Audit report, Charlton County Board of Education, Folkston, Georgia, year ended June 30, 1994

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

AUDIT REPORT CHARLTON COUNTY BOARD OF EDUCATION
FOLKSTON,GEORGIA YEAR ENDED JUNE 30, 1994

CHARLTONCOUNTYBOARDOFEDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

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

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

26

3 ACCOUNTS RECEIVABLE

27

4 DEBT SERVICE REQUIREMENTS TO MATURITY

28

SCHEDULE OF REVENUE

5

STATE FUNDS

29

6

LOCAL AND OTHER FUNDS

30

CHARLTON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

31

8

LOTTERY PROGRAMS

32

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

35

10

BY PROGRAM

36

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

38

SECTION IT
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 REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

SECTION Ill
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

CHARLTON 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! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Charlton 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 Charlton County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estiniates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, I994, 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.
* 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, I993, 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, 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 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 Charlton County Board ofEducation 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 offorming an opinion on the general purpose financial statements ofthe Charlton County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules I through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements of the Charlton County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
94ARL-13

A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
7~
Claude L. Vickers State Auditor
CLV:cm 94ARL-13

CHARLTON COUNTY BOARD OF EDUCATION - 1-

ASSETS
Cash and Cash Equivalents
.Accoun1s Receivable
Inventories Food Donated Commodities Purcha&ed Food
Amount Available in Debt Service Fund
Amount 10 be Provided in Future Years For Payment of Bond Debt
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Dwrdraft Accounts Payable Salaries PayExpired Grant Balances PayContracts Pa~ General Obligation Bonds Pay-
Tota1 Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purcha&ed Food For S1'118 Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,035,024.62 $

96,288.49

105,117.12

98,367.76 $

28,820.00

14,858.96 7,747.20

$ 1 140 141.74 $ 217262.41 $

28820.00

$

27,121.03

$

21,346.73

61,076.63

4,815.10

1,698.97

s

87,238.46 $

28820.00

$

10,663.03

$

14,858.96

7,747.20

$

10,663.03 $

22,606.16

1,129,478.71

107,417.79 $

0.00

$ 1,140,141.74 $ 130,023.95 $

0.00

$ 1140141.74 $ 217262.41 $

28820.00

The notes 10 the general purpose financial -

are an integral part of this -.nent. -2-

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS
!Memorandum Onl~l JUNE 30, 1994 JUNE 30, 1993

$

32,652.42

$ 1,163,965.53 $ 1,119,152.48

14,227.65

246,532.53

180,049.35

14,858.96 7,747.20

13,689.70 6,939.84

$

46,880.07

46,880.07

39,389.59

1,638,119.93

1,638,119.93

1,785,610.41

$

46880.07 $

1 685 000.00 $ 3118104.22 $ 3144 831.37

$

27,121.03

21,346.73 S

18,006.78

61,076.63

66,098.41

4,815.10

4,703.49

1,698.97

s

1,685,000.00

1,685,000.00

1,825,000.00

s

1,685,000.00 S 1,801,058.46 $ 1,913,808.68

46,880.07

$

46,880.07

0.00

$

46,880.07

$

46880.07 $

$

7,790.78

1,798.77

$

46,880.07

39,389.59

10,663.03

14,858.96 7,747.20

13,689.70 6,939.84 21,310.00

s

80,149.26 $

90,918.68

1,236,896.50

1,140,104.01

$ 1,317,045.76 $ 1,231,022.69

1 685 000.00 S 3118104.22 $ 3144 831.37

. 3.

~~T~ ~!tfi::!: ~ p OF !;(!g;ATI~ ~Mlil!NEQ filfilMEt:lI t!E BE~NI !E E2SEENQ!Il!BE Ar::IQ Q:t~E IN F~.!t:jQ l2AI..~~
~l;B~Ml;NT~A. FU~Q l:XEE YEAR eNPf P JUNE 30 1994

EXHIBrT"B"

~
state Funds Federal Funds Local and Other Funds
Total Rewnues

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS (Memorandum On~
YEAR ENDED JUNE30 1994 JUNE 30 1993

$ 4,840,909.70 $ 127,453.00
1823647.33

265,189.66 $ 865,068.19 100 705.37

$ 6792010.03 $ 1 230 963.22 $

288,198.00 288198.00 $

267 046.73 2670'6.73 $

5,394,297.36 $ 992,521.19
2191 399.43
8 578 217.98 $

4,627,029.41 1,009,858.63 2 205 556.52
7 842 444.56

E~NQmJBE~
cunent
Instruction Support Services
PupilSeNices lmpro,ement of lnstruc:tionaJ SeNice6 Educational Media SeNice6 General Adminiltration School Adminiltration Buainess Administration
Maintenance and Operation a Plant
student Transportation Services Cential Support SeNice6 Other Support Services F - SeNice6 Operation Other Operations of Non-Instructional SeNice6 Capital Outlay DebtSeNice Principal lnterast Pay;ng Agent Fees

$ 4,178,183.85 $
89,898.27 193,592.66 217,852.94 194,585.08 500,227.17
54,058.13 635,857.27 400,688.20
26,734.00
47,817.10 33,889.95

516,291.27
32,464.93 25,541.90 12,099.76 60,280.91
3,685.00 4,582.51
89.63 573,548.72
7,656.00 $

Total Expenditures

$ 6 573 362.62 $ 1 236 260.63 $

8a::::ea d ReYenUN OYel" (under) Expenditures $ 218 647.41 $

-5 297.41 $

424,992.03
424 992.03 $ -136 794.03 $

140,000.00 118,625.00
931.25
259 556.25 $
7 490.48 $

4,694,475.12 $
122,383.20 219,134.56 229,952.70 254,865.99 500,227.17 54,058.13 639,542.27 405,268.71
26,823.63 573,548.72
47,817.10 466,517.98
140,000.00 118,625.00
931.25
8 494171.53 $
84046.45 $

4,354,365.46
97,771.75 196,627.04 238,108.27 222,080.64 482,889.47
54,047.54 592,312.30 337,111.75
26,734.00
512,426.37
47,179.95 53,500.00
130,000.00 127,075.00
673.25
7 472 902.79
369541.n

QI!:IER Fl~~I~ ~JBQE (l~E)
Operating Tranefets In Operating Tra- Out

$ -119 365.70

3,881.67 $ 115,e4.03

119,365.70 $ -119 365.70

23,829.95 -23 829.95

Total other Fmancing: Sources (~)
Excess d ReYenues and Other Financing Souroe6 CM!f' (under) Expenditures and Other Financing lJ&es

-119 365.70 $

3881.67 $ 115 484.03

0.00 $

0.00

99,281.71 $

-1,415.74 $ -21,310.00 $

7,490.48 $

84,046.45 $

369,541.n

BJNPaelAt&E !!JIYl
Food lrwento,y- Net Change In Period Donated Commodities Purcha&ed Food

1,040,860.03

129,463.07
1,169.26 807.36

21,310.00

39,389.59

1,231,022.69
1,169.26 807.36

859,798.39
37.70 1 644.83

F! JNQ ael At:K& !IJ~E ~

$ 1140141.74 $ 130 023.95 $

0.00 $

46 880.07 $ 1317045.76 $ 1 231 022.69

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

CHARLTON COUNTY BOARD Of EDUCATION CQMfflNEC mrfM~HI QE B~tmE E~PENQITUBE At:IP ta::tA~S!f lt:I EUNP MLAt:IQf
&mi!AL At:IP au~EI - ~~fRt:!Ml;tf[AI EUliC n:ee
YEAR ENDEQ JUNF 30 1994

EXHIBIT"C"

~
state FuF-.alFuLocal and Other Funds

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 5,394,297.36 $ 992,521.19
2, 191,399.43

0.00 $ 5,394,297.36 $ 4,614,836.00 $

992,521.19

930,527.78

2,191,399.43 2,196,704.22

779,461.36 61,993.41 -5,304.79

TolalReven.-

$ 8,578,217.98 $

0.00 $ 8 578 217.98 $ 7,742,068.00 $

836,149.98

~PENPII\!BE!il
current
Instruction Suppor!Selvices
PupilSelvices I -of lnatruc:tional Services Educational Media SeMces General Administration School Administration BuoiMoaAdminiotration Maintenance and Operation of Plant Student Transportation SeMces Other Support SeMces Food SeMces Operation Other Operations of Non-Instructional SeMces Capital Outlay DebtSeM:e
Tolal Expenditures
Exceuof R...,,._over(urmr) ~
QIHEB El~A~CIHS:i SQUBCfS !!.!SEl
CllherSourceo CllherU..

$ 4,694,475.12 $
122,383.20 219,134.56 229,952.70 254,865.99 500,227.17
54,058.13 639,542.27 405,266.71
26,823.63 573,548.72
47,817.10 466,517.98 259,556.25
$ 8,494,171.53 $
$ 84046.45 $
$ 119,365.70 $ -119,365.70

0.00 $ 4,694,475.12 $ 4,667,790.82 $

122,383.20 219,134.56 229,952.70 254,865.99 500,227.17
54,058.13 639,542.27 405,266.71
26,823.63 573,548.72 47,817.10 466,517.98 259,556.25

138,435.33 210,820.00 224,101.61 256,661.55 499,426.79
62,644.74 639,323.92 418,030.44
26,734.00 569,328.12
43,695.25 72,000.00 256,837.50

0.00 $ 8,494 171.53 $ 8,085 830.07 $

0.00 $ 84,046.45$ -343 762.07 $

-26,664.30
16,052.13 -8,314.56 -5,851.09 1,795.56
-800.38 8,586.61 -218.35 12,761.73
-88.63 -4,220.60 -4,121.85 -394,517.98 -2,718.75
-408,341.46
427,808.52

0.00 $ 119,365.70 $ -119,365.70

0.00 $

119,365.70 -119,365.70

Total other Fnancing Sources (Uaeo)

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

Exceu of R_,._ and Other Fmancing Sources
o,er (under) Expendilu""' and Other Financing u.... $

84,046.45 $

0.00 $ 84,046.45 $ -343,762.07 $

427,808.52

EUt:IQ aaL6~~E JULY l 1993 AQJ!.!filMftm
Prior Yr (Net)

1,231,022.69

-20,629.54 1,210,393.15 1,201,814.52

-21.14

8,578.63 21.14

EQQD l~NTQRY - NI;! !:,HAN!,E IN P~RIQD

Donated Commodities Purchued Food

1,169.26

-1,169.26

0.00

0.00

807.36

-807.36

0.00

0.00

EUt.-lP aaL.a~~f JL!t:lf 3Q 1~

$ 1,317,045.76 $ -22,606.16 $ 1,294,439.60 $ 858,031.31 $

436.408.29

The noleo to the general purpooe financial llatements are an integral part of this llatement. -5-

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1be Charlton 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 of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Charlton County Board ofEducation.
Based upon the application of the above criteria, the Charlton County Board ofEducation is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Charlton County, Georgia. 1be Board is not included in any other governmental "reporting entity" as defined by GASB Codification ofGovernmental Accounting and Financial 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
1be Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set ofaccounts. 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.
- 7-

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board ofeducation.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - 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.
- 8-

CHARLTON COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note l: 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 ofavailable 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 ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two ofthe 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 ofthe 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 Charlton 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
- 9-

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Charlton County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on December 2, 1993 (levy date). Taxes were due on February I, 1994. The lien date for property taxes was January I, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria ofGASB codification section P70.103. The Charlton County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board.
Tax millage rates levied for the 1993 tax year (calendar year) for the Charlton County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

- 10 -

CHARLTON COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

School Operations School Bonds

14.54 mills ...1J.l mills

16 65 mills

INVENTORIES

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

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 of this obligation as this amount is deemed immaterial to the general purpose financial statements.

Additionally, the dellar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.

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.

- 11 -

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note l: 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 confonnity 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 ofthe 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 ofindebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

- 12 -

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "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 Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $1,661,778.32. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Bank Balance
$ 100,000.00 1,561,778.32 0.00
$ I 66177832

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$3,744.00 was paid in claims.

- 13 -

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

mNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

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

Balance July l, 1993 Deletions Balance June 30, 1994

General Obligation
Bonds
$ 1,825,000.00
140 000.00
$ 1685000 00

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

Fiscal Year Ended June 30
1995 1996 1997 1998 1999 2000 and thereafter
Total Principal and Interest
Note 6 : SIGNIFICANT COMMITMENTS

General Obligation
Bonds
$ 54,762.50 249,812.50 250,062.50 249,662.50 248,612.50
l 223 262.50
$ 2 276 J75 00

At June 30, 1994, the Board had encumbrances in the amount of$125,957.32 for the unperformed portion ofpurchase orders, contracts and other commitments for goods and services associated with lottery programs. Lottery funds in the amount of $117,599.81 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 year. These encumbrances are identified by lottery program as follows:

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

$ 44,305.32 874.09
65,347.91 15 430.00
$ )25 957 32

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

- 14 -

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 8: ACCUMULATED EMPLOYEES' LEAVE
The Board's twelve month employees accumulate vacation leave at the rate of one day per month to a maximum often days per year. Eleven month employees accumulate vacation leave at the rate of one half day per month to a maximum of five days per year. A maximum often days of vacation leave can be carried forward to another year. Upon retirement or termination of employment, unused accumulated vacation leave will be paid to the employee at their current rate of pay. See Note 1- Compensated Absences
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless 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 ofservice multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

- 15 -

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 9: RETIREMENT PLANS

The Board's payroll for employees covered by 1RS fortheyearendedJune 30, 1994, was $4,144,805.50; total payroll was $4,745,412.53.

1RS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by 1RS are required to contribute 6% oftheir gross earnings to TRS. The Board makes monthly employer contributions to 1RS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%,.

Total contributions made during fiscal year 1994 amounted to $738,191.72 of which $489,502.19 was made by the Board and $248,689.53 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

1RS 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 of June 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

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 $489,502.19 was actuarially determined and represented .0938% of total contributions made by all participating employers.

- 16 -

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 9: RETIREMENT PLANS
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 ofGeorgia.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after IO years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of60 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 of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become-fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 46 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $1,556.00. 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 10: SURETY BONDS
The School Superintendent, Mr. JackD. Mullis, is bonded in the amount of$50,000.00 with the Continental Insurance Company, New York, New York, their Bond No. 347-88-03, on which premium was paid through August 16, 1994.
- 17 -

CHARLTON COUNTY BQABP QF l;puc;A1]QN
COMBINING BAJ ANCF $HEFT SPECIAL REVENUE E\JNP JUNE 30 1994

~
-Cash nd Cash Equivalenls
Accounts Receivable
Food Donatad Commodities Pun:hasedFood
To4al Assets
LIABILmES ANP FUND EQUITY
~ Casl!Overdrall Accounts Payable Salaries Payable Expired Gnni Balances Payable To4a1Liabilities
E\JNPEQUJTY
Fund Balances
RFor Conlin- cl F-..1 Program
For Inventories Food Donatad ~ Purchsed Food
Total Fund Equity
To4al Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDK:APPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE
SCHOOi.SANO COMMUNITIES
ACT

126,414.96 $

1,267.49

12,838.97

15,947.15 $

8,422.24

14,858.96 7,747.20

$ 161,961.09 $

1,267.49 $ 15,947.15 $

8,422.24

8,061.15 25,875.99
$
31,937.14 $

.1,267.49 1,267.49 $

10,824.25 $ 5,022.90
15,947.15 $

8,422.24 8,422.24

14,858.96 7,747.20 $ 22,606.16 107,417.79 $ 130,023.95 $
$ 181,961.09 $

0.00 $ 0.00 $

0.00 $ 0.00 $

1,267.49 $ 15,947.15 $

0.00 0.00
8,422.24

See notes to the general purpose financial statements.

-18-

EXHIBIT"E"

ELEMENTARY AND SECONDARY EDUCATION N:.T

TITLE II

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

MIGRANT BLOCK GRANT AND SCIENCE

CHILDREN

PROGRAM FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION N:.T

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

26,390.09 S 2,447.04 S

0.00

12,979.81

7,417.,46 S

31,586.28 $

9,074.85

TOTALS JUNE 30, 1994 JUNE 30 1993

156,519.58 $ 150,102.52

98,367.76

67,076.54

14,858.96 7,74720

13,689.70 6,939.84

39,369.90 S 2.447.04 S

0.00 S

7.417.,46 S

31.586.28 $

9074.85 $

2TT.93.50 $

237,808.60

8,756.40 $ 30,579.96
33.54
39369.90 $

662.56 1,783.84
0.64
2447.04

7,417.,46 S 7,417.46 $

27,431.67 $
843.n
2,636.84 474.05
31 586.28 S

6,035.47
3,039.36 9,074.85

60,231.09 $ 21,3,46.73 61,076.63 4815.10
147469.55 S

19,536.85 18,006.78 66,098.41 4,703.49
108,345.53

0.00 S 0.00 $

0.00 S 0.00 S

39,369.90 S 2,447.04 S

0.00 S 0.00 S
0.00 $

0.00 S 0.00 $

0.00 S 0.00 S

1,798.n

14,858.96 7,74720

13,689.70 6,939.84

22,606.16 $

22,428.31

0.00

107,417.79

107,034.76

0.00

130,023.95 $

129,463.07

7,417.,46 S

31,586.28 $

s 9,074.85

2TT,93.50 $

237,808.60

-19-

CHARLTON COUNTY BOARP OF EQLJCATION CQMRINING STATI;UENT OF RE\ll;NUES EXfENQITURE ANP CHANGES IN RJNP RALANQES
SF>EClAi REVENUE FUND VEAR ENDEPJUNE 30 1994

~

state Funds Federal Funds Local and Olher Funds

Tolal Rewnues

EXPENDITURES

Curront

lnotruc:tion

--- SupportPupillm_,,..,idlnslruc:tionalE-MediaSelvices

-

and 0ponltion "'Plant

Sludonl Transpa,1ation Se1vices

Olher S u p p o r t -

Food Selvices Operation

Capital Outlay

Tola! "-'1dituros

ExoossdR-OYIII'(...-) "-'1diluros

Q.Iltl;B FINANCING Q!JBQES a&El

0poraling T . . - In Operating T - . Out

Tola! Olher Financing Soun:es (Uses)

Exooss d R-,.,.. and Other Finonoing Sou,_ ,,_ (undw) Expondilures and Olher Finonoing Uses
R.JNP BALANCE JULv 1
Food ~ Not Change In Period Donalod COIMloditios Pun:hued Food

B,JNQ RALANQE JUNE 30

SCHOOL FOOD
SERVICES
FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
N:;T

37,<168.00 $ 435,758.38 100705.37
573,931.75 $

22,373.51 $ 205,3<18.15 $
22~73.51 $ 205,348.15 $

14,247.20 14~47.20

573,548.72
573,548.72 $ 383.03 $

22,373.51 $ 176,730.77 $
8,193.50 20.16
12,089.76 3,,440.00
89.63 7,656.00
22,373.51 $ 209,229.82 $ 0.00 $ -3,881.67 $

13,047.20 1,200.00
14,247.20 0.00

3,881.67 3,881.67

383.03 $

0.00 $

0.00 $

0.00

127,664.30

0.00

0.00

0.00

1,169.26 807.36

$ 130,023.85 $

0.00 $

0.00 $

0.00

See no1as lo the general pu,pose financial - -

-20-

EXHlBIT"F"

ELEMENTARY AND SECONDARY EDUCATION M:.T

TITLE H-

CHAPTER1

EISENHOWER

EDUCATION OF

CHAPTER2 MATHEMATICS

DEPRIVED

MIGRANT 81.0CK GRANT AND SCIENCE

CHILDREN

PROGRAM FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISASILITIES EDUCATION M:.T

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE30 1894 JUNE 30, 1993

292,925.86 $ 14,647.85 $ 292925.86 $ 14647.85 $

15,213.00 $ 15,213.00 $

7,417.46 $ 7417.46 $

68,970.36 $ 68 970.36 $

$ 15,888.08
15,888.08 $

265,188.66 $ 865,068.19 100,705.37
1.230,96322 $

54,053.00 930,859.78 110,506.41
1,095419.19

268,203.39 $ 14,647.85 $
24,632.47 90.00

292~.86 $ 0.00 $

14,647.85 $ 0.00 $

55.53 15,136.74 $
20.73
15~13.00 $ 0.00 $

9,185.00 31.23
9,21623 $ -1,798.77 $

10,276.51 $ 21,977.86
31,978.48 155.00
4,582.51
68,!170.36 $ 0.00 $

10,956.51 $ 1,313.57 3,618.00
15,888.08 $ 0.00 $

516,29127 $ 456,361.35

32,484.93 25,541.90 12,099.76 60,280.91 3,685.00 4,582.51
88.63 573.548.n
7,656.00

16,862.09 20,752.44
59,785.-45 709.96
5,284.84
512,426.37

1~,260.63 $ 1,Qn,1s2.so

-5297.41 $

23,236.69

3,881.67 $
3,881.67 $

-19.95 -19.95

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

-1,798.77 $ 1,798.77

0.00 $ 0.00

0.00 $ 0.00

-1,415.74 $ 129,463.07

23,216.74 104,563.80

1,16926 807.36

37.70 1,644.83

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

130,023.95 $ 129,463.07

-21-

CHARLTON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1994

EXHIBIT"G"

ASSETS Cash and Cash Equivalents
Accounts Receivable
Tota1Asse1s

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

94-624-014

95/94~4-010

TOTALS

JUNE 30, 1994

JUNE 30, 1993

$

21,310.00

$

20,979.00 $

7,841.00 $

28,820.00

$

20979.00 $

7 841.00 $

28820.00 $

21310.00

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

$

Contracts Payable

Tolal Liabilities

$

FUND EQUITY

Fund Balances Re&eMld For S - Capital Outlay Projects

19,280.03 $ 1,698.97
20,979.00 $
0.00

Total Liabilities and Fund Equity

$

20979.00 $

7,841.00 $ 7,841.00 $

27,121.03 1,698.97
28,820.00

0.00

0.00 $

21,310.00

7 841.00 S

28 820.00 $

21 310.00

See notes 1'> the general purpose financial statements.

-22-

CHARLTON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1994

EXHIBIT"H"

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

94-824--014

95/94&624--010

TOTALS

YEAR ENDED

JUNE 30, 1994

JUNE 30, 1993

REVENUES

$ 209,790.00 $

78,408.00 $

288198.00 $ _ _ _ _"'0.ccoo=-

EXPENDITURES

Capital Outlay Profeasional and Technical Services Building and Building Improvements

921.80 $ 325,389.74

87.45 $ 98,593.04

1,009.25 423,982.78 $

2,500.00

Total Expenditures

$ 326,311.54 $

98,680.49 $

424,992.03 $

2,500.00

Excess of Revenues over (under) Expenditures

$ -116,521.54 $

-20,272.49 $

-136,794.03 $

-2,500.00

OTHER FINANCING SOURCES

Oparating Transfers In

95211.54

20,272.49

115,484.03

23,810.00

Excess of Revenues and Other Financing Sources

.,_ (under) Expenditures

$ -21,310.00 $

0.00 $

-21,310.00 $

21,310.00

FUND BALANCE JULY 1

21,310.00

0.00

21,310.00

0.00

FUND BALANCE JUNE 30

0.00 $

0.00 $

0.00 $

21 310.00

See notes tD the general purpose financial statements.

-23-

CHARI ION COUNTY BOABP OF E lJCAIION SCHEDULE OE EEDEBAL EINANQIAL ASSISTANQE
YEAB ENPEP JUNE 3Q 1994

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT
Agriculture, u. s. Department of
Through Concerted Services, Incorporated Food and Nutrition Program Child and Adult Care Food Program 1994 Contract
Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994 Grant National School Lunch Program 1993 Grant 1994Grant Food Distribution Program (1)

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS!

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.558 $ 20,660.35 $

17,817.30 $

20,660.35

(2)

10.553
10.555 10.555 10.550

103,546.35
274,687.93 36863.75

96,273.57
2,269.32 271,863.79 NIA

103,546.35

(2)

274,687.93 $ 36863.75

536,684.97 (3) 36863.75

Total U.S. Department of Agriculture

$ 435758.38 $

388223.98 $ 435758.38 $

573548.72

Education, U. S. Department of Through Berrian County Board of Education d/bla Southern Pine Migrant Education Act Elementary and Secondary Education Act Chapter 1 Migrant Education Program 1993 Regular 1994 Regular Through Georgla Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1992 Carry-Ov. 1992 Carry-Over {New) 1993 Regular
1993 carry-Over
1994 Regular
Chapter2 Block Grant - Flew Through 1993Regular 1994 Regular
Title II Eisenhower Mathematics and Science Education 1993 Regular 1994 Regular
Individuals with Disabilities Education Act TitleVl,B Flew Through
1992 carry-e-
1993 Regular 1993 C8rry-Owr 1994 Regular Preschool Program 1992 Corry-Over 1993Regular 1993 Carry-Over 1994 Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1993 Grant 1994Grant

84.011 84.011 $
84.010 84.010 84.010 84.010 84.010
84.151 84.151
84.164 84.164
84.027 84.027 84.027 84.027 84.173 84.173 84.173 84.173
84.048 84.048

$ 14,820.64
1,827.00 36,452.00 298,908.00
15,213.00
7,550.00
31,641.00 71,720.00
15,660.00 31,812.00
8,500.00

-3.66 14,648.49 $

14,647.85 $

14,647.85

-1,827.50 1,827.00 39,347.01 36,452.00 241,700.59
1,775.09 15,213.00

1,827.00 36,452.00 254,646.86
15,213.00

1,827.00 36,452.00 254,646.86
15,213.00

7,417.46

1,798.77 7,417.46

-1,314.70 -7(;1.07
21,338.46 16,519.(fl
-727.89 2,435.71 9,560.46
292.15

31,1(;1.19 37,603.17
15,180.51 707.57

31,1(;1.19 37,603.17
15,180.51 707.57

9,718.85

8,500.00

(4)

- 24 -

CHARLTON COUNTY BQARP OE EPUCATJQN SCHEDULE OF FEDERAi FINANCIAL ASSISTANCE
YEAR ENDED JUNE 3Q 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of Through Okefenokee Regional Educational Service Agency Drug.Free School& and Communities Act 1992 Cony-Over 1993 Regular 1993 Cony-Over 1994 Regular

84.186 84.186 84.186 $ 84.186

$
3,631.00 17 271.00

681.00 13,246.46
$ 5824.96

3,631.00 $ 10416.20

3,631.00 10416.20

Total U.S. Department of Education

$ 555205.64 $

425940.08 $ 437809.81 $ 431108.58

Interior, U. S. Department of

Through Charlton County Commissioners

Fish and Wildife Management Assistance

Program

1992 Grant

15.608 $ 54,741.00 $

54,741.00 $ 54,741.00

(4)

1993 Grant

15.608

64,2!12.00

64212.00

64212.00

(4)

Total U. S. Department of Interior

$ 118953.00 $

118953.00 $ 118953.00

Labor, U. S. Department of Through Southeast Georgia Regional Development Center JTPA-IIA-92-08

17.250

$

7259.28

Total Federal Financial Assistance

$ 1109 917.02 $

940376.34 $ 992521.19 $ 1 004657.30

The Board had no major programs as defined by the Single Audit Act of 1984.
(1) The amounts sha.Yn for the Food Dislribution Program represents the Federally assigned value of nonmonetary IIS&islance for donalec:I commodities received and/or consumed by the system during the wren! foscal year.
(2) Expenditures for the School Breakfast Program and the Child and Adlllt Care Food Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund soorce.

See notes to the general purpose financial statements.

- 25 -

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

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Southeastern Bank, Folkston, Georgia
Money Market Accounts (2.70%) N.O.W. Accounts (2.50%)

$ 1,268,286.86 -131,442.36
$ 1,136,844.50

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

CHARLTON COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3"

Charttcn County Board of Commissioners County Wide Bond Tax County Wide School Tax

Concarted Services, Inc.

care Child and Adult

Food Program

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Federal Programs ESEA - Chapter 1 Education of Deprived Children ESEA-Totle II Eisenhower Mathematics and Science Education lndMduals with Disabilities Education lv:;t. TotleVI, B Flow Through Praschool Lottery Programs Algebra Classrooms Computers in Classrooms Ois1ant Leaming Media Canter and Library Equipment

Georgia S - Financing and Investment Commission Reimbursement on Construction Projects

Okefanokee Regional Educational Service Agency Drug-Fn,e Schools and Communities 1v:;t.

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 96,617.12
s 2,843.05

$ 14,227.65 $ 14,227.65 96,617.12
2,843.05

8,500.00

7,272.78 2,824.14

12,979.81

7,417.46

31,586.28 9,074.85
2,316.00 1,531.39 2,993.76 9,106.00

7,272.78 2,824.14 8,500.00
12,979.81
7,417.46
31,586.28 9,074.85 2,316.00 1,531.39 2,993.76 9,106.00

$ 28,820.00 8,422.24

28,820.00 8,422.24

s 105,117.12 $ 98,367.76 $ 28,820.00 $ 14,227.65 $ 246,532.53

See notes ID the general purpose financial statements.

27 -

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

SCHEDULE "4"

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

TOTAL DEBT SERVICE

1978 ISSUE(*)

INTEREST

PRINCIPAL

$

54,762.50 $ 54,762.50

249,812.50

104,812.50 $ 145,000.00

250,062.50

95,062.50

155,000.00

249,662.50

84,662.50

165,000.00

248,612.50

73,612.50

175,000.00

246,912.50 244,562.50 241,562.50 247,587.50 242,637.50

61,912.50 49,562.50 36,562.50 22,587.50
7,637.50

185,000.00 195,000.00 205,000.00 225,000.00 235,000.00

$ 2,276,175.00 $ . 591,175.00 $ 1,685,000.00

(*) Principal and interest due July 1, 1994, was paid prior
to June 30, 1994, and has been excluded from this
schedule.
CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Retired During Period

1978 ISSUE $ 1,825,000.00
140,000.00

Bonds Payable at June 30, 1994

$ 1,685,000.00

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

Jul 1 - Jan 1 Jul 1

See notes to the general purpose financial statements. - 28 -

CHARLTON COUNTY FIOARD 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
Sparsity Grant Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs Governor's Emergency Funds (1} lmovative Programs Preschool Handicapped Program Supervision and Assessment of Student and
Beginning Teachers and PerformanceBlllled Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Pre-Kindergarten Program
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
Georgia Public Telecommunication Commission Lottery Program Distant Leaming
OTHER Education, Georgia Department of Computer Supplies

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 2,979,363.00 441,780.00 76,007.00 131,015.00 43,766.00 912,583.00
154,742.00 47,150.00 117,957.00 20,605.00 31,234.00 185,454.00 -637,108.00 309,832.00
$
12,500.00 4,980.00

37,468.00 22,373.51

50.00 8,499.70

2,316.00 28,879.39 2,993.76
9,106.00 157,318.00

$ 2,979,363.00 441,780.00 76,007.00 131,015.00 43,766.00 912,583.00
154,742.00 47,150.00 117,957.00 20,605.00 31,234.00 185,454.00 -637,108.00 309,832.00 37,468.00
12,500.00 4,980.00 22,373.51
50.00 8,499.70
2,316.00 28,879.39
2,993.76 9,106.00 157,318.00

$ 288,198.00

288,198.00

4,735.00

4,735.00

500.00

500.00

$ 4 840,909.70 $ 265 189.66 $ 288,198.00 $ 5 394 297.36
Note: (1} The purpose of these funds are for ights at the Charlton County High School footbaU field.

See notes to the general purpose financial statements.

29 -

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

SCHEDULE "6"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
other Air Waves Fees Antitrust Milk Settlement Interest Earned Jury Duty Fees Lost and Damaged Books Sales Breakfast Lunches Tuition other

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 1,774,098.27 302.21
2,570.54

$

263,688.37 $ 263,688.37

1,774,098.27

42.86

345.07

384.10

2,954.64

15,000.00 $
25,201.59 227.11 317.32

859.38 3,000.05

3,721.50 2,208.79

10,993.12 76,688.70
9,164.12

2,931.40

15,000.00 859.38
31,133.04 227.11 317.32
10,993.12 76,688.70
3,721.50 11,372.91

$ 1,823,647.33 $ 100,705.37 $

267,046.73 $ 2,191,399.43

See notes to the general purpose financial statements. - 30 -

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

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 4,272,596.08 $ 1,169,146.53 22,047.55 16,379.14 4,879.99 8,668.89 27,552.21 1,635.94 29,745.07 32,140.56 105.00
33,766.96 105.85
427,139.15 230,036.68
54,446.00 14,611.60
8,240.42

472,816.45 $ 127,566.68
6,460.95 24,573.62
3,169.19 245.00
862.90 1,095.19 2,378.64
2,100.67 168,908.91
2,943.44 294,082.41
1,560.52 3,711.00 4,722.33

4,745,412.53 1,296,713.21
28,508.50 40,952.76
4,879.99 11,838.08 27,797.21
1,635.94 29,745.07 33,003.46
1,200.19 2,378.64 33,766.96 2,206.52 596,048.06 232,980.12 294,082.41 56,006.52 18,322.60 12,962.75

12,500.00 21,369.95 186,249.05

7,656.00 111,406.73

20,156.00 21,369.95 297,655.78

Total Expenditures

$ 6,573,362.62 $ 1,236,260.63 $ 7,809,623.25

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

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel Supplies Books, Textbooks and Periodicals Other
Nonoperating Costs Equipment Land
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

2,413.97 $

24,316.39 $

2,99~.76

4,563.00

$

2413.97 $

28,879.39 $

2,993.76

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

SCHEDULE "8"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

G.P.T.C. DISTANT LEARNING

TOTAL

$

$

9,106.00

$

9 106.00 $

19,751.33 5,381.76 207.71
78,727.98 $ 137.83 722.12
45,064.22 7,656.00

$ 4,747.75

19,751.33 5,381.76 207.71
113,199.85 137.83 722.12

3,440.00

62,173.22 7,656.00

157 648.95 $

8 187.75 $

209,229.82

- 33 -

CHARLTON 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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$

3,780,527.00 $

44,325.00

$

3,800,273.34

364,559.86 $

$

4,164,833.20 $

44,316.93 44,316.93

-47,607.11

$

4,117,226.09 $

-10,654.96 33,661.97

Amount of Underexpenditure for Total Allotment

$

0.00 $ ====1=0=,6=6=3.=0=3

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

CHARI TON COUNTV RQABD OF EDUCATION ANAt YIS Of MINIM! JU EXPENDmJRE BEOI.JIBEMENTS - BY PBPr-.SAM
GENERA! BJND QUA! IJY BASIC EQI JCATION PBQC'~AMS YfAB ENDED llJNE 30 1991

GENFBAl AND CAREER EQUCATION PROGRAMS
Kindergarten (") . G..-1.3(")
Sub-Total - K-3
G..-6-8(") G..-9-12(") High School La-orios (") Vocational Education Labonrtories (")
Total General and career Education Programs
SPFC1AI fpt !CATION PROGRAMS
Regular Programs catego<yl(")
-catego<y II (")
Category Ill(") catego<y IV (")
Sub-Taal Regular ~V(Glftod)(")
Total Special Education Progran16 BEUEPIAI EDlJCATIQN ffiOGBAU M MEDIA QENTER ffiOGRAMS
Total Thirteen Weighted and Media Center
STAFF PfYfl QPMENT PROGRAMS (1) Co6t cl lnatruction
,,,-..,.,.1 Dewlopmenl
Taal stall Dewlopmenl
M Identifies Thirteen Weighted Programs. Nole; (1) $5,088.60aftheellotmenllcf_.,,.,I
Dewlopmenl ,_ been tnmslened to Coot cf Instruction as authorized by OCGA 20-2-182.
See note& to the general purpcae financial atatement&

ALLOTMENTS FROM DEPARTMENT OF EDI.JCATION

REQUIRED

TOTAL

ORIGINAL

~

ORIGINAL

MIO-TERM

REQUIRED

312,930.00 844406.00 1,157,336.00 90 "'5,444.00 90 699,438.00 90 381,181.00 90 148,743.00 90 187 221.00 90 2 979 363.00

281,637.00 $ 759 965."' 1,041,602."' $ 364,899.60 629,494.20 343,062.90 133,868.70 168 498.90 2 681 426.70 $

21,334.00 $ -29 657.00
.a,323.00 s 14,109.00 -9,260.00 -103,635.00 127,642.00 18 763.00 39 276.00 $

302,971.00 730 308."' 1,033,279."' 379,008.60 620,214.20 239,427.90 261,510.70 187 261.90 2 720 702.70

393,561.00

354,204.90 $

71,402.00 $

425,606.90

393,561.00 48 219.00
441 780.00 76007.00
131 015.00

90 $ 90
90 s 90 s

354,204.90 $ 43 397.10 397 602.00 S 68-.30 $ 117 913.50 $

71,"'2.00 S -651.00
70 751.00 $ 39 846.00 S
2 489.00 $

425,606.90 42 746.10
468 353.00 108 252.30 120402.50

3 628165.00

3 265 348.50 $

152 362.00 S 3 417710.50

14,930.60 100 $ 28 835.40 100

14,930.60 $ 28 835.40

559.00 S

15,489.60 28 835."'

43,766.00

43 766.oo s_ _ _ _55:;;;9;;;:.oo;:;. s_...;;44=325=.oo;;,

$ 3,671,931.00

3 309,114.50 $

152 921.00 $ 3,462,035.50

36

SCHEDULE "10''

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDllURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDllURE

FOR REQUIRED

ACTUAL

ALLOTMENT

294,882.80 $

383,151.53

8,088.20 $

7,179..46

706 631.80

809 716.49

23 676.60

68 985.67

1,001,514.60 $ 1,192,868.02 $

0.00

31,764.80 $

76,165.13 $

0.00

366,920.70

427,454.27

0.00

12,087.90

18,162.58

0.00

601,059.50

667,211.00

0.00

19,154.70

23,366.15

0.00

228,442.00

279,063.50

0.00

10,985.90

33,475.81

0.00

249,575.10

266,970.16

0.00

11,935.60

119,450.56

0.00

162 043.80

172 284.11

0.00

25 218.10

39313.13

0.00

2 609 555.70 s 3 005 851.06 s

0.00

111147.00 $

309 933.36 $

0.00

16,127.50 139,619.00 $ 247,927.80
10,266.00 297.90

156,605.45 341,481.38
1,111.11

861.80 s
3,112.30
7,029.60 365.00

1,478.00 2,756.25 7,135.81

414,238.20 $

499,197.94 $

0.00

11,368.70 $

11,370.06 $

0.00

41 514.90

45 706.33 s

0.00

1231.20

2 760.84 $

0.00

455 753.10 $

544 904.27

12 599.90 $

14130.90

106 305.50 $

106 946.73 $

0.00

1 946.80 $

1 955.77 $

0.00

92 409.20 s

142 571.28 s

0.00

27 993.30 s

38 539.83 $

0.00

3 264 023.50 s 3 800,273.34 $

0.00

153,687.00 s

364,559.86 $

0.00

3 264,023.50 $ 3 800 273.34 $

15,489.60 $ 28 835.40

26,144.56 $ 18172.37

0.00 10 663.03

44,325.00 $

44,316.93 $

10,663.03

0.00

198,012.00 $

408,876.79 $

10,663.03

- 37

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Kelly Brooks, Chairman (*) Route 3, Box 545 Folkston, Georgia 31537
Mr. Keith Canaday (*) P. 0. Box208 St. George, Georgia 31646
Mr. Doug Gowen (*) 104 West Main Street Folkston, Georgia 31537
Ms. Margaret Mizell (*) 602 Okefenokee Drive Folkston, Georgia 31537
Mr. Robert Phillips Route 2, Box 38 Folkston, Georgia 31537
Mr. Wilbur Smith (*) Route 3, Box 1835 Folkston, Georgia 31537

COMPENSATION

TRAVEL

$

750.00 $

326.80

750.00

300.00

510.00

558.73

450.00

720.00

514.46

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

$

3,480.00 $

1,399.99

See notes to the general purpose financial statements. - 38 -

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
July 24, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Charlton 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 Charlton County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 24, 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 Charlton County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

94CRL-10

The results of our tests indicate that, with respect to the items tested, the Charlton County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 24, 1995

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

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REOlJIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Charlton County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 24, 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 Charlton County Board of Education's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits ofState 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 ofan opinion on the Charlton County Board ofEducation'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 ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that Charlton 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 ofpublic record.
Respectfully submitted,
{L/~
Claude L. Vickers State Auditor
CLV:cm 94CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 24, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Charlton County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 24, 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 Charlton County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Charlton 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

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came to our attention that caused us to believe that the Charlton 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,
~-~
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION ID INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 24, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Charlton 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 Charlton County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 24, 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 ofthe 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 ofthe general purpose financial statements of the Charlton 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 Charlton 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,
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assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

(I) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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

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

(I) Accounting Controls (Overall)

(2) General Fixed Assets

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

94ICL-3

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Charlton County Board of Education's financial statements and this report does not affect our report thereon dated July 24, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

CLV:cm 94ICL-3

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR (404)6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Charlton County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Charlton County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 24, 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; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Charlton County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a 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 Board's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and

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procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 24, 1995.

The management of the Charlton 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 ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to pennit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Charlton County Board ofEducation had no major Federal financial assistance programs and expended 57% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs:

94ICL-15

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act Chapter I Education of Deprived Children
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements, and specific requirements, as described above that are applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation ofone or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance.would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-15

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CHARLTON 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 6241-93-01
The audit report for the year ended June 30, 1993, noted that the Charlton 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. For 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 ofthe 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 but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6241-93-02
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit noted no improvements regarding adequate separation of employee duties. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule "1 ", of the report are affected by this finding.

CHARLTON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $10,663.03 Audit Control Number 6241-94-01
For the year under review, the Board reported to the Georgia Department ofEducation on DE form 0420 "General Fund QBE Program Expenditure Summary'' expenditures totaling $26,144.56 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for Staff Development Cost oflnstruction program purposes resulting in an underexpenditure ofSI0,663.03 for the minimum required allotment of$28,835.40 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.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

CHARLTON COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1995
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $10,663.03 Audit Control Number 6241-94-01
We feel miscommunication has resulted in this finding. We were within the State Department ofEducation guidelines.
Note: The Charlton County Board of Education has elected not to provide comments for inclusion in this report other than the above.