
408.95 
 
900.00 
 
1,400.00 
 
541.17 
 
1,500.00 
 
2,500.00 
 
2,500.00 
 
1,000.00 
 
$ (*) Denotes Board Members Serving as of June 30, 1994 
 
12,500.00 $===9=5=0=.1=2 
 
See notes to the general purpose financial statements. - 36 - 
 
 SECTION II COMPLIANCE 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 5, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Butts 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 Butts County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 5, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
Compliance with laws, regulations, contracts, and grants applicable to Butts County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 
The results of our tests indicate that, with respect to the items tested, the Butts County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to 
94CRL-10 
 
 items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter 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 94CRL-10 
 
 C!AUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 5, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Butts 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 ofthe Butts County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 5, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
We have applied procedures to test the Butts County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994: 
 
(1) Political Activity 
 
(5) Allowable Costs/Cost Principles 
 
(2) Civil Rights 
 
(6) Audit Follow-Up/Resolution 
 
(3) Cash Management 
 
(7) Administrative Requirements 
 
(4) Federal Financial Reports 
 
Our procedures were limited to the applicable procedures described in the Office ofManagement and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 
 
94CRL-40 
 
 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Butts County Board of Education had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~~ 
Claude L. Vickers State Auditor 
CLV:cm 94CRL-40 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 5, 1995 
 
Honorable Zell :Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Butts 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 generai purpose financial statements of the Butts County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 5, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
We have also audited the Butts County Board ofEducation's compliance with the requirements governing: 
 
(1) Types of Services Allowed or Unallowed 
 
(5) Applicable Special Tests and Provisions 
 
(2) Eligibility 
(3) Matching, Level ofEffort, and/or Earmarking 
 
(6) Other Requirement Claims for Advances and Reimbursements 
 
(4) Reporting 
 
These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994. The management of the Butts County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. 
 
94CRL-80 
 
 Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes exarniniing, on a test basis, evi9ence about the Butts County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. 
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report. 
In our opinion, the Butts County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record. 
Respectfully submitted, 
#~ 
Claude L. Vickers State Auditor 
CLV:cm 94CRL-80 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 6562174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 5, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Butts 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 Butts County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 5, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
In connection with our audit of the fiscal year 1994 general purpose financial statements of the Butts County Board ofEducation and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing: 
 
(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 Butts County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 
 
With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing 
 
94CRL-120 
 
 came to our attention that caused us to believe that the Butts County Board ofEducation had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
de~ 
Claude L. Vickers State Auditor 
CLV:cm 94CRL-120 
 
 SECTION III INTERNAL CONTROL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 5, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Butts County Board ofEducation 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the Butts County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 5, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
In planning and performing our audit of the general purpose financial statements of the Butts County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. 
The management of the Butts County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, 
94ICL-3 
 
 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 pennit 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. 
 
For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories: 
 
(1) Cash and Cash Equivalents 
 
(6) Employee Compensation 
 
(2) Inventories 
 
(7) General Ledger 
 
(3) Revenue/Receivables/Receipts 
 
(8) General Fixed Assets 
 
(4) Procurement 
 
(5) Expenditures/Liabilities/ Disbursements 
 
For all ofthe internal control categories listed above, we obtained an understanding of the design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk. 
 
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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, a reportable condition was noted in the following control category: 
 
General Fixed Assets 
 
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of perfonning 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 
 
94ICL-3 
 
 reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness. 
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Butts County Board of Education's financial statements and this report does not affect our report thereon dated May 5, I 995. 
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 94ICL-3 
 
 C!AUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 5, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Butts County Board ofEducation 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTIJRE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements ofthe Butts County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 5, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Butts County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 5, 1995. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office 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 Butts County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. 
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the 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 
94ICL-5 
 
 A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated May 5, 1995. 
 
The management of the Butts County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, 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 ofinherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
 
For the purposes 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 
 
(!) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports 
 
(1) Types of Services Allowed or Unallowed 
(2) Eligibility 
(3) Matching, Level ofEffort, and/or Earmarking 
 
(5) Allowable Costs/Cost Principles 
 
(4) Reporting 
 
(6) Audit Follow-Up/Resolution (7) Administrative Requirements 
 
(5) Applicable Special Tests and Provisions 
(6) Other Requirement Claims for Advances and Reimbursements 
 
For all of the internal control structure categories listed above, we obtained an understanding of the design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk. 
 
During the year ended June 30, 1994, the Butts County Board of Education expended 69% ofits total Federal 
financial assistance under major Federal financial assistance programs. 
 
94ICL-5 
 
 We performed tests of controls, as required by O1\IB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. 
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 constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. 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 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. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~~~ 
Claude L. Vickers State Auditor 
CLV:cm 94ICL-5 
 
 SECTION IV FJNDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 BUTTS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30 1994 
PRIOR YEAR/CURRENT YEAR 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6181-93-01 
The audit report for the year ended June 30, 1993, noted that the management ofthe Butts County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
CURRENT YEAR 
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $588.58 Audit Control Number 6181-94-0 I 
For the year under review, the Board had an underexpenditure of Quality Basic Education (QBE) funds of $588.58 for the operations portion ofthe Remedial Education Program. This underexpenditure resulted from the Board's failure to meet minimum expenditure requirements for this program. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $16,147.75 Audit Control Number 6181-94-02 
For the year under review, the Board reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $38,868.71 for the Staff 
 
 BUTTS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30 1994 
CURRENT YEAR 
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonrnaterial Noncompliance Amount: $16,147.75 Audit Control Number 6181-94-02 
Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost oflnstruction Program purposes resulting in an underexpenditure of $ 16, 147.75 for the minimum required allotment of $43,368.70 for the StaffDevelopment - Professional Development Stipends Program. 
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Financial Statements Nonrnaterial Noncompliance Amount: $4,240.00 Audit Control Number 6181-94-03 
In the year under review, expenditures of$4,240.00 were made from the Board's General Fund for per diem payments to non-employees for coaching of extra-curricular activities. The Official Code of Georgia Annotated Section 20-2-411 provides, in part, as follows: 
"...school funds shall be used for educational purposes and may be used to pay the salaries of personnel and to pay for the utilization of school facilities, including school buses; for extracurricular and interscholastic activities, including literary events, music, and athletic programs within individual schools and between schools in the same or different school systems when such activities are sponsored by local boards of education as an integral part of the total school program; and for no other purpose...". 
An expenditure ofthis nature is considered to be beyond the customary scope of expenditures for "educational purposes". Appropriate action should be taken by the Board to establish policies preventing the recurrence of this type expenditure in future periods. 
 
 SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
 
 BUTTS COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
YEAR ENDED JUNE 30 1994 
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Financial Statements Nonmaterial Noncompliance Amount: $4,240.00 Audit Control Number 6181-94-03 
We did not realize that treating payments to lay coaches as contracted services was viewed differently with regard to O.C.G.A. 20-2-411 than ifwe had treated the payments as salary. Our intent was to pay the same amount to the lay coach as we would have paid as salary supplement to one of our regular coaches for the same position. We will immediately change our procedure and begin treating payments to lay coaches as salaries to employees. 
Note: The Butts County Board ofEducation has elected not to provide comments for inclusion in this report other than the above.