Audit report, Clarke County Board of Education, Athens, Georgia, year ended June 30, 1995

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AUPIT REPORT
CLARKE COUNTY BOARD OF EDUCATION
ATHENS,.GEORGIA . YEAR.ENDED JUNE 30, 1995
. STATE OF GEORGIA .DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334_

CLARKE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

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

EXIIlBITS

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

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

30

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

31

FIDUCIARY FUND TYPES

I

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

32

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

33

2 CASH AND CASH EQUIVALENTS

36

3 INVESTMENTS

37

4 ACCOUNTS RECEIVABLE - REGULAR ACCOUNTS

38

5 DEBT SERVICE REQUIREMENTS TO MATURITY

40

CLARKE COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

6

STATE

42

7

LOCAL AND OTHER

43

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

45

9

LOTTERY PROGRAMS

46

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

49

11

BY PROGRAM

50

12 SCHEDULE OFCOMPENSATION AND TRAVEL OF BOARD MEMBERS

52

SECTION IT
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT 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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Clarke 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 Clarke County Board ofEducation, as of and for the year ended June 30, 1995, as listed in the table ofcontents. 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, 1995, 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:
95ARL-13*

The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The Board did not recognize as expenditures," in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material..
In our opinion, except for the effects ofsuch adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Clarke County Board ofEducation as of June 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In ~rdance with Government Auditing Standards, we have also issued a report dated May 23, 1996, on our consideration ofthe Board's internal control structure and a report dated May 23, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Clarke County Board ofEducation taken as a whole. The combining statements (Exhibits E through I) and the financial schedules (Schedules 1 through 12 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 of the Clarke 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 ofthe 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.
95ARL-13*

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:cm 95ARL-13*

CLARKE COUNTY BOARD OF EDUCATION - 1-

CLARKE COVNJY BOARD Of EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES ANP ACCOUNT GROUP JUNE 30, 1995

~
Cash and Cash Equivalents
Investments
Accounts Receivable Regular Accounts Long-Term Accounts Receivable from Individuals
Long-Term Notes Receivable
Prepaid Items
Inventories Consumable Supplies Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment cl: Long-Term Note Payable
Capital Lease Agreements Compensated Absences Bond Debt
Total Assets

GENERAL FUND
s ns,a11.eo
3,356,386.65

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,204,710.75

1,730,120.50

658,m.os s
111,620.00 11,870.79 16,431.93

1,4151,897.97

506,990.73

212,894.97

141,624.56 32,650.42

s s s 5,144.798.99 1,626.1n.es 5,441,a21.98

LIABILITIES AND FUND Eaurry
LIABILITIES
Cash Overdraft Accounts Payable Selaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Capital Lease Agreements Compensated Absences Long-Term Notes Payable General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Court Ordered Restitution Payments For Default on Sabbatical Leave For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Consumable Supplies Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Designated for Self Insurance Program Undesignated
Total Fund Equity

$ $ 1,373,050.08
16,536.12

202,229.33 195,628.89 $ 423,856.59 22,760.42

32,91t56
793,543.20 541,021.86

$ 1,389,586.20 $ 844,495.23 $ 1,367,479.62

$ $ 111,620.00
11,870.79 94,367.00 212,894.97
$ 430,752.76 $ 52,986.92
3,271,473.11 3,755,212.79 $

3,571.33 8,428.92

4,656.70

141,624.56 32,650.42
$
190,931.93 $

4.033~79.55 4,033,279.55

590,7415.79

41,062.81

1a1,an.n s 4,074,342.36

Total Liabilities and Fund Equity
The notes to the general purpose financial statements are an integral part of this statement.
-2-

s s,144,798.99 s 1,&2a11n.es s 5,441,621.98

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES AGENCY FUNDS

$ 916,437.12 $

15,965.65

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTAL {Memorandum On~}

$

4,913,931.12

5,086,507.15

22,939.65

2,640,605..40 111,620.00
11,870.79
16,431.93

$

939,376.77

212,894.97
141,624.56 32,650.42
939,376.77

154,835.52 1,717,011.32
3441, 195.19
22,080,623.23

154,835.52 1,717,011.32
344,195.19 22,080,62323

$ 939.376.77 $

15.965.65 $

25.2361042.03 $

3814041178.37

$

202,229.33

1,601,593.53

440,392.71

22,780..42

793,543.20

541,021.86

$

15,965.65

15,965.65

$

1,717,011.32

1,717,011.32

. 344,195.19

344,195.19

154,835.52

154,835.52

23,020,000.00

23,020,000.00

$

15,965.65 S

25,236,042.03 $ _ _--'2::,:8:;,p;:,85=3,i:;568=.73-=-

$ 939,376.77
$ 939,376.77
0.00 S
$ 939,376.77 $ $ 939.376.77 $

0.00 0.00
151965.65 $

$
$ $ 2512361042.03 $

3,571.33 8,428.92 111,620.00 11,870.79 939,376.77 99,023.70
212,894.97
141,624.56 32,650.42
4,033,279.55
5,594,341.01
52,986.92 3.903~81.71
9,550,609.64
38,404', 178.37

3

CLARKE CQUNJY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

EXHIBIT"B"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL ~morandum On~}

REVENUES
State Funds Federal Funds Local and Other Funds

$ 29,369,535.84 $ 2,194,597.00 $ 5,790.n8.60

$

385,863.03 5,254,169.87

28,152,146.88

942,79527

95,192.96 $ 2,851,446.67

37,354,911.44 5,640,032.90
32,041,581.78

Total Revenues

$ 57,907,545.75 $ 8,391,562.14 $ 5,885,971.56 $ 2,851,446.67 $

75,036,526.12

EXPENPfIURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees

$ 34,378,095.04 $ 3,415,52524

$

1,432,396.03 1,266,429.94 1,188,344.n 1,389,217.84 3,271,380.84
654,128.57 5,896,238.48 2,614,450.93
643,997.14 455,020.38
1,552.14 567,328.86

698,522.n 143,0n.04 224,86622 188,963.90 52,867.79
15,715.39 80,279.85 181,025.85
276,3n23 3,666,560.85

285,216.53 146,630.19

30,522.08 $ 8,905,13325

483,419.76 130,757.51

70,567.73

$ 2,545,000.00 1,903,450.00 8,340.23

37,793,62028
2,130,918.80 1,409,506.98 1,413,210.94 1,578,181.74 3,324,248.43
669,843.96 5,976,518.33 2,795,476.78
643,997.14 731,392.61 3,668,112.99 567,328.86
285,216.53 9,082,285.52
3,098,987.49 2,034,207.51
8,340.23

Total Expenditures

$ 54,804,604.70 $ 9,044,866.94 $ 8,905,133.25 $ 4,456,79023 $

n~11,395.12

Excess of Revenues over (under) Expenditures

$ 3,102,941.05 $ -653,304.80 $ -3,019,161.69 $ -1,605,343.56 $

-2,174,869.00

OTHER Fltw:!CING SQ!.!RCES (YSES)
Capital Leases Operating Transfers In Operating Transfers Out

$ $ -5,ns,426.65

252,940.70 5,848.90 $ 5,n3,7n.75

$

252,940.70

5,ns,426.85

-5, 779,426.65

Total Other Financing Sources (Uses)

s $ -5,n9,426.65

258,589.60 $ 5,n3,m.75

$

252,940.70

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

$ -2,676,485.60 $ -394,71520 $ 2,754,616.06 $ -1,605,343.56 $

FUND BALANCE JUI.):'. 1. 1994 (Restated - See Note 1)

6,431,698.39 1,190,709.42 1,319,n6.30 2,544,720.33

-1,921,928.30 11,486,854.44

Food Inventory - Net Change in Period Donated Commodities Purchased Food

~.701.68 -7,614.82

~.701.68 -7 614.82

FUNQ BALANCE JUN!; ;K!, 1995

s $ 3.755,212.79 $ 781 1677.n 41074,342.36 $ 939,376.77 $

91550,609.84

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

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

EXHIBITc

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Local and Other Funds

$ 29,240,281.00 $ 29,369,535.84

118,000.00

385,863.03

27,612,434.50 28,152,146.88

Total Revenues

$ 56,970,715.50 $ 57,907,545.75

EXPENDITURES

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

$ 34,268,819.79 $ 34,378,095.04

1,432,803.00 1,297,449.00 1,435,380.14 1,400,436.00 3,283,857.00
633,211.00 6,164,471.85 3,169,701.12
692,448.00 460,857.65
2,000.00 407,994.00 285,091.00 240,800.00

1,432,396.03 1,266,429.94 1,188,344.72 1,389,217.84 3,271,380.64
654,128.57 5,896,238.48 2,614,450.93
643,997.14 455,020.38
1,552.14 567,328.86 285,216.53 146,630.19 614,1n.27

Total Expenditures

$ 55,175,319.55 $ 54,804,604.70

Excess of Revenues over (under) Expenditures

$ 1,795,395.95 $ 3,102,941.05

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -5,941,355.00 $ .s,ns,426.65

Total Other Financing Sources (Uses)

$ -5,941,355.00 $ -5,n9.426.65

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -4,145,959.05 $ -2,676,485.60

FUND BALANCE JULY 1, 1994

6,910,886.60 6,431,698.39

Adjustments

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 2,003,837.00 $ 2,194,597.00

5,590,980.00 5,254,169.87

1,140,490.00

942,795.27

$ 8,735,307.00 $ 8,391,562.14

$ 3,367,945.00 $ 3,415,52524

698,541.00 180,564.00
5,620.00 201,539.00
34,678.00
8,548.00 8,800.00

698,522.n 143,on.04 224,866.22 188,963.90 52,867.79 15,715.39 80,279.85 181,025.85

372,350.00

276,372.23

3,765,310.00 3,666,560.85

6,052.00

30,522.08 70,567.73

$ 8,649,947.00 $ 9,044,866.94

$ 85,360.00 $ -653,304.80

$ 258,589.60

$

0.00

$

0.00 $ 258,589.60

$ 85,360.00 $ -394,715.20 883,741.42 1,002,117.94 -20,135.00

FUND BALANCE JUNE 30, 1995

$ 2,764,927.55 $ 3,755,212.79

$ 948,966.42 $ 607,402.74

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

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Clarke County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. Wrth the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Clarke County Board ofEducation.
Based upon the application of the above criteria, the Clarke 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 Clarke 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, 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 6-

CLARKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services 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 agency fund used to account for assets held by a government unit as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
AGENCY FUNDS - the funds used to account for assets held for other governments or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding, material accrued compensated absences, long-term notes payable and material capital lease obligations.
- 7-

CLARKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion ofthe compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
- 8-

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prior years, the risk financing activities for the Board's unemployment compensation liabilities were reported as a Insurance trust fund. This fund had a fund balance of$81,434.00 at June 30, 1994. For fiscal year 1995, this fund has been reported in the General Fund. The fund balance at July 1, 1994, has been restated as appropriate. In addition, certain reclassifications have been made to the beginning fund balances to conform to the current year format.
BUDGET
The Clarke County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe 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 may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

- 9-

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Special Revenue
Fund
$ -394,715.20 1,190,709.42
-148,326.24 -40,265.24
$ 607,402, 74

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including N.O.W. accounts) in authorized financial institutions. Georgia Laws authoriz.e the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement 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 of any corporation ofthe United States government,

(5) Prime banker's acceptances,

- 10 -

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT D 11 11

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\ffiNTS

JUNE 30. 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(6) The Local Government Investment Pool administered by the State of Georgia, Office ofTreasury and Fiscal Services,

(7) Repurchase agreements, and (8) Obligations of other political subdivisions ofthe State of Georgia.

ACCOUNTS RECEIVABLE
REGULAR ACCOUNTS 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.
LONG-TERM RECEIVABLES FROM INDIVIDUALS Long-Term receivables from individuals consist of amounts due from various individuals for court ordered restitution payments due to the Board.

LONG-TERM NOTES RECEIVABLE
Long-Term notes receivable consist of amounts due from various individuals who have failed to fulfill the contractual requirements for their sabbatical leave of absence.

PROPERTY TAXES
The Clarke County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on July 19, 1994 (levy date). Taxes were due on October 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Clarke County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance oftaxes collected to the Board.
Tax millage rates levied for the 1994 tax year (calendar year) for the Clarke County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

20.00 mills 1.88 mills
21.88 mills

- 11 -

CLARKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
CONSUMABLE SUPPLIES INVENTORY Inventories of consumable supplies are reported on the Combined Balance Sheet at weighted average cost. The Board uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenditures are recorded at the time supplies are utilized. The inventory reported on the balance sheet is equally offset by a reservation offund balance which indicates that
it does not constitute "available spendable resources" even though it is a component unit ofnet current assets.
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.
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1995, are recorded as prepaid items.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates oniyto vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
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 of interfund transactions:
- 12 -

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
The total column on the general purpose :financial statements is captioned "Memorandum Only" to indicate that it is presented only to facilitate :financial analysis. Data in this column does not present :financial position or results of operations in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
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. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security .for deposits consists of any one of or any combination of the following:
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or of the State ofGeorgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
- 13 -

CLARKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVEST:MENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Bank, the Central Banlc for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1995, the banlc balances were $7,010,797.97. The amounts of the total banlc balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1995, as follows:

Risk Category
1 2
3
Total

Banlc Balance
$ 101,594.05 6,909,203.92 0.00
$7,010 797.97

CATEGORIZATION OF INVEST:MENTS At June 30, 1995, the carrying amount of the Board's total investments was $5,086,507.15 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific
identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal
Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

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

- 14 -

CLARKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has obtained commercial insurance for errors and omissions, however the policy excludes coverage for sexual harassment and discrimination claims. The Board has not experienced any losses related to errors or omissions in the past three years.

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

The Board is self-insured with regard to unemployment compensation claims. A premium is charged by the General Fund to each user fund on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994 1995

$

5,393.00 $ 19,357.76 $

15,661.76 $

9,089.00

$

9,089.00 $ 25,414.69 $ 28,447.69 $

6,056.00

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss.

- 15 -

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Clarke County Board of Education has entered into various lease agreements as lessee for buses and equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. -

LONG-TERM NOTE PAYABLE The long-term note payable is an outstanding loan from the U. S. Environmental Protection Agency. On June 16, 1992, the Board entered into an agreement with the U.S. Environmental Protection Agency (EPA) for assistance in accordance with the provisions ofthe Asbestos School Hazard Agreement Authorization Act of 1990 in the amount of$174,190.00. The terms ofthe agreement (loan) are to repay the amount in 36 semiannual installments of$4,838.62. The first payment was made on November 30, 1993. The balance of the loan at June 30, 1995 was $154,835.52. Final payment on the loan must be made by May 30, 2012. The loan provides for no interest charges, except when payments are in default (late). Payments on this loan are , to be provided from the General Fund.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows:

Capital Leases

Compensated Absences

Long-Tenn Notes Payable

General Obligation
Bonds

Total

Balance July 1, 1994

$

0.00 $ 296,478.00 $ 164,512.76 $ 43,300,000.00 $43,760,990.76

Retroactive Restatement ofPrior Year Balances (See Note 6)

2,008380.87

-l7,73S,000.00 -1S,726,619.13

Balance July 1, 1994 Restated

$2,008,380.87 $ 296,478.00 $ 164,512.76 $ 25,565,000.00 $ 28,034,371.63

Additions

252,940.70

47,717.19

300,657.89

Deletions

S44310.2S

9,677.24 2,545,000.00 3,098,987.49

Balance June 30, 199S

S 1 :Zl:Z 011.32 $ 344125 12 $ 154 835 52 S 23 020 000 00 S 25J36 042 03

At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows:

- 16 -

CLARKE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30
1996 1997 1998 1999 2000 2001 and thereafter
Total Principal and Interest
Deduct Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Capital Leases

EPA Assistance Agreement

General Obligation
Bonds

Total Debt

s 675,067.76
675,067.76 460,958.88
132,935.66

s 9,67724
9,67724 9,67724 9,67724 9,67724 106,449.32

s 598,379.75
2,522,37625 2,530,02625 2,525,893.75 2,525,42625 21J89,715.25

S 1,283,124.75 3,207,12125 3,000,662.37 2,668,506.65 2,535,103.49
21,496,164.57

S 1,944,030.06 s 154 835.52 $32 091 817.50 $34 190,683.08

227,018.74

S 111701132

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1993, the Board defeased certain general obligation bonds by placing the proceeds ofnew 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. This is a change from the presentation in the prior year audit which did not disclose the bonds defeased and included the refunded bonds in the Board's outstanding long-term debt with an offset in the asset account. At June 30, 1995, $17,170,000.00 ofbonds are outstanding and are considered defeased.

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1995, together with funding available:

Project

Unearned Executed Contracts

Fundinf Availab e From State

95/94S-629-013A 95/94S-629-013B

$1,617,352.49 $ 114,809.40

1,561,042.38

0.00

$3,178,394.87 $ 114,809 40

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

- 17 -

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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, ifany, 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 of these proceedings is not presently determinable.
Note 9: SUBSEQUENT EVENTS
In the subsequent fiscal year, three law suits involving the Clarke County Board ofEducation were settled with payments from the Board totaling $324,159.25 during fiscal year 1996. The first complaint involved a teacher employed by the Board and alleged violations under the Civil Rights Act Title VII and 42 U.S.C. Section 1983. A verdict was rendered in favor of the Plaintiff against the Board, Superintendent and Assistant Superintendent. A subsequent appeal was settled for $485,000.00. The Board paid $179,650.00 of the total settlement and the Insurance carrier for the Board paid the balance.
The second complaint involved the sale of a computer leased by the Board and a former Assistant Superintendent. A verdict was rendered against the Board and subsequent appeals were settled. The Board paid $95,509.25 to the Inter American Data, Incorporated subsequent to June 30, 1995.
The third complaint involved a student's rights to benefits under Individuals with Disabilities Act, 42 U.S.C. Section 1983, and Rehabilitation Act of 1973. This case was settled for $70,000.00. The Board paid $49,000.00 and the insurance carrier for the Board paid $21,000.00.
Note IO: ACCUMULATED EMPLOYEES' LEAVE
Full-time twelve month employees earn annual leave ranging from ten to fifteen days each year depending upon the employees' length ofcontinuous Board service with a maximum accumulation of thirty days. Employees are paid at their current rate of pay for unused accumulated annual leave upon retirement or termination of employment. See Note 1- Compensated Absences
Note 11: 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).

- 18 -

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 11: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years ofcreditable service, regardless ofage, or after 10 years ofservice and attainment ofage 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time ofdisability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $34,120,688.94; total payroll was $40,249,471.55.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1995 amounted to $5,735,693.64, ofwhich $4,029,653.35 was made by the Board and $1,706,040.29 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable

- 19 -

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 11: RETIREMENT PLANS

readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at.cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058.958 000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of$4,029,653.35 was actuarially determined and represented .7131% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

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

- 20 -

CLARKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 11: RETIREMENT PLANS
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. 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.
There were 436 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contnbution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contnbutions from employees ofthe Board made during fiscal year 1995 amounted to $13,976.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 12: SURETY BONDS
Dr. John L. Balentine, School Superintendent through August 22, 1995, was bonded in the amount of $250,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 18284995.
The School Superintendent, Dr. Lucian Harris, effective August 23, 1995, is bonded in the amount of $250,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 68448622, on which premium is paid through July 1, 1996.

- 21 -

CLARKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

ASSETS
Cash and Cash Equivalents
Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general purpose financial statements.

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

EDUCATION OF CHILDREN IN
STATE SCHOOLS

$ 683,513.04

91,095.12 $

317,412.95 $

1,519.00

141,624.56 32,650.42

------- $ 948,883.14 $

317,412.95 $

1,519.00

$ $ 13,164.09
172,079.54

234,198.30 $ 52,131.35 18,244.00

$ 185,243.63 $

304,573.65 $

1,519.00 1,519.00

$

8,428.92

4,410.38

$ 141,624.56 32,650.42

$ 174,274.98 $

12,839.30

589,364.53

0.00 $

0.00

$ 763,639.51 $

12,839.30 $

0.00

- - - - - - - $ 948,883.14 $

317,412.95 $

1,519.00

-22-

EXHIBIT"E" Page 1

ELEMENTARY AND SECONDARY EDUCATION ACT

CHAPTER 1 EDUCATION OF
DEPRNED CHILDREN

MIGRANT PROGRAM

STATE PROGRAM IMPROVEMENT

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE 11-

EISENHOWER

MATHEMATICS

FOREIGN

AND SCIENCE

LANGUAGES

EDUCATION

ASSISTANCE

$

3,444.34

$

750,383.63

$

19,293.08 $

14,348.00 $

11,350.00 $

333.29

$

750,383.63 $

3,444.34 $

19,293.08 $

14,348.00 $

------ 11,350.00 $

333.29

$

449,683.34

$

12,928.47 $

99,705.15 $

1,084.34

5,674.61

185,885.13

2,360.00

15,110.01

690.00

$

750,383.63 $

3,444.34 $

19,293.08 $

261.02 $ 4,065.97 9,309.04
711.97
14,348.00 $

8,514.74 $ 2,834.72
11,349.46 $

333.29 333.29

$

0.54

s _ _ _ _ _ _o_.o_o_ s

$

0.00 $

$

750,383.63 $

$

0.54

o.oo s _ _ _ _ _o_.oo_ s _ _ _ _ _o_.oo_ _ _ _ _ _o._oo_ s _ _ _ _ _o._oo_

0.00 $ _ _ _ _ _0_.00_ $ _ _ _ _ _0_.00_ $ _ _ _ _ _0._54_ $ _ _ _ _ _0._00_

3.444.34 s _ _ _1s_._29_3_.oa_ s

14,348.oo s _ _ _1_1_.3_so_._oo_ s _ _ _ _3_3_3_._29_

-23-

CLARKE COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general purpose financial statements.

INDMDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

FAMILY CONNECTION
FUND

$

118,282.18 $

58,449.87 $

16,130.67

$

118,282.18 $

s _ _ _ ss,449.87

1e_.1_30_.e_1

$

99,403.70 $

6,083.20

12,694.94

100.34

$

118,282.18 $

52,114.92 $ 1,394.51 4,940.44
58,449.87 $

11,850.98 2,898.43
14,749.41

$

0.00 $

0.00 $

1,381.26

$

0.00 $

0.00 $

1,381.26

$

118,282.18 $

- - - - - 58,449.87 $

16,130.67

-24-

EXHIBIT"E" Page2

STATE PRESCHOOL HANDICAPPED PROGRAM

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

STEWARTS. MCKINNEY HOMELESS ASSISTANCE ACT EDUCATION FOR HOMELESS CHILDREN AND YOUTH

JOB TRAINING PARTNERSHIP
ACT

TOTAL

$

1,726.31 $

549.87

$ 689,233.56

10,620.00 $

18,376.49 $

24,303.69 1,451,897.97

141,624.56 32,650.42

$

------- ------- 1,726.31 $

11,169.87 $

18,376.49 $

24,303.69 $ 2,315,406.51

$

1,670.86 $

55.45

$

1,726.31 $

$ 549.57 10,620.30
11,1.69.87 $

8,634.78 $ 2,179.40 1,602.94 5,959.37
18,376.49 $

12,020.35 $ 2,192.69 6,120.26
153.28

891,462.89 195,628.89 423,856.59 22,780.42

20,486.58 $ 1,533,728.79

$

0.00 $

$

0.00 $

$

1,726.31 $

0.00 $ 0.00 $

$
$ 0.00 0.00 $

3,570.79 $ 246.32

3,571.33 8,428.92
4,656.70

3,817.11 $ 0.00
3,817.11 $

141,624.56 32,650.42
190,931.93 590,745.79
781,6TT.72

11,169.87 $ _ _ _ _1_8._31_e_.4_9 $

24,303.69 $ 2,315,406.51

- 25-

CLARKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay Debt Service Principal
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1994
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30, 1995
See notes to the general purpose financial statements.

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

EDUCATION OF CHILDREN IN
STATE SCHOOLS

$ 249,769.00 $ 2,556,336.09 929,999.31
$ 3,736,104.40 $

1,677,864.45 $
8,682.50
1,686,546.95 $

15,511.00 15,511.00

$ $ 3,665,603.45

1,101,442.74 $
412,129.33 24,088.91
223,408.87 35,771.50 48,869.75 15,715.39 80,110.85
174,292.47 2,665.73 157.40
30,522.08

$ 3,665,603.45 $ $ 70,500.95 $

2,149,175.02 $ -462,628.07 $

15,511.00
15,511.00 0.00

$

3,681.68

$

3,681.68

$ 70,500.95 $

-458,946.39 $

0.00

707,455.06

471,785.69

0.00

-6,701.68 -7,614.82

$ 763,639.51 $

12,839.30 s______o_.oo_

-26-

EXHIBITP Page1

ELEMENTARY AND SECONDARY EDUCATION ACT

CHAPTER 1

EDUCATION OF

DEPRIVED

MIGRANT

CHILDREN

PROGRAM

STATE PROGRAM IMPROVEMENT

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE 11-

EISENHOWER

MATHEMATICS

FOREIGN

AND SCIENCE

LANGUAGES

EDUCATION

ASSISTANCE

$

1,959,621.04 $

19,421.64 $

$

1,959,621.04 $ _ _ _ _19__,4_2_1._64_ $

18,603.08 $

84,240.03 $

18,242.00 $

333.29

1s,603.oa $ _ _ _ _84__,2_40_._03_ $ _ _ _1.s.,_.24_2_.oo_ $ _ _ _333_.29_

$

1,761,287.64 $

63,400.23 90,767.70
1,457.35 145,979.08
3,998.04

6,213.75 68,090.56
800.00

70,567.73

$

2,212,562.08 $

$

-252,941.04 $

19,423.95 $
19,423.95 $ -2.31 $

$

252,940.70

_ _ _ _ _ _ $ _ _ _ _ _2_.3_1

$ _ _ _25_2_,_940_._ro_s _ _ _ _ _2._3_1

$

-0.34 $

0.00 $

0.34

0.00

10,713.55 $ 3,673.18
270.00 3,946.35
18,603.08 $ 0.00 $
$ $ 0.00 $ 0.00

84,368.19 $

$ 18,959.38

333.29

84,368.19 $ -128.16 $

18,959.38 $ -717.38 $

____ 128.16 $

3..1.;..1;.5._

- - - - - - 128.16 $

31.15

0.00 $ 0.00

-686.23 $
686.n

333.29 0.00
0.00 0.00

$

0.00 $

o.oo s _ _ _ _ _o._oo_ $

-27-

0.00 $

----- 0.54 $

0.00

CLARKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995

REVENUES
State Funds Federal Funds
Local and Other Funds
Total Revenues
EXPENDITURES
Current
Instruction Support Services
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay Debt Service Principal
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1994
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30, 1995
See notes to the general purpose financial statements.

INDMDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

FAMILY CONNECTION
FUND

$ 324,056.84 $ $ 324,056.84 $

$ 63,617.25

100,000.00

63,617.25 $ 100,000.00

$ 119,337.37 $ 2,918.96 4,480.54 2,280.18
169.00 194,870.79

54,034.68 $ 9,615.04
3,297.43

214.44
100,138.71 424.08

4,304.00

$ 324,056.84 $

$

0.00 $

71,251.15 $ -7,633.90 $

100,m.23 -m.23

$

0.28

$

0.28

$

0.00 $

-7,633.62 $

-m.23

0.00

7,633.62

2,158.49

$ -28-

0.00 $

----- 0.00 $

1,381.26

EXHIBITP Page2

STATE PRESCHOOL HANDICAPPED
PROGRAM

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

STEWARTB. MCKINNEY HOMELESS ASSISTANCE ACT EDUCATION FOR HOMELESS CHILDREN AND YOUTH

JOB TRAINING PARTNERSHIP
ACT

TOTAL

$

166,338.55

$

71,447.00 $

$
50,089.72

625.00 $ 2,194,597.00

72,650.89 5,254,169.87

4,113.46

942,795.27

$

166,338.55 s _ _ _ _1_1_,44_7_.oo_ s _ _ _ _so.....,._ 089_.12_ s

77,389.35 $ 8,391,562.14

$

166,338.55

$

$ 74,656.00

$

166,338.55 $

$

0.00 $

74,656.00 $ -3,209.00 $

$ _ _ _1....._,805_._32_ $ _ _ _1.....8.. 05_._32_

$

1,805.32 $

-1,805.32

-3,209.00 $ 3,209.00

$

o.oo s _ _ _ _ _ _o._oo_ s

11,930.42 $ 35,664.50
2,494.80
50,089.72 $ 0.00 $

70,589.42 $ 3,415,525.24

683.25 1,635.71
249.63

698,522.77 143,077.04 224;866.22 188,963.90 52,867.79 15,715.39 80,279.85 181,025.85 276,3n.23 3,666,560.85 30,522.08

70,567.73

73,158.01 $ 9,044,866.94

4,231.34 $ -653,304.80

$ 252,940.70 5,648.90
$ 258,589.60

0.00 $ 0.00

4,231.34 $ -394,715.20 -414.23 1,190,709.42
-6,701.68 -7,614.82

0.00 $ -29-

3,817.11 $ 781,677.72

CLARKE CQUNJY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1995

EXHIBIT "G

Cash and Cash Equivalents
Investments Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND

INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

94-629-021 ~ 1 3 A 95/94S-629-013B

TOTAL

$ 41,062.81 $

0.00 $

1,626,873.25 $

1,536.n4.69 s 3,204,710.75

865,060.25

865,060.25

1,730,120.50

2791435.67

2271555.06

5061990.73

TotalAueta

$ 41,062,81 S

0.00 S

s 2.n1 1369.17

L(AB(LmEs AND FUND EQUITY

L(AB(LmEs
Accounts Payable Contracts Payable Retainages Payable

Total Liabilities

FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

s 41.062.81 s s 411062.81 s

Total Liabilities and Fund Equity S 41,062.81 S

s

17,586.42 S

15,328.14 $

32,914.56

403,808.83

389,734.37

793,543.20

2751131.03

2651890.83

5411021.86

s

6961526.28 s

6701953.34 $ 113671479.62

s
0.00 0.00 S

2,074,842.89 $ 0.00
s 210741842.89

1,958,436.66 $ 4,033,279.55

0.00

411062.81

119581436.66 $ 410741342.36

0.00 S

s 2.n1 1369.17

See notes to the general purpose financial statements.

-30-

CLARKE COUNTY BOARD Of EDUCATION COMBINING STATEMENT Of REVENUES, EXPENDITURES AND Cl;:WiGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"H"

REGULAR

GEORGIA STATE FINANCING AND

INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

94-629-021 ~ 1 3 A 95194S-629-0138

TOTAL

REVENUES
State Funds Local and Olher Funds

$ $ 3,315.18

0.00 $

2,837,984.60 $ 45,938.89

2,952,794.00 $ s,790,na.eo

45,938.89

95,192.96

TolalRevenues

$ 3,315.18 $

0.00 $

2,883,923.49 $

2,998,732.89 $ 5,885,971.56

EXPENDmJRES
Capital Outlay Land and Land Improvements Building and Building Improvements

$

0.00

$

163,194.60 $

258,011.02 $ 421,205.62

$ 3,059.99

4,205,502.18

4.275.365.46 8,483,927.63

Tolal Expenditures

$

0.00 $ 3,059.99 $

4,368,696.78 $

4,533,376.48 $ 8.905.13325

Excess cl Revenues tNer (under) Expenditures
QMR EJNANC!NG SOUR~S C.YESl Operating Transfers In Operating Transfers Out
Tolal Olher Financing Sources (Uses)

$ 3,315.18 $ -3.059.99 $

-1.484.773.29 $

-1.534.643.59 $ -3.019.161.69

$ $ -226.315.82
$ -226.315.82 $

3,081,765.42 $ 3.081.765.42 $

2,918,328.15 $ 6,000,093.57 -226.315.82
2.918.328.15 $ 5.n3,m.75

Excess cl Revenues and 0lher Financing Sources over (under) Expenditures and 0lher Financing Uses $
FUND BALANCE JULY l 1994

3,315.18 $ -229,375.81 $ 37,747.63 229,375.81

1,596,992.13 $ 4n850.76

1,383,684.56 $ 2,754,616.06 574,752.10 1,319,726.30

FUNQ BALANCE JUNE 30, 1995

$ 411062.81 $

0.00 $

2p74,842.89 $

119581436.66 $ 410741342.36

See notes to the general purpose financial statements.

- 31 -

CLARKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1995

GROUP INSURANCE
ASSETS Cash and Cash Equivalents

BALANCE JULY 1, 1994

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1995

$

1,286.87 $

5,723.22 $

s,193.98 s _ _ _ _s_1_s_.1_1

LIABILITIES Funds Held for Others

$

1,286.87 $

5,723.22 $

s,193.98 s _ _ _ _s_1_s._1_1

DEPENDENT CARE ASSISTANCE PROGRAM
ASSETS Cash and Cash Equivalents

$

3,221.32 $

78,457.00 $

11,ss1.2S s _ _ _4_1_1_1._0_1

LIABILITIES Funds Held for Others

$

3,221.32 $

78,457.00 $

11.ss1.2S s _ _ _4_.1_1_1._01_

UNREIMBURSED MEDICAL EXPENSE PROGRAM

ASSETS

Cash and Cash Equivalents

$

11,987.82 $

50,743.67 $

s1,699.02 s _ _ _1_1_03i,ii,iiii;2._41_
1

LIABILITIES Funds Held for Others

$

11,987.82 $

50,743.67 $

s1,699.02 s _ _ _1_1_,03_2_.4_1

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents

$

16,496.01 $ 134,923.89 $ 135,454.25 s _ _ _1_s._965_.ss_

LIABILITIES Funds Held for Others

$

- - - - - - 16 496.01 $ 134,923.89 $ 135,454.25 $

15,965.65

See notes to the general purpose financial statements.

-32-

~LARKE QQ!.!ND'. EIQ~RQ QF Et!!.!~IQN
~1:tEt!!.!I& QE EEl:!EB&. EIN~NQl~L ~lI~NQE
YEAR Et!PEP J!,!NE 30, 1995

SCHEDULE "1"

FUNDING AGENCY
PRQGRAM/GRANJ
Agriculture, U. s. Department ol
Through City ol Athens Housing Authority Summer School Food Service Program for Children 1994 Grant 1995Grant
Through Gegia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1994 Contract 1995 Contract Food Services School Breakfast Program 1994Grant 1995Grant National School Lunch Program 1994 Grant 1995Grant Nutrition Education and Training Program 1995 Contract Food Distribution Program (1)
Tolal U.S. Department ol Agriculture
Education, U. S. Department ol Direct P. L. 81-874 1995Grant Through Georgia Department of Education Drug-Free Schools and Communities Act 1993Carry-Over 1994Grant 1994 Carry-Over 1995Grant Elementary and Secondary Education Act Chapter 1 Education ol Children in State Schools 1994 Regular 1994 Carry-Oyer 1995 Regular Education ol Deprived Children 1993 Carry-Over 1993 Carry-Over (New) 1994 Regular 1994 Carry-Over 1994Summer 1995 Regular 1995Summer State Program Improvement 1994 Regular 1995 Regular Chapter2 8loc:k Grant Flow Through 1991 Carry-Over 1994 Regular 1994 Carry-Over 1995 Regular Title II Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Foreign Language Assistance Program 1995 Regular

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS2

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.559 $ 10.559

94,836.06 $ 34,275.78

94,836.06 $

94,836.06 $ 34,275.78

43,807.36 22,171.69

10.558 10.558

18,670.24

154.50

18,492.15

18,670.24

(2)

10.553 10.553

483,163.40

* 10.555 * 10.555

1,678,084.22

10.564 10.550

5,000.00 235,524.10

$ 2,549,553.80 $

6,782.29

479,529.65

489,945.69

(2)

27,510.25 1,636,859.01

1,678,084.22

3,358,689.15 (3)

5,000.00

S,411.15 (3)

N/A

235,524.10

235,524.10

2,264,163.91 $ 2,556,336.09 $ 3,665,603.45

84.041 $

43,847.00 $

84.186 84.186 84.186 84.186

3,208.00 71,448.00

43,847.00 $

43,847,00

6,488.00 38,no.31
3,208.00 60,828.00

-3.209.00 3,208.00 $ 71,448.00

(6)
3,208.00 71,448.00

84.009 84.009 84.009
* 84.010 * 84.010 * 84.010 * 84.010 * 84.010 * 84.010 * 84.010
84.218 84.218

1,519.00 13,992.00
11,712.00 152,465.00 1,895,086.00 111,080.00
24,630.00

84.151 84.151 84.151 84.151

6,697.00 79,801.00

6,906.00
13,992.00
20,003.08 10,824.47 708,972.96 129,014.00 82,782.95 1,023,842.00
81,676.28

1,519.00 13,992.00
10,812.29
141,919.07 61,172.95
1,742,375.10 3,341.63
18,603.08

1,519.00 13,992.00
10,812.29
141,919.07 (5) 61,173.29
1,742,375.10 3,341.63
18,603.08

2,622.00 12,626.00 6,697.00 63,907.00

6,004.61 78,235.42

6,004.61 78,363.58 (3)

84.164 84.164
84.249

35,902.00 74,339.00

- 33 -

2,606.00 4,286.00

2,606.00 15,636.00
333.29

3,323.92 (3) 15,635.46
333.29

CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
VEAR ENDED JUNE 30. 1995

SCHEDULE "1"

FUNDING AGENCY
PBQGRAMIGRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS!

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department d Through Georgia Department d Education Individuals with Disabilities Education Act. Title VI, B Flow Through 1994 Regular 1994 Carry-Over 1995 Regular Preschool Program 1993 Carry-Over 1994 Regular 1994 Carry-Over 1995 Regular Voc:ational Education Basic Grants to States High Sc:hool Program BasicGrant 1994Grant 1995Grant Community Based Organizations Vocational Educational Support Program 1994 Contract 1995 Contract Consumer and Homemaking Education 1995 Contract Tech-Prep Education 1994Grant 1995Grant st-rt B. McKinney Homeless Assistance Act. Education for Homeless Children and Youth 1993 Carry-Over 1994Grant 1994 Carry-Over Through HaH County Board d Education dlb/a Piedmont Migrant Education AIJency Elementary and Secondary Education Act. Chapter 1 Migratory Education Program 1995 Regular

84.027 84.027 $ 84.027
84.173 84.173 84.173 84.173

$ 63,643.00 468,198.00
s1,sn.00 62,300.00

84.048 84.048
84.174 84.174
84.049
84.243 84.243
84.196 84.196 84.196

133,558.40
14,907.19 16,869.50 28,789.91
1,350.00 54,700.00

84.011

19,421.64

330,902.00 54,520.00 $ 151,355.00 37,286.00
12,801.00

63,642.05 $ 260,414.79
-7,633.62 s1,sn.00 19,273.87

63,642.05 260,414.79
51,9n.00 19,274.15 (3)

81,345.24 4,555.41
10,422.12 3,289.36
37,963.08 1,280.19
1,349.09 17,497.00 36,323.51

-0.04 133,558.40
-2.00 14,907.19 16,869.50
28,789.91
1,349.09 48,740.63

(4)
(4) (4) (4) 1,349.09 48,740.63

19 421.64

19,421.64

19,423.95 (3)

Total U. S. Department d Education

$ 3,441,440.64 $

3,124,209.69 $ 2,863,152.85 $ 2,636,873.98

Human Resources, U. S. Department d Through Georgia Department d Human Resources Child Cara Block o-.lopment Grant No.427-93-51436 Extended Day Program 1985Grant Paach Program 1995Grant

93.037 $ 93.037 93.021

500.00 $ 34,991.47 33,637.74

500.00 $ 34,991.47 25,260.05

500.00 $ 34,991.47 33,637.74

500.00 34,991.47 33,637.74

Total U. S. Department d Human Resources

$ 69,129.21 $

60,751.52 $ 69,129.21 $

69,129.21

Labor, U. S. Department d Through Northeast Georgia Regional Development
Center Job Training Partnership Act. Summer CUiinary 1994 In-School
1994 Out-d-Sc:hool 1995 In-School Summer 1995 Culinary

17.250 $ 17.250 17.250 17.250 17.250

s 22,n4.90
50,000.00 20,864.00

22,n4.90 $ 21,408.00 13,228.00 2s.ns.ss

22,n4.90 $
49,474.03 451.96

22,369.23
49,598.96 (3) 451.96

Total U. S. Department d Labor

$ 93,588.90 $

83,136.48 $ n,650.89 $

n,420.15

34

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense, u. s. Department of
Direct
Department of the Amr/
R.O.T.C. Program 1995Grant

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ 78,763.86 $

58,364.23 $ 78,763.86

(4)

Total Federal Financial Assistance

$ 6,232,476.41 $ 5,590,625.83 $ 5,640,032.90 $ 6,444,026.79

Major Programs are Identified by an asterisk (") In front of the CFDA number.
(1) The amounts shown for the Food Distribution Program represents the Federally usigned value of nonmonetary asistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained Mpllrately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Expenditures for this project does not include expenditures associated with the inception of a capital lease
agreement In the amount of $252,940.70. (6) Funds earned on this program do not require reporting of expenditures.

See notes to the general purpose financial statements.

35

CLARKE COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995
NONINTEREST BEARING ACCOUNTS Trust Company Bank of Northeast Georgia, N. A.
Athens, Georgia
INTEREST BEARING ACCOUNTS
Trust Company Bank of Northeast Georgia, N. A. Athens, Georgia
N. 0. W. Accounts (2.10%)
OTHER Petty Cash

SCHEDULE "2"

$

1,456.85

4,709,994.94 250.00
$ 4,711,701.79

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

CLARKE COUNTY BOARD OF EDUCATION INVESTMENTS
JUNE 30. 1995
INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services
Local Government Investment Pool (6.032%)

SCHEDULE "3" $ 5,086,507.15

'

See notes to the general purpose financial statements.
- 37 -

CLARKE COUNTY BOARD Of EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE 4

REGULAR ACCOUNTS

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

Athens Housing Authority

Summer School Food Service Program

for Children

$

34,275.78

$

Clarke County Tax Commissioner County Wide Bond Tax County Wide School Tax

$ 222,637.02

$ 22,939.65

Education, Georgia Department of Food Services Child and Adult care Food Program School Breakfast Program National School Lunch Program Nutrition Education and Training Program Vocational Education Federal Funds other State Programs Alternative Programs Apprenticeship Program Family Connection Technology Equipment Project Lottery Programs Alternative Programs Distant Leaming Instructional Technology Model Technology Schools Federal Programs Drug-Free Schools and Communities Act ESEA - Chapter 1 Education of Children in State Schools Education of Deprived Children State Program Improvement ESEA - Chapter 2 Block Grant - Flow Through ESEA - Title II Eisenhower Mathematics and Science Education Foreign Language Assistance Program Individuals with Disabilities Education Act TltleVl,B Flow Through Preschool Program Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth Contracts Governor's School Leadership Institute School-Based Leadership Development Contract

185,000.04 68,237.14 69,150.80
4,000.00

178.09 10,416.04 41,225.21 5,000.00
135,000.00 16,130.67
82,382.00 15,453.15 2,849.60 81,728.20 10,620.00 1,519.00 749,8n.63 19,293.08 14,348.00
11,350.00 333.29
118,282.18 58,449.87
18,376.49

Georgia School-Age Care Association, Incorporated The 3:00 Project

1,000.00

TOTAL
34,275.78
22,939.65 222,637.02
178.09 10,416.04 41,225.21 5,000.00 185,000.04 135,000.00 68,237.14 16,130.67 69,150.80 82,382.00 15,453.15 2,849.60 81,728.20 10,620.00 1,519.00 749;8n.63 19,293.08 14,348.00
11,350.00 333.29
118,282.18 58,449.87
18,376.49
4,000.00
1,000.00

- 38 -

CLARKE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE
JUNE30 1995

SCHEDULE 4

REGULAR ACCOUNTS
Defense, U. s. Department of
R.O.T.C. Program

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 20,399.63

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

$ 498,381.45

Georgia State University Reimbursement for Expenses

$

506.00

Human Resources, Georgia Department of
Peach Grant

8,3n.69

Northeast Georgia Regional Development Center Job Training Partnership Act

24,303.69

University of Georgia Reimbursement for Expenses

37,495.90

Various Sources Interest Earned Other

23,794.70 18,684.13

8,609.28

DEBT SERVICE
FUND
$

TOTAL 20,399.63
498,381.45 506.00
8,3n.69 24,303.69 37,495.90 32,403.98 18,684.13

$ 658,777.05 $ 1,451,897.97 $ 506,990.73 $ 22,939.65 $ 2,640,605.40

See notes to the general purpose financial statements.

- 39 -

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

CLARKE COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30, 1995

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$

598,379.75 $

598,379.75

2,522,376.25

1,167,376.25 $ 1,355,000.00

2,530,026.25

1,105,026.25

1,425,000.00

2,525,893.75

1,035,893.75

1,490,000.00

2,525,426.25

960,426.25

1,565,000.00

2,523,652.50

878,652.50

1,645,000.00

2,525,191.25

790,191.25

1,735,000.00

2,524,455.00

694,455.00

1,830,000.00

2,526,712.50

591,712.50

1,935,000.00

2,527,335.25

482,335.25

2,045,000.00

2,568,202.50

368,202.50

2,200,000.oo

2,574,421.25

249,421.25

2,325,000.00

2,581,970.00

121,970.00

2,460,000.00

1,037,775.00

27,775.00

1,010,000.oo

$ 32,091,817.50 $ 9,071,817.50 $ 23,020,000.00

(*) Principal and interest due July 1, 1995 was paid prior to June 30, 1995, and has been excluded from this schedule.

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1994 Bonds Retired During Period

TOTAL

1993 ISSUE

$ 25,565,000.00 $ 19,890,000.00

2,545,000.00

1,755,000.00

Bonds Payable at June 30, 1995

$ 23,020,000.00 $ 18,135,000.00

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

JAN 1 -JUL 1 JUL 1

See notes to the general purpose financial statements. - 40 -

SCHEDULE "5"

1993 ISSUE (*)

INTEREST

PRINCIPAL

1987 ISSUE (*)

INTEREST

PRINCIPAL

$ 448,893.50

$ 149,48625

880,443.75 $ 925,000.00

286,932.50 $

843,215.00

970,000.00

261,811.25

801,471.25

1,005,000.00

234,422.50

755,611.25

1,055,000.00

204,815.00

705,760.00

1, 100,000.oo

172,892.50

651,901.25

1,155,000.00

138,290.00

593,517.50

1,215,000.00

100,937.50

531,267.50

1,275,000.00

60,445.00

462,672.75

1,440,000.00

19,662.50

368,202.50

2,200,000.00

249,421.25

2,325,000.00

121,970.00

2,460,000.00

27,775.00

1,010,000.00

430,000.00 455,000.00 485,000.00 510,000.00 545,000.00 580,000.00 615,000.00 660,000.00 605,000.00

$ 7,442,122.50 $ 18,135,000.00 $ 1,629,695.00 $ 4,885,000.00

1987 ISSUE

1984 ISSUE

$ 5,400,000.00 $ 275,000.00

515,000.00

275,000.00

$ 4,885,000.00 $

0.00

JAN 1 - JUL 1 JUL 1

JAN 1 - JUL 1 JUL 1

- 41 -

CLARKE COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 3Q 1995

SCHEDULE"6"

AGENCY/FUNDING
GRANTS
AdministndiYa Services, Georgia Department ol Oilltant Learnlng/Telemedicine Project
Education, Georgia Department ol Quality Basic Education General and Career Education Programs Special Education Programs
Remedial Education Program
Media Center Programs Staff De\elopmant Programs Indirect Cost Pupil Transportation
Regular Bus Replacement Limited English Speaking Middle School Incentive Special lnlllructional Assistance In-School Suspension School Counselors Grades 4 and 5 Mid-term Adjuslmenl Local Fair Share Educational Equalization Funding Grant Food Services VocalionalEducalion 00- State Programs Allemalive Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Family Connection Governor's Emergency Funds (1) Innovative Programs Mentor Teac:t.- Program Preschool Handicapped Program Remedial Summer School Program Special Education Support Cost Teachers' Retirement Technology Equipment Project L.oae,yPrograms Algebra Claaarooms Allemalive School Program Dilltant Leaming lnalruclional Technology Media Center and Library Equipment Model Technology Schools Pre-Kindergarten Program
Georgia Stale Financing and Investment Commission R ~ on Construction Projects
Forestry Commission, Georgia Urban and Community Forestry Assistance Program
CONTRACTS Education, Georgia Department ol Governor's School Leadership Institute Student Information Sy&lem Program 3 Year Leaderahip Development Program
OTHER Georgia Public Telecommunications Commission

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

3,120.54

$

3,120.54

17,561,764.00 6,758,650.00
713,216.00 838,307.00 2&4,885.00 5,708,792.00

868,140.00 266,605.00 106,392.00 611,148.00 1,689,926.00 177,887.00
40,&n.oo
59,249.00 -7,108,953.00
392,504.00 $
2,024.00

249,769.00

68,237.14 '44,965.56
1,500.00
2,000.00 4,980.00 19,320.00
17,067.37 71,220.00 74,671.83 69,150.80

180,000.00 100,000.00 166,338.55

-40.73 108,132.00
15,132.57 1,423.74 -9,955.33 81,nB.20 1,301,4'4'4.00

17,561,764.00 6,758,650.00
713,216.00 838,307.00 2&4,885.00 5,708,792.00
868,140.00 266,605.00 106,392.00 611,148.00 1,689,926.00 177,887.00
40,&n.oo
59,249.00 -7,108,953.00
392,504.00 249,769.00
2,024.00
180,000.00 68,237.14 44,965.56
1,500.00 100,000.00
2,000.00 4,980.00 19,320.00 166,338.55 17,067.37 71,220.00 74,671.83 69,150.80
-40.73 108,132.00
15,132.57 1,423.74 -9,955.33
a1.na.20 1,301,4'4'4.00

$ 5,790,778.60

5,790,778.60

1.~.60

1,094.60

4,000.00 7,000.00 10,000.00

625.00

4,000.00 7,000.00 10,000.00
625.00

(1) The purpoae ollhese funds ia for 1995 Georgia School ol Excellance. See notes lo the general pulJIOM financial statements.

$ 29,369,535.84 $ 2.194,597.00 $ 5,790,778.60 $ 37,354,911.44

- 42 -

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

SCHEDULE'?

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

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

$ 26,422,086.65 18,943.62 70,747.02

$ 2,733,127.49 $ 2,733,127.49

26,422,086.65

1,802.87

20,746.49

6,151.91

76,898.93

Other Community Services Contributions
Contracts
University of Georgia Donations Indirect Cost
Special Revenue Fund Interest Earned Lost and Damaged Books Reimbursements for Salaries
Various Sources Rents Sales
Adult Meals Contracted Meals Lunches School Assets Supplemental Shared Service Contributions Barrow County Board of Education City of Commerce Board of Education City of Jefferson Board of Education Jackson County Board of Education Madison County Board of Education Morgan County Board of Education Northeast Georgia Regional Educational
Service Agency Oconee County Board of Education Transcript Fees Tuition Vending Revenue Other

560,481.62

15,200.00 27,838.46 $

711.50

40,003.07 698,713.12
12.23

4,113.46 29,596.33 $ 95,192.96

99,658.18 40,196.86

5,823.18

171,812.92 24,310.16 559,615.84
122,261.80

1,828.05 1,619.50
601.27 601.27 3,357.34 2,637.72

2,000.00 601.27 664.57
134,135.40 889.51
3,506.97

7,971.00 22,402.26

110,364.40

560,481.62
15,200.00 28,549.96
44,116.53 933,866.81
12.23
99,658.18 40,196.86
171,812.92 24,310.16 559,615.84
5,823.18 122,261.80
1,828.05 1,619.50
601.27 601.27 3,357.34 2,637.72
2,000.00 601.27 664.57
142,106.40 889.51
25,909.23

$ 28,152,146.88 $ 942,795.27 $ 95,192.96 $ 2,851,446.67 $ 32,041,581.78

See notes to the general purpose financial statements.

- 43 -

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

SCHEDULE "8"

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

EXPENDITURES

Operating Costs

Salaries

$

Employee Benefits

Travel of Employees

Professional and Technical Services

Compensation and Travel of Board Members

Water, Sewer and Cleaning Services

Repair and Maintenance Services

Rents

Property Services

Insurance

Communications

Shared Services

other Purchased Services

Supplies

Energy

Food Usage

Books, Textbooks and Periodicals

Dues and Fees

Interest Expense

Federal Indirect Costs

other Expenditures

36,291,367.47 $ 10,756,986.83
134,207.37 624,495.65
41,187.63 181,764.34 789,013.03
73,651.75 279,159.61 234,127.00 230,923.98
84,107.77 83,377.11 1,376,326.67 1,745,726.58
1,552.14 381,566.62
57,842.41 86,020.00
268,781.21

3,958,104.08 $ 1,241,581.69
66,912.17 165,388.06
12,417.70 3,600.00
83.00 10,382.05 199,174.79 127,165.45 643,812.77 32,560.75 1,589,357.69 32,124.77 10,024.00
41,638.78 33,882.85

40,249,471.55 11,998,568.52
201,119.54 789,883.71
41,187.63 181,764.34 801,430.73 77,251.75 279,159.61 234,210.00 241,306.03 283,282.56 210,542.56 2,020, 139.44 1,778,287.33 1,590,909.83 413,691.39 67,866.41 86,020.00 41,638.78 302,664.06

Nonoperating Costs Principal and Interest Land and Land Improvements Equipment

614,177.27 146,630.19 321,612.07

70,567.73 30,522.08 775,566.53

684,745.00 177,152.27 1,097,178.60

Total Expenditures

$ 54,804,604.70 $ 9,044,866.94 $ 63,849,471.64

See notes to the general purpose financial statements. - 45 -

CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30. 1995

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Repair and Maintenance Services Communications Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment

ALGEBRA CLASSROOMS

ALTERNATIVE SCHOOL
PROGRAM (1)

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

$

141,635.08

22,128.51

1,216.44

12,051.97

$

274.88

665.00

$

7.10

60,969.99

25,582.82 $

10,664.03

69.44 49,855.08

5,322.08

108,871.58

Total Expenditures

$

(1) Includes expenditures funded with $180,000.00 of State - Alternative Program funds.

7.10 $

288,201.39 $ 31,569.90 s _ _ _1_1e_.._535_.s_1

See notes to the general purpose financial statements.

- 46 -

SCHEDULE "9"

MEDIA CENTER
AND LIBRARY
EQUIPMENT

MODEL TECHNOLOGY
SCHOOLS

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$

39,336.97

4,028.82 $

25,510.20

169,100.35

56,218.00

$

212,466.14 $

81,728.20 $

735,831.55 226,522.33
10,679.82 6,013.00
7,936.40 n,495.40 109,887.93 $ 25,911.50
157.40 16,808.40 4,145.00 17,701.23
59,420.30

$ 89,536.27

sn,466.63 248,650.84
11,896.26 57,401.94
665.00 8,211.28 n,495.40 326,187.16 25,911.50
157.40 16,808.40 4,145.00 11,no.s1

27,620.15

476,407.54

1,298,510.26 $ 117,156.42 $ 2,149,175.02

- 47 -

~ 1~1<_
p~ 4-~

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

SCHEDULE "1 O"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 25,931,186.00 $

791?83.00

$ 31,206,058.12 1,120,958.24 $ _ _ _9,;;.;5;;,.;1.r..;,4;..;.4,;;.;9.~96~
$ 32,327,016.36

-349,804.26 $ 31,977,212.10

$

0.00 $ =======0=00==

See notes to the general purpose financial statements. - 49 -

CLARKE COUNTY BOARD OF EDUCATION
ANALYSIS OF MINfMUM EXPENOOURE REQUIREMENTS - BY PROGRAM
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1995

GENERAL !HP ~EER EDUCATION PROGRAMS
n Kindergarten
Grades 1 - 3 C, Sub-Total- K-3
Grades 4 - 5 C, Grades 6 - 8 C, Grades 11- 12 C, High School Laboratories C, Vocational Education Laboratories C,
Total General and Career Education Programs S~C!&, EDUCATION PROGRAMS
Regular Programs Category IC, Categoryll C, Category Ill(") Category IV C, Sub-Total - Regular Category V (Gifted) C, Total Special Education Programs
R!;;MEQ!&. EDUCATION PROGMM 0 Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS
Salaries Operation&
Total Madia Center Programs
Total Thirteen Weighted and Madia Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

'II,

ORIGINAL

MID-TERM

$ 1,998,n1.oo

$ 1,798,899.30 $

5,302,582.00

4,n2,323.80

$ 7,301,359.00 90 $ 6,571,223.10 $

2,186,057.00 90

1,967,"51.30

3,523,028.00 110

3,170,725.20

2,656,956.00 110

2,3111,260.<10

916,892.00 90

825,202.80

lln,472.00 90

879,724.80

$ 17,561,7&4.00

$ 15,805,587.60 $

59,249.00 0.00
59,2"9.00 0.00 0.00 0.00 0.00 0.00
59,249.00

$ 4,256,115.00

$ 3,830,503.50 $

0.00

$ 4,256,115.00

2,502,535.00

$ 6,758,650.00

$

713,216.00

$ 25,033,630.00

90 $ 3,830,503.50 $

110

2,252,281.50

$ 6,082,785.00 $

90 $

&41,89<1.<IO $

$ 22,530,267.00 $

0.00 0.00 0.00 0.00 59,249.00

$

663,379.00 90 $

597,0<11.10 $

0.00

174,928.00 90

157,"35.20

$

838,307.00

$

75",476.30 $

0.00

$ 25,871,937.00

$ 23,28",743.30 $

59,249.00

ST~ DEVELOPMENT PROGRAMS Cost of Instruction Professional 0eYelopment
Total Staff 0eYelopment C, ldenlif1811 Thirteen Weighted Programs.

$

138,211.25

$

138,211.25 $

0.00

146,673.75

146,673.75

0.00

$

28",885.00 100 $

28",885.00 $

0.00

See notes to the general purpo&e financial statements.

- 50 -

SCHEDULE "11"

TOTAL REQUIRED-

ACTUAL EXPENDITURES

SAL.ARIES

OPERATIONS

TOTAL

AMOUNTOF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,868,148.30 $ 2,652,830.23 $

44,769.57 $ 2,697,599.80

4,772,323.80

6,603,103.51

130,574.58

6,733,678.09

$ e,630,4n.10 $ Sl,255,933.74 $

175,344.15 $ s,431,2n.89 $

0.00

1,967,451.30

a.on,193.99

68,173.19

3,140,367.18

0.00

3,170,725.20

4,810,645.49

106,946.85

4,917,592.34

0.00

2,391,260.40

3,695,588.08

132,092.00

3,827,680.08

0.00

125,202.80

860,185.96

39,375.33

899,561.29

0.00

879,nuo

735,591.01

266,479.86

1,002,070.87

0.00

$ 15,864,836.60 $ 22,430,138.27 $

788,411.38 $ 23.218,549.65

$ 3,830,503.50 $

356,710.25 $ 1,248,760.40 2,483,352.30
456,357.31

3,930.32 $ 12,418.44 58,712.63 13,617.52

360,&40.57 1,261,178.84 2,542,064.93
469,974.83

$ 3,830,503.50 $ 4,545,180.26 $

88,678.91 $ 4,633,859.17

0.00

2.252.281.50

. 2,476,645.44

65,862.89

2,542,508.33

0.00

$ 8,082,785.00 $ 7,021,825.70 $

154,541.80 $ 7,176,367.50

$

641,894.40 $

735,491.17 $

8,496.78 $

743,987.95

0.00

$ 22,589,516.00 $ 30,187,455.14 $

951,449.96. $ 31,138,905.10

$

587,041.10 $ 1,018,602.98

$ 1,018,602.98

0.00

157,435.20

$

169,508.28

169,508.28

0.00

$

754,476.30 $ 1,018,602.98 $

169,508.28 $ 1,188,111.26

$ 23,343,992.30 $ 31,206,058.12 $ 1,120,958.24 $ 32,327,016.36 $

0.00

$

138,211.25

146,673.75

$

284,885.00 $

$

138,334.19 $

138,334.19

146,673.75

146,673.75

0.00 $

285,007.94 $

2ss.001.!M s_ _ _ _ _ _o_.oo_

- 51 -

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

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr. Dennis Revell, Chairperson (*) 345 ldlywood Drive Athens, Georgia 30605
Mr. Charles Belflower (*) 545 Forest Heights Drive Athens, Georgia 30606
Ms. Svea Bogue (*) 150 Pinecrest Court Athens, Georgia 30605
Mr. Jim Klein (*) 125 Arbor View Drive Athens, Georgia 30605
Mr. David Nunnally, Sr. (*) 185 North Rocksprings Street Athens, Georgia 30606
Mr. Vernon Payne (*) 2220 Payne Drive Athens, Georgia 30601
Mr. Mark Rich (*) 293 DeerhHI Drive Bogart, Georgia 30622
Mr. Chester Sosebee (*) 135 Witherspoon Court Athens, Georgia 30606

COMPENSATION

TRAVEL

$

4,425.00 $

612.92

2,950.00

2,595.39

2,850.00

1,771.71

2,850.00

282.01

2,750.00

3,321.20

2,900.00

3,845.50

2,950.00

2,629.19

2,950.00

1,504.71

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

$

24,625.00 $ ===1=6,=562=.6=3

See notes to the general purpose financial statements.

- 52 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Clarke County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose :financial statements of the Clarke County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 23, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, 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 Clarke County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
95CRL-10

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

CLV:cm 95CRL-I0

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Clarke 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 Clarke County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 23, 1996. 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 Clarke County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

95CRL-50

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

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 23, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Clarke County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 23, 1996. 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 Clarke County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Clarke 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.

. 95CRL-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 Clarke County Board of Education'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, 1995, 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 ofthis report.
In our opinion, the Clarke County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restrictio:q is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 95CRL-80

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Clarke 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 ofihe Clarke County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 23; 1996. 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 ofthe fiscal year 1995 general purpose financial statements ofthe Clarke County Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Clarke County Board ofEducation had not complied, in all material respects, with those requirements.

95CRL-120

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

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Clarke 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 Clarke County Board ofEducation as ofand for the year ended June 30, 1995, and have issued our report thereon dated May 23, 1996. 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, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management ofthe Clarke County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not

95ICL-3

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because ofchanges in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.
In planning and performing our audit ofthe general purpose financial statements of the Clarke County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(I) Accounting Controls (Overall)
(2) Cash and Cash Equivalents
(3) General Fixed Assets
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 errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Clarke County Board of Education's financial statements and this report does not affect our report thereon dated May 23, 1996.
95ICL-3

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 95ICL-3

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 23, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Clarke County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Clarke County Board ofEducation as ofand for the year ended June 30, 1995, and have issued our report thereon dated May 23, 1996. 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 Clarke County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 23, 1996.
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 Clarke County Board ofEducation 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, 1995, 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, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and
95ICL-7

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 23, 1996.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1995, the Clarke County Board of Education expended 71% of its total Federal financial assistance under major Federal financial assistance programs.

95ICL-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 described 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 certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Clarke County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated May 23, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
d'~~
Claude L. Vickers State Auditor
CLV:cm 95ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Reimbursement Requisitions Not Supported by Accounting Records Federal Financial Assistance Amount: $193.31 Audit Control Number 6291-93-01
The audit report for the year ended June 30, 1993, stated that the Board claimed and received $193.31 in Job Training Partnership Act (CFDA 17.250) funds from the Northeast Georgia Regional Development Center for expenditures that were not supported by the accounting records. This questioned cost had not been refunded as ofJune 30, 1995.
AUDIT FOLLOW-UP/RESOLUTION Inaccurate Indirect Cost Calculation Federal Financial Assistance Amount: $53.01 Audit Control Number 6291-93-04
The audit report for the year ended June 30, 1993, stated that a review ofthe Board's indirect cost calculations revealed an error in the calculation which resulted in an overpayment of$53.01 by the Job Training Partnership Act - Summer Youth Competency Program (CFDA 17.250) to the General Fund. This overpayment had not been refunded to the Northeast Georgia Regional Development Center at June 30, 1995.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Documentation Federal Financial Assistance Finding Deleted Audit Control Number 6291-93-06
The audit report for the year ended June 30, 1993, stated that the Board failed to provide documentation that fiscal year 1993 aggregate per student expenditures in the Fowler Drive Elementary School attendance area either equaled or exceeded the aggregate per student expenditures in that school attendance area in fiscal year 1992, as required in 34 CFR Part 200.30(b)(2)(i). This finding was reviewed by the Georgia Department of Education. During the year under review, the Board received a letter from the Georgia Department of Education dated April 24, 1995 which stated that they did not find it necessary to recommend additional corrective action or a reclaim offunds.
- 1-

CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $48,774.00 Audit Control Number 6291-93-07
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$48,774.00 for the StaffDevelopment - Professional Development Stipends Program For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$48,774.00 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $45,593.00 Audit Control Number 6291-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$45,593.00 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$45,593.00 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Completion Reports Not Supported By Accounting Records Federal Financial Assistance Finding Resolved Audit Control Number 6291-94-02
The audit report for the year ended June 30, 1994, stated that an equipment item purchased for the Individuals with Disabilities Education Act - Title VI, B - Preschool Program (CFDA 84.173) was charged to and included on the Individuals with Disabilities Education Act - Title VI, B Flow-Through Program (CFDA 84.027) final completion report. The equipment inventory list at June 30, 1994, also indicated the computer equipment was for the Preschool Program. During the year under review, the Board revised the equipment inventory listings to properly reflect the item in question.
-2-

CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED ruNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Time and Attendance Record Hours Worked Did Not Agree to Actual Time Charged Federal Financial Assistance Finding Resolved Audit Control Number 6291-94-03
The audit report for the year ended June 30, 1994, stated that employee's time and attendance records did not agree to salary amounts charged to the Elementary and Secondary Education Act - Chapter I - Education of Deprived Children Program (CFDA 84.010). During the year under review, amounts charged for salaries agreed to employee time and attendance records on file at the Board ofEducation.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 6291-94-04
The audit report for the year ended June 30, 1994, stated that the Board's property management records maintained by the Board for the Elementary and Secondary Education Act - Chapter I - Education ofDeprived Children Program (CFDA 84.010) were incomplete and failed to meet property management standards. In the year under review, the Board installed a property management system which meets Federal property management standards as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6291-93-03
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures for all Federal financial assistance programs. For the year under review, the Board made improvements regarding separation of employee's duties for all Federal programs except the School Food Services Fund (CFDA 10.550, 10.553, 10.555, 10.558, 10.559 and 10.564). No improvement in adequate separation of duties was noted in the School Food Services Fund. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
-3-

CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
CASH AND CASH EQUIVALENTS - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Control Number 6291-95-01
The Board's accounting procedures were insufficient to provide for adequate internal control over the payroll bank reconciliation process. The following deficiencies were noted:
(1) The monthly bank statements for the payroll account were not reconciled to the general ledger during the year under review in a timely manner.
(2) Payroll account activity was not kept on the general ledger.
These deficiencies were a result of management's disregard of proper internal control procedures over cash assets and bank reconciliations that are necessary to adequately safeguard and report the cash operations of the Board.
These deficiencies in the accounting procedures were discussed with the Superintendent. In addition, the accounting personnel ofthe Board were given instructions in the proper accounting procedures which include the necessity ofpromptly reconciling the bank accounts, recording adjustments and deposits to the accounting records, determining the status of issued checks and performing an administrative review of all bank reconciliations. Appropriate controls should be implemented to safeguard the cash operations ofthe Board.
EMPLOYEE COMPENSATION Salary Overpayment/Underpayment Financial Statements Nonmaterial Noncompliance Amount: $4,027.44 Audit Control Number 6291-95-02
For the year under review, a sample of sixty employees payroll records were examined. Our testing revealed that the Board overpaid employees in three instances amounting to $4,127.44 and underpaid one employee in the amount of $100.00. These payment errors were the result of the Board's failure to adhere to Board policies, failure to deduct excess leave days from individual's wages or general errors in calculations. The Board should seek reimbursement ofoverpayments for deposit to the Board's General Fund and should issue a check to the underpaid employee.
-4-

CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
GENERAL LEDGER Outstanding Loan Financial Statements Nonmaterial Noncompliance Audit Control Number 6291-95-03
On December 31, 1994, the General Fund had an unpaid loan outstanding in the amount of$159,674.14. Article IX, Section V, Paragraph V ofthe Constitution ofthe State of Georgia provides, in part, as follows:
"The governing authority of any county, municipality or other political subdivision ofthis state may incur debt by obtaining temporary loans in each year to pay expenses... Such loans shall be payable on or before December 31 ofthe calendar year in which such loan is made...".
Repayment ofloans should be made in conformity with constitutional limitations.
GENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled Financial Statements Nonmaterial Noncompliance Audit Control Number 6291-95-04
The detailed listing ofsalary and travel payments made to employees as submitted by the Board to the Georgia Department of Audits was not reconciled with the general ledger as presented for audit. The unlocated differences totaling $21,890.25 are reflected in Supplementary Information Summary and Schedule of Salaries and Travel, which is issued under separate cover.
This condition occurred because management did not reconcile amounts submitted to Georgia Department of Audits to the Board's general ledger. Procedures should be established by the Board to ensure that the detailed listing ofsalary and travel is reconciled to the accounting records prior to submission to the Georgia Department of Audits.
GENERAL LEDGER Delinquent Completion Reports Financial Statements Nonmaterial Noncompliance Audit Control Number 6291-95-05
An examination ofthe Board's compliance with regulations for the State funded Alternative Schools Program and the Pre-Kindergarten Program, revealed that the Board failed to file final completion reports by the required due dates in accordance with guidelines established by the Georgia Department of Education as follows:
-5-

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

CURRENT YEAR

GENERAL LEDGER Delinquent Completion Reports Financial Statements Nonmaterial Noncompliance Audit Control Number 6291-95-05

REPORT

DATE DUE

DATE SUBMITTED

Alternative Schools Program Pre-kindergarten Program

July 31, 1995 July 31, 1995

December 31, 1995 August 25, 1995

These deficiencies occurred because of managements failure to comply with specific limitations imposed by the Georgia Department ofEducation. Appropriate procedures should be implemented by the Board to ensure that completion reports are submitted by the required date.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6291-95-06

For the year under review, it was noted that the management ofthe Clarke 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. This condition results in the general purpose financial- statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, 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.

-6-

CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
CASH MANAGEMENT Excessive Lottery Cash Balances Financial Statements Nonmaterial Noncompliance Amount: $4,410.38 Audit Control Number 6291-95-07
The project completion report submitted by the Board for the Fiscal Year 1994 Lottery Programs included expenditures which exceeded individual Lottery grant awards for the Computers In Classrooms in the amount of $1,183.32, Distant Learning in the amount of$66.00 and Safe Schools Grants in the amount of$43.13. This occurred because the Board accounted for its Lottery Programs in total rather than by facility, as specified by program requirements. This deficiency resulted in overexpenditures on some grant awards being offset by underexpenditures on other grant awards.
In addition, the following events occurred in the Board's Pre-Kindergarten Program which caused additional funds to be due to the Georgia Department ofEducation:
1) An amount of$105.00 was included in reported expenditures in the fiscal year 1994 project completion report, but was subsequently refunded to the Board by vendors.
2) The Georgia Department ofEducation remitted $1,000.00 in excess funds to the Board over and above the fiscal year 1994 program grant award.
3) The Board received $2,012.93 for fiscal year 1995 Pre-Kindergarten Program in excess of actual program expenditures.
The Board should refund the $4,410.38 to the Georgia Department of Education for unexpended grant balances remaining in the Lottery programs.
FEDERAL FINANCIAL REPORTS Failure to File Completion Report Timely Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6291-95-08
An examination ofthe Board's compliance with regulations for the Elementary and Secondary Education Act Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) revealed that the Board failed to file final completion reports for this program in a timely manner. This deficiency occurred because management neglected the specific requirements for this program as required by Federal guidelines as shown below:
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CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

CURRENT YEAR

FEDERAL FINANCIAL REPORTS Failure to File Completion Report Timely Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6291-95-08

Project

Due Date

Date Submitted

1993 Cany-Over 1994 Cany-Over Summer 1995

October 30, 1994 July 31, 1995 August 30, 1995

November 30, 1994 August 31, 1995 January 31, 1996

Appropriate procedures should be implemented by the Board to ensure that completion reports are submitted by the required dates.

AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plans Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6291-95-09

Our audit disclosed that the Board failed to submit a corrective action plan for the 1994 audit report as required by 0MB Circular A-128 to various entities that were the sources ofFederal financial assistance as follows:

ENTITY

PROGRAM

Education, Georgia Department of
Northeast Georgia Regional Development Center

Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children Program (CFDA 84.010)
Individuals with Disabilities Education Act - Title VI, B Flow-Through Program (CFDA 84.027) Preschool Program (CFDA 84.173)
Job Training Partnership Act (CFDA 17.250)

Management maintained they were not notified by the Georgia Department of Education that a corrective action plan was necessary for the year ended June 30, 1994. The Board should implement procedures to submit corrective action plans in a timely manner as required.

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SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

CLARKE COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6291-93-03
We concur with this finding~ however, due to current budgetary constraints, the Board is unable to hire the additional staffrequired to clear this finding. Administration will continue to evaluate the assignment of duties within the School Nutrition Program to achieve the highest level ofinternal controls possible with the limited staff available to perform the accounting functions.
CASH AND CASH EQUIVALENTS - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Control Number 6291-95-01
We concur with this finding~ however, Administration has been and continues to be concerned with the payroll control process. Both of the noted problems are a software issue which is currently being addressed. We anticipate major software changes which will resolve and/or prevent these type problems from occurring.
EMPLOYEE COMPENSATION Salary Overpayment/Underpayment Financial Statements Nonmaterial Noncompliance Amount: $4,027.44 Audit Control Number 6291-95-02
We concur with this finding. Again, we anticipate major software changes which will reduce or eliminate the large number of manual calculations currently required.
GENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled Financial Statements Nonmaterial Noncompliance Audit Control Number 6291-95-04
We concur with this finding. As stated, we anticipate major software revisions including a payroll interface with the General Ledger which will eliminate this problem.
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CLARKE COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
GENERAL LEDGER Delinquent Completion Reports Financial Statements Nonmaterial Noncompliance Audit Control Number 6291-95-05
We concur with this finding. Due to problems with modifications to the Financial Accounting software installed in May 1995, the District experienced delays in closing the accounting records for both fiscal year ended June 1995 and the first four months of the following fiscal year.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6291-95-06
We concur with this recommendation. Due to current staffing limitations, budgetary and other considerations, the Board and Administration has decided not to pursue the recording of the general fixed assets on the financial statements.
CASH MANAGEMENT Excessive Lottery Cash Balances Financial Statements Nonmaterial Noncompliance Amount: $4,410.38 Audit Control Number 6291-95-07
We concur with this recommendation. These funds will be returned to the Georgia Department ofEducation.
FEDERAL FINANCIAL REPORTS Failure to File Completion Report Timely Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6291-95-08
We concur with this finding. Due to problems with modifications to the Financial Accounting software installed in May 1995, the District experienced delays in closing the accounting records for both fiscal year . ended June 1995 and the first four months ofthe following fiscal year.
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CLARKE COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995 AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plans Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6291-95-09 We concur with this finding~ however, we did receive a letter from the Georgia Department ofEducation stating since there were no improper expenditures or questioned costs, the FY94 audit was closed. A copy of this letter is attached. Beginning with this response, we will continue to respond to all findings to the Georgia Department of Audits.
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