Audit report, Coffee County Board of Education, Douglas, Georgia, year ended June 30, 1994

GA A800 .RI
tJ...b
CG7
,qq3-q4
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT COFFEE COUNTY BOARD OF EDUCATION
DOUGLAS, GEORGIA YEAR ENDED JUNE 30, 1994

COFFEE COUNTY BOARD OF EDUCA TJON - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST 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 STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

28

3 ACCOUNTS RECEIVABLE

29

4 DEBT SERVICE REQUIREMENTS TO MATURITY

30

SCHEDULE OF REVENUE

5

STA TE FUNDS

31

6

LOCAL AND OTHER FUNDS

32

COFFEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION!

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

33

8

LOTTERY PROGRAMS

34

9

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

IO

OVERALL

37

II

BY PROGRAM

38

12 SCHEDULE OF COMPENSATION AND TRAVEL 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

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

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 31, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Coffee County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Coffee County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

94ARL-13

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.
* 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 generai purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects,_the financial position of the Coffee County Board ofEducation as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Coffee County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 12 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 of the Coffee County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
94ARL-13

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

COFFEE COUNTY BOARD OF EDUCATION - 1-

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

~ Cash and Cash Equivalents
Accounts Receivable
Due from Other Funds
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 5,427,615.24 $

925,456.74 $

800,181.39

281,346.73

221,347.26

871,081.79

59,249.15 23,911.61

5,708,961.97 $ 1,229,964.76 $ 1,671,263.18

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable
Due to Other Funds
Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Debt Service For Expired Grant Balances/Questioned CO!rts For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$

565.50 $

2,700,000.00 619.58

64,501.67 213,130.22
25,389.58 $

169,531.75 701,550.04

$ 2.701,185.08 $

303,021.47 $

871,081.79

$

272,202.84

$

53,827.53

$

326,030.37 $

2,681,746.52

3,007,776.89 $

1,491.43
59,249.15 23,911.61 84,652.19 842,291.10 $ 926,943.29 $

800,181.39 800,181.39

Total Liabilities and Fund Equity

$ 5,708,961.97 $ 1,229,964.76 $ 1,671,263.18

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

EXHIBIT"A"

DEBT SERVICE
FUND
144,439.91 $
15,913.16

FIDUCIARY FUND TYPE
TRUST FUND
0.00

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum On/~}

JUNE 30, 1994

JUNE 30, 1993

$ 7,297,693.28 $ 7,646,953.73

1,389,688.94

2,312,673.64

161,000.00

59,249.15 23,911.61

61,859.67 27,179.24

$

160,353.07

160,353.07

116,394.32

160,353.07 $

0.00 $

2,309,646.93 2,315,104.28

2,309,646.93 2,315.104.28

2,498,605.68 1,031,160.36

4,785,104.28 $ 13,555,647.26 $ 13,855,826.64

$

160,353.07

$

160,353.07

0.00 $

160,353.07 $

$

160,353.07 $

65,067.17 $

44,869.19

213,130.22

220,562.04

2,700,000.00

26,009.16

19,701.21

169,531.75

1,371,652.74

701,550.04

483,013.20

161,000.00

$

2,315,104.28

2,315,104.28

1,031,160.36

2,470,000.00

2,470,000.00

2,615,000.00

$

4,785,104.28 $ 8,660,392.62 $ 5,946,958.74

0.00 0.00
0.00 $

$

272,202.84 $

183,098.39

1,491.43

1,194.85

160,353.07

116,394.32

53,827.53

19,043.15

59,249.15 23,911.61

61,859.67 27,179.24 859,907.87

$

571,035.63 $ 1,268,677.49

4,324,219.01

6,640,190.41

$ 4,895,254.64 $ 7,908,867.90

4,785,104.28 $ 13,555,647.26 $ 13,855,826.64

-3 -

CQFFEE COUNIY ROA.BP Of EPlJCATION C-OMRJNEP STATEMENT QF REVENUES EXPENDITURES ANP CHANGE;$ IN FUNP RAJ ANCES
GOVERNMENTAL FUNP TYPES ANP EXPENDABLE TRUST FUNP VEAR FNPEP JUNE 30 154

~
StatoFwm F-1 Funds Local and Olher Fwm
Total R....,,_
s--EXPENPIIURES CunW1I lnotruction
PupilSe<vices I - d lnstrudional Se<vices Educational Media Se<vices Genenll Admin-.,.. School AdministrattOn Business Admk'listration Maintenance and Clpolalion d Plant Student Transponation Se<vices Central Support Se<vices FoOodlhSeer<SvuicpepsCorltp-olalion Enterprise Operations Community Service Operations Olher Operations d Non-Instructional Se<vices Capital Outlay DoblServic:e Principol IPayingAgor,tF-
Total"-1di!UNS
exc.ao1Rewn-_.(..-J ~uros
QTt:IEB FIN~CJN~ SQYBCES Wl;l
Capitali.Oporating Tra-. In
Operating r . . - 0u1
Tollll Olher Financing Soun:es (Uses)
Exceu d Rewnues and Other Financing Sources _ . (urmr) "-'<filuros and Olher Financing Uses
EYNP BALANCE JYLY 1
Food IIIYWlloly ~ Commodilioo July 1 Juno30 PurdluedFood July 1 Juno30

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 19,057,793.03 $ 504,372.73 $

193,130.45

3,182,433.74

7 418 745.36

482 438.41

26 669 668.84 $ 4 169 244.88 $

4,5-46,2-46.10 142 419.40
4 888665.50

16,122,223.88 $ 1,425,487.97

1,181,451.24 560,735.33
615,63.44
327,7-46.-46 1,929,438.07
220,415.57 1,859,881.02 1,391,710.58
117,765.97
9,670.50
2,014.07 7,184.50 6,642.82 202,117.02 27,757.81

241,313.22 126,357.13
10,988.85 71,167.78
59,171.15 31,159.18 1 ,1 7.93 2,070,358.97
$ 11,076,455.0

269,773.8
52,095.12

9,797.2
17,145.58

24 989 258.0 $ 4117075.18 $ 11 076 455.0

$ 1 680 10.80 $

52169.70 $ -6 387,789.5

356,782.05 $
-1 209 026.73
$ -852 244.88 $

$ 9,026.73

1,2-46,733.13 1,200,000.00

9026.73 $ 2 4-46 733.13

$

828,188.12 $

2,179,s10.n

61,196. 3 $ 871,825.01

-3,9 1,056A1 .71,237.80

-61,859.67 59,249.15
-27,179.24 23911.61

FYNP BALANCE JUNE 30

$ 3,007,TTS.89 $

The notes to the general purpose financial statements re n mtegral part this statement.

926,943.29 $ --"800=,1:.::8;,:;1-:;39:;.

EXHIBIT"B"

TYPES
DEBT SERVICE
FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS (Memorandum On!}1
YEAR ENDED JUNE 30 1994 JUNE 30 1993

$ 24,108,411.86

3,375,564.18

405464.35

8 449 067.52 $

405 464.35 $ 35 933 043.57 $

12 937.00

24,108,411.86 $ 3,375,564.18 8462 004.52

23,007,949.22 3,253,727.18 7188 132.84

12 937.00 $ 35 945 980.57 $ 33 449 809.25

$ 17,547,711.65

1,422,764.46 687,092.46 626,603.28 398,814.24
1,929,438.07 220,415.57
1,819,052.17 1,422,869.76
117,765.87 $ 108,818.43 2,072,373.04
7,184.50 6,642.82 202,117.02 11,104,212.85

$ 1~.000.00 216,112.50 393.10

464,571.26 285,353.20
393.10

361505.60 $ 40 544 293.86 $

43958.75 $ -4 611 250.29 $

17,547,711.65 $ 17,624,763.71

12,937.00

1,422,764.46 687,092.46
626,603.29 398,914.24 1,929,438.07 220,415.57 1,919,052.17 1,422,869.76 130,702.87 108,818.43 2,072,373.04
7,184.50 6,642.82 202,117.02 11,104,212.85

1,197,533.98 666,134.10 688,792.47 413,697.49
1,755,828.22 228,741.03
1,825,230.72 1,336,690.52
184,393.69
1,787,519.23 418.00
5,312.71 165,876.16 5,389,470.32

464,571.26 285,353.20
393.10

413,619.n 258,048.44
375.90

12 937.00 $ 40 557 230.86 $ 33 942 446.46

0.00 $ -4 611 250.29 $

-492 637.21

1,603,515.18 1,209,026.73 -1 209 026.73
1603515.18

43,958.75 $ -3,007,735.11 $

116,384.32

7,808,867.90

1,603,515.18 $ 1,209,026.73 -1 209 026.73

1,309,780.13 1,210,532.49 -1 210 532.49

$ 1603515.18 $ 1309780.13

0.00 $ 0.00

-3,007,735.11 $ 7,808,867.90

817,142.92 7,002,688.07

-61,859.67 59,249.15
-27,178.24 23911.61

-61,859.67 59,249.15
-27,178.24 23 911.61

61,859.67 27179.24

160,353.07 $ 4,895,254.64 $

0.00 $ 4,895,254.64 $ 7,908,867.90

-5-

CQEEi;E CQUH.Tl'. ~BQ QE EtmCA.IIQti CQM&ltiED WIEMEMI QE B~tU.!E E!ieENDIIUBE ANQ Ct:tAN~ES IN EUtiQ ML.Ati~ES
i!&IUAL ANQ liU..!Q.GEI - ~f;BNMEtiIAI EUNQ D'.PE
YEAR ENPEQ JUNE 30 1fflH

EXHIBIT"C"

ACTUAi. PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAi. PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (l!NFAVORABLl

~
State Funds
F-...1 Funds Local and Other Funds

24,108,411.86 $ 3,375,564.19
8,9,067.52

0.00 $

24,108,411.86 $ 19,318,015.91 $

3,375,564.19 3,268,910.07

8,9,067.52

7,459,218.12

4,790,385.95 106,854.12 989,89.0

Total Revenues

$ 35,933,043.57 $

0.00 $ 35,933,043.57 $ 30,046,14 .10 $ 5,886,899.47

EXPENQl!YR!iS

Cum,nt 1-.ction Support Services PupilServices Improvement d 1 - 1Services Educational Media Services General Administration School Administration
- - Administration Maintenance Ind Operation d Plant
St.-. Transportation Services
Contnal Support Services Other Support Services Food Services Operation Enterprise Operatjons Communily Sarviee Openllions Other Openllions d Non-Instructional Services Copitll Outlay llolltSorvic:e

17,547,711.65 $
1,422,784.46 687,092.46 626,603.29 396,914.24
1,929,438.07 220,415.57
1,919,052.17 1,422,869.76
117,765.97 108,818.43
2.on,373.0
7,184.50 6,842.82 202,117.02 11,104,212.65 750,317.56

0.00 $

17,547,711.65 $ 18,354,152.59 $

806,40.94

1,422,784.46 687,092.46 626,603.29 396,914.24
1,929,438.07 220,415.57
1,919,052.17 1,422,869.76
117,765.97 108,818.43
2.on.373.0
7,184.50 6,642.82 202,117.02 11,104,212.65 750,317.56

1,482,951.92 734,988.39 607,935.31 385,897.25
1,955,863.08 258,173.01
1,966,860.89 1,266,957.83
139,475.00 117,426.78 1,904,483.00
7,184.50
204,162.35 30,000.00

60,187.46 47,895.93 181,332.02 13,016.99 26,425.01
37,757.4
47,808.n -155,911.93
21,709.03 8,608.35 -167,890.04
-6,642.82 2,045.33 -11,074,212.85 -750,317.56

Tolol ExpondiluNS

0,54 293.86 $

0.00 $ 0,54,293.86 $ 29,616511.90 $ -10,927 781.96

ExcoudR-owr(unct.) ~uros

$ -4,611 250.29 $

0.00 $ -4,611,250.29 $ 429632.20 $ -5,040,882.49

QiltEB EINAHQl~Si ~UBQES WSEl

OlherS.U.... OlherU-

2,812,541.91 $ -1,209,026.73

0.00 $

2,812,541.91 $ 1,219,356.00 $ -1,209,026.73 -1,219,389.00

1,593,182.91 10,362.27

Tela! Other F-,oing S.W- (U-)

$ 1,603,515.18 $

0.00 $ 1,603,515.18 $

-30.00 $ 1,603,545.18

Excess rl Rewnues and Other Fltl8ncing Sourc::. owr (..-) "->diluros Ind Other Financing u...
F!JNQ ML!HQE JULY 1 nm

-3,007,735.11 $ 7,908,867.90

0.00 $ -as,038.91

-3,007,735.11 $ 429,602.20 $ 7,819,828.99 8,367,838.38

-3,437,337.31 -548,009.38

Atb!USIMENI

Prior Yr (Net)

0.00

233,255.67

-233,255.67

FQ2Q ltt~NIQBY

Donotod Commoditioo July 1, 1983 Juno 30, 1994
Purehosod Food July 1, 1993 Juno 30, 1994

-61,859.67

61,859.67

0.00

0.00

59,249.15

-59,249.15

0.00

0.00

-27,179.24

27,179.24

0.00

0.00

23,911.61

-23,911.61

0.00

0.00

EUNQ Ela~N~E J!JN~ ~ 1~

$ 4,895,254.64 $ -83,160.76 $ 4,812,093.88 $ 9,030,696.25 $ -4,218,602.37

_ement_ The nctao lo the general purpose financial - - are an integral part d this
-7-

COFFEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Coffee 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 of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in confonnity 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 Coffee County Board ofEducation.
Based upon the application of the above criteria, the Coffee County Board ofEducation is detennined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Coffee 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 8-

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

TTJNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most 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.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the trust fund 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. This fund includes:
EXPENDABLE TRUST FUND Self-Insured Employee Benefit Fund - the fund used to account for Unemployment Compensation contributions and expenditures.

- 9-

COFFEE 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 and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and 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 of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds and 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 of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and
- 10 -

COFFEE COUNTY BOARD OF EDUCATION

EXfllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMM:ARY OF SIGNIFICANT ACCOUNTING POLICIES
related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Coffee 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 of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Coffee County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 18, 1993 (levy date). Taxes were due on January 20, 1994. The lien date for property taxes was January I, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported
- 11 -

COFFEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

as revenue in fiscal year 1994 since their collection meets the criteria ofGASB codification section P70. 103. The Coffee County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% oftaxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

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

School Operations School Bonds

16.71 mills __,21.mills

...12.Q2mills

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.

- 12 -

COFFEE COUNTY BOARD OF EDTJCATION

EXfllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30 1994

Note 1: 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
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral in an amount of not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Horne Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Horne Loan Mortgage Association, and the Federal National Mortgage Association.
- 13 -

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIB GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $8,569,655.73. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities

held by the Board or by the Board's agent in the Board's name.

Category 2 - Cash collateralized with securities held by the pledging financial institution's trust

department or agent in the Board's name.

Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with

securities held by the pledging financial institution, or by its trust department or agent but

not in the Board's name.)



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

Bank Balance $ 100,000.00
8,469,655.73 0.00
$ 8 569 655 73

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

Note4: RISKMANAGEMENT

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$12,937.00 was paid in claims.

NoteS: GENERA! LONG-TERMDEBT

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

- 14 -

COFFEE COUNTY BOARD OF EDUCATION

EXfilBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$ 1,031,160.36 $ 2,615,000.00 $3,646,160.36

Additions

1,603,515.18

1,603,515.18

Deductions

319 571.26

145 000.00

464 571.26

Balance June 30, 1994

$23lS 10428 $ 2 470 000 00 $4Z8S l!M28

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1995 1996 1997 1998 1999 2000 and thereafter
Total Principal and Interest

$ 949,189.36 734,058.75 720,712.82 169,520.05

$ 358,362.50 354,762.50 355,100.00 349,375.00 347,587.50
2 003 612.50

$ 1,307,551.86 1,088,821.25 1,075,812.82 518,895.05 347,587.50 2 003 612.50

$ 2 573 480.98 $ 3 768 80Q QQ $ 6 342 28Q 28

Deduct: Imputed Interest

$ 258 376.70

Net Present Value ofFuture Minimum Lease Payments

$ 23JS IQ4 28

- 15 -

COFFEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$280,376.40 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery funds in the amount of $245,548.15 are available to fund 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 fiscal year. These encumbrances are identified by lottery program as follows:

Computers In Classrooms Distant Learning Media Center and Library Equipment

$ 107,629.00 10,306.45
162 440.95
$ 280 376 40

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

Project

Unearned Executed Contracts

Funding Available From State

92-634-009

$ 204 396 94 $ 92 359 92

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).

- 16 -

COFFEE COUNTY BOARD OF EDl JCATION

EXlilBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
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.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $15,925,688.33 total payroll was $17,950,528.69
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required to contribute 6% oftheir 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 contributions made during fiscal year 1994 amounted to $2,836,368.51 ofwhich $1,880,822.73 was made by the Board and $955,545.78 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 of the 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.
- 17 -

COFFEE COUNTY BOARD OF EDUCATION

EXlilBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 8: RETIREMENT PLANS

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

$ l 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 $1,880,822.73 was actuarially determined and represented .3606% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System 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 IO years ofservice and attainment of age 65. A member applying for service retirement with IO years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

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

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

- 18 -

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
There were 196 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 contnbutions 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 $6,356.00. 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. David P. Luke is bonded in the amount of$100,000.00 with the Cincinnati, Insurance Company, Cincinnati, Ohio, their Bond No. BS0-314412, on which premium is paid through July I, 1995.

- 19 -

COFFEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994

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

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1

EDUCATION OF

DEPRIVED

MIGRANT

CHILDREN

PROGRAM

$ 917,008.65 $

69.00 $

8,262.84

12,142.24

13,628.57

18,139.85

$ 183,039.09

59,249.15 23,911.61

$ 1,013.797.98 $ 18.208.85 $

8.262.84 $ 183,039.09 $ 12,142.24

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$

8,460.90 $ 18,208.85 $

79,885.22

$ 88,346.12 $ 18,208.85 $

$ 59,249.15 23,911.61
$ 83,160.76 842,291.10 $
$ 925,451.86 $

0.00 $ 0.00 $

$ 1,852.34 6,410.50
8.262.84 $

40,766.61 29,238.96 $ 101,015.57 12,017.95
183,039.09 $

1,645.32 5,323.46 5,173.46
12,142.24

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 0.00

Total Liabilities and Fund Equity

$ 1,013.797.98 $ 18,208.85 $

8,262.84 $ 183,039.09 $ 12,142.24

See notes to the general purpose financial statements.

-20-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

TITLE II-

INDIVIDUALS WITH

EISENHOWER DISABILITIES EDUCATION ACT

CHAPTER2 MATHEMATICS

TITLE VI, B

BLOCK GRANT - AND SCIENCE

FLOW

PRESCHOOL

FLOW THROUGH EDUCATION THROUGH

PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

0.00 $

1,491.43 $

9,727.94 $ 17,521.25 $

966,223.35 $

825,444.86

6,539.75

221,347.26

241,969.31

59,249.15 23,911.61

61,859.67 27,179.24

$

0.00 $

1,491.43 $ 16.267.69 $ 17,521.25 $ 1,270,731.37 $ 1,15G,453.08

$

3,227.30 $

13,036.95

3.44

$ 1,868.00 7,458.52 8,194.73

$ 16,267.69 $ 17,521.25 $

40,766.61 64,501.67 $ 213,130.22 25,389.58
343,788.08 $

44,564.82 220,562.04
19,701.21
284,828.07

$

1,491.43

1,491.43 $

1,194.85

59,249.15 23,911.61

61,859.67 27,179.24

$

1,491.43

$

84,652.19 $

90,233.76

$

0.00

0.00 $

0.00 $

0.00

842,291.10

781,391.25

$

0.00 $

1,491.43 $

0.00 $

0.00 $

926,943.29 $

871,625.01

$

0.00 $

1,491.43 $ 16,267.69 $ 17.521.25 $ 1,270,731.37 $ 1,156,453.08

-21-

COFFEE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES !;XPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1994

REVENUES
S-Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal I-
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCIN!, SOURC!;S
C&pilall.aa&e& Operating Transfers in
Total Other Financing Sources

SCHOOL FOOD
SERVICES FUND

ELEMENTARY

LOTTERY PROGRAMS

DRUG-FREE

CHAPTER 1

SCHOOLS AND EDUCATION OF

COMMUNITIES DEPRIVED

MIGRANT

ACT

CHILDREN

PROGRAM

$ 152,160.00 $ 1,ES,660.41 482,438.41

352,212.73 $

$ 2, 131,258.82 $ 352,212.73 $

60,677.00 $ 1,129,681.14 $ 52,764.61 60,677.00 $ 1,129,681.14 $ 52,764.61

$ 219,946.32

26,841.74 $ 3,441.45 10,968.85

58,706.00 31,105.00

$ 2,070,358.97

1,203.37

$ 69,541.88
131.B5

963,834.73 $
2,000.00 13,555.45
69,938.25 465.15

52,764.61

12,944.56

2,070,358.97 $ 352,212.73 $

$ 60,899.85 $

0.00 $

49,797.42 17,145.58

69,673.73 $ 1,129,681.14 $

-8,996.73 $

0.00 $

52,764.61 0.00

$

8,996.73

$

8,996.73

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

60,899.85 $

FUND BALANCE JUbY 1

870,430.16

Food Inventory Donated Commodities July1 June30 Purchased Food July 1 June30

-81,859.67 59,249.15
-27,179.24 23,911.61

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 0.00

FUND B~NC!; JUNE 30

$ 925,451.86 $

See notes to the general purpooe financial -ements.

-22-

0.00 $

0.00 $

0.00 $

0.00

EXHIBIT"F"

AND SECONDARY EDUCATION ACT

TITLE 11-

INDMDUALS WITH

EISENHOWER DISABILITIES EDUCATION ACT

CHAPTER2 MATHEMATICS

TJTLEVI, B

BLOCK GRANT - AND SCIENCE

FLOW

PRESCHOOL

FLOW THROUGH EDUCATION THROUGH PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

504,372.73 $

144,530.00

$

57,245.00 $

29,147.00 $ 254,791.31 $ 101,467.27

3,182,433.74

3,097,533.95

482,438.41

475,027.56

$

57,245.00 $

29,147.00 $ 254,791.31 $ 101,467.27 $ 4,169,244.88 $ 3,717,091.51

57,114.12

$ 51,115.62 $ 80,712.57 $ 1,425,487.97 $ 1,322,134.95

$ 130.88

28,819.99 60.43

142,929.60 59,785.54
906.37
54.18

20,754.70

241,313.22 126,357.13
10,968.85 71,167.78 59,171.15 31,159.18
14,147.93 2,070,358.97

211,248.61 110,483.53
63,668.57 55,865.95
61,541.20
1,784,642.84 19,435.00

49,797.42 17,145.58

66,941.12

$

57,245.00 $

28,880.42 $ 254,791.31 $ 101,467.27 $ 4,117,075.18 $ 3,695,961.77

$

0.00 $

266.58 $

0.00 $

0.00 $

52,169.70 $

21,129.74

$

30.00

$

30.00

$

166,535.96

$

9,026.73

10,165.51

9,026.73 $

176,701.47

$

0.00 $

296.58 $

0.00 $

0.00 $

61,196.43 $

197,831.21

0.00

1,194.85

0.00

0.00

871,625.01

584,754.89

-61,859.67 59,249.15
-27,179.24 23,911.61

61,859.67 27,179.24

$

0.00 $

1,491.43 $

0.00 $

0.00 $

926,943.29 $

871,625.01

-23-

COFFl;I; CQU~TY l;!OABQ OF ~QUl<ATION COMl;!ININ!, BALA~CE HE!aT CAPITAk PROJl;CT FUNQ JUNE 30 1994

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable Due From Other Funds

REGULAR

WESTSIDE ELEMENTARY RENOVATIONS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 92-634-009

TOTALS JUNE 30 1994 JUNE 30 1993

$ 722,582.29 $

n,599.10

$ 800,181.39 $ 4,580,237.80

871,081.79

871,081.79

1,854,665.94

161000.00

Total Assets

722 582.29 $

n5ss.10 s

871 081,79 $ 1,671 263.18 $ 6,595 903.74

LIABILITIES AND FUt,!D EQUITY

LIABILITIES

Contracts Payable Retainages Payable

Total Liabilities

FUND EQUITY

Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated

$ 722,582.29 $

Total Fund Equity

$ 722,582.29 $

$

169,531.75 $ 169,531.75 $ 1,371,652.74

701,550.04

701 550.04

483013.20

871,081.79 $ 871,081.79 $ 1 854,665.94

n5ss.10 s n,599.10 s

0.00 $ 0.00 $

$ 859,907.87

BOO 181.39

3 881 329.93

800,181.39 $ 4,741 237.80

Total Liabililies and Fund Equity $ 722 582.29 $

n5ss.10 s

871 081.79 $ 1 671 263.18 $ 6595903.74

See notes to the general purpose financial statements.

-24-

COFFEE COUNTY RQABP OF EDUCATION CQMfllNING STATEMENT QF REVENUES EXPENDITURES AND CHANGES IN FtJNP BALANCES
CAPITAL PRQ.IECTS FUND
YEAR ENDED JUNE 30 1994

EXHIBITH'

REGULAR

WESTSIDE ELEMENTARY RENOVATIONS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 92-634-009

TOTALS YEAR ENDED JUNE30 1994 JUNE 30 1003

REVENUES

State Funds Local and Other Funds

142, 19.0 $

0.00

4,546,246.10 $

4,546,246.10 $ 4,931,369.86

142 419.0

114 620.72

Total Revenues

142,419.40 $

0.00 $

4,546 246.10 $ 4,688,665.50 $ 5045990.58

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

720,777.55 $ 1,483,251.26

319,900.90 $

8,552,525.33 $

9,593,203.78 1483251.26

46,665.86 5, 182.782.97

Total Expenditures

2,204,028.81 $

319,900.90 $

8.552,525.33 $ 11,076 455.04 $ 5229448.83

Excess of Revenues over (under) Expenditures

-2,061 609.41 $

-319 900.90 $ -4,006.279.23 $ -6 387 789.54 $ -183458.25

QTHER FINANCING SOURCES (!,,!SES}

Capital Lease Operating Transfers In Operating Transfers Out

1,246,733.13 $
-2 146 371.38

200,000.00 $

$ 3,146,371.38

1,246,733.13 3,346,371.38 $ -2 146 371.38

1,200,366.98 -366.98

Total Other Financing Sources (Uses)

-899 638.23 $

200 000.00 $

3146371.38 $ 2446733.13 $ 1200000.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -2,961,247.64 $

-119,900.90 $

-859,907.87 $ -3,941,056.41 $ 1,016,541.75

FUND BAIANCE JULY 1

3,683,829.93

197,500.00

859 907.87

4 741 237.80

3 724696.05

FUND BALANCE JUNE 30

722,582.29 $

77,500.10 $

0.00 $

800,181.39 $ 4141a31.eo

See notes to the general purpose financial statements.

-25-

CQEEEE QQUtm: BQ~BD QE ED) lQ!IIQN SQt:IED!JLE QE EEDEBAL EIHAr:."IAL AaSISIAHQE
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agricullun,, u. s. Department of
Through Concerted Services, Incorporated Food and Nutrition Program Child and Adult can, Food Program 1994 Contract
Through! Georgia Department of Education Food Services School Breakfast Program 1993Granl 1994Grant National School Lunch Program 1993 Grant 1994 Grant Food Distribution Program (1)
Tolal U.S. Deparbnent of Agricufture

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

s 10.558

61,815.50 $

61,815.50 $ 61,815.50

(2)

10.553 10.553

188,407.07

10.555 10.555 10.550

1,082,327.69 164110.15

s s 1496660.41

14,117.72

186,442.56

188,407.07

(2)

5,136.93 1,070,663.63
NIA

1,082,327.69 $ 164110.15

s 1 338 176.34 $ 1496660.41

1,906,248.82 (3) 164110.15
2070358.97

Education, U. S. Department of Direct P.L.81~74 1994 Grant Through Georgia Department of Education Drug-Free Schools and Communities Act 1993Grant 1993 Cariy Over 1994 Grant Elementa!y and Secondary Education Act Chapter 1 Education of Depm,ed Childnln 1993 Regular 1993<:any-Over 1994 Regular 1994 SUmnw Program Chapler2 Bicek Grant Flow Through 1994 Regular Tlllell E - Mathematics and Science Education 1993 Regular 1994 Regular Individuals with Disabilities Education Act TIiie VI, B Flow Through 1993 Regular 1993 cany-0,let' 1994 Regular Preschool Program 1993 Regular 1993 cany-0,let' 1994 Regular Special Project 1994Grant Vocational Education Basic Grants to States High School Program Basic Grant 1993 Grant 1994Granl

s 84.041
84.186 84.186 84.186
84.010 84.010 84.010 84.010
84.151
84.164 84.184
84.027 84.027 84.027 84.173 84.173 84.173 84.027
84.048 84.048

7,004.00 S
76.00 60,601.00
218,260.00 964,106.00 170,668.00
57,245.00
29,147.00
49,315.00 275,470.00
65,559.00 44,103.00 23,333.00
n,002.22

7,004.00 $

7,004.00

8,223.49 76.00
60,601.00

76.00 S 60,601.00

(5)
76.00 69,597.73 (3)

202,599.56 218,260.00 740,400.00

218,260.00 911,421.14

218,260.00 911,421.14

57,245.00

57,245.00

57,245.00

29,147.00

29,147.00

1,224.85 (3) 27,655.57

-2,614.81 49,315.00 198,940.00
-14,020.36 65,559.00 44,103.00
23,333.00

49,315.00 205,476.31
65,559.00 35,908.27
22,713.42

49,315.00 205.476.31
65,559.00 35,908.27
22,713.42

15,465.53

27,147.67

n,002.22

(4)

26.

COFFEE COUNTY BOARQ QF EDUCATION SCHEDULE OF FEDERAL FINANCIAi ASSISTANCE
YEAR ENPEP JLJNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of

Through Georgia Department of Education

Vocational Education - Basic Grants to States

High School Program

Supplementary State Grants for Faciltties

1993 Contract

84.253

Tech-Prep Education

1993 Grant

84.243

1994Grant

84.243 $

Through Berrien County Board of Education

d/bla Southern Pine Migrant Education Agency

Elementary and Secondary Education Act

Chapter 1

Migratory Education Program

1994 Regular

84.011

1994 Summer Program

84.011

40,000.00
57,950.00 35,000.00

2,632.00

31,504.29

34,695.71 $

40,000.00

(4)

57,938.07

52,764.61 $

52,764.61

Through Tift County Board of Education d/bla Peachtree Migrant Education Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1993 Regular

84.011

8825.57

Tolal U. S. Department of Education
Health, u. s. Department of
Through Georgia Department of Medical Assistance TllleXIX Children At Risk Targetad caoe Ma__,iPn,gram

$ 2174839.22 $ 93.778 $ 26264.79 $

1866399.72 $ 1 832 492.97 $ 1717216.90

26264.79 $ 26264.79

(4)

Tolal U.S. Department of Health
Justice, u. s. Department of
Through Children and Youth Coordinating Council of Georgia Project P.O.W.E.R #93J-1~

$ 26264.79 $

16.540

26769.00 $

26264.79 $ 26264.79

15287.70 $ 20146.02 $

30 205.67 (5)

Tolal U.S. Department of Justice

$ 26769.00 $

15.287.70 $ 20146.02 $

30205.67

Tolal Federal Financial Assistance

$ 3 724 533.42 $

3 246 128.55 $ 3375564.19 $ 3817781.54

Major Programs are identifN!d by an aslerisk (') in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonrnonetary assistance for donated commodities received and/or consumed by the system during the current f,scal year.
(2) Expendituras for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are lnclUded In the 1994 National School Lunch Program
(3) Elcpendltures for this program Include State, and/or Local and other Funds.
Elcpendltures are not maintained by fund source. (4) Elcpendttures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expendttures.

Sae notes to the general purpose financial llaternenls.

- 27 -

COFFEE COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994
INTEREST BEARING ACCOUNTS
Southeastern Bank, Douglas, Georgia
Checking Accounts (Variable)

SCHEDULE "2" $ 7,297,693.28

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

COFFEE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3''

GOVERNMENTAL .FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

DEBT SERVICE
FUND

TOTAL

Coffee County Tax Commissioner County Wide Bond Tax County Wide School Tax

$ 186,406.82

$ 15,170.11 $ 15,170.11 186,406.82

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Funds Lottery Programs Computers In Classrooms Media Center and Library Equipment Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act Title VI, B - Flow Through

$ 1,964.51 11,664.06
19,581.82 55,158.84
7,171.00 10,968.85
183,039.09
6,539.75

1,964.51 11,664.06 19,581.82 55,158.84 7,171.00 10,968.85
183,039.09
6,539.75

Other School Based Leadership Development Contracts

1,000.00

1,000.00

Georgia Chudren and Youth Coordinating Council - Project P.O.W.E.R.

4,858.32

4,858.32

Georgia State Financing and Investment Commission Reimbursement on construction Projects

$ 871,081.79

871,081.79

Revenue, Georgia Department of Real Estate Transfer Tax

14,117.93

743.05

14,860.98

Various Sources Reimbursement for Expenses

223.00

223.00

$ 281,346.73 $ 221,347.26 $ 871,081.79 $ 15,913.16 $ 1,389,688.94

See notes to the general purpose financial statements.

- 29 -

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

SCHEDULE "4"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

TOTAL DEBT SERVICE

1980 ISSUE

INTEREST

PRINCIPAL

$ 358,362.50 $ 203,362.50 $ 155,000.00

354,762.50

189,762.50

165,000.00

355,100.00

175,100.00

180,000.00

349,375.00

159,375.00

190,000.00

347,587.50

142,587.50

205,000.00

344,525.00

124,525.00

220,000.00

340,187.50

105,187.50

235,000.00

334,575.00

84,575.00

250,000.00

332,475.00

62,475.00

270,000.00

328,675.00

38,675.00

290,000.00

323,175.00

13,175.00

310,000.00

$ 3,768,800.00 $ 1,298,800.00 $ 2,470,000.00

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

1980 ISSUE $ 2,615,000.00
145,000.00

Bonds Payable at June 30, 1994

$ 2,470,000.00

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

JUN 1 - DEC 1 DEC 1

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

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

SCHEDULE"S"

AGENCY/FUNDING
GRANTS Education, Georgia Deparbnent 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 Replacenient Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Fiscal Year 1993 1994 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Family Connection Innovative Programs Mentor Teacher Program Pre-Kindergarten Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
Georgia Public Telecommunications Commission Lottery Program Distant Leaming
OTHER Contract Education, Georgia Department of School - Based Leadership Development

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

10,880,125.00 1,774,176.00 283,195.00 470,989.00 155,927.00 3,258,895.00
642,776.00 206,995.00 217,980.00 603,804.00
65,470.00

6,442.00 623,703.00 -1,973,738.00 1,484,553.00
$ 101,512.00

152,160.00

123,333.00 4,980.00
10,080.00 10,584.00 80,662.00

2,600.00 23,750.03

2,316.00 70,983.00 10,968.85 173,398.88 89,811.00

10,880,125.00 1,774,176.00 283,195.00 470,989.00 155,927.00 3,256,895.00
642,776.00 206,995.00 217,980.00 603,804.00
65,470.00
6,442.00 623,703.00 -1,973,738.00 1,484,553.00 152,160.00 101,512.00
123,333.00 4,980.00
10,080.00 10,584.00 80,662.00
2,600.00 23,750.03
2,316.00 70,983.00 10,968.85 173,398.88 89,811.00

$ 4,546,246.10

4,546,246.10

4,735.00

4,735.00

1,000.00

1,000.00

See notes to the general purpose financial statements.

19,057,793.03 $ 504,372.73 $ 4,546,246.10 $ 24,108,411.88 - 31 -

Taxes County Wode Bond Tax County Wode School Tax RaHrmd car Tax Real Estate Transfer Tax
other Antitrust Milk Settlement
Compensation for Loss of Contributions to Self-Insured
Employee Benefit Fund from other Funds For Unemployment Compensation
Donations Coffee Regional Hospital
Indirect Coot Special Revenue Fund
I-Earned Jury Duty Fees Rental Income Sales
LuncMs and B r Tuition other

COFFEE COUNTY BOARD OF EDUCATION
SCHEPUL f OF LOCAL AND OTHER REVENUE VEAR ENDED JUNE 30 1994

SCHEDULE"6'

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTAL

$ 6,912,880.28 292.79
14,117.93

$ 395,213.74
18.69 743.05

$ 395,213.74 6,912,880.28 311.48 14,860.98

$ 18,973.08

3,743.22

3,743.22 18,973.08

232,187.00
12,705.03 138,602.65
3,125.00 26,427.76
34,508.50 24,925.34

47,530.56 $ 142,419.40 175.00 862.00
429,526.88
600.75

$ 12,937.00 9,488.87

12,937.00
232,187.00
12,705.03 338,041.48
3,300.00 27,269.76
429,526.88 34,508.50 25,526.09

$ 7,418,745.36 $ 482,438.41 $ 142,419.40 $ 405,464.35 $ 12,937.00 $ 8,462,004.52

See notes to the general purpooe financial statements.

- 32 -

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

SCHEDULE "7"

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

EXPENDITURES

Operating Costs

Salaries

$

Employee Benefits

Travel of Employees

Professional and Technical Services

Compensation and Travel of Board Members

Water, Sewer and Cleaning Services

Repair and Maintenance Services

Rents

Insurance

Communications

Commodity Hauling

Other Purchased Services

Supplies

Energy

Food Usage

Books, Textbooks and Periodicals

Dues and Fees

Federal Indirect Costs

Other Expenditures

16,304,373.96 $ 4,457,048.82
105,623.48 336,665.91
15,972.58 31,890.18 48,671.77 12,046.78 84,852.54 87,684.89
105,172.16 1,381,876.16
613,540.79
267,331.83 37,230.83
15,771.53

1,646,154.73 $ 459,253.47 39,542.10 169,385.93
1,664.25 31,668.13
2,049.72
3,310.30 14,318.59 2,587.67 305,556.11 46,930.08 895,592.16 15,415.45 9,522.00 12,705.03
107.42

17,950,528.69 4,916,302.29
145,165.58 506,051.84
15,972.58 33,554.43 80,339.90 14,096.50 84,852.54 90,995.19 14,318.59 107,759.83 1,687,432.27 660,470.87 895,592.16 282,747.28 46,752.83 12,705.03 15,878.95

Nonoperating Costs Principal and Interest Building and Building Improvements Equipment

321,868.96 27,757.81
734,147.06

66,943.00 394,369.04

388,811.96 27,757.81
1,128,516.10

Total Expenditures

$ 24,989,528.04 $ 4,117,075.18 $ 29,106,603.22

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

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

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

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

MEDIA CENTER AND
LIBRARY EQUIPMENT

$

2,316.00 $

6,800.00 $

4,632.84

64,183.00

6,336.01

Total Expenditures

$

2,316.00 $

70,983.00 $===10.,.,9=6=8=.8=5

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

SCHEDULE "8"

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

G.P.T.C. DISTANT LEARNING

TOTAL

$

96,846.85

25,375.67

6,142.74

928.29

1,262.67

21,408.53 $

44,550.70

1,626.69

580.00

53.24

$

96,846.85

25,375.67

6,142.74

928.29

1,262.67

79,708.07

1,626.69

580.00

53.24

19,174.20

45,260.30 $

4,735.00

139,688.51

$

173,398.88 $

89,811.00 $

4,735.00 $ 352,212.73

- 35 -

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30 1994

SCHEDULE "9"

EXPENDITURES
Operating Costs Unemployment Compensation Claims

$ 12,937.00

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

COFFEE COUNTY BOARD OF EDUCATION

SCHEDULE "10"

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

YEAR ENDED JUNE 30 1994

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 13,923,613.00 $

157,759.00

$ 14,346,248.24 1,110,833.84 $
$ 15,457,082.08 $

181,042.82 181,042.82

-132,071.75

$ 15,325,010.33 $

-58,068.20 122,974.62

Amount of Underexpenditure for Total Allotment

$

0.00 $ _ _ _34...._,7_84_._3_8

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

cpFfff OOINJY RQABP OF EDI JCAJlON ANAi VSIS OF UINIMI ,,.. EXPfNPITI JRf BFQI.JIBfUfNJS - RV PBOORAM
GENERAl RJNP - qt Al ITY BASIC fpt JCI\TIQN PROORAMS YfAR fNQEQ llJNf 30 1994

GfNfRAI AND CAREER EQI. JCATION PBOOBAUS

Sub-Total - K-3

GnidN4-5(")

La- Gnode66-8 (")
GnidN9-12(")

High School

(1

Vocabonal Education Laboratories C,

Total General and Career Education Programs

SPEC1AJ EQI. JCATION PROGRAM$

Regular Programs
Catego,y I (1 Calego,y II(") Calego,y Ill(") Calego,y IV (") Itinerant
Supplemental Speech

Sub-Tatal-Reguisr

Calego,y V (Gifted) (")

Total Special Education Programs
RfMEQIAl EDUCATION PBQGRAM M MfQIA CFNTFB PRQGRAU

Total Thirteen Weighted and Media Cerier

STAFF PEYEI QPUEN'T PRQGRAMS (1) Colt d ll'lltruction

Tcul Staff'"'""'Pmenl

(") I -Thirteen Weighted Programs.

Nole: (1) $18,134.25oftheal..mentfcrPnllessional

'"'""'Pmenl has bNn ..-

to Coot of

Instruction as authorized by' OCGA 20-2-182.

See notes to the general purpoae financial statement&.

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

~

ORIGINAL

MID-lERM

REQUIRED

1,181,100.00

1,062,990.00 s

2 935 954.00

2 642,358.60

$ 4,117,054.00 90 $ 3,705,348.60 $

1,535,741.00 90

1,382,166.90

2,339,026.00 90

2,105,123.40

1,064,207.00 90

957,786.30

1,278,915.00 90

1,151,023.50

545182.00 90

490 663.80

$ 10 880 125.00

$ 9 792112.50 $

110,000.00 $ 1,172,990.00

114 963.00

2 757 321.60

224,963.00 $ 3,930,311.60

0.00

1,382,166.90

281,019.00

2,386,142.40

0.00

957,786.30

0.00

1,151,023.50

0.00

490 663.80

505 982.00 $ 10 298 094.50

1,600,333.00

1,440,299.70 $

0.00 s 1,440,299.70

1,600,333.00 173 843.00
1,n411s.oo 283195.00 4'70 989.00

90 $ 90
90 $ 90 $

1,440,299.70 S 156 458.70
1596758.40 $ 254 875.50 $
423 890.10 s

0.00 $ 0.00
0.00 s
0.00 $ 9146.00 $

1,440,299.70 156 458.70
1596758.40 254875.50 433 036.10

$ 13,408,485.00

$ 12,067,636.50 $

s 515,128.00

12,582,764.50

53,166.25 100 S 102 760.75 100

53,166.25 S 102760.75

1,832.00 S 0.00

54,998.25 102 760.75

155 927.00

155,927.00 $

1 832.00 $

157 759.00

S 13,564 412.00

$ 12,223 563.50 S 516 960.00 S 12 740,523.50

. 38.

SCHEDULE "11"

REQUIRED AUOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNOEREXPENOITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITTJRE

FOR REQUIRED

ACTUAL

ALLOTMENT

1,135,918.90 s 1,304,800.52

2 660 683.60

2 880 089.23

s 3,796,602.50 S 4,184,889.75 S

1,340,636.40

1,546,294.90

2,324,898.30

2,629,415.20

916,414.20

967,686.41

1,101,499.20

1,313,175.71

428 069.70

578 263.94

s 9 908120.30

11219725.91 $

37,071.10 $

64,985.74

96 638.00

312671.12

0.00

133,709.10 $

3TT,656.86 $

0.00

41,530.50

62,757.28

0.00

61,244.10

153,832.02

0.00

41,372.10

166,028.04

0.00

49,524.30

62,917.11

0.00

62 594.10

95 217.87

0.00

389 974.20 s

s 918,409.18

0.00 0.00 0.00 0.00 0.00 0.00 0.00

33,143.70 s
394,335.00 883,854.00 88,386.00

90,070.80 502,584.32 1,383,454.14 108,759.71

1,662.30 s
8,260.20 23,549.40
2,960.10 2,157.30 1 991.70

1,578.13 8,453.45 28,605.15 1,982.27

1,399,718.70 s 2,084,868.97 s

0.00

40,581.00 S

40,619.00 $

0.00

152 218.80

181 556.84 $

0.00

4 239.90

12 929.31 s

0.00

1 551 937.50 S 2 266 425.81

44 820.90 $

53 548.31

250503.30 s

382 363.35 s

0.00

4 372.20 s

4402.TT s

0.00

335 470.80 s

4n733.17 s

0.00

97565.30 $

134 473.58 $

0.00

s 12046,031.90 S 14,346,248.24 s

0.00

536,732.60 s 1,110,833.84 s

0.00

s 12,046,031.90 s 14 346,248.24 s

54,998.25 S 102 760.75

113,066.45 $ 67 976.37

0.00 34 784.38

157,759.00 $

181,042.82 $

34,784.38

0.00

694,491.60 $ 1,291,876.66 $

34,784.38

- 39 -

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

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr. Joseph D. Murray, Chairman (") P.O. Box 1212 Douglas, Georgia 31533
Ms. Annie Lott (") 1501 Cypress Lane Douglas, Georgia 31533
Mrs. Betty Jo Milhollin (*) P.O. Box313 Broxton, Georgia 31519
Mr. Victor Tanner(*) Route #2, Box 162 A Nicholls, Georgia 31554
Mr. Gene Wade (*) P.O. Box937 Douglas, Georgia 31533

COMPENSATION

TRAVEL

$

2,400.00 $

2,722.77

2,400.00

770.41

2,400.00

50.40

2,400.00

429.00

2,400.00

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

$

12,000.00 $

3,972.58

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
March 31, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Coffee County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Coffee County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 31, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Coffee 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.

94CRL-10

The results ofour tests indicate that, with respect to the items tested, the Coffee County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
This report is intended for the information of management, the Federal cognizant audit agency and other
, ~ Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a
matter of public record.
Respectfully submitted,

CLV:djf 94CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 31, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Coffee County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 31, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office 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 Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-40

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 31, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Coffee 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 of the Coffee County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 31, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Coffee County Board of Education's compliance with the requirements governing:

(!) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

94CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Coffee County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph ofthis report.
In our opinion, the Coffee County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:djf 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 31, 1995

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

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 Coffee County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 31, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) 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 Coffee County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Coffee County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:djf 94CRL-120

SECTION III INTERNAL CONTROL

CIAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March31, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Coffee County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Coffee County Board ofEducation as ofand for the year ended June 30, 1994, and have issued our report thereon dated March 31, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose :financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit of the general purpose financial statements ofthe Coffee County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to detennine our auditing procedures for the purpose ofexpressing our opinion on the general purpose :financial statements and not to provide assurance on the internal control structure.
The management ofthe Coffee County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute,
94ICL-3

assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

(1) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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

General Fixed Assets

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

94ICL-3

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that 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 Coffee County Board ofEducation's financial statements and this report does not affect our report thereon dated March 31, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:djf 94ICL-3

C!AUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 31, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Coffee County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Coffee County Board ofEducation as ofand for the year ended June 30, 1994, and have issued our report thereon dated March 31, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Coffee County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated March 31, 1995.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions ofOffice ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Coffee County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and on its compliance with requirements applicable to major
94ICL-5

Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration ofinternal 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 March 31, 1995.

The management ofthe Coffee County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal 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 Jaws and regulations. Because ofinherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

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

94ICL-5

During the year ended June 30, 1994, the Coffee County Board of Education expended 66% of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:djf 94ICL-5

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $19,043.15 Audit Control Number 6341-93-03
The audit report for the year ended June 30, 1993, noted that the Board had an underexpenditure of $19,043.15 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 ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Drug-Free Workplace Policy Federal Financial Assistance Finding Resolved Audit Control Number 6341-93-04
According to provisions ofP. L. 100-690, all grantees that have been approved or awarded a direct Federal grant are required to establish a drug-free workplace policy containing certain information. The audit report for the year ended June 30, 1993, reported that the Board's drug-free workplace policy did not include the requirements that employees notify the employer in writing of any criminal drug statute conviction for a violation occurring in the workplace no later than five calendar days after such conviction. During the year under review, the Board amended their drug-free workplace policy to include all drug-free workplace compliance requirements.
AUDIT FOLLOW-UP/RESOLUTION Salary Charges Based on Budgeted Amounts Federal Financial Assistance Finding Resolved Audit Control Number 6341-93-05
The audit report for the year ended June 30, 1993, reported $1,788.39 in salary charges to the E.S.E.A. Chapter I - Education ofDeprived Children program (CFDA 84.010) which were based on budget rather than actual time worked by the program director. This amount was refunded to the Georgia Department of Education subsequent to the year under review and will be reflected in the subsequent years report.

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 6341-93-06
The audit report for the year ended June 30, 1993, reported the Board failed to submit a copy of the 1992 audit report to Concerted Services, Incorporated from whom the Board received Child and Adult Care Food program (CFDA 10.558) funds. During the year under review, the Board submitted a copy of the 1992 fiscal year audit report to Concerted Services, Incorporated. The Board also submitted copies of the 1993 fiscal year audit reports to all agencies as required.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 6341-93-07
The audit report for the year ended June 30, 1993, stated that the Board's property management records maintained for the Elementary and Secondary Education Act - Chapter I, Education of Deprived Children program(CFDA 84.010) were incomplete and failed to meet Federal property management standards as set forth in Chapter 8 of the Georgia Financial Accounting Handbook for Local School Systems. In the year under review, it was noted that property management records were maintained as required.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6341-93-01
The audit report for the year ended June 30, 1993, noted that the management ofthe Coffee County Board ofEducation has 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 ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABil,ITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $34,784.38 Audit Control Number 6341-94-01
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 $113,066.45 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment Cost oflnstruction program purposes resulting in a underexpenditure of$34,784.38 for the minimum required allotment of$102,760.75 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 ofOfficial Code ofGeorgia 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 Coffee County Board ofEducation 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.