Audit report, Cherokee County Board of Education, Canton, Georgia, year ended June 30, 1994

GA A800 ,Rl E,;/. (c
C54 i99M<t-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT CHEROKEE COUNTY BOARD OF EDUCATION
CANTON, GEORGIA YEAR ENDED JUNE 30, 1994

CHEROKEE COUNTY BOARD OF EDUCATION TABLE OF CONTENTS

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

28

FIDUCIARY FUND TYPE

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

31

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

32

2 ANALYSIS OF CASH AND CASH EQUNALENTS

34

CHEROKEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

3 INVESTMENTS

35

4 ACCOUNTSRECENABLE

37

5 DEBT SERVICE REQUIREMENTS TO MATURITY

38

SCHEDULE OF REVENUE

6

STATE FUNDS

40

7

LOCAL AND OTHER FUNDS

41

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

43

9

LOTTERY PROGRAMS

44

IO

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUNDS

46

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

Ii

OVERALL

47

12

BYPROGRAM

48

13 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

50

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

CHEROKEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 17, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Cherokee 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 Cherokee 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 estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
94ARL-14

* 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 a~ounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Cherokee County Board of Education as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board changed its method ofaccounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Cherokee County Board ofEducation taken as a whole. The combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 13 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements ofthe Cherokee County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~/~~
Claude L. Vickers State Auditor
CLV:gp 94ARL-14

CHEROKEE COUNTY BOARD OF EDUCATION - 1-

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,241,532.62

$

706,414.64

11,482,255.88 $

631,298.95

51,010,486.82

5,988,807.19

775,346.38

489,390.90

68,428.43 47,299.01

Total Assets

$ 18 712 595.69 $ 1 522,372.77 $ 52 206 292.36

LIABILITIES AND FUND EQUITY
~
Cash Overdraft Accounts Payable Sala- Payable Elcpired Grant Balances Payable Contracts Payable Retainages Payable Capilal Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purposes of Bond Issue For - Capital Outlay Projects
Unreservacf Undesignated
Total Fund Equity

$ $ 2,149,203.20
6,799,263.38
378.31

302,375.19 100,435.13 327,526.25
22,160.34
$

358,190.04

$ 8 948,844.89 $

752,496.91 $

358,190.04

$

4,481.07

$ 9,763,750.80 $ 9,763,750.80 $

68,428.43 47,299.01
$
120,208.51 $ 849.667.35 769,875.86 $

51,315,060.52 128,988.37
51,444,048.89
404,053.43
51,648,102.32

Total Liabilities and Fund Equity

$ 18 712 595.69 $ 1 522 372.77 $ 52 206 292.36

The notes to the general purpose financial s1atements are an integral part of this statement -2-

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS
{Memorandum Onl~ JUNE 30, 1994 JUNE 30, 1993

$

90,481.56

$

2,038,428.82 $ 1,429,126.32

7,113,465.26 $

902,679.00

71, 140, 185.91

17,162,586.21

113,194.79

7,366,739.26

6,922,821.84

$

7,317,141.61

68,428.43 47,299.01
7,317,141.61

76,439.70 34,858.43
3,659,810.97

69,332,858.39 344,517.04

69,332,858.39 344,517.04

21,385,189.03 469,284.34

$ 7317141.61 $

902679.00 $ 76 994 517.04 $ 157,655 598.47 $ 51140116.84

$

8,703.04

$

311,078.23 $

202,384.15

2,249,638.33

2,065,294.14

7,126,789.63

6,287,642.39

22,538.65

2,412.33

46,740.08

358,190.04

58,736.00

$

344,517.04

344,517.04

469,284.34

76,650,000.00

76,650,000.00 25,045 000.00

$

8,703.04 $ 76,994,517.04 $ 87,062,751.92 $ 34,177 493.43

$ 7,317,141.61
$ 7,317,141.61 0.00 $
$ 7317,141.61 $ $ 7317141.61 $

893,975.96 893,975.96

$

2,852.50

$

4,481.07

3,659,810.97

7,317,141.61

68,428.43 47,299.01 51,315,060.52 128,988.37

76,439.70
34,858.43 1,228,775.43
145,252.64

$ 58,881,399.01 $ 5,147,989.67 11,711,447.54 11,814,633.74

$ 70,592,846.55 $ 16,962 623.41

902679.00 $ 76 994 517.04 $ 157 655 598.47 $ 51140 116.84

-3 -

CHEROKEE COUNJY BOARP Of EP\JCATJON COMRf"!EP STATFMENT Of RBIENUES EXPENDITURES AND CMANGES N FUND BALANCES
GO\IEBNUENTAL RJNP TYPES ANP EXPFNDAAI FTRUST FUNDS VEAR ENDED JUNE 30 1994

~
Stale Funds F-Funds Local and Olher Funds

Tolal R""""""5

EXPENDITURES
Cunent lnslruc:tion SuPPortSe!vic:es PupilSe!vic:es Improvement of Instructional SeNic:es Educational Media SeNic:es General Administration School Administration Bus;ness Administration Mainlanance and Operation of Plant Sludenl Transportalion Se!vic:es Cantral SuPPort Se!vic:es Olher SuPPortSe!vic:es Food Se!vic:es Operation Olher Operations of Non-lMlructional SeNic:es
-Capital Outlay
DeotService Princ:ipol
Paying Agent Foos Capilal Losas Principal and 1 -
Tolal Elcpendilu,..
Excess of R""""""' o,w (under) Elcpend-
OJ11ER FINANCING SOURCES (USES)

Accruod -

on Bonds Sold

-

from General Obligation Bonds

PllrValue

Prwnium on Bonds Sdd

Capital Lones

()pending Transfers In

()pending Transfers Out

Tolal Olher Fmaneing Sources (Uses)

Excess of Revenues and Other Financing Sources over (under) ~ and Olher Financing Uses

RJNP BALANCE JUlY 1
AdjFor Prior Yr Receivables
Food Inventory. Net Change in Period Donated CommodPun:hasod Food
Residual Equity Translar

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

-46,025,029.03 $ 132,917.61
25 889 055.36
72 047 002.00 $

927,552.94 $ 3,537,729.50 2996038.82
7-463321.26 $

2,429,520.00 n1273.68
3.200793.68

48,093,124.71 $ 1,810,790.10

1,833,2S8.08 1,2n,153.91 1,936,73325
713,831.10 5,441,624.08
442,299.94 6,150,162.56 3,817,999.50
740,083.00 253,125.61
11,192.80 447,10020 1,208,413.43

5-46, 793. 71 63,097.67 149,786.01 36,500.58 83,384.00
79,382.33 23,48821 547,013.00
4,358,03525

5,948,290.30

124 767.30 72 491 509.47 $ 7 698.270.86 $ 5948290.30
-444 507.47 $ -234 949.60 $ -2 747 496.62

$ -2868226
-2868226 $

28,68226

52,800,000.00 14,856.99

28682.26 $ 52 814 858.99

-473,189.73 $ 10,237,020.47

-206,267.34 $ 50,067,360.37

971,633.95

1,760,741.95

-79.94

-a,01127 12,440.58
79.94

FUND BAI ANCE JUNE 30
The notes to the general purpose financial statements are an integral part of this statement. -4-

9,763,750.80 $ 789,875.86 $ 51,848,102.32

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAi.

ADUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS
tMemoranclum Ori~} YEAR ENDED
JUNE 30 1994 JUNE30 1993

6866323.54

49,382,101.97 3,670,647.11
36&;14 691.-40 $

6866.323.54 $ 68 5n 4-40.48 s

758101.93

49,382,101.97 $ -43,640,719.29

3,670,647.11

3,097,652.11

37.;!83 793.33 28.Q!!7 948.37

758101.93 $ 90336542.41 $ 74826319.TT

49,903,914.81

2,380,091.79 1,3-40,851.58 2,086,51926 $
750,331.68 5,525,008.08
442299.94 6,229,544.68 3,841,497.71 1,287 ,096.00
253,125.61 4,369,228.05
447,10020 7,156,703.73

1,195,000.00 2 .236.137.SO
3,278.73

1,195,000.00 2,236,137.50
3,278.73 124 767.30

343441623 $ 68J!72 486.66 $

3-431 907.31 $

4.953.62 $

49,903,914.81 $ 45,766,738.19

1,799.32 176,742.72

2,380,091.79
1.340.851.58 2,088,318.58
750,331.68 5,525,008.08
619,042.66 6.229,544.68 3,841,487.71 1,287,096.00
253,125.61 4,369,228.05
447,10020 7,156,703.73

1,917,193.15 1,144,644.74 1,923,856.58
666,954.02 4,892,334.68
584,904.16 5,536,646.39 3,358,747.14
522,150.90 509,903.49 3,508,503.62 425,260.-43 4,117,815.95

1,195,000.00 2,236,137.50
3,278.73 124 767.30

1,125,000.00 1,638,267.03
1,033.90 -43833.76

178542.04 $ 89 751 028.90 $ TT684 788.34

560 558.68 $ 585513.51 $ -2 858 468.57

225.423.33 $ 225,423.33
52,800,000.00 14,856.96
28,68226 -2868226
225423.33 $ 53 040.;!80.32

225,423.33
52,800,000.00 14.856.99 $ 28,68226 -28682.26
53040280.32 $

498,736.42 5,688.08 -5 688.08
498 736.42

3,657,330.64 $ 53,045,233.94 $ 3,658,810.97 16,649,207.34

560,558.68 $ 53,625,793.83 $ -2,356,729.15 313,416.07 16,962,623.41 19,575,921.78

-8,01127 12,4-40.58
0.00

-8,01127 12,4-40.58
0.00

-233,812.54
-16,088.n -3,667.91

7.317,141.61 $ 69,688,870.58 $ 893,975.96 $ 70,592.846.55 $ 16.962,623.41

-5-

CHEROKEE CQUNTY BOABP OE EDUCATION COMBINED STATEMENT OE RE\/ENUES EXPENPITVRES ANP CHANGES IN FUNP BALANCES
ACTIIAL AND BUDGET GO\/EBNMENTAL FUND JYPES
YEAR ENDED JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~
state Funds Federal Funds Local and Other Funds

$ 49,382,101.97 $ 3,670,647.11
36,524,691.40

0.00 $ 49,382,101.97 $ 44,078,079.00 $ 3,670,647.11 3,043,021.00
36,524,691.40 30,745,800.00

5,304,022.97 627,626.11
5,778,891.40

Total Revenues

$ 89,577,440.48 $

0.00 $ 89,577,440.48 $ 77,866,900.00 $ 11,710,540.48

EXeEND[IUBEl,
current
lnotruclion Support Services
Pupil Services Improvement of lnatruclional Services Educational Media SelVices General Administration School Administration Buoiooos Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services other Support Services Food Service& Operation other Operation& of Non-Instructional Services C&pital OUtlay Del,I Service

$ 49,903,914.81 $
2,380,091.79 1,340,851.58 2,086,519.26
750,331.68 5,525,008.08
442,299.94 6,229,544.89 3,841,487.71 1,287,096.00
253,125.61 4,369,228.05
447,100.20 7,156,703.73 3,559,183.53

0.00 $ 49,903,914.81 $ 48,293,304.00 $

2,380,091.79 1,340,851.58 2,086,519.26
750,331.68 5,525,008.08
442,299.94 6,229,544.89 3,841,487.71 1,287,096.00
253,125.61 4,369,228.05

2,235,037.00 1,404,933.00 2,043,738.00
783,294.00 5,292,110.00
473,997.00 6,421,406.00 3,608,734.00
578,974.00 490,007.00 3,807,398.00

447,100.20 7,156,703.73 3,559 183.53

457,234.00 3,628,352.50 2,530,367.00

-1,610,610.81
-145,054.79 64,081.42 -42,781.26 32,962.32
-232,896.08 31,697.06
191,861.11 -32,753.71 -708, 122.00 236,881.39 -561,830.05
10,133.80 -3,528,351.23 -1,028,816.53

Total Elcpenditureo Exceos of Revenues o,er (under) Elcpenditureo

$ 89,572,486.86 $

$

4,953.62 $

0.00 $ 89,572,486.86 $ 82,248,885.50 $

0.00 $

4,953.62 $ -4,381,985.50 $

-7,323,801.36 4,386,939.12

QI!!EB EINANS.INS. l,QUBQEI;; {UE)
otherSourcN Other Uses

$ 53,068,962.58 $ -28,682.26

0.00 $ 53,068,962.58 $

20,200.00 $ 53,048,762.58

-28,682.26

-244,700.00

216,017.74

Total Other Fmanc:ing Sources (Uoes)

$ 53,040,280.32 $

0.00 $ 53,040,280.32 $ -224,500.00 $ 53,264,780.32

Exceos of Revenues and other Financing Sources over (under) Elq>endttureo and Other Financing Uoes

$ 53,045,233.94 $

0.00 $ 53,045,233.94 $ -4,606,485.50 $ 57,651,719.44

F!JND ML.6!!1!.E J!J~Y l 1993

16,649,207.34

-111,298.13 16,537,909.21 10,940,130.95

5,597,778.26

l!P.!!.1:mmm Prior Year (Net)
FQQC INlll;NTQBY- !!IEI S:.1:!ANS.!i IN el;BIQC
Donated Commodities Purchased Food

-8,011.27 12,440.58

8,011.27 -12,440.58

194,195.15

-194,195.15

0.00

0.00

0.00

0.00

F!.1!!112 ML.6!!1!.E JU!!IE 30 1994

$ 69,698,870.59 $ -115,727.44 $ 69583,143.15 $ 6,527,840.80 $ 63,055,302.55

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

CHEROKEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\ffiNTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Cherokee County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Cherokee County Board ofEducation.
Based upon the application ofthe above criteria, the Cherokee County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Cherokee County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 8-

CHEROKEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30 1994

Note l: 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 ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the trust funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLE TRUST FUNDS Paul Jones Memorial Fund - the fund used to account for funds donated to the Board for expenditures at the Board's discretion.
Self-Insured Employee Benefit Fund - the fund used to account for Workers' Compensation contributions and expenditures.
- 9-

CHEROKEE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recogniz.ed 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 substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1993 and ending in early June 1994. Employment contracts for these employment periods typically 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 ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fiinge benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Cherokee County Board ofEducation 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
- 10 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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 ofthe 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 (mcluding 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations ofany corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the Office of Treasury and Fiscal Services,

- 11 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreements, and

(8) Obligations ofother political ~ubdivisions ofthe State of Georgia.

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 Cherokee County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 20, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January l, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.l03. The Cherokee County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% oftaxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

Tax millage rates levied for the 1993 tax year (calendar year) for the Cherokee County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

14.00 mills 3.75 mills

J7 75 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.

- 12 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note l: SUMMARY OF SIGNlFICANT ACCOUNTING POLICIES
For fiscal year 1994, the Board began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the Board. The reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles.
CAPITAL LEASES
It is the policy of the Board to record the balance due resulting from capital lease agreements in the General Long-Term Debt Account Group for the amount due at fiscal year end, including interest. This presentation differs from generally accepted accounting principles in that the future obligations relating to assets acquired through capital lease agreements should be recorded in the General Long-Term Debt Account Group at the net present value of the future minimum lease payments. The effect of this deviation is deemed to be immaterial to the fair presentation of the general purpose 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.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.

- 13 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public
funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of
operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one ofor any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations 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 $8,505,912.90. 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.
- 14 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS

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

Bank Balance

1

$ 277,019.35

2

0.00

3

8 228 893.55

Total

$ 8 505 9]2 90

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

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

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

At June 30, 1994, the carrying amount ofthe Board's total investments was $71,140,185.91 and the market value of these investments excluding those invested in an investment pool were $44,228,8~8.0l. The investments are classified as to risk categories as follows:

Type of Investment

Risk Categories __J__ ---2.-

Carrying Amount

Market Value

U. S. Government

$ QQQ $ ~ $44 228 838 OJ $44,228,838.01 $44,228,838.01

Local Government Investment Pools

26 91 I 347.90

Total Investments

$71140185 91 $44 228 838 01

The carrying amounts shown above includes amounts maintained in an investment pool by the Office of Treasury and Fiscal Services in which the Board owns no identifiable securities.

- 15 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Workers' Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Each fund contributes their pro rata share to the Workers' Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, a total of$176,742.72 was paid in claims. An excess coverage insurance policy covers individual claims in excess of$225,000.00.

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. Each fund contributes their pro rata share to the General Fund to cover Unemployment Compensation claims made during the fiscal year. During fiscal year 1994, a total of$1,670.00 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

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

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

Capital Leases

General Obligation
Bonds

Total

Balance July I, 1993

$ 469,284.34 $25,045,000.00 $25,514,284.34

Additions

52,800,000.00 52,800,000.00

Deductions Balance June 30, 1994

124 767.30 I 195 000.00 I 319 767.30 $ 34~ Sl1~ $16 6SQ QQQ QQ $26 22~ SlZ Q4

- 16 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Notes: GENERALLONG-TERMDEBT

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1995 1996 1997 1998 1999 2000 and thereafter

$ 124,358.06 $ 7,135,697.50 $ 7,260,055.56 112,353.78 7,121,670.00 7,234,023.78 74,175.36 7,120,940.00 7,195,115.36 31,535.88 7,121,562.50 7,153,098.38 2,093.96 7,122,625.00 7,124,718.96 0.00 86 639 802.50 86 639 802.50

Total Principal and Interest

$ 3~ SlZQ:I $122 2~2 22Z so $]2;'. 6Q6 81:154

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1992, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1994, $16,610,000.00 ofbonds are outstanding and are considered defeased.

Note 7: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$458,256.96 for the unperformed portion
of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department ofEducation has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. 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:

Distant Learning Media Center and Library Equipment Safe Schools Grant

$

16,190.74

358,220.22

83 846.00

$ :158256%

- 17 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

94-628-019 94-628-020 95/94S-628-013 Etowah High Science Lab Hickory Flats Elementary Woodstock Middle/High School

$

871.00

284,844.99

5,428,977.00

927,732.75

4,866,000.95

29 037 569.78

$ 33,708.50 4,654,843.76

$40 545 996 47 $ 4 688 552 26

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

Note 8: CONTINGENT LIABILITIES

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

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

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer 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

- 18 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS
average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years ofservice) and compensation up to the time ofdisability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $42,612,024.08; total payroll was $50,599,141.18.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $7,589,202.39, ofwhich $5,032,480.07 was made by the Board and $2,556,722.32 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) ofcovered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A 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.

- 19 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 9: RETIREMENT PLANS

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ l 090 292 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements 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$5,032,480.07 was actuarially determined and represented 0.9649% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment ofage 65. A member applying for service retirement with 10 years ofservice and "retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears ofservice.. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.

Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer contnbutions occurs, but the member's contributions are refunded with interest.

- 20 -

CHEROKEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS
There were 500 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 $ I5,716.00. 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. Corky Jones, is bonded in the amount of$25,000.00 with the Continental Insurance Company, New York, New York, their Bond No. 137-18-94, on which premium is paid through December 31, 1996.

- 21 -

g;jEBQIQ;E COUNTY ~ Q QE E~~ ~WHll::Ki BALANCE t:IEEI leEQI&. B~~l.!E B.!~C JUNE30 1AA4

~
Cash and Cash Equivalents
-Accounls Receiva.ble -Food
Donalad CommodPurchased Food

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

AFTER SCHOOL PROGRAM

DRUG-FREE SCHOOi.SAND COMMUNITIES
t,t;;T

CHAPTER1

EDUCATION OF EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS CHILDREN

$ 159,787.44

1,103.71

631,298.95

9,043.15 $ 381,586.94 $ 14,572.92

3,605.12 $

1,344.13 $ 136,207.03

68,428.43 47.299.01

Tola! Assets

$ 915,856.98 $ 381 ,586.94 $ 14,572.92 $

4,708.83 $

1,344.13 $ 136.207.03

L~I IIJE ~C BJHQ liiQ!JID.'.
~
Casho-dndt Acc:ounlsPayable Salllrios Payable Expired Grant Balances Payable
Tola! Liabi-
fUNDEaUITY

$ 6,462.96 145,564.89

345,808.11 $ 35,762.83
16.00

14,313.03 259.89 $

152.017.65 $ 381,586.94 $ 14,572.92 $

Fund Balances Rosen,ed For Continuation d F-..1 Programs Forlnwntories Food Donab,dCommod-
-Purchased Food Undesignalad

$ 68,428.43 47,299D1
115,727.44
648,111.89 $

0.00 $

0.00 $

Tola! Fund Equity

$ 763,839.33 $

0.00 $

0.00 $

$ 225.40 3.237.81 3.463.21 $
1,245.62 $ 1,245.62 $

1,344.13 $

1,388.64 31.195.63 103,622.76

1 344.13 $ 136,207.03

0.00 $

0.00

0.00 $

0.00

Tola! Liabil- and Fund Equity

915.856.98 $ 381.586.94 $ 14.572.92 $

4,708.83 $

1344.13 $ 136,207.03

See notes lo the general purpose financial statements.

-22-

EXHIBIT"E"

SECONDARY EDUCATION M;T TITLE 11-
EISENHOWER CHAPTER2 MATHEMATICS BLOCK GRANT - AND SCIENCE FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION M;T

TITLE VI B

FLOW

PRESCHOOi.

THROUGH

PROGRAM

PROJECT HEAD START

SCHOO!. SATELLITE ANTENNA PROJECT

TOTALS JUNE 30, 1994 JUNE 30, 1993

45.13 $

5,19.59

0.00 $ 166,345.87 $

0.00

631,298.85

607,120.61

1>,982.33 $ 62,952.38 $ 25,052.37

775,346.38

830,831.94

68,428.43 47,299.01

76,438.70 34,858.43

45.13 $

5,19.59 $ 1>.982.33 $ 62,852.39 $ 25,052.37 $

0.00 $ 1,688,718.64 $ 1,549,250.68

45.13 $ 45.13 $

$ 928.52
928.52 $

42,919.09 $ 20,265.91 71,071.67 6,725.66
1>.982.33 $

38,205.53 $ 5,288.88 7,277.13
12,190.87

24,742.53

62 852.39 $ 24 742.53

468,721.06 $ 100,435.13 327,526.25 22,160.34

202,384.15 77,908.49
294,911.76 2,412.33

918,842.78 $ 577,616.73

4,481.07

0.00 0.00 $

4,481.07 0.00 $
4,481.07 $

0.00 $ 0.00 $

0.00 $ 0.00 $

309.84 $ 309.84 $

4,481.07 $

2,652.50

68,428.43 47,299.01

76,438.70 34,858.43

120,208.51 $ 114,150.63

0.00

649,667.35

657,483.32

0.00 $ 769,875.86 $ 971,633.95

45.13 $

5,19.59 $ 1>.982.33 $ 62,952.38 $ 25,052.37 $

0.00 $ 1.688,718.64 $ 1,549,250.68

-23-

gjEBQKEE ~ ~ g Q E E~IIQt:J
CQMalNlt:Ki ~I6IEMEtfi Qf B~N!.!E EX~t:ICIIUBE ~Q CHANGtS lt!I E!.!Mt! BALANCES
lie!;~ B~t:l!.!E E!.!t:lt! VEAR l;NQEQ JUNE 30 1994

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

AFTER SCHOOL PROGRAM

DRUG-FREE SCHOOLSAND COMMUNITIES
ACT

CHAPTER1

EDUCATION OF EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS CHILDREN

~

State Funds F-Funds Local and Other Funds

$ 315,830.00 $ 1,366,865.64 2,455,361.13

611,722.94

$ 542,647.69

72,439.24 $

6,374.14 $ 843,105.59

Total Revenues
-EXPEt:jprrtJRES Current
SupportSeMcas PupilSeMcas Improvement d lnslrucliooal SeMcas Educational Media SeMcas General Administration
Mai""'""nce and Operation d Plant
Student Transpalatiori SeMcas Central Support Sorvic:es Other Support SeMeos
Food Sorvic:es apor-.

$ 4,138,086.77 $ 611,722.94 $ 542,647.69 $

$ 485,340.60

61,779.78 83,384.00

$ 4,347,456.20

547,013.00

72,439.24 $
29,642.16 $ 35,115.17 6,126.56
1,593.16

6,374.14 $ 843,105.59

6,248.84 $ 125.30

772,549.02
274.44 54,107.97
16,174.16

TotalExpenditureo

$ 4,347,456.20 $ 630,504.38 $ 547,013.00 $

72,477.05 $

6,374.14 $ 843,105.59

Excess d R..,.,,,._....,. (Under) Expenditureo

$ -209,371.43 $ -18,781.44 $ -4,365.31 $

-37.81 $

0.00 $

0.00

QJJ:tEB El~lt:Q Q!.!B~E

Ope,alingTr-ln
Excess fl Revenu. and Olhw Rnancing
Sou,-.,,.,. (undor) Expenditul9S

18,781.44

4,285.37

1,283.43

-209,371.43 $

0.00 $

-79.94 $

1,245.62 $

0.00 $

0.00

B.!t:12 IMI ~E :.Wl.l: l

968,781.45

0.00

0.00

0.00

Food 1nvento1y. Ne! Change in Period Donatad Commoditieo Purchased Food
Residual Equity Tra,,_

-6,011.27 12,440.58

79.94

0.00

0.00

EUNQ H.~E !!IUNE 30

$ 763,836.33 $

0.00 $

0.00 $

1,245.62 $

0.00 $

0.00

See nol9s lo the general purpose financial s1atemenls.

-24-

EXHIBIT"F"

SECONDARY EDUCATION N:;T TITLEII-
EISENHOWER CHAPTER2 MATHEMATICS BI.OCKGRANT ANO SCIENCE FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION N:;T

TITLE VI, B

FLOW

PRESCHOOi.

THROUGH

PROGRAM

PROJECT HEAD START

SCHOOi. SATELLITE ANTENNA PROJECT

TOTALS YEARENOED JUNE 30, 1994 JUNE 30, 1993

88,692.00 $

"45,080.03 $

s m,794sn.

$ 154,879.09 $ 182,498.85

88,692.00 $

s "45,080.03 $ m,794.92

154,879.09 $ 182498.85 $

0.00 $

927,552.94 $ 289,690.00 3,537,729.50 2,930,769.60 2,998,038.82 2,656,471.87

0.00 $ 7,463,321.28 $ 5,876,931.47

-483.90 $ 88,00623
191B7
88,692.00 $

38,566.33 $ 1248.n 781.91
40,598.96 $

288,939.95 $ 401,316.82
14,732.08 89,317.88 23,48821
s m,794.92

31,82524 $ 174,329.56 $

110,08728

1,614.42

2,902.10

10,064.47

10,5TT.05 154,879.09 $ 186,521.03 $

2,852.50 $ 1,810,790.10 $ 1,490,49922

546,793.71 63,097.67 149,786.01 38,500.58 83,384.00 79,382.33 23,48821
547,013.00 4,358,03525

205,439.30 52,30728 86,328.14 16,978.60
88,422.39 18,831.62 337,314.18 3,493,331.66

2,852.50 $ 7,698270.86 $ 5,789,452.39

o.oo $

4,481D7 $

ODO$

ODO$ -4D22.18 $ -2,852.50 $ -234,949.60 $ 87,479.08

0.00 $
o.oo

4,481.07 $ ODO

0.00 $

4,481.07 $

0.00 $ 0.00
0.00 $

4,332.02

28,68226

5,668.08

o.oo $
0.00

309.84 $ 0.00

-2,852.50 $ -206,267.34 $ 93,147.16

2,852.50

971,633.95

898243.47

-8,01127 12,440.58
79.94

-16,088.TT -3,667.91

0.00 $

309.84 $

o.oo $ 769,875.86 $ 971,633.95

-25-

CHEROKEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE30 1994

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabifrties FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Un designated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

1993 BOND ISSUE
FUND

1987 BOND ISSUE
FUND

$ 404,053.43 $

211,211.63 $

148,373.07

51,009,877.31

609.51

$ 404,053.43 $ 51,221,088.94 $

148,982.58

$

55,011.00

$

55,011.00

$ 51,166,077.94 $

148,982.58

$ 51,166,077.94 $

$ 404,053.43

0.00

$ 404,053.43 $ 51,166,077.94 $

148,982.58 0.00
148,982.58

$ 404,053.43 $ 51,221,088.94 $

148,982.58

See notes to the general purpose financial statements.

-26-

EXHIBIT"G"

GEORGIA STATE FINANCING AND

INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

~28-019

~28-020

95/94~28-013

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

27,667.64

$

791,305.77 $

406,522.49

51,010,486.82

1,479,695.54

$

150,485.40

102,645.26 $

236,260.24

489,390.90

$

150,485.40 $

130,312.90 $

236,260.24 $ 52,291,183.49 $ 1,886,218.03

$

84,891.13 $

84,891.13

$

46,740.08

$

150,485.40 $

130,312.90

22,380.74

358,190.04

58,736.00

$

150,485.40 $

130,312.90 $

107,271.87 $

443,081.17 $ _ _1_05~,4~7~6~.0_8

$ 51,315,060.52 $ 1,228,775.43

$

128,988.37

128,988.37

145,252.64

$

128,988.37 $ 51,444,048.89 $ 1,374,028.07

$

0.00 $

0.00

0.00

404,053.43

406,713.88

$

0.00 $

0.00 $

128,988.37 $ 51,848,102.32 $ 1,780,741.95

$

150,485.40 $

130,312.90 $

236,260.24 $ 52,291,183.49 $ 1,886,218.03

-27 -

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

REVENUES
State Funds Local and Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
QTHER FIN8hjCING SOURCES (YSES)
Proceeds from General Obligation Bonds Par Value Premium on Bonds Sold
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Adjustments For Prior Year Receivables (Net)

REGULAR

1993 BOND ISSUE
FUND

1987 BOND ISSUE
FUND

$ 13,824.34 $ $ 13,824.34 $

733,990.27 $ 733,990.27 $

23,459.07 23,459.07

$ 12,596.90 $

485,596.75

433,835.28

1,326,048.93 $

267,903.47

$ 446,432.18 $ 1,811,645.68 $ $ -432,607.84 $ -1,077,655.41 $

267,903.47 -244,444.40

$ 52,800,000.00

14,856.99

$ 529,947.39

-100,000.oo

-571,123.64 $

$ 429,947.39 $ 52,243,733.35 $

-835,348.45 -835,348.45

$ -2,660.45 $ 51,166,077.94 $ -1,079,792.85

406,713.88

0.00

1,228,775.43

FUND BALANCE JUNE 30

$ 404,053.43 $ 51,166,077.94 $ 148,982.58

See notes to the general purpose financial statements.

-28-

EXHIBIT"H"

GEORGIA STATE FINANCING AND

INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

94-628-019

94-628-020 95/948-628-013

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 1,166,805.50 $ 1,026,454.26 $ $ 1,166,805.50 $ 1,026,454.26 $

236,260.24 $ 2,429,520.00 771,273.68 $
236,260.24 $ 3,200,793.68 $

130,254.19 130,254.19

$

26,967.50 $

15,290.85

1,325,638.18 1,403,684.57 $

$ 1,352,605.68 $ 1,418,975.42 $ $ -185,800.18 $ -392,521.16 $

$ 650,727.87

540,452.00 $ 5,407,838.30

75,904.40 2,894,742.66
312,380.90

650,727.87 $ 5,948,290.30 $ 3,283,027.96

-414,467.63 $ -2,747 ,496.62 $ -3,152,773.77

$ 52,800,000.00

14,856.99

$

97,860.18 $ 335,208.52 $

543,456.00

1,506,472.09 $ 3,110,527.74

-1,506,472.09 -3,110,527.74

$

97,860.18 $ 335,208.52 $

543,456.00 $ 52,814,856.99 $

0.00

$ -87,940.00 $ -57,312.64 $

87,940.00

57,312.64

128,988.37 $ 50,067,360.37 $ -3,152,773.77

0.00

1,780,741.95

5,167,328.26

-233,812.54

$

0.00 $

0.00 $

128,988.37 $ 51,848,102.32 $ 1,780,741.95

-29-

CHEROKEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS JUNE 30 1994

EXHIBIT"r'

Cash and Cash Equivalents Investments

PAUL JONES MEMORIAL FUND

SELF-INSURED EMPLOYEE
BENEFIT FUND WORKERS'
COMPENSATION FUND

TOTALS JUNE 30 1994 JUNE 30 1993

$

450.68

$

450.68 $ 313.416.07

$

902679.00

902679.00

Total Assets

$

450.68 $

902,679.00 $ 903129.68 $ 313,416.07

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft
FUND EQUITY
Fund Balances Unreserved Undesignated

$ _ _ _-'-45;;.;:0.:.:.Bca..8

9,153.72 $

9,153.72 $

0.00

893,525.28

893 975.96

313,416.07

Total liabilities and Fund Equity

$

450.68 $

902,679.00 $ 903,129.68 $ 313,416.07

See notes to the general purpose financial statements.

-30-

CHEROKEE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 1994

EXHIBIT"J"

REVENUES
Local and Other Funds
EXPENDITURES
Current Instruction Support Services Educational Media Services Business Administration
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JUL)'. 1
Residual Equity Transfer

PAUL JONES MEMORIAL FUND

SELF-INSURED EMPLOYEE
BENEFIT FUND WORKERS'
COMPENSATION FUND

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30 1993

$

2250.00 $

756 851.93 $ 759101.93 $ 162 626.88

$

1,326.00

$

1,799.32

$

1,799.32

3,664.33

$

176742.72

176,742.72

125,858.31

$

1799.32 $

176 742.72 $ 178,542.04 $ 130 848.64

$

450.68 $

580,109.21 $ 580,559.89 $

31,778.24

0.00

313,416.07

313,416.07

2,740.33

278 897.50

FU!:!D BALANCE JUNE 30

$

450.68 $

893,525.28 $ 893,975.96 $ 313 416.07

See notes to the general purpose financial statements.

-31 -

CHEROKEE COUNTY BOARP OF EDUCATION
!i!.l:IECl!.!LE QE EEClEBIIL El!::111!:l!.1/IL ll!i!il!iTA!:l!.E
YE/IR E!::IClECl J!.!f::IE 30 1994

SCHEDULE "1"

FUNDING AGENCY PBQGB/IMJGB/INI

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS\

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School B . - Program 1994Grant National School Lunch Program 1993Grant 1994Grant Food Distribution Program (1)

10.553 $
10.555 * 10.555
10.550

70,938.38 $
961,969.99 333957.27

70,938.38 $
6,234.45 954,389.69 NIA

70,938.38
961,969.99 $ 333957.27

(2)
4,013,500.93 (3) 333957.27

Total U. S. Department of Agriculture

$ 1 366 865.64 $

1 031562.52 $ 1 366 865.64 $ 4347458.20

Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1993 Grant 1994Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1991 cany-0ver 1992Regular 1994 Regular Education of Deprived Children 1993 Regular 1993 cany-0ver 1994 RegUlar Chapter2 Block Grant Flow Through 1992 C8rry-Oyer 1993Regular 1994 RegUlar Tlllell Eisenhower Mathemalics and Science Education 1993 Regular 1994 RegUlar Individuals with Disabilities Education Act Title Vl, B Flow Through 1992 carry-Over 1993 Regular 1993 carry-0wr 1994 Regular Preschool Program 1991 Carry-OVer 1992 carry-Over 1993Regular 1993 carry-Over 1994 RegUlar Vocational Education Basic Grants to States High School Program Basic Grant 1993Grant
1994Grant Tech-Prep Education
1993 Grant 1994Grant

84.186 84.186 $
84.009. 84.009 84.009
84.010 84.010 84.010
84.151 84.151 84.151
84.164 84.164
84.027 84.027 84.027 84.027
84.173 84.173 84.173 84.173 84.173
84.048 84.048
84.243 84.243

$ 92,120.00
6,726.00 129,718.00 759,459.00
88,692.00
43,178.00
370,667.00 698,292.00
90,842.00 115,680.00
98,625.00 40000.00

25,270.25 72,071.93 $

72,439.24 $

72,477.05 (3)

-1,484.23 -1,031.05 5,030.01
441,093.91 129,718.00 577,180.56
3,692.00 1,696.85 88,692.00

6,374.14 129,718.00 713,387.59
88,692.00

6,374.14 129,l18.00 713,387.59
88,692.00

30,939.48 37,076.67

8,003.36 37,076.67

8,003.36 32,595.60

61,571.29 161,715.02 355,611.52 287,926.73
-1,409.47 51,249.75 32,239.60 90,842.00 13,265.57

370,633.61 407,161.31
90,842.00 64,037.09

370,633.61 407,161.31
90,842.00 64,037.09

65,946.16

36,583.54

98,316.10

(4)

60,000.00

34601.51

!4}

Total U. S. Department of Education

$ 2 534 019.00 $

2625488.09 $ 2 121 282.62 $ 1983921.75

- 32 -

CHEROKEE COUNTY BOARD OF EpllCATION SCHEDULE OF FEDERAL FINANCIAi ASSISTANCE
YEAR ENDED JUNE 39 1994

SCHEDULE "1

FUNDING AGENCY
PROGRAM/GRANT

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

HeaHh and Human Services, U.S. Department of Through Ninth District Opportunity, Incorporated Project Head Start 1992 Regular 1993Regular 1994Regular 1994 Pre-Kindergarten

93.600 93.600 93.600 $ 93.600

$
137,337.00 150417.00

465.19 28,032.72 $ 82,673.60 53283.46

22,486.34 $ 91,144.15 68868.36

25,886.85 (3) 91,614.15 (3) 69 020.03 (3)

Total U. S. Department of Health and Human Services

$ 287754.00 $

164454.97 $ 182498.85 $

186521.03

Total Federal Financial Assistance

$ 4 188 638.64 $

3 821 505.58 $ 3670647.11 $ 6517900.98

Major Programs are Identified by an asterisk (") in front of the CFDA number.

(1) The amaunls shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the sem during lhe current fiscal year.
(2) E>cpendllules for the School Breakfast Program - , , not maintained separalely and are included in the 1994
National School Lunch Program.
(3) E>cpendilures for this program Include State, and/or Local and Other Funds. E>cpendltures are not maintained by fund source.
(4) E>cpendltures on this program_,, not maintained by fund source.

See notes lo the general purpose financial stalements.

- 33 -

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

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Bank of Canton, Canton, Georgia
INTEREST BEARING ACCOUNTS
Bank of Canton, Canton, Georgia
N.O.W. Accounts (2.90%)
Citizens Bank, Canton, Georgia
N.O.W. Accounts (2.75%) Money Market Accounts (425%)
Etowah Bank, Canton, Georgia
N.O.W. Accounts (3.00%)
Wachovia Bank of Georgia, Canton, Georgia
.Commercial Checking Account (1.50%)

$ -9,153.72
$ 892,507.63 352,914.81 426,733.43 2,489.21 61,759.23 1,736,404.31

Petty Cash

100.00 $ 1,727,350.59

See notes to the general purpose financial statements. - 34 -

CHEROKEE COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30 1994

SCHEDULE "3"

U.S. GOVERNMENT OBLIGATIONS
Wachovia Bank of Georgia, Canton, Georgia
Federal Home Loan Bank Notes Due 3/28/96 (5.15%) Due 4/25/96 (7.75%) Due 5/27/96 (8.25%) Due 6/25/96 (8.25%)
U.S. Treasury Notes Due 9/30/94 (4.00%) Due 10/31/94 (4.25%) Due 11/30/94 (4.65%) Due 12/31/94 (7.625%) Due 1/31/95 (4.25%) Due 2/28/95 (3.875%) Due 3/31/95 (3.875%) Due 4/31/95 (3.875%) Due 5/31/95 (4.125%) Due 6/30/95 (4.125%) Due 7/31/95 (4.25%) Due 8/31/95 (3.875%) Due 9/30/95 (3.875%) Due 10/31/95 (3.875%) Due 11/30/95 (4.25%) Due 1/31/96 (7.50%) Due 2/29/96 (7.50%) Due 3/31/96 (7.50%) Due 6/30/96 (7.875%)
INVESTMENT POOL
Office of Treasury and Fiscal Services Local Government Investment Pool (4.237%)

$ 598,570.00 1,904,303.57 1,926 ,698 .28 1,286,700.00

2,307,360.00 1,370,417.50 3,477,244.60 4,342,140.00 1,866,944.82 1,386,236.61 1,480,693.75 2,496,487.50 2,347,737.69 2,122,412.50 2,608,676.18 2,307,448.25 2,402,087.50 1,341,026.14 1,955,255.50 1,213,930.05 1,216,518.75 1,221,532.81 1,048,416.01 $

44,228,838.01

26,911,347.90 $ 71,140,185.91

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

CHEROKEE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE30 1994

SCHEDULE "4"

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

DEBT SERVICE
FUND

TOTAL

Cherokee County Tax Commissioner County Wide Bond Tax County Wide School Tax

$ 276,871.15

$ 113,194.79 $

113,194.79 276,871.15

Education, Georgia Department of Quality Basic Education Deferred Summer Salaries FY1994 Food SeNices National School Lunch Program Vocational Education Federal Funds l.ollery Programs Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant Federal Programs Drug-F- Schools and Communities Ad. ESEA - Chapter 1 Education of Children in State Schools Education of Deprived Children Individuals with Disabilities Education Ad. TllleVl,B Flow Through Preschool Program

5,615,017.00
$ 7,580.30
96,334.07
264,912.00 37,856.16 61,779.78 17,039.00
3,605.12
1,344.13 136,207.03
140,982.33 62,952.39

5,615,017.00
7,580.30
96,334.07
264,912.00 37,856.16 61,779.78 17,039.00
3,605.12
1,344.13 136,207.03
140,982.33 62,952.39

Georgia State Financing and Investment Commission Reimtxm,ement on Construction Projects

$ 489,390.90

489,390.90

Ninth Diatric:I Opportunity, lnco<poraled Project Head Start

24,055.45

24,055.45

Various Sources Reimbursement for Salaries and Benefits

584.97

17,032.69

17,617.66

$ 5,988,807.19 $ 775,346.38 $ 489,390.90 $ 113,194.79 $ 7,366,739.26

See notes to the general purpose financial statements.

- 37 -

CHERQKl;E COUNTY BOARP QF EDUCATION PFBT SERVICE REQUIREMENTS TO MATURITY
JUNE 1994

PAYMENTS DUE IN FISCAL YEAR ENPING JUNE 30
1995 1996 1997 1998 1999
2000 2001 2002 2003 2004
2005 2006 2007 2006 2009
2010 2011 2012 2013 2014

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

7,135,697.50 $ 7,121,670.00 7,120,940.00 7,121,562.50 7,122,625.00

4,180,697.50 $ 4,031,670.00 3,880,940.00 3,716,562.50 3,547,625.00

2,955,000.00 3,090,000.00 3,240,000.00 3,405,000.00 3,575,000.00

7,120,350.00 7,108,217.50 7,106,162.50 7,093,662.50 7,080,922.50

3,365,350.00 3,168,217.50 2,966,162.50 2,748,662.50 2,515,922.50

3,755,000.00 3,940,000.00 4,140,000.00 4,345,000.00 4,585,000.00

7,066,797.50 7,027,533.75 6,980,837.50 4,330,887.50 4,310,518.75

2,266,797.50 1,977,533.75 1,670,837.50 1,345,887.50 1,170,518.75

4,800,000.00 5,050,000.00 5,320,000.00 2,985,000.00 3,140,000.00

4,291,043.75 4,283,400.00 4,281,618.75 4,274,893.75 42n956.25

988,043.75 808,400.00 621,618.75 424,893.75 217.95625

3,305,000.00 3,475,000.00 3,660,000.00 3,850,000.00 4055000.00

1993 ISSUE

INTEREST

PRINCIPAL

2,705,080.00 $ 2,646,105.00 2,580,855.00 2,508,855.00 2,431,042.50

1,685,000.00 1,740,000.00 1,800,000.00 1,875,000.00 1,955,000.00

2,346,977.50 2,256,197.50 2,158,217.50 2,053,407.50 1,941,567.50

2,040,000.00 2,130,000.00 2,230,000.00 2,330,000.00 2,445,000.00

1,821,762.50 1,671,066.75 1,512,737.50 1,345,887.50 1,170,518.75

2,585,000.00 2,695,000.00 2,640,000.00 2,985,000.00 3,140,000.00

988,043.75 808,400.00 621,818.75 424,893.75 217956.25

3,305,000.00 3,475,000.00 3,660,000.00 3,850,000.00 4055000.00

$ 122 262 297.50 $ 45 612 297.50 $ 76 650 000.00 $ 34 209 192.50 $ 52,800,000.00

CHANGES IN GENERAL LONGTERM PFBT Bonds Payable at July 1, 1993 Bonds Issued During Period Bonds Retired During Period

TOTAL

1993 ISSUE

25,045,000.00 $

0.00

52,800,000.00 52,800,000.00

1195000.00

1992 ISSUE

1987 ISSUE

18,770,000.00 $ 2,710,000.00

170000.00

625000.00

Bonds Payable at June 30, 1994

$ 78 650 000.00 $ 52 800 000.00 $ 18 600 000.00 $ 2 085 000.00

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

FEB 1 AUG 1 FEB1

JUN 1-DEC1 JUN 1

JUN 1-DEC 1 JUN 1

JUN 1-DEC 1 JUN1

See notes to the genenol purpose financial statements.

. 38.

SCHEDULE"5"

1992 ISSUE

INTEREST

PRINCIPAL

1987 ISSUE

INTEREST

PRINCIPAL

19741SSUE

INTEREST

PRINCIPAL

1971 ISSUE

INTEREST

PRINCIPAL

1,107,607.50 $ 1,099,732.50 1,090,945.00 1,081,195.00 1,029,220.00

175,000.00 $ 185,000.00 195,000.00 990,000.00 1,040,000.00

156,585.00 $ 100,485.00 52,185.00

660,000.00 $ 690,000.00 735,000.00

162,400.00 $ 151,162.50 139,200.00 126,512.50 87,362.50

155,000.00 $ 185,000.00 175,000.00 540,000.00 580,000.00

49,025.00 $ 34,185.00 17,755.00

280,000.00 310,000.00 335,000.00

973,060.00 912,020.00 807,945.00 695,255.00 574,355.00

1,090,000.00 1,810,000.00 1,910,000.00 2,015,000.00 2,120,000.00

45,312.50

625,000.00

445,035.00 306,485.00 158,100.00

2,235,000.00 2,355,000.00 2,480,000.00

$ 10 280 935.00 $ 18 600 000.00 $ 309 255.00 $ 2 085 000.00 $ 711 950.00 $ 2 240 000.00 $ 100 965.00 $ 925 000.00

1974 ISSUE

1971 ISSUE

$ 2,385,000.00 $ 1,180,000.00

145000.00

255000.00

2 240 000.00 $

925.000.00

JUN1-DEC1 JUN 1

39.

CHEROKEE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE"6"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quar,ty Basic Education General and Ca,- Education Programs Special Education Programs Remedial Education Program Media Center Programs Slaff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-1Brm Adjustment FoscalYear 1993 1994 Local Fair Share Deferred Summer Salaries - FY 1993 Deferred Summer Salaries - FY 1994 Educational Equalization Funding Grant Food Services Vocational Education Other S - Programs Innovative Programs Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBaaed Cel1ilication Teachers' Retirement Lottary Programs Algebn, Classrooms Computen; in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant
Georgia Public Telecommunication Commission Lottary Program Dis1ant Learning
Financing and Investment Commission, GeorgiaSReimbursement on Conslruction Projec1s

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 28,768,251.00 5,349,079.00 323,150.00 1,267,025.00 432,461.00 8,746,898.00
1,47s,m.00 400,465.00 665,504.00 364,199.00 217,383.00

4,059.00 1,n4,322.00 -7,246,493.00 -5,265,494.96 5,615,017.00 2,858,977.00
$ s,568.n

315,830.00

4,601.69 213,935.00

2,300.00 92,313.58

6,946.00 438,100.00
37,858.16 61,779.78 67,039.00

$ 28,768,251.00 5,349,079.00 323,150.00 1,267,025.00 432,461.00 8,746,898.00
1,476,773.00 400,465.00 665,504.00 364,199.00 217,383.00
4,059.00 1,n4,322.00 -7,246,493.00 -5,265,494.96 5,615,017.00 2,858,977.00
315,830.00 s,568.n
4,601.69 213,935.00
2,300.00 92,313.58
6,946.00 438,100.00
37,856.16 61,779.78 67,039.00

4,735.00

4,735.00

$ 2,429,520.00

2,429.520.00

$ 46 025,029.03 $ 927552.94 $ 2429520.00 $ 49 382101.97

See notes to the general purpose financial statements.

- 40 -

CHFRQKE'E @lJNIY AOARQ Of l;puc;ATION
SCHEPYLE OF I 00.6.1 AND OTHER RE\IENUE VEAR ENDEP JUNE 30 1994

SCHEDULE r

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECW.

CAPITAL

REVENUE

PROJECTS

FUND

~

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTAL

Taxes
County Wide Bond Tax

County Wide School Tax Railroad Car Tax

Real -

Transfer Tax

24,720,527.64 175.74
251,030.93

$ 6,638,127.42

6,638,127.42 24,720,527.64
175.74 251,030.93

Ott.,

Antitrust Milk Lawsuit Selllement

Compensation for Loss of Assets

Contributions lo Sell~nsured

Employee Benefit Fund

from Ott.r Funds

For WOfkers' Compensation Insurance

Donations

Indirect Cost

Special Revenue Fund

inloNstEarned

Reimaursemenls

ForS-ries Various Schools

--

In Liou olT.,,..

-

Flood Cor1ln>I Funds

--- -l.unc:Ms

TestingF-

Tuition

Ott.,

7,288.00

1,887.15

1,887.15 7,288.00

33,156.98 489,706.94

34,639.25 $ 766,273.68

228,196.12

756,851.93 2,250.00

756,851.93 2,250.00

33,156.98 1,518,815.99

193,579.94 15,662.50

542,647.69

52,825.55

22,553.63 457.00
88,179.50 4,111.01

17,507.55 2,380,086.47
21,270.71

5,000.00

736,227.63 15,662.50
52,825.55
17,507.55 2,380,086.47
27,553.63 457.00
98,179.50 25,381.n

$ 25,889,055.36$ 2,998,038.82 $ ~ $ 6,866,323.54$ 759,101.93$ 37,283,793.33

See nolas lo the genen,I purpose financial -....nts.

- 41 -

CHEROKEE COUNTY BOABD OF EDUCATION SCHEQULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE "8"

EXPENDITURES
Operating Costs Salaries Employee Beneffls 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 Commocfrty Hauling Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures
Nonoperating Costs Principal and Interest Land and Land Improvements Building and Buil<fmg Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 47,364,386.67 $ 3,234,754.51 $ 50,599,141.18

13,717,791.73

961,187.01

14,678,978.74

109,166.41

16,852.54

126,018.95

542,806.36

173,719.34

716,525.70

30,781.62

30,781.62

160,037.79

160,037.79

793,987.68

274.50

794,262.18

11,852.46

11,852.46

132,879.48

132,879.48

309,665.08

2,204.62

311,869.70

6,627.61

6,627.61

22,880.19

22,880.19

443,534.63

75,549.46

519,084.09

2,636,956.28

310,114.28

2,947,070.56

2,108,905.49

292.89

2,109,198.38

2,030,865.19

2,030,865.19

969,856.53

82,129.81

1~051,986.34

35,708.00

4,805.30

"40,513.30

33,156.98

33,156.98

216,151.37

64,739.21

280,890.58

124,767.30 7,455.00
407,083.92 2,367,735.67

678,117.42

12-4,767.30 7,-455.00
"407,083.92 3,045,853.09

Total Expencfitures

$ 72,491,509.47 $ 7,698,270.86 $ 80,189,780.33

See notes to the general purpose financial statements. - 43 -

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

EXPENDITURES
Operating Costs Professional and Technical Services Supplies Books, Textbooks and Periodicals
Nonoperating Costs Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

17,88725

$

5,026.70 $

10,899.40

9,741.49

2,317.67

445,585.67

10,227.42

Total Expenditures

$

7 344.37 $

456 485.07 $

37,856.16

Note (1) G.P.T.C. Distant Leaming expenditures are included in the General Fund.

See notes to the general purpose financial statements. - 44 -

SCHEDULE "9"

MEDIA CENTER AND
LIBRARY EQUIPMENT

SAFE SCHOOLS
GRANT

G.P.T.C. DISTANT LEARNING (1)

TOTAL

$

6,657.95

55,121.83 $

67,039.00 $

$

17,887.25

32,325.54

2,317.67

4,735.00

582,708.92

$

61 779.78 $

67,039.00 $

4,735.00 $ 635,239.38

- 45 -

CHEROKEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30 1994
EXPENDITURES Operating Costs Books, Textbooks and Periodicals Workers' Compensation Claims
Total Expendituris

SCHEDULE "10"

$

1,799.32

176,742.72

$ 178,542.04

See notes to the general purpose financial statements. - 46 -

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

SCHEDULE "11"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries Operations
Less: Expenditures for Media Center Programs in Excess ofTotal Media Allotment Expenditures for Staff Development Programs in Excess of Total Staff Development Allotment for: Cost of Instruction
Expenditures per Audit (1) (2)
Amount of Underexpenditure for Total Allotment

THIRTEEN WEIGHTED ANO MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 37,058,537.00 $

437,238.00

$ 42,660,260.64 3,176,209.70 $
$ 45,836,470.34 $

460,599.35 460,599.35

-303,466.78

$ 45,533,003.56 $

-23,361.35 437,238.00

$

0.00 $

0.00

Note: (1) Salary accruals (July and Au11ust 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guide fines.
(2) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

See notes to the general purpose financial statements. - 47 -

Q-IFROl<EE COLJNJY BOARD 9E FQI Jr'!ATIQN ANAlYS1SOf M1N1MVM EXPeNPm.JRF RFQI IIRFMFNJ:S - RY PROGRAM
GENERAL BJNQ- OUALITV BASIC EQUCATIQN PBQGRAMS 'ffiAB FNQEP IPNF 30 1994

GFNEBAI ANP CABER EQl JCATIQN PRQGR.AU Kindergarten C,
Grades 1 -3 (") Sub-Total - K-3
Grades4-5 (")
La- (") Grades 9-12 (")
High School Vocational Education Laboratories C,
Total General and Career Education Programs
SPFCIAI EDI.IQATION PROGRAMS
Regular Programs categary I(") categary II(") categary Ill(") category IV (i itinen,m Supplemental Speech Sub-Total - Regular category V (Gifted) (") Tola! Special Education Programs
RfUfQIAI fQlJCATIQN PROGRAM 0 MEDIA CfNIER PRQGRAMS
Tola! 'Thirteen Weighted and Media Center
STAFF PEYfLOPME;NT PROGRAMS (1) Cost ct Instruction
Tolal Staffee.e!cpment
(1 ldentifie& 'Thirteen Weighted Programs.
Note: (1) $16,275.99 ct the allotment for Professional Orevelopment has been transferred to Cost of Instruction as authorized byOCGA20-2-182
See notes to the general purpose financial statements

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL -1L

ORIGINAL

MID-TERM

REQUIRED

$ 3,505,756.00 8 500243.00
$ 12,005,999.00 3,967,312.00 5,909,518.00 3,879,576.00 1,767,448.00 1238400.00
$ 28 768 251.00

3,155,180.40 $

7 650 218.70

90 $ 10,805,399.10 $

90

3,570,580.80

90

5,318,566.20

90

3,491,618.40

90

1,590,701.40

90

1114560.00

$ 25 891 425.90 $

56,487.00 $ 3,211,667.40

389 511.00

8 039729.70

445,998.00 $ 11,251,397.10

95,251.00

3,665,831.80

251,148.00

5,579,714.20

-190,728.00

3,300,890.40

306,560.00

1,897,261.40

94 059.00

1208619.00

1012288.00 $ 26 903,713.90

4,763,028.00

4,286,725.20 $ 218,917.00 $ 4,505,642.20

4,763,028.00 90 s 4,286,725.20 S

586 051.00 90

527,445.90

$ 5 349 079.00

4814171.10 $

323150.00 90 $

290,835.00 $

1267025.00 90 $ 1140 322.50 $

218,917.00 $ 4,505,642.20

59 040.00
2n 957.00 s

586 485.90 5,092128.10

15 316.00 $

306151.00

45471.00 $ 1185,793.50

s 35,707 505.00

$ 32 136 754.50 $ 1 351 032.00 $ 33,487,786.50

113,450.99 100 $ 319 010.01 100

113,450.99 $ 319 010.01

4,777.00 $

118,227.99 319 010.01

432,461.00

432,461.00 $

4,n1.oa s 437,238.00

$ 36,139,966.00

$ 32,569,215.50 $ 1,355,809.00 $ 33,925,024.50

(2) Salary accruals (Juty and August 1994 Oeferrecl Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.

- 48 -

SCHEDULE '"'IZ'

REQUIRED ALLOTMENT

SALARIES
ACTUAL
~H~!

DISTRIBIJTION BY RESPECTIVE F'ORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

$ 3,125,689.20 $ 3,922,913.51

85,978.20 $

135,271.27

7n8406.BO

9 206 782.60

261 322.90

389 316.66

$ 10,904,096.00 S 13,129,696.11 $

0.00

347,301.10 $

524,587.93 $

0.00

3,549,521.80

4,nG,311.55

0.00

117,310.00

807,022.96

0.00

5,406,820.30

6,861,673.90

0.00

172,893.90

375,628.01

0.00

3,149,011.30

4,217,702.61

0.00

151,879.10

548,862.73

0.00

1,810,332.00

2,525,427.11

0.00

86,929.40

251,260.12

0.00

1045348.10

2 239 808.80

0.00

163 270.90

185 435.64

0.00

$ 25 864129.50 S 33 750 620.08 $

0.00

1 039 584.40 $ 2 692 797.39 $

0.00

369,257.70 $ 432,ne.10 3,287,719.30 252,353.50
23,453.10 8 010.90

613,439.19 692,480.33 4,374,241.68 322,167.82

19,787.20 $ 9,684.90
93,569.10 9,027.40

34,427.95 14,398.34 110,620.74 12,123.69

s 4,373,573.60 s s,002,329.02 s _ _ _ ___,o"'.oo"-

132,068.60 $

171,570.72 $

0.00

569 542.50

en 855.23 $ _ _ _ _--"o"'.oo"-

16 943.40

29 362.56 $

0.00

$ 4 943116.10 $ 6 980 184.25

149 012.00 $

200933.28

300628.20 $

589532.56 s_ _ _ _~o~_oo_

5 522.80 $

6 440.00 $

0.00

s11ss2.10 s 1339923.75 s _ _ _ _~o~_oo_

273 841.40 $

276 039.03 $

0.00

s 32019825.90 s 42660260.64 s_ _ _ __.oo..o.

1,467 960.60 $ 3,176,209.70 S

0.00

s 32,019 825.90 s 42 660,260.64 s _ _ _ _ _ _o_.oo~
(3) Salary accruals (Julyond August 1993 Deferred Salaries} reported as expenditures in the prior year Generlll Pu~ Financial Statements are included on thni analysis as required by program guidelines.

118,227.99 $

141,589.34 $

0.00

319 010.01

319 010.01

0.00

437,238.00 $

480,599.35 s_ _ _ _ _o_.oo_

1,905,198.60 s 3636,809.05 s _ _ _ _ _ _o.oo.,

- 49 -

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

SCHEDULE "13"

BOARD MEMBER ADDRESS
Mr. Bob Rogers, Chairman c>
921 Greybrooke Drive Woodstock, Georgia 30188
Mr. Eddie Blackwell (*) 5804 Reinhardt College Parkway Waleska, Georgia 30183
Mrs. Carol Manous c>
323 Valley Ridge Drive Canton, Georgia 30114
Mr. David F. Ogle 149 Sharon Drive Canton, Georgia 30114
Mr. Milford J. Smith (*) 3483 Kellogg Creek Road Acworth, Georgia 30101
Mr. Pierce T. Neese c)
P. 0. Box679 Canton, Georgia 30114
Mr. Howell stewart (*) 45 Etowah Terrace Canton, Georgia 30114

COMPENSATION

TRAVEL

$

3,700.00 $

709.18

3,400.00

15.00

3,400.00

433.55

3,500.00

125.25

3,200.00

15.00

3,200.00

5,050.00

4,033.64

$

25,450.00 $

5,331.62

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

See notes to the general purpose financial statements. - 50 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 17, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Cherokee 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 ofthe Cherokee County Board ofEducation as of and for the year ended June 3_0, 1994, and have issued our report thereon dated May 17, 1995. Thisreport 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 Cherokee County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

94CRL-10

The results of our tests indicate that, with respect to the items tested, the Cherokee 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 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:gp 94CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 17, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Cherokee County Board ofEducatjon as of and for the year ended June 30, 1994, and have issued our report thereon dated May 17, 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 Board'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 of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 94CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 17, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Cherokee County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 17, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994. The management of the Cherokee County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
In our opinion, the Cherokee County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:gp 94CRL-80

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR (404) 6S6-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 17, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Cherokee County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 17, 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 Cherokee 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 Cherokee County Board ofEducation's compliance with these requirements. Accordingly, we

do not express such an opinion.

'

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board 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:gp 94CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 17, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Cherokee 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 Cherokee County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 17, 1995. This report
was qualified for a scope limitation and for various departures from generally accepted accounting principles,
as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit of the general purpose financial statements of the Cherokee County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Cherokee 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,
94ICL-3

assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to 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 ofthe design and operation of policies and procedures may deteriorate.

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

(1) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement

(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation
(8) General Ledger (9) General Fixed Assets

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 ofCertified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

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

(1) Accounting Controls (Overall)

(3) General Fixed Assets

(2) Expenditures/Liabilities/Disbursements

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.

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all

94ICL-3

reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that 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 perfonned in our audit ofthe Cherokee County Board ofEducation's financial statements and this report does not affect our report thereon dated May 17, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
a 6 _ ~ Respectfully submitted,

CLV:gp 94ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 17, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Cherokee County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Cherokee County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 17, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial _statements. We have also audited the Cherokee County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 17, 1995.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and the provisions ofOffice 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 Cherokee County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB
94ICL-7

Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated May 17, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Cherokee County Board ofEducation expended 80% ofits total Federal financial assistance under major Federal financial assistance programs.

94ICL-7

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as descnbed above that are applicable to each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As 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 of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the Cherokee County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated May 17, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
L>?/4
Claude L. Vickers State Auditor
CLV:gp 94ICL-7

SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS

CHEROKEE COUNrY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Separate Accountability Financial Statements Audit Control Number 6281-93-04 Finding Resolved
The audit report for the year ended June 30, 1993, stated that separate ledgers for each capital outlay project, designated by project name and number, were not maintained by the Board as required by Chapter 70 ofthe Georgia Financial Accounting Handbook for Local School Systems. During the year under review, the Board implemented procedures which provide for separate accountability of capital outlay projects as required.
PRIOR YEAR/CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Delegation of Superintendent's Duties Financial Statements Nonmaterial Noncompliance Audit Control Number 6281-93-02
The audit report for the year ended June 30, 1993, stated that the Board made direct allotments to various principals' accounts. In the year under review, the Board continued the practice of allotting funds to the principals' accounts. The Official Code of Georgia Annotated Section 20-2-109 states:
"The local school superintendent shall. . . verify all accounts before an application is made to the local board for an order for payment."
This noncompliance occurred because ofmanagement's decision to disregard the specific limitations imposed upon the Board by Georgia Laws. The practice ofallotting funds to the principals' accounts is a delegation of the Superintendent's duty as disbursing officer and should be discontinued.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6281-93-03
The audit report for the year ended June 30, 1993, noted that the management ofthe Cherokee County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board

CHEROKEE 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 6281-93-03
to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Accounting/Internal Control Deficiencies Reportable Condition - Material Weakness Audit Control Number 6281-94-01
During the year under review, weaknesses were noted in the internal controls ofthe Board's accounting system relating to journal entries. Numerous journal entries without proper written documentation were made by the Board to correct or to reclassify expenditures. These journal entries were the result of management not using due care to ensure that original entries are properly classified before being entered into the accounting records. The Board should implement procedures to ensure, that original entries are carefully examined to determine proper classifications which would eliminate the need for correcting journal entries at a later date. In addition, all journal entries should be properly documented prior to recording in the accounting records.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" ofthis report are affected by this finding.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Lack ofDocumentation for Expenditures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6281-94-02
For the year under review, it was noted that $654,783.04 of expenditures charged to the Lottery Programs and remaining in accounts payable at June 30, 1994, were not supported by adequate documentation. Board personnel were unable to provide documentation of payments made in the subsequent period for all of these accounts payable/expenditures. Consequentially, an audit adjustment of$654,783.04 was made to reduce accounts payable/expenditures.

CHEROKEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Lack ofDocumentation for Expenditures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6281-94-02
The cause of the overstated accounts payable/expenditures entries was a decision of management to record encumbrances as current year accounts payable/expenditures. The management of the Board should develop written procedures to ensure that all liabilities are properly approved and sufficiently documented before they are recorded.
GENERAL LEDGER Delegation of Superintendent's Duties Financial Statements Nonmaterial Noncompliance Finding Resolved Audit Control Number 6281-94-03
In the year under review, a third party risk management contractor was employed to oversee management of the Board's Self-Insured Workers' Compensation Fund. Expenditures were made under the authorization of the contractor. In addition, physical management of checks, storage of stock checks and preparation function of checks was the responsibility of the contractor. The practice of disbursing funds in this manner is a delegation of the Superintendent's duty as disbursing officer.
Attention ofthe Board is called to an opinion ofthe Attorney General of Georgia, 1954-1956, page 171, which provides, in part:
"a county school superintendent is a constitutional officer elected by the people and his duties are set out in Georgia Code. . . where a person has been duly elected and is serving under the law as county school superintendent, it is apparent that the local board of education could not delegate his duties to any other person..."
In the subsequent period, the Board implemented measures to ensure that the Superintendent serves as disbursing officer for the Self-Insured Workers' Compensation Fund.

CHEROKEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6281-94-04
The Board failed to submit a copy of the 1993 audit report to the Nmth District Opportunity, Incorporated, from whom the Boards received Head Start Program funds (CFDA 93.600). Paragraph 13fofOMB Circular A-128 requires that the recipients ofFederal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing of these report distribution responsibilities by the Department of Audits, management submitted the report to the incorrect entity.
Procedures should be implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements.
SUBSEQUENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Unexpended Grant Balance - Lottery Program Financial Statements Amount: $38,052.00 Audit Control Number 6281-94-05
During the fiscal year 1995, the Board received Lottery proceeds from the Georgia Department ofEducation in the amount of$121,898.00 for the Lottery- Safe Schools Program. In the period subsequent to June 30, 1994, a review of the accounting records applicable to the Lottery - Safe Schools Program reflected expenditures in the amount of$83,846.00 leaving an unexpended grant balance of$38,052.00 which remained on hand after the close ofthe grant period. The $38,052.00 should be refunded to the Georgia Department o f Education.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

CHEROKEE COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
EXPENDITURES/LIABILITIES/DISBURSEMENTS Delegation of Superintendent's Duties Financial Statements Nonmaterial Noncompliance Audit Control Number 6281-93-02
We concur with this finding. and have stopped the practice ofallotting funds to Principal's Accounts in FY 1996. Per the Superintendent, all bills will be paid through Central Office and/or school will be reimbursed after vouchers are received and approved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6281-93-03
We concur with this finding, however, due to cost ofclearing this finding, we cannot take any action at this time.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Accounting/Internal Control Deficiencies Reportable Condition - Material Weakness Audit Control Number 6281-94-01
We feel the comment below presented during the Post Audit Conference correctly describes the weakness as original entries not being properly documented or classified rather than lack of proper written documentation ofjournal entries.
"For the year under review, accounting records reflected a weakness in internal control and deficiencies in the Board's accounting system as evidenced by the large number ofjournal entries made by the Board. These deficiencies were a result of management not monitoring the transaction involved. The Board should implement procedures to ensure that original entries are adequately documented prior to recording the entries in the accounting records."
EXPENDITURES/LIABILITIES/DISBURSEMENTS Lack ofDocumentation for Expenditures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6281-94-02
Account Payables were set-up June 30, 1994 for Lottery Programs in response to the State Department of Education requiring all approved Lottery Fund Grants to be recognized as Account Receivables on Boards ofEducation accounting records. (Matching Revenue and Expense) The Director ofFinance also was trying

CHEROKEECOUNTYBOARDOFEDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
EXPENDITURES/LIABILITIES/DISBURSEMENTS Lack ofDocumentation for Expenditures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6281-94-02
to insure compliance with DOE's letter of March 30, 1994 from Hall Rogers in handling of Lottery Fund expenditures for the Supplemental Appropriation and I quote page two:
"Internal memoranda at the LUA will not constitute a purchase order or contract and will not be recognized as such. The LUA records should reflect these encumbered amounts as "Reserved for Encumbrances" on the Balance Sheet."
Setting up encumbrances on our Financial Statement would not off-set the Lottery Revenue on BOE's Financial Records and the normal procedure for setting-up Account Payables was altered from insuring that all liabilities are properly approved and sufficiently documented. We concur with the Auditor's finding that these documents were not Account Payables at June 30, 1994.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Fmancial Assistance Nonmaterial Noncompliance Audit Control Number 6281-94-04
We concur with this finding. Local Head Start Agency was contacted for correct mailing address. We will send the 1993 and 1994 audits together.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Unexpended Grant Balance - Lottery Program Financial Statements Amount: $38,052.00 Audit Control Number 6281-94-05
Upon notification to our Director ofFmance of an impending audit finding for an unobligated grant balance in the Safe School Lottery Program. Research ofrecords found vouchers which were posted incorrectly in Fiscal Year 1994 and 1995, which would have adequately expended the grants. The auditors were unable to confirm due to these errors in posting.