Audit report, Clinch County Board of Education, Homerville, Georgia, year ended June 30, 1994

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

AUDIT REPORT CLINCH COUNTY BOARD OF EDUCATION
HOMERVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

CLINCH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION!

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDMDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

FIDUCIARY FUND TYPES

G

COMBINING BALANCE SHEET

24

H

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

25

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

28

3 INVESTMENTS

29

4 ACCOUNTS RECEIVABLE

30

5 DEBT SERVICE REQUIREMENTS TO MATURITY

31

SCHEDULE OF REVENUE

6

STATE FUNDS

32

7

LOCAL AND OTHER FUNDS

33

CLINCH COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

34

9

LOTTERY PROGRAMS

35

10

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

11

OVERALL

37

12

BY PROGRAM

38

13 SCHEDULE OF COMPENSATION OF BOARD MEMBERS

40

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 5, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Clinch County Board of Education
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 Clinch County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
94ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 Clinch County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Clinch County Board ofEducation taken as a whole. The combining and individual fund statements (Exhibits E through H) and the financial schedules (Schedules 1 through 13 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Clinch County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
t:t~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-13

CLINCH COUNTY BOARD OF EDUCATION - 1-

CLINCH COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1994

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Interest Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount ID be Provided in Future Years For Payment of Bond Debt

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

$ 2,796,853.18 $

70,509.32 $

63,671.19

207,442.00

98,655.88

132,407.93

5,226.81

5,723.01 3,224.55

Total Assets

$ 3102,951.06 $ 211,864.81 s _ _68=,8_98_._oo_

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Interest Payable Expired Grant Balances Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

181.69 $

1,498,500.00 43,600.92

22,640.39 73,420.84
184.31 698.93

1,542,282.61 $

96,924.47

$

11,483.58

11,483.58 $ 1,549,184.87 $ 1,560,668.45 $

6.45 $
5,723.01 3.224.55 8,954.01 $ 105,986.33 114.940.34 $

68,898.00
68,898.00 0.00
68.898.00

3.102.951.06 $ 211.864.81 $

68.898.00

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

EXHIBIT"A"

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

49,404.83

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onll) JUNE 30, 1994 JUNE 30, 1993

$ 2,980,438.52 $ 2,188,540.05

207,442.00

507,540.95

236,290.62

233,022.03

38,452.01

68,898.00 201,102.00

5,723.01 3,224.55 68,898.00
201,102.00

6,103.37 3,118.48 60,188.25
284,811.75

$

49,404.83 $

270,000.00 $ 3,703,118.70 $ 3,321,776.89

$

10,683.38

$

$

10,683.38 $

$
270,000.00 270,000.00 $

22,822.08 $ 73,420.84 1,498,500.00 43,600.92
164.31 698.93 10,683.38 270,000.00
1,919,890.46 $

43,987.63 68,655.71 1,176,888.00 32,332.98
8,028.33
10,393.22 345,000.00
1,685,285.87

$

38,721.45

38,721.45

49,404.83 $

$

6.45

68,898.00 $

60,188.25

11,483.58

5,043.65

5,723.01 3,224.55

6,103.37 3,118.48

$

89,335.59 $

74,453.75

1,693,892.65

1,562,037.27

$ 1,783,228.24 $ 1,636,491.02

270,000.00 $ 3,703,118.70 $ 3,321,776.89

-3-

CLINCH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

REVENUES
S-Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current lnstructicn Support Service& Pupil Service& Improvement of Instructional Service& Educational Media Service& General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Service& Central Support Service& Other Support Service& Food Service& Operation Other Operations of Nian-Instructional Service&
Capital Outlay Debi Service
Principal 1Paying Agent Fees
Total Expenditures
Excess of R.,_,._ over (under) ~ e s
OTHER FINANCING SOURCES {USES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of R.,_,._ and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Period Donated Commodities Purchased Food

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

REVENUE

SERVICE

FUND

FUND

$ 4,136,172.00 $

58,831.28

12,956.95 1,053,083.63

1791917.24

107632.14 $

$ 5 941 046.19 $ 1 219 547.05 $

108 649.75 108649.75

$ 3,516,922.49 $
184,909.42 130,702.94 162,644.57 178,082.28 419,376.67 176,366.86 457,170.77 357,493.22 33,465.00
287.06
74,652.70 106,174.99

468,914.68
62,203.25 47,310.57 5,606.72 100,606.34
600.17
4,513.19 21,674.14
37,256.50 471,471.95
$

$ 5 798 248.97 $ 1 220 157.51 $

$ 142797.22 $

-610.46 $

75,000.00 24,790.00
150.00
99940.00
8709.75

$

$

-23.80

$

-23.80 $

23.80 23.80

$ 142,773.42 $ 1,417,895.03

-586.66 $ 115,801.29

-380.36 106.07

8,709.75 60,188.25

FUND BALANCE JUNE 30

$ 1,560 668.45 $ 114940.34 $

68,898.00

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

EXHIBIT"B"

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS {Memorandum Onl~
YEAR ENDED JUNE30 1994 JUNE 30 1993

$ 4,195,003.28 $ 1,066,040.58 2008199.13
$ 7 269 242.99 $

0.00 $

4,195,003.28 $ 1,066,040.58 2008199.13

4,266,638.00 1,065,654.58 2050811.19

0.00 $ 7 269 242.99 $ 7 383103.77

$ 3,985,837.17 $
247,112.67 178,013.51 168,251.29 278,688.62 419,976.84 176,366.86 461,683.96 379,167.36 33,465.00 37,543.56 471,471.95 74,652.70 106,174.99
75,000.00 24,790.00
150.00
$ 7118 346.48 $
$ 150,896.51 $

3,885.00 $ 3,989,722.17 $ 3,973,151.90

247,112.67 178,013.51 168,251.29 278,688.62 419,976.84 176,366.86 461,683.96 379,167.36 33,465.00 37,543.56 471,471.95 74,652.70 106,174.99

218,741.89 133,790.43 151,339.70 264.4n.04 410,974.51 166,562.35 455,457.83 335,434.61 73,315.69
451,789.30 75,416.42
345,090.47

75,000.00 24,790.00
150.00

70,000.00 29,760.00
150.00

3885.00 $ 7122231.48 $ 7155,447.14

-3885.00 $ 147011.51 $ 227656.63

$

23.80

-23.80

0.00

23.80 $ -23.80
0.00 $

141,383.59 -141 383.59
0.00

150,896.51 $ 1,593,884.57

-3,885.00 $ 147,011.51 $ 227,656.63 42,606.45 1,636,491.02 1,412,940.45

-380.36 106.07

-380.36 106.07

-3,187.35 -918.71

1,744,506.79 $

38,721.45 $ 1,783,228.24 $ 1,636,491.02

.5.

Cl INCH COUNTY BOARP Of EQUCATIQN
t:QM~ltjl;Q filAIEMftil: QF BE~ENYES f;,SPENQ!IUBES ANQ QtlAt-1~'.e: IH FUHQ 6.6Lei~~E ~ A l 6NQ ~UDQ!;! e GO~~Bt-lM!;NIAL E!.!t-lQ D'.:e~S
YEAR ENDED JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~
State Funds Federal Funds Local and other Funds
Total Revenues

$ 4,195,003.28 $ 1,066,040.58 2,008,199.13
$ 7,269,242.99 $

0.00 $ 4,195,003.28 $ 4,322,887.00 $ 1,066,040.58 1,058,347.06 2,008,199.13 11852,m.20
0.00 $ 7,269,242.99 $ 7,234,006.26 $

-127,883.n 7,693.52
155,426.93
35,236.73

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 Other Operations of Non-Instructional Services
Capital Outlay Debt Service

$ 3,985,837.17 $
247,112.67 178,013.51 168,251.29 278,688.62 419,976.84 176,366.86 461,683.96 379,167.36 33,465.00 37,543.56 471,471.95 74,652.70 106,174.99 99,940.00

0.00 $ 3,985,837.17 $ 4,202,763.95 $

247,112.67 178,013.51 168,251.29 278,688.62 419,976.84 176,366.86 461,683.96 379,167.36 33,465.00 37,543.56 471,471.95 74,652.70 106,174.99 99,940.00

254,297.40 183,375.80
204,914.22 290,079.44 456,409.63 131,228.77 463,232.19 439,570.53
33,465.00 39,627.00 468,919.50 77,974.84 113,618.00
99,940.00

216,926.78
7,184.73 5,362.29 36,662.93 11,390.82 36,432.79 -45,138.09 1,548.23 60,403.17
0.00 2,083.44 -2,552.45 3,322.14 7,443.01
0.00

Total Expenditures

7 118,346.48 $

0.00 $ 7,118,346.48 $ 7,459 416.27 $

341,069.79

Excess of Revenues over (under) Expenditures

$ 150,896.51 $

0.00 $ 150,896.51 $ -225,410.01 $

376306.52

QTHEB EINAt,ICIN!:, SQ!.!BQEl, (!.!Sia)

other Sources other Uses

$

23.80 $

-23.80

0.00 $

23.80 $ -23.80

1,850.00$

-1,826.20 -23.80

Total Other Financing Sources (Uses)

$

0.00 $

0.00 $

0.00 $

1,850.00$

-1,850,00

Excess of Revenues and other Financing Sources over (under) Expenditures and other Financing Uses $ 150,896.51 $

FUND ~ALANCE JUI Y l 1993

1,593,884.57

0.00 $ 150,896.51 $ -223,560.01 $

n -9,221.85 1,584,662.

1,515,291.70

374,456.52 69,371.02

ADJUSTMENTS

4,731.51

-4,731.51

FQQD INVENTORY - NET CHANGE IN PERIOD

Donated Commodities Purchased Food

-380.36

380.36

0.00

a.co

106.07

-106.07

0.00

0.00

FUND BAbANCE JUNE 30 1994

$ 1,744,506.79 $

-8,947.56 $ 1,735,559.23 $ 1,296,463.20 $

439,096.03

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

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Clinch County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Clinch County Board ofEducation.
Based upon the application of the above criteria, the Clinch County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Clinch 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.
- 8-

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To 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 traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
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 TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLETRUSTFUND Self-Insured Employee Benefit Fund - the fund used to account for the Unemployment Compensation Insurance contributions and expenditures.
AGENCY FUND - the fund used to account for assets held for other funds, governments, or individuals.

- 9-

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund 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 ofavailable spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds and the expendable trust fund 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 if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund tlie State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made.
- 10 -

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Clinch County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper 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 of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and savings accounts) in authorized financial institutions. Georgia Laws authoriz.e the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

- 11 -

CLINCH COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations ofother political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Clinch County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on August 25, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.l 03. The Clinch County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2. 5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

- 12 -

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

School Operations School Bonds

16.00 mills 1.00 mills

17 00 mills

INVENTORIES

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

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types ofinterfund transactions:

Reimbursements of expenditures 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.

- 13 -

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount ofdeposit 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 accpunts.
Acceptable security for deposits consists of any one of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities of the State ofGeorgia,
(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 ofdevelopment authorities created by the laws of the State of Georgia, and

- 14 -

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $3,418,033.65. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1994, as follows:

Risk Category
1 2 3
Total

Bank Balance
$ 263,671.19 2,619,149.45 535 213.01
$341803365

CATEGORIZATION OF INVESTMENTS At June 30, 1994, the canying amount ofthe Board's total investments was $207,442.00 and consisted entirely offunds in the Local Government Investment Pool administered by the 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.

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

- 15 -

CLINCH COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Each fund contributes their pro rata share to the Unemployment Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, a total of$3,885.00 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1, 1993

$ 345,000.00

Additions

0.00

Deletions

75 000.00

Balance June 30, 1994

$ 27Q QQQ QQ

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

Fiscal Year Ended June 30

General Obligation
Bonds

1995 1996 1997

$ 99,390.00 103,630.00 107 150.00

Total Principal and Interest

$ J]Q ]7Q0Q

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$72,615.46 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department ofEducation has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

- 16 -

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: SIGNIFICANT COMMITMENTS

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

$ 698.93 21,811.09 1,000.00 29,365.44 19 740.00

$ 726)546

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

Note 7: CONTINGENT LIABILITIES

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

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years 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 of disability or death.

- 17 -

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $3,824,058.99; total payroll was $4,242,781.87.

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

Total contnbutions made during fiscal year 1994 amounted to $680,909.29, of which $451,621.69 was made by the Board and $229,287.60 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ I 090 292 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $451,621.69 was actuarially determined and represented .0866% of total contributions made by all participating employers.

- 18 -

CLINCH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contnbutions occurs, but the member's contributions are refunded with interest.
There were 40 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $1,388.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. Sterling Newton, is bonded in the amount of$4,000.00 with the Hartford Fire Insurance Company, Hartford, Connecticut, their Bond No. 20 RN 4655044, on which premium was paid through December 15, 1994.
- 19 -

CL1NC~ cquNTY BQARQ 9E fpt !CATION
crn.AgININg BALANCE SHffI PfClAl RE;VfNUf FL JNQ
JLJNf ;}Q 19Q4

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

SCHOOL FOOD
SERVICES ______Bd!::!Q__

LOTTERY ~

FARGO PRESCHOOL

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

EDUCATION OF DEPRIVED CHILDREN

$ 129,050.28

2,531.89 $ 7,730.21 $ 4,431.95 $

2,1<40.72 S

72,306.07

ELEMENTARY CHAPTER1
MIGRANT PROGRAM
1,262.73 1,416.95

5,723.01 3 224.55

2 140.n s _____1_.2_306_...01..,s _ _ _2._s_1__.-68_

I IAQl[ ITlf ANO FLJNP fQl JITY
~
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities

$ 5,681.16 19,914.68

6,221.28 $ 810.00

75."6 S 1,279.13 3,077.36

~ $ 25595.84 $ ~ $ ~ $

1,342.14 $ 130.28 668.30
2140.72 $

27,000.80 9,892.51 $
35,412.76
72306.07 $

694.12 1,973.18
12.38
2 679.68

Fund Balances Reserved For Continuation of Federal Program FOi' Inventories Food Donated Commodities Purchased Food
Unresel'\fed Undesignated
Total Fund Equity

5,723.01 3 224.55
8,947.56
1os 986.33 s __Q.QQ_ S__Q.QQ_ s _ _ _...,o=.00,,,__s _ _ _ __,o=.00,,_s _ _ __,o=.00"'s 114933.es S__Q.QQ_S__Q.QQ_S _ _ __,o=.00"'--s _ _ _ __,o=.oo"-s _ _ _..,o=.00,,__

Total Liabilities and Fund Equity

2140.72 s _ _....,.1.2.._306=.o..,1 s _ _ _2._s_1...6.8..

See notes to the general purpose financial statements.

-20-

EXHIBIT.,E"

AND SECONDARY EDUCATION Acr

STATE PROORAM IMPROVEMENT GRANT

CHAPTER2 BLOCK GRANT FLOW lHROUGH

0.00 $

0.00

TITLE II EISENHOWER MAlHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS Will-I

DISASlLmES EDUCATION ACT

Tm.EV! B

FLOW

PRESCHOOL

THROUGH

PROGRAM

PROJECT HEAD START

3,598.23

3,500.00 $

26,269.89

3,292.33 $

8,787.92

TOTALS JUNE30 1994 JUNE 30 1993

133,911.2-4 $

67,-431.20

132,-407.93

135,473.51

5,723.01 3 224.55

6,103.37 3118.48

0.00 $

0.00 $

3 500.00 S

26269.89 $

6 890.56 $

8 787.92 $

275 266.73 $

212126.56

0.00 $ 0.00 $
0.00 $

3,337.17 S 162.83

16,643.60 2,566.83 S 7,059.-46

3 500.00 $

26269.89 $

$ 1,423.53 5,315.10
151.93
6 890.56 $

8,781.47 $ 8 781.47 $

63,401.92 22,640.39 $ 73,420.84
164.31 698.93
160 326.39 $

19,641.23 68,655.71
8,028.33
96 325.27

0.00 $ 0.00 $

0.00 $ 0.00 $

0.1)0 S 0.00 S

0.00 0.00 $

6.45 $

6.45

6.45 $ 0.00 6.45 $

5,723.01 $ 3 224.55 8,954.01 $
105 986.33
1149-40.34 $

6,103.37 3118.48 9,221.85
106 579.44
115 801.29

0.00 $

3 500.00 S

26 269.89 $

6 890.56 $

8 787.92 $

275 266.73 $

212126.56

CUNCH COUNTY BOARD QF EDUCATION CQMBIN1NG STATEMENT Of BF\/ENl ES EXPENQITUBES AND CHANGES IN FVNP BALANCES
SPECIAi RfYFNlJF FUNP YEAR ENDED JUN!; 30 1994

ELEMENTARY

~
Stale Funds Federal Funds Local and Other Funds
Total Revenues

SCHOOL FOOD
SERVICES ~

LOTTERY PROGRAMS

FARGO PRESCHOOL

DRUG-FREE SCHOOLS AND COMMUNITIES
M;T

EDUCATION OF DEPRIVED CHILDREN

CHAPTER I
MIGRANT PROGRAM

32,184.00 $ 26,64728 357,054.47
81,640.37 - - - -
$ 470,878.84 $ 26,647.28 $

25,991.77 25,991.77 $

16,855.38 $ 16 855.38 $

358,498.07 $ 358 498.07 $

17,443.63 17 443.63

EXPeNDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation

$ 471,471.95

21,040.56 $ 5,606.72

15,860.46 $ 9,926.78

204.53

8,515.94 $ 8,340.39

210,351.66 $
46,857.53 293.45
63,311.61 600.17
1,050.00_
36,256.50

17,443.63

Total Expenditures

16856.33 $

358,520.92 $_~17~,443~.63~

Excess of Revenues over {under) Expenditures

-593.11 $

0.00 $

0.00 $

--0.95 $

-22.85 $

0.00

OTHER EINANC1NG SOURCES

Operating Transfers In

0.95

22.85

Excess of Revenues and Other Financing Sources over {under) Expenditures
FUND BALANCE JULY 1

-593.11 $ 115,801.29

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $

0.00

0.00

0.00

Food Inventory .. Net Change In Period
Donated Commodities Purchased Food

-380.36 ~

FUND BALANCE JUNE 30

s~ S------22. S------22. s_____o_.o__o_ s____o__.oo_s ______o__.o__o_

See notes to the general purpose financial statements.

-22-

EXHIBIT"F"

AND SECONDARY EDUCATION N:::r

STATE PROGRAM M'ROVEMENT GRANT

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE U-

INDIVIDUALS WITH

EISENHOWER DISABILITIES EDUCATION /ICT

MATHEMATICS

TITLE VI, B

AND SCIENCE

FLOW

PRESCHOOL PROJECT

EDUCATION ~ ~ ~

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30, 1993

8,020.00 $

13,563.00 $

_ _ _.:c8,,:020=.00,,_$ _ _ _1'-"3"'563=.00"-$

34,784.23 $ 34,784.23 $

73,373.89 $ 73,373.89 $

$ 33,178.-40 $ 1-40.312.56
33,178.-40 $ 1-40312.58 $

58,831.28 $ 1,053,083.63
107,632.14
1.219,547.05 $

31,488.00 1.0SS.654.58
88,368.24
1,185,510.82

3,120.00 $ 3,900.00
1,000.00 8,020.00 $
0.00 $
0.00 $ 0.00
0.00 $

13,531.51 31.49
13,563.00 $ 0.00 $

34,TT6.73 7.80

48,791.84 $ 2,ns.00

30,185.49 $ 100,073.59 $

2,833.94

60.00

19,020.37 2,836.68

158.97

18,076.-40
3,463.19 18,632.93

---- ---- ----
34,784.23 $ 73,373.89 $ 33,178.-40 $ 1-40,306.11 $

0.00 $

0.00 $

0.00 $

6.45 $

468.914.68 $ 484,350;97

62.203.25 47.310.57 5,606.n 100,606.34
600.17 4,513.19 21,674.14
37.256.80 471,471.95

53,132.48 19,839.07
90,528.37 274.64
5,760.89 22,-402.92 39,850.69
451,626.73

1,220,157.51 $ 1,167,786.76

-610.46 $

17,n4.06

0.00 $ 0.00
0.00 $

---- ---- ----

o.oo $ 0.00

0.00 $ 0.00

0.00 $ 0.00

6.45 $ 0.00

23.80

-586.66 $ 115,801.29

11.n4.06 102,183.29

---- ---- ----

-380.36 106.07

-3,187.35 -918.71

0.00 $ ~ $~ $~ $

114,940.34 $

115,801.29

-23-

CLINCH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE30 1994

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

EXPENDABLE TRUST FUND SELF-INSURED
EMPLOYEE BENEFIT FUND UNEMPLOYMENT COMPENSATION
FUND

AGENCY FUND

TOTALS JUNE30 1994 JUNE30 1993

38,721.45 $

10,683.38 $

s_ _ _ 49.404.83

52_,_99_9_._o1_

LIABILITIES AND FUND EQUITY
LIABILITIES
Funds Held for Others
FUND EQUITY
Fund Balances Unreserved Undesignated

$ _ _ _~38=7~2~1-~45~

10,683.38 $

10,683.38 $

10,393.22

0.00

38721.45

42606.45

Total Liabilities and Fund Equity

38,721.45 $

10,683.38 $

s_ _ 49 404.83

5_2_.999.....,.o1_

See notes to the general purpose financial statements.

-24-

CLINCH COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30 1994

EXHIBIT"H"

BALANCE JULY 1, 1993

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1994

EMPLOYEE ACCOUNT

ASSETS Cash and Cash Equivalents $

10,393.22 $

290.16 $

0.00 $===1=0=,6=8=3=.3=8

LIABILITIES Funds Held for Others

$

10,393.22 $

290.16 $

0.00 $===1=0.,.6..8=3=.3=8

See notes to the general purpose financial statements. - 25 -

CLINCH QQJ.~MC! ~ Q QE EC! g:ADQti Gl::::IEQ!iU EQf ~QEB~ RNANC!AI ~c:;T~
VEAR ENDED JUNE 30 1991

SCHEDULE "1"

FUNDING AGENCY PBQGRAWGBANT
Agrieullun,, U.S. Dopar1monl d Through Georgia Dopar1monl d Education Food and Nutrition Program FoodSeMc:oo
Sch1o9o9l,4- Gran- t Program National School Lunch Program
1993Gnnt 199,4Gnnl Food Distribution Program (1)
Total U.S. Dopar1monl d Agricullun,
Educotion, U. S. Dopor1monl d Through Berrien County Boord d Educotion dlbla Southern Pine Mig"'nl Education AgarlCf E - r y and Secondary Education Id Chaplor1 Mig,-Y Program 199,4 Regular Through Georgi Dopar1menl d Eduoation E - r y and Secondary Education Id Chapter 1 Educotion d Deprived Children 1993Regular 1993 Cny.01994Regular S- Program Improvements 1~Grant Chaplor2
-Block Grant - Flow Through 199,4 Regulor TllloN EinhoworMalhemalicsand Seionce
1993 Regular 1984Regu..r E-MalhemalicsondSGionce Educotion Fundamentals d Algebra
199,4Contract I - wilh llisabilitios Education Id
TllleVl,B Flow Through 1993Regular 1993 Carry-<>1984Regular Presehool Program 1993Regular 1993 Cny.0199,4 Regular
Voc:ationI Educotion - Bsic Grants lo Slles High School Program Bnic:Grant 199,4Granl
Through Oke19nokN Regional Educotional ServiceAgancf Drug-Free Sc:hools and Communities >d. 1992 Cny.01993 Regular 1993 Cony-Owl' 199,4 Regular
Total U.S. DepartmentdEducation

CFDA ~

AWAADS INPERIOD

FEDERAL FUN'.lS RECEIVED ,;.;
PERIOD(NET OF REFUNDS)

FEDERAL REVENUE INPERIOD

EXPENDITURES INPERIOD

10.553
10.555 10.555 10.550

74,247.51 $
230,330.89 31 723.93
336302.33 $

74,247.51 $
2,170.21 227,798.49 NIA
304~6,21 $

74,247.51
230,330.38 $ 31723.93 336301.62 $

(2)
440,038.18 (3) 31723.93
471 762.11

64.011 $ 17,475.00 $

16,039.06 $ 17,443.63 $

17,443.63

" 64.010 " 64.010 64.010
64.218
64.151

39,492.00 330,403.00
8,020.00
13,563.00

64.164 64.164

7,000.00

64.164

27,500.00

64.027 64.027 84.027
84.173 64.173 64.173

14,260.00 62,152.00
11,803.00 40,488.00

64.048

12,956.95

64.186 84.186 64.186 64.186

2,023.00 16966.00
624101.95 $

89,651.76 39,492.00 246,700.00
8,020.00
13,563.00

39,492.00 319,006.07
8,020.00
13,563.00

39,492.00 319,028.92 (3)
8,020.00
13,563.00

4,870.00 3,500.00

264,23 7,000.00

264.23 7,000.00

27,500.00

27,500.00

27,500.00

11,969.82 14,260.00 32,844.00
-5,839.83 11,803.00 18,235.00

14,260.00 59,113.89
11,803.00 21,375.40

14,260.00 59,113.89
11,803.00 21,375.40

8,212.16

12,956.95

(4)

1,783.93 5,623.89 2,023.00 12 691.66
562942.45 $

2,023.00 14832.38
568673.55 $

2,023.00 14 833.33 (3)
555 740.40

- 26 -

Ci INCH CQlJNTY RQARP Of EDUCATION SCHFQULf OF Fe5QFRAI FINANClA\ ASlTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U.S. Department of Through Concerted Services, Incorporated Project Head Start 1993Grant 1994Grant Project Head Start Food Service Agreement 1994 Grant
Total U.S. Department of Health and Human Services
Labor, U.S. Department of Through Southeast Georgia Regional Development Center Job Training Partnership Act JTPA-92-07

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

13.600 13.600
13.600

15,500.00 $ 134,868.00
20 752.65
171120.65 $

62,630.13 $ 77,713.01

53,811.63 $ 86,500.93

53,811.63 86,494.48

20752.65

20752.65

(4)

161 095.79 $ 161 065.21 $

140306.11

17.250

8694.00

Total Federal Financial Assistance

$ 1 131,524.93 $

r> The Major Program is identified by an asterisk in front of the CFDA number.

1 036 948.45 $ 1 066 040.58 $

(1) The amounts shown fo~ the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994 National Sehool 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.

1167 808.62

See notes to the general purpose financial statements.

- 27 -

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

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Empire Banking Company, Homerville, Georgia
INTEREST BEARING ACCOUNTS
Empire Banking Company, Homerville, Georgia
Certificates of Deposit No. 1177 (3.20%) No. 3192 (3.70%) No. 3151 (7.50%) No. 3125 (4.85%) No. 3189 (7.50%) No. 3116 (4.15%)
Money Market Account (3.00%) Money Market Accounts (3.50%)

$ 184,422.36

$ 225,000.00 500,000.00
1,423,575.00 310,503.92 74,925.00 52,986.11 22,796.26 186,229.87

2,796,016.16

$ 2,980,438.52

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

CLINCH COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30 1994
INVESTMENT POOL Office of Treasury and Fiscal Services Local Government Investment Pool (4.194%)

SCHEDULE "3" $ 207,442.00

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

CLINCH COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "4"

Berrien County Board of Education d/b/a Southern Pines Migrant Education Agency
Clinch County Tax Commissioner County Wide Bond Tax County Wide School Tax
Concerted Services, Incorporated Project Head Start Salaries
Education, Georgia Department of Food Services National School Lunch Program Vocational Education Federal Funds Lottery Programs Computers in Classrooms Distant Leaming Media Center and Library Equipment Federal Programs ESEA Chapter 1 Education for Deprived Children Title II Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act Title VI, B - Flow Through Title VI, B - Preschool Program
Okefenokee Regional Educational Service Agency Drug-Free Schools and Communities Act
Various Sources Interest Earned

GOVERNMENTAL FUND TYPES

. SPECIAL

DEBT

GENERAL REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 1,416.95

$ 1,416.95

$ 81,793.13

$ 5,226.81

5,226.81 81,793.13

4,431.95 8,787.92

4,431.95 8,787.92

4,744.79

2,531.89
1,123.91 999.58
5,606.72

2,531.89
4,744.79
1,123.91 999.58
5,606.72

72,306.07
3,500.00 26,269.89
3,292.33

72,306.07
3,500.00 26,269.89
3,292.33

2,140.72 12,117.96

2,140.72 12,117.96

$ 98,655.88 $ 132,407.93 $ 5,226.81 $ 236,290.62
See notes to the general purpose financial statements. - 30 -

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

SCHEDULE "5"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996 1997

TOTAL DEBT SERVICE

1976 ISSUE

INTEREST

PRINCIPAL

$ 99,390.00 $ 19,390.00 $

103,630.00 13,630.00

107,150.00

7,150.00

80,000.00 90,000.00 100,000.00

s 310,110.00 s 40,110.00 s===2=1=0=,o=o=o.=o=o

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Retired During Period
Bonds Payable at June 30, 1994

$

345,000.00

75,000.00

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

FEB 1 -AUG 1 AUG 1

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

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

SCHEDULE 5

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

GRANTS

Education, Georgia Department of

Quality Basic Education

General and Career Education Programs

$

Special Education Programs

Remedial Education Program

Media Center Programs

Staff Development Programs

Indirect Cost

Pupil Transportation

Regular

Bus Replacement

Sparsity Grant

Special Instructional Assistance

In-School Suspension

Local Fair Share

Educational Equalization Funding Grant

Food Services

Other State Programs

Preschool Handicapped Program

Supervision and Assessment of Student and

Beginning Teachers and Performance-

Based Certification

Lottery Programs

Algebra Classrooms

Computers in Classrooms

Distant Learning

Media Center and Library Equipment

Georgia Public Telecommunication Commission

Lottery Program

Distant Learning

2,363,499.00 551,158.00 99,958.00 105,353.00 36,328.00 741,347.00
190,080.00 56,671.00 61,861.00
242,380.00 32,684.00
-620,585.00 246,375.00
$
20,863.00
450.00

$ 2,363,499.00 551,158.00 99,958.00 105,353.00 36,328.00 741,347.00

32,184.00

190,080.00 56,671.00 61,861.00
242,380.00 32,684.00
-620,585.00 246,375.00
32,184.00

20,863.00

1,617.07 13,688.91
999.58 5,606.72

450.00
1,617.07 13,688.91
999.58 5,606.72

4,735.00

4,735.00

Georgia Forestry Commission For Tree Planting Project

7,250.00

7,250.00

OTHER Education, Georgia Department of Reimbursement for Supplies

500.00

500.00

$ 4,136,172.00 $

58,831.28 $ 4,195,003.28

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

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

SCHEDULE "7"

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

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

$ 1,677,209.39 350.40
8,721.71

$ 106,724.32 $ 106,724.32

1,677,209.39

21.90

372.30

545.11

9,266.82

Other Compensation for Loss of Assets Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Reimbursement for Salaries Concerted Services, Incorporated Sales Lunches School Assets Other

69.68

9,967.89 91,728.27 $
610.90

619.15

25,991.77

2,018.00 1,241.00

81,021.22

1,358.42

69.68
9,967.89 93,705.84
610.90
25,991.77
81,021.22 2,018.00 1,241.00

$ 1,791,917.24 $ 107,632.14 $ 108,649.75 $ 2,008,199.13

See notes to the general purpose financial statements. - 33 -

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

SCHEDULE "8"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 3,665,650.02 $ 972,935.94 18,088.51 68,823.39 6,050.00 17,596.81 48,535.60 815.49 54,442.33 20,371.97
25,065.00 11,385.24 245,131.78 205,635.38
58,960.87 6,587.43 79,004.29
190.00

577,131.85 $ 158,431.75
6,616.00 28,154.18
5,639.70
2,362.30 2,432.87
108,290.16 8,578.87
270,757.56
607.00
9,967.89 10,293.10

4,242,781.87 1,131,367.69
24,704.51 96,977.57 6,050.00 17,596.81 54,175.30
815.49 54,442.33 22,734.27 2,432.87 25,065.00 11,385.24 353,421.94 214,214.25 270,757.56 58,960.87 7,194.43 79,004.29 9,967.89 10,483.10

45,460.10 58,461.04 189,057.78

30,894.28

45,460.10 58,461.04 219,952.06

Total Expenditures

$ 5,798,248.97 $ 1,220,157.51 $ 7,018,406.48

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

CLINCH CQUNTY BOARD QF EDUCATION SCHf Pl ILE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS
YEAR ENQEQ JUNE 30 ]99,(

SCHEOULE"II"

EXPENDITURES
Operating Cools Professional and Technical Services Supplies
Nonoperaling Costs Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER
ANO LIBRARY EQUIPMENT

G.P.T.C. DISTANT LEARNING

1,617.07 $

1,937.81 $ 11 751.10

999.58 $

$ "62.82
5143.90

1,680.00 $ 3,055.00

TOTAL
1,680.00 8,on.28 16 895.00

Tolal Expenditures

1 617.07 $

13,688.91 $

999.58 $

s 5606.n

4 735.00 $

26647.28

See notes to the general purpose financial statements.

- 35 -

CLINCH COUNTY BOARD OF EDUCATION

SCHEDULE "10"

SCHEDULE OF EXPENDITURES BY OBJECT

FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND

YEAR ENDED JUNE 30 1994

EXPENDITURES
Operating Costs Unemployment Claims

$ ====3=,8=8=5=.0=0

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

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

SCHEDULE "11"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$

3,119,968.00 $

36,328.00

$

3,140,587.34

197,281.28 $

$

3,337,868.62 $

36,339.37 36,339.37

-39,361.57

$

3,298,507.05 $

-6,451.30 29,888.07

$

0.00 $

6 439.93

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

Cl INCH CQUNTY BOARQ QF fQlJCATION ANAi Y$1$ OF MlNIMI JM EXf'ENQITI JRf Rfqt IIRfMfNTS - 9V PBQGBAM
GENERAi FUNP-91 JAi ITV BA$1Q fQI ICATIQN PROGRAM$
YfAR fNPfQ llJNf 30 1994

GfNfRAI AND CARffR Ent JCATION PROGRAMS
Kindergarten (1 Grades 1 - 3 (1
Sub-Total - K-3 Grades4-5C, Grades 6 8 (1 Grades 9 -12 (1 High School Laboratories (1
Vocational Education Laboratories (-J
Total General and Career Education Programs SPECIAL FQUCATION PROGRAMS
Regular Programs Gatego,y I (1 catego,y II (1
Catego,y Ill M catego,y IV (1 Itinerant
Supplemental Speech Sub-Total - Regular
catego,y V (Gifted) (") Total Special Education Programs
BfMfQ1AI fQUCATIQN PRQGRAM ('") MEDIA CE!'!]ER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF DEV~LOPMfNT PROGRAMS (1) Cost of Instruction Professional Development
Total Staff Development
r) Identifies Thirteen Weighted Programs Note (1) $4,226.70 of the allotment for ?rofessional
Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL __!_

ORIGINAL

MIO-TERM

REQUIRED

259,535.00 627 537.00 887,072.00 296,544.00 527,383.00 337,088.00 125,078.00 190,334.00 2363 499.00

90 $ 90 90 90 90 90

233,581.50 $

0.00 $

564 783.30

798,364.80 $

0.00 $

266,889.80

474,644.70

303,379.20

112,570.20

171 300.60

2127149.10 $ --~0~.00~ $

233,581.50 564 783.30 798,364.80 266,889.60 474,644.70 303,379.20 112,570.20 171 300.60 2127149.10

520,382.00

468,325.80 $

0.00 $

468,325.80

520,362.00 90 $ 30 796.00 90
551 158.00 99,958.00 90 $
105,353.00 90

468,325.80 $ 27 716.40
496 042.20 $ 89 982.20 $ 94 817.70

$ 3,119,968.00

2,807,971.20 $

0.00 s
0.00 $
0.00 s
0.00

468,325.80 27 716.40
496 042.20 89 982.20 94 817.70

0.00 $ 2,807,971.20

12,376.70 100 $ 23,951.30 100

12,376.70 $ 23 951.30

36,328.00

36,328.00 $

3,156,296.00

2,844,299.20 $

0.00 $

12,376.70 23 951.30

0.00 s

36.328.00

0.00 $ 2,844,299.20

- 38 -

SCHEDULE "12''

REQUIRED ALLOTMENT

SALARIES AcnJAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

AcnJAL

ALLOTMENT

227,626.20 $

289,853.40

5,955.30 $

8,622.61

547 305.30

565 388.41

17 478.00

25 838.33

TT4,931.50 $

855,241.81 $

0.00

23,433.30 $

34,"'60.94 $

0.00

258,858.00

278,497.67

0.00

8,031.60

15,248.06

0.00

460,815.30

516,451.23

0.00

13,829.40

24,954.38

0.00

290,255.40

290,529.06

0.00

13,123.80

32,942.82

0.00

107,719.20

214,916.88

0.00

4,851.00

7,728.82

0.00

149 418.00

208 862.16

0.00

21 882.60

38 796.79

0.00

2 041 997.40 $ 2 364498.81 $

0.00

85151.70 S

154131.81 $

0.00

58,832.10 $ 162,920.70 223,561.80
9,804.60

40,116.08 240,552.19 158,095.65
28,887.11

2,955.60 $ 3,418.20 5,966.10
328.50 234.90 303.30

2,781.65 5,247.66 4,205.83 1,105.64

455,119.20 $

467,651.03 $

0.00

13,206.60 $

13,340.78 $

0.00

26 964.00

37126.29 $

0.00

752.40

1 425.27 $

0.00

482083.20 $

504 777.32

13 959.00 $

14 766.05

88 416.90 S

151 895.06 $

0.00

1 545.30 $

3 085.00 $

0.00

73 499.40 s

119416.15 $

0.00

21 318.30 s

25298.42 $

0.00

2 685 996.90 $ 3140 587.34 $

0.00

121,974.30 $

197,281.28 $

0.00

2 685 996.90 $ 3,140 587.34 $

12,376.70 s
23 951.30

18,828.00 $ 17511.37

0.00 6 439.93

36,328.00 $

36 339.37 $

6,439.93

0.00

158,302.30 $

233 620.65 s

6,439.93

39

CLINCH COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994

SCHEDULE "13"

BOARD MEMBER ADDRESS
Mr. Jimmy McMillan, Chairman (*) 309 Shannon Road Homerville, Georgia 31634
Mr. Nicholas J. Booth(*) Route 2, Box 130 Homerville, Georgia 31634
Mr. William K. Cunningham (*) 107 Hardee Street Homerville, Georgia 31634
Mr. Charles Handley (*) P. 0. Box 166 Homerville, Georgia 31634
Mr. Mac Manley (*) 301 Peagler Street Homerville, Georgia 31634

COMPENSATION

$

1,750.00

1,150.00

1,050.00

950.00

1,150.00

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

$====s=,o=so=.=oo=

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 5, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Clinch County Board of Education
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 Clinch County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 5, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Clinch County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the Clinch County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~/~
Claude L. Vickers State Auditor
CLV:cm 94CRL-10

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 5, 1995

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

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 Clinch County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 5, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Clinch County Board of Education's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits 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 Clinch County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Clinch County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution ohhis report which is a matter of public record.
Respectfully submitted,
ff~~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 5, 1995

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

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 Clinch County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 5, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

94CRL-80

We conducted our audit ofcompliance 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 Clinch County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Clinch 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 program for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 5, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Clinch County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 5, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1994 general purpose financial statements of the Clinch County Board ofEducation and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

94CRL-120

came to our attention that caused us to believe that the Clinch County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
L-~
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION III INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 5, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Clinch County Board of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Clinch County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 5, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit ofthe general purpose financial statements ofthe Clinch County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Clinch County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, 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 of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-3

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

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

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

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

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

As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted
in the following control category:

General Fixed Assets

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

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness.

This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Clinch County Board ofEducation's financial statements and this report does not affect our report thereon dated June 5, 1995.

94ICL-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 ohhis report which is a matter of public record.
Respectfully submitted,
ff~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 5, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Clinch County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Clinch County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 5, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Clinch County Board of Education's compliance with requirements applicable to the major Federal financial assistance program and have issued our opinion thereon dated June 5, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Clinch County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 5, 1995.
94ICL-9

The management ofthe Clinch County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fu1filling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Clinch County Board of Education expended 55% of its total Federal financial assistance under a major Federal financial assistance program and the following nonmajor Federal financial assistance program:

Food and Nutrition Program Food Services National School Lunch Program

94ICL-9

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the Board's major Federal financial assistance program, which is identified in the Schedule ofFederal Financial Assistance, and the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material in relation to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
a~~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-9

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CLINCH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Separation ofDuties Financial Statements/Federal Financial Assistance Finding Resolved Audit Control Number 6321-93-01
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures for the following funds/programs:
General Fund Capital Pr~ects Fund Chapter 1 Program (CFDA 84.010) School Food Services Fund (CFDA 10.550, 10.553 and 10.555)
For the year under review, our audit disclosed that the Board had implemented internal accounting control procedures to provide for adequate separation of employee duties in the performance of the accounting functions and related procedures.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 6321-93-05
The audit report for the year ended June 30, 1993, reported the Board failed to submit a copy of the 1992 audit report on a timely basis to the U. S. Department of Agriculture from whom the Board received Summer Food Services Program for Children funds (CFDA 10.559). During the year under review, copies of the 1992 and 1993 audit reports were distributed as required.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $5,043.65 Audit Control Number 6321-93-04
The audit report for the year ended June 30, 1993, stated that the Clinch County Board ofEducation had an underexpenditure of$5,043.65 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 of Education to refund this underexpenditure as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

CLINCH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6321-93-02
The audit report for the year ended June 30, 1993, noted that the management of the Clinch County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Conflict ofInterest Financial Statements Nonmaterial Noncompliance Finding Resolved Audit Control Number 6321-93-03
The audit report for the year ended June 30, 1993, noted that the Clinch County Board ofEducation purchased various insurance policies from an insurance agency in which a Board member is in partnership. This practice is considered to be a conflict of interest as described in an Opinion of the Attorney General dated 1960-61 p. 149 which provides, in part, as follows:
"It is illegal for a county board of education to do business with a private enterprise, corporation, or partnership either partly or wholly owned by the member ofthe county board of education."
Subsequent to fiscal year under review, the Board transferred the insurance policies in question to another Insurance Agency.

CLINCH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $6,439.93 Audit Control Number 6321-94-01
For the year under review, the Board reported to the Georgia Department ofEducation on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $18,828.30 for the Staff Development - Cost oflnstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for Staff Development Cost oflnstruction program purposes resulting in an underexpenditure of$6,439.93 for the minimum required allotment of$23,951.30 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
Note: The Clinch County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.