GA A.~oo -RI ~'=> C GENEBAL. Af!!Q SPECIAL BEYENUE E!.!NQS YEAR ENDED JUNE 30, 1995 EXHIBIT c- REVENUES State Funds Federal Funds Local and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Service Operations Other Operations of Non-Instructional Services Capital Outlay Debt Service Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES CUSES) Other Sources Other Uses Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BAbtiNCE JULY 1, 1994 Residual Equity Transfer Adjustments GENERAL FUND ACTUAL (BUDGET BUDGET BASISl $ 20,403,540.63 $ 20,552,662.92 343,783.00 261,593.03 7,408,200.00 7,598,813.16 $ 28,155,523.63 $ 28,413,069.11 $ 19,271,582.22 $ 18,256,637.98 1,066,445.72 588,242.12 804,866.50 301,503.71 2,245,101.26 273,031.84 2,421,476.94 1,418,002.13 135,873.99 97,109.00 6,615.00 239,320.93 75,000.00 1,216, 184.00 661,731.33 687,592.86 327,319.82 2,312,210.13 303,565.60 2,411,235.86 1,201,470.61 140,436.15 96,031.82 3,182.74 7,604.07 9,895.41 307,015.30 104,545.74 531,135.57 $ 28,944,171.36 $ 28,577,794.99 $ -788,647.73 $ -164,725.88 $ 15,000.00 $ 142,111.00 -1,212,000.00 -1,237,595.99 $ -1,197,000.00 $ -1,095,484.99 $ -1,985,647.73 $ -1,260,210.87 3,485,299.19 3,007,776.89 -350.67 -5,469.26 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS} $ 170,000.00 $ 963,412.78 3,191,892.43 3,484,687.49 514,800.00 661,566.40 $ 3,876!692.43 $ 5,109,666.67 $ 1,760,342.15 $ 1,851,132.28 292,720.00 155,851.00 4,560.00 83,682.00 8,350.00 312,139.80 184,277.28 151,630.44 68,595.12 6,190.65 3,390.00 9,668.00 12,423.18 14,302.18 15,900.00 2,149,179.00 7,912.03 2,431,191.91 162,600.76 $ 4,483,642.15 $ 5,202,395.63 $ -606,949.72 $ -92,728.96 $ 12,000.00 $ 37,595.99 $ 12,000.00 $ 37,595.99 $ -594,949.72 $ 1 ,088,924.06 -55,567.21 -55,132.97 843,782.53 5,469.26 FUND BALANCE JUNE 30, 1995 $ 1,499,300.79 $ 1,742,096.76 $ 438,407.13 $ 794,118.82 The notes to the general purpose financial statements are an integral part of this statement. -6- COFFEE COUNTY BOARD OF EDUCATION EXIIlBIT D 11 11 NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\.1ENTS JUNE 30, 1995 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Coffee County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. The more significant 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 of Education. Based upon the application ofthe above criteria, the Coffee County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in 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 cert~n 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. - 7- COFFEE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all :financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained. and used for services provided by a board ofeducation. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding 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 are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. - 8- COFFEE COUNTY BOARD OF EDUCATION EXIDBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure 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 are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion ofthe compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. BUDGET The Coffee County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is - 9- COFFEE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the Board's administration prepares a tentative- budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting 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 of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" ofthis report: Excess ofRevenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses Fund Balance July 1, 1994 Residual Equity Transfer Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods Fund Balance June 30, 1995 (Budget Basis) Special Revenue Fund $ -55, 132.97 926,943.29 5,469.26 -59,249.15 -23,911.61 $ 794,118.82 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. - 10 - COFFEE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS JUNE 30, 1995 . Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 1994 tax year (calendar year) on August 16, 1994 (levy date). Taxes were due on December 1, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Coffee County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board. The tax millage rates levied for the 1994 tax year (calendar year) for the Coffee County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations School Bonds 16.37 mills ~ mills 17.23 mills INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. PREPAID ITEMS Payments made to vendors for services that will benefit periods subsequent to June 30, 1995, are recorded as prepaid items. - 11 - COFFEE COUNTY BOARD OF EDUCATION EXITIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity. Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination ofthe following: - 12 - COFFEE COUNTY BOARD OF EDUCATION EXHIBIT D 11 11 NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 2: DEPOSITS (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 ofthe 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 ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $6,505,574.88. 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, 1995, as follows: - 13 - COFFEE COUNTY BOARD OF EDUCATION EXIIlBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 2: DEPOSITS Risk Category I 2 3 Total Note 3: NON-MONETARY TRANSACTIONS Bank Balance $ 297,650.02 6,207,924.86 0.00 S 6,505,574.88 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 The Board exchanged parcels of land and buildings with the City of Douglas. The monetary value of this transaction could not be determined. Note 4: RISK MANAGEMENT The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation. The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors and omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to natural disaster in the past three years. The Board is self-insured with regard to unemployment compensation claims. A premium is charged by the General Fund to each user fund on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: Beginning of Year Liability Claims and Changes in Estimates Claims Paid EndofYear Liability 1994 1995 $ 0.00 $ 12.937.00 $ 12.937.00 $ 0.00 $ 0.00 $ 6.894.00 $ 6.894.00 $ 0.00 - 14 - COFFEE COUNTY BOARD OF EDUCATION EXHIBIT D 11 11 NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 4: RISK MANAGEMENT The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the fund with the Continental Insurance Company to provide coverage for potential losses sustained by the fund in excess of$250,000.00 loss per occurrence, up to $1,000,000.00. Note 5: GENERAL LONG-TERM DEBT 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. The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows: Balance July 1, 1994 Retroactive Restatement ofPrior Year Balances Balance July 1, 1994 Restated Additions Deductions Balance June 30, 1995 Capital Leases General Obligation Bonds Total $ 2,315,104.28 $ 2,470,000.00 $ 4,785,104.28 564,720.63 564,720.63 $ 2,879,824.91 $ 2,470,000.00 $ 5,349,824.91 142,111.00 142,111.00 975,949.65 155,000.00 1,130,949.65 $ 2.045 986 26 $ 2315QQQQQ $ 4,36Q 986,26 At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows: - 15 - COFFEE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 5: GENERAL LONG-TERM: DEBT Fiscal Year Ended June 30 1996 1997 1998 1999 2000 200 I and thereafter Total Principal and Interest Deduct: Imputed Interest Net Present Value ofFuture Minimum Lease Payments General Capital Obligation Total Leases Bonds Debt $ 944,690.86 $ 354,762.50 $ 1,299,453.36 922,807.63 355,100.00 1,277,907.63 254,477.97 349,375.00 603,852.97 29,676.32 347,587.50 377,263.82 20,556.00 90,789.00 344,525.00 1,659,087 .so 365,081.00 1,749,876.50 S 2,262,997.78 S 3 410 437 50 $ 5673 435 28 217,011.52 S 2,Q45 986 26 Note 6: 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 tenns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. Note 7: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after IO 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 of the 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 - 16 - COFFEE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\IBNTS JUNE 30, 1995 Note 7: RETIREMENT PLANS the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time of disability or death. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $17,874,209.05~ total payroll was $20,550,392.79. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%. Total contributions made during fiscal year 1995 amounted to $3,004,658.21, of which $2,110,942.37 was made by the Board and $893,715.84 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll. TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows: Total pension benefit obligation $15,313,743,000.00 Net assets available for benefits, at cost 14,254,785,000.00 Unfunded pension benefit obligation $ 1 058,958.000.00 The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. - 17 - COFFEE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 7: RETIREMENT PLANS 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, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $2,110,942.37 was actuarially determined and represented .3735% of total contributions made by all participating employers. Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute. PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. There were 205 employees covered under PSERS for the year ended June 30, 1995. PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $6,744.00. Total - 18 - COFFEE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1995 Note 7: RETIREMENT PLANS contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00. Note 8: SURETY BONDS Mr. DavidP. Luke, School Superintendent through June 30, 1995, was bonded in the amount of$100,000.00 with the Cincinnati Insurance Company, Cincinnati, Ohio, their Bond No. B80-314412. Mr. Howard P. Ray, School Superintendent effective July 1, 1995 through January 8, 1996, was bonded in the amount of$100,000. 00 with the Cincinnati Insurance Company, Cincinnati, Ohio, their Bond No. B80328646. The School Superintendent, Mr. James C. Moore, effective January 9, 1996, is bonded in the amount of $100,000.00 with the Cincinnati Insurance Company, Cincinnat~ Ohio, their Bond No. B80-328657, on which premium is paid through January 9, 1997. - 19 - ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets ~Qffl;;l;; QQ!JNIX BQABQ QF l;Q!.!CATIQN QQMelNlf::!~ ~Le!NQI; !:!l;;l;;T seE~!AL BEVEN!.!E FUNQ JUNE 30. 1995 ELEMENTARY SCHOOL FOOD SERVICES FUND FAMILY CONNECTION LOTTERY PROGRAMS DRUG-FREE CHAPTER 1 SCHOOLS AND EDUCATION OF COMMUNITIES DEPRIVED ACT CHILDREN $ 983,105.39 $ 6,642.42 $ 0.00 $ 20,623.42 22,002.83 $ 184,164.76 130,529.00 41,344.n 32,170.71 $ 1,078,623.70 $ 6,642.42 $ 184,164.76 $ 0.00 $ 151,152.42 LIA61LII1ES AND FUNQ EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities fUND EQUIIX Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 101,980.85 115,650.97 $ 217,631.82 $ 184,164.76 $ 184,164.76 $ 41,344.n 32,170.71 $ 73,515.48 787,476.40 $ $ 860,991.88 $ 6,642.42 $ 6,642.42 $ 0.00 $ 0.00 $ $ 1,078,623.70 $ 6,642.42 $ 184,164.76 $ $ 32,648.13 114,952.26 3,552.03 $ 151,152.42 0.00 $ 0.00 0.00 $ 0.00 0.00 $ 151,152.42 See notes to the general purpose financial statements. -20- EXHIBIT"E" ANO SECONDARY EDUCATION ACT TITLE 11- EISENHOWER CHAPTER2 MATHEMATICS MIGRANT BLOCK GRANT - ANO SCIENCE PROGRAM FLOW THROUGH EDUCATION INDIVIDUALS WITH DISABILITIES EDUCATION ACT TITLE VI, B FLOW PRESCHOOL THROUGH PROGRAM TOTALS JUNE 30, 1995 JUNE 30, 1994 $ 10,941.19 $ 0.00 $ 2,759.31 $ 4,126.07 $ 1,028,197.80 $ 971,692.61 $ 2,509.00 19,631.65 13,458.00 372,295.24 221,347.26 41,344.n 32,170.71 59,249.15 23,911.61 $ 10,941.19 $ 0.00 $ 2,509.00 $ 22,390.96 $ 17,584.07 $ 1,474,008.52 $ 1,276,200.63 $ 1,872.92 4,962.88 4,105.39 $ 10,941.19 $ 2,509.00 $ 186,673.76 $ 40,766.61 $ 4,051.37 $ 3,620.18 144,173.45 64,501.67 17,320.14 13,653.08 266,539.33 213,130.22 1,019.45 310.81 8,987.68 25,389.58 $ 2,509.00 $ 22,390.96 $ 17,584.07 $ 606,374.22 $ 343,788.08 $ 0.00$ _ _ _ _0_.00 $ $ 0.00$ _ _ _ _0_.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ $ 1,491.43 $ $ 0.00 0.00 $ 41,344.n 32,170.71 73,515.48 $ 794,118.82 867,634.30 $ 59,249.15 23,911.61 84,652.19 847,760.36 932,412.55 s 10,941.19 s_____o._oo_s 2,509.00 $ 22,390.96 $ 17,584.07 $ 1,474,008.52 $ 1,276,200.63 - 21 - QQEEEE QO!.!tUY aQABQ QF EQUQAIIQN COMl;!INING SWEMENI QE B~ENUES EieEt:U21I!.!BES ANQ Q!:IAN!iES IN E!JNQ E!AI.ANQES SPEQIAL BE~EN!.!E E!.!NQ YEAB ENQEQ JUNE 30. 1995 BEVENUES State Funds Federal Funds Local and Other Funds Total Revenues EXPENQIJVBES Current Instruction Support Services PupilServices Improvement d Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Debt Service Principal Interest Total Expenditures Excess of Revenues over (under) Expenditures QTHEB FINANCING SOUBCES Operating Transfers In Total Other Financing Sources Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food Residual Equity Transfer SCHOOL FOOD SERVICES FUND ELEMENTARY FAMILY CONNECTION LOTTERY PROGRAMS DRUG-FREE SCHOOLSAND COMMUNITIES ACT CHAPTER 1 EDUCATION OF DEPRIVED CHILDREN $ 156,534.00 $ 1,558,276.81 661,566.40 $ 2,376,3n.21 $ 18,629.87 $ 788,248.91 $ 18,629.87 $ 788,248.91 $ 39,396.00 $ 39,396.00 $ 1,291,471.92 1,291,471.92 $ 472,162.10 $ 41,472.04 57,007.46 $ 9,529.21 147,586.81 10,344.21 $ 2,431,191.91 526.62 85,228.96 10,428.80 $ 2,431,191.91 $ 41,472.04 $ 792,814.17 $ $ -54,814.70 $ -22,842.17 $ -4,565.26 $ $ 46,336.97 286.01 1,078,786.73 54,853.85 2,882.12 67,336.97 4,413.81 1,859.82 9,168.00 7,016.04 46,622.98 $ -7,226.98 $ 49,797.42 17,145.58 1,293,260.34 -1,788.42 $ 24,015.33 $ $ 24,015.33 $ 4,565.26 $ 4,565.26 $ 7,226.98 $ 7,226.98 $ 1,788.42 1,788.42 $ -54,814.70 $ 1,173.16 $ 0.00 $ 0.00 $ 0.00 925,451.86 0.00 0.00 0.00 0.00 -17,904.38 8,259.10 5,469.26 FUNQ BALANQE ,!!,!NE 30 $ 860,991.88 $ 6,642.42 $ 0.00 $ 0.00 $ 0.00 See notes to the general purpose financial statements. -22- EXHIBIT"F" AND SECONDARY EDUCATION ACT MIGRANT PROGRAM CHAPTER2 BLOCK GRANT FLOW THROUGH TITLE IIEISENHOWER MATHEMATICS AND SCIENCE EDUCATION INDIVIDUALS WITH DISABILITIES EDUCATION ACT TITLE VI, B FLOW PRESCHOOL THROUGH PROGRAM TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ 68,391.37 $ $ 68,391.37 $ 50,475.00 $ 50,475.00 $ 24,009.00 $ 24,009.00 $ 335,585.20 $ 335,585.20 $ $ 117,082.19 963,412.78 $ 3,484,687.49 661,566.40 604,372.73 3,182,433.74 482,440.63 117,082.19 $ 5,109,666.67 $ 4,269,247.10 $ 61,310.61 $ 1,161.51 1,ne.84 219.15 3,553.89 369.37 $ 68,391.37 $ $ 0.00 $ 50,351.61 $ 123.39 50,475.00 $ 0.00 $ $ 25,437.60 62.83 25,500.43 $ -1,491.43 $ 71,519.13 $ 167,323.33 94,376.53 785.92 1,580.29 335,585.20 $ 0.00 $ 117,002.10 $ 1,851,132.28 $ 1,425,487.97 80.09 312,139.80 184,2TT.28 151,630.44 68,595.12 6,190.65 12,423.18 14,302.18 7,912.03 2,431,191.91 350,940.01 126,357.13 1_0,968.85 71,167.78 59,171.15 31,159.18 14,147.93 2,070,358.97 135,026.38 27,574.38 49,797.42 17,145.58 117,082.19 $ 5,202,395.63 $ 4,226,701.97 0.00 $ -92,728.96 $ 42,545.13 $ 37,595.99 $ $ 37,595.99 $ 9,026.73 9,026.73 $ 0.00 $ 0.00 0.00 $ 0.00 -1,491.43 $ 1,491.43 0.00 $ 0.00 0.00 $ 0.00 -55, 132.97 $ 926,943.29 51,571.86 886,718.84 -17,904.38 8,259.10 5,469.26 -2,610.52 -3,267.63 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 867,634.30 $ 932,412.55 23- ~ Cash and Cash Equivalents Accounts Receivable Prepaid Items COFFEE COUNTY BOARD Of EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS fUNP . JUNE 30, 1995 EXHIBIT G" REGULAR WESTSIDE ELEMENTARY RENOVATIONS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION PROJECT 92-634-009 TOTALS JUNE 30! 1995 JUNE 301 1994 $ 203,780.58 $ 37,687.07 $ 0.00 $ 241,467.65 $ 800,181.39 157,914.21 157,914.21 871,081.79 38,137.40 38,137.40 Total Assets $ 3991832.19 $ 371687.07 $ 0.00 $ 4371519.26 $ 116711263.18 LIABILITIES AND FUND EQUITY LIABILITIES Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Unreserved Undesignated $ 399,832.19 $ 37,687.07 $ Total Liabilities and Fund Equity $ 399,832.19 $ 37,687.07 $ $ 169,531.75 701,550.04 $ 871,081.79 0.00 $ 437,519.26 800,181.39 0.00 $ 437,519.26 $ 1,671,263.18 See notes to the general purpose financial statements. -24- QOFFEI;; QQU!il)'. DQ~Q QE l;;DUCAIJQ!::j @M~l!::IIN~ SIAIEME;ta QE BEY.E;NUES, E~E!::IQII!.!BE;;S At:112 QHANGl;;S IN E!.!t!:112 BALANCES QAf!IAL eBQ.IECI E!.!!::112 YEAB ENt;>ED JUNE 30, 1995 EXHIBIT"H" BEY.E;NUES State Funds Local and Other Funds Total Revenues exeENDIJUBES Capital Outlay Land and Land Improvements Building and Building Improvements Equipment Debt Service Principal Interest Total Expenditures Excess of Revenues over (under) Expenditures QTHER Flt:W:lCING SOURCES (USES} Capital Lease Operating Transfer In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 REGULAR WESTSIDE ELEMENTARY RENOVATIONS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION PROJECT 92-634-009 TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994 $ 347,766.00 154,589.53 $ $ 502,355.53 $ $ 0.00 0.00 $ 92,359.92 $ 92,359.92 $ 440,125.92 $ 4,546,246.10 154,589.53 142,419.40 594,715.45 $ 4,688,665.50 $ 210,127.42 $ 266,478.00 904,874.66 389,472.43 68,176.37 $ 1,839,128.88 $ $ -1,336,773.35 $ 0.00 $ 0.00 $ 0.00 $ $ 318,248.70 210,127.42 584,726.70 $ 904,874.66 9,593,203.78 1,483,251.26 389,4n.43 68,176.37 318~48.70 $ 2,157,377.58 $ 11,076,455.04 -225,888.78 $ -1,562,662.13 $ -6,387,789.54 $ 1,014,023.25 $ $ 1,014,023.25 $ $ -39,912.03 -39,912.03 $ $ 225,888.78 $ 1,239,912.03 -39,912.03 1,246,733.13 3,346,371.36 -2,146,371.36 225,888.78 $ 1ioo,000.00 s 2,446,733.13 $ -322,750.10 $ 722,582.29 -39,912.03 $ 77,599.10 0.00 $ -362,662.13 $ -3,941,056.41 0.00 800,181.39 4,741,237.80 FUND BALANCE JUNE 30 $ 399,832.19 $ 37,687.07 $ 0.00 $ 437,519.26 $ 800,181.39 See notes to the general purpose financial statements. -25- COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1995 SCHEDULE 1 FUNDING AGENCY PROGRAM/GRANT Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994Grant 1995Grant National School Lunch Program 1994 Grant 1995 Grant Food Distribution Program (1) Total U.S. Department of Agriculture Education, U.S. Department of Direct P. L. 81-874 1995Grant Through Georgia Department of Education Drug-Free Schools and Communities Act 1995 Grant Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Regular 1994 Regular 1994 Carry-Over 1994Summer 1995 Regular 1995Summer Chapter2 Block Grant Flow Through 1995 Regular Title II Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Individuals with Disabilities Education Act Title VI, B Flow Through 1994 Regular 1994 Carry-Over 1995 Regular Preschool Program 1994 Regular 1994 Carry-Over 1995 Regular Special Project 1994 Grant 1995 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant 1995 Grant Consumer and Homemaking Education 1995 Contract Tech-Prep Education 1994 Grant 1995 Grant CFDA NUMBER AWARDS IN PERIOD FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS} FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10.553 10.553 $ . 10.555 . 10.555 10.550 $ 263,567.50 1,132,559.38 162,149.93 $ 1,558,276.81 $ 1,964.51 254,474.85 $ 263,567.50 11,664.06 1, 119,649.20 NIA 1,132,559.38 $ 1621149.93 1,387,752.62 $ 1,5581276.81 $ (2) 2,269,041.98 (3) 1621149.93 2,431,191.91 84.041 $ 12,169.71 $ 84.186 39,396.00 12,169.71 $ 12,169.71 39,396.00 39,396.00 $ (5) 46,622.98 (3) 84.010 . 84.010 . 84.010 . 84.010 84.010 * 84.010 127,293.00 1,109,822.00 58,510.00 84.151 50,475.00 -1,788.39 171,021.14 127,293.00 123,990.34 915,000.00 127,092.49 123,990.34 1,040,389.09 127,092.49 123,990.34 1,042,1n.51 (3) 50,475.00 50,475.00 50,475.00 84.164 84.164 . 84.027 84.027 * 84.027 84.173 84.173 84.173 .* 84.027 84.027 24,009.00 75,063.00 321,822.00 8,194.00 140,700.00 10,000.00 21,500.00 24,009.00 1,491.43 24,009.00 6,536.31 75,063.00 231,910.00 -8,194.73 8,194.00 95,741.00 -619.58 10,000.00 75,001.57 250,583.63 8,194.00 108,888.19 10,000.00 75,001.57 250,583.63 8,194.00 108,888.19 10,000.00 84.048 84.048 84.049 84.243 84.243 88,359.70 41,444.30 30,000.00 41,643.13 -8,211.42 (4) 46,957.12 88,359.70 (4) 34,394.20 41,444.30 (4) 5,304.29 (4) 20,286.15 30,000.00 (4) 26 COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1995 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Education, U.S. Department of 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 1994Summer 1995 Regular 1995Summer Total U.S. Department of Education Administration, Small Business Through Georgia Forestry Commission Tree Planting Program Health and Human Services, U.S. Department of Through Georgia Department of Medical Assistance TrtleXIX Children At Risk Targeted Case Management Program Justice, U. S. Department of Through Children and Youth Coordinating Council of Georgia Project P.O.W.E.R. #93.1-18-9304-0001 #93J-18-9304-0002 Total U.S. Department of Justice CFDA NUMBER AWARDS IN PERIOD FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS} FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84.011 84.011 84.011 $ 84.011 $ 44,000.00 40,000.00 $ 2,221,257.71 $ -5,173.46 28.876.33 $ 43,620.43 28,876.33 $ 39,515.04 28,876.33 39,515.04 2,093,594.99 $ 2,oso11n.91 $ 1,936,917.51 59.045 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 12,900.00 (3) 93.n8 $ 66,251.32 $ 66,251.32 $ 66,251.32 $ 66,251.32 16.540 $ 16.540 $ 25,958.00 $ 25,958.00 $ 13,574.03 $ 7 464.97 21,039.00 $ 18,972.n $ 2,606.65 21,579.42 $ 21,322.n (3) 1,517.66 (3) 28 840.43 Total Federal Financial Assistance $ 3,881,743.84 $ Major Programs are identified by an asterisk (*) in front of the CFDA number. 3,578,637.93 $ 3,746,280.52 $ 4,476,101.17 (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program. (3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. (5) Funds eamed on this program do not require reporting of expenditures. See notes to the general purpose financial statements. - 27 - COFFEE COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS .JUNE 30. 1995 INTEREST BEARING ACCOUNTS Southeastern Bank, Douglas, Georgia Checking Accounts (Variable) SCHEDULE ''Z' $ 5,511,968.39 See notes to the general purpose financial statements. - 28 - COFFEE COUNJY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995 SCHEDULE "3" Coffee County Tax Commissioner County Wide Bond Tax County Wide School Tax Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Funds Lottery Programs Alternative School Applied Technology Labs Distant Leaming Instructional Technology Federal Programs ESEA Chapter 1 Education of Deprived Children Title II Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act Title VI, B - Flow Through Title VI, B Preschool Program Georgia Children and Youth Coordinating Council Project P.O.W.E.R. Various Sources Reimbursement for Expenses GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND DEBT SERVICE FUND TOTAL $ 101,888.97 $ 5,584.67 $ 5,584.67 101,888.97 $ 9,092.65 12,910.18 41,029.73 58,166.53 $ 157,914.21 41,408.00 100,000.00 11,000.00 31,756.76 9,092.65 12,910.18 198,943.94 58,166.53 41,408.00 100,000.00 11,000.00 31,756.76 130,529.00 2,509.00 19,631.65 13,458.00 5,398.74 2,404.21 130,529.00 2,509.00 19,631.65 13,458.00 5,398.74 2,404.21 $ 208,888.18 $ 372,295.24 $ 157,914.21 $ 5,584.67 $ 744,682.30 See notes to the general purpose financial statements. 29 PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 COFFEE COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30. 1995 SCHEDULE 4 TOTAL DEBT SERVICE 1980 ISSUE INTEREST PRINCIPAL $ 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 $ 3,410,437.50 $ 1,095,437.50 $ 2,315,000.00 CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1994 Bonds Retired During Period Bonds Payable at June 30, 1995 1980 ISSUE $ 2,470,000.00 155,000.00 $ 2,315,000.00 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, 1995 SCHEDULE 5" AGENCY/FUNDING GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Mid-term Adjustment School Counselors Grades 4 and 5 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs Apprenticeship Program Environmental Science Program Family Connection Governor's Emergency Funds (1) Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Alternative School Program Applied Technology Labs Distant Leaming Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program Georgia State Financing and Investment Commission Reimbursement on Construction Projects GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 11,564,888.00 2,170,576.00 355,226.00 500,421.00 166,537.00 3,434,234.00 670,922.00 213,250.00 376,896.00 789,715.00 68,009.00 271,245.00 7,118.00 29,632.00 -1,970,096.00 1,623,223.00 $ 96,169.60 9,750.00 10,000.00 1,500.00 2,000.00 5,000.00 11,500.00 78,092.00 40,491.76 26,363.56 156,534.00 $ 18,629.87 47,499.00 100,000.00 20,000.00 121,773.76 146,531.15 352,445.00 $ 11,564,888.00 2,170,576.00 355,226.00 500,421.00 166,537.00 3,434,234.00 347,766.00 670,922.00 213,250.00 376,896.00 789,715.00 68,009.00 271,245.00 7,118.00 29,632.00 -1,970,096.00 1,623,223.00 156,534.00 443,935.60 9,750.00 10,000.00 1,500.00 18,629.87 2,000.00 5,000.00 11,500.00 78,092.00 40,491.76 26,363.56 47,499.00 100,000.00 20,000.00 121,773.76 146,531.15 352,445.00 92,359.92 92,359.92 $ 20,552,662.92 $ (1) For Westside Elementary School 1995 Georgia School of Excellence. 963,412.78 $ 440, 125.92 $ 21,956,201.62 See notes to the general purpose financial statements. - 31 - COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30, 1995 SCHEDULE 6" Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Tram.fer Tax Other Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Rents Sales Lunches and Breakfast School Assets Reimbursement for Paving Costs Coffee County Board of Commissioners Tuition Other GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND DEBT SERVICE FUND TOTAL $ 7,153,807.54 12,479.64 21,308.05 $ 386,372.89 $ 386,372.89 7,153,807.54 656.83 13,136.47 1,121.47 22,429.52 11,670.03 286,461.65 $ 3,500.00 23,856.00 52,053.45 $ 50.00 1,595.00 8,972.97 25,252.69 605,711.31 1,985.00 40,381.67 20,095.89 171.64 145,616.56 13,331.58 11,670.03 360,819.65 3,550.00 25,451.00 605,711.31 27,237.69 145,616.56 40,381.67 20,267.53 $ 7,598,813.16 $ 661,566.40 $ 154,589.53 $ 401,482.TT $ 8,816,451.86 See notes to the general purpose financial statements. - 32 - COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1995 SCHEDULE -,.. 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 Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Interest Expense Federal Indirect Costs Other Expenditures Nonoperating Costs Principal and Interest Building and Building Improvements Equipment GENERAL FUND SPECIAL REVENUE FUND TOTAL $ 18,321,342.05 $ 2,229,050.74 $ 20,550,392.79 4,987,086.63 576,507.58 5,563,594.21 124,941.60 50,158.32 175,099.92 660,192.56 153,337.72 813,530.28 17,194.57 17,194.57 47,863.70 1,280.00 49,143.70 76,884.87 59,323.98 136,208.85 12,962.99 12,962.99 79,637.06 79,637.06 124,975.01 2,871.83 127,846.84 12,370.05 12,370.05 50,742.00 50,742.00 65,925.76 2,310.91 68,236.67 1,625,679.38 402,104.11 2,027 I 783.49 632,098.26 61,637.34 693,735.60 1,000,889.36 1,000,889.36 211,778.31 1,566.38 213,344.69 54,839.78 10,463.40 65,303.18 72,630.00 72,630.00 11,670.03 11,670.03 12,622.00 12,622.00 531,135.57 100,226.10 779,658.79 162,600.76 451,631.12 693,736.33 100,226.10 1,231,289.91 Total Expenditures $ 28,577,794.99 $ 5,202,395.63 $ 33,780,190.62 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. 1995 EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Other Purchased Services Supplies Energy Dues and Fees Nonoperating Costs Principal and Interest Equipment Total Expenditures ALTERNATIVE SCHOOL PROGRAM APPLIED TECHNOLOGY LABS DISTANT LEARNING $ 10,014.00 $ 1,072.00 18,928.00 37,485.00 $ 100,000.00 $ 47,499.00 $ 100,000.00 $ 20,000.00 See notes to the general purpose financial statements. - 34 - SCHEDULE a- INSTRUCTIONAL TECHNOLOGY MEDIA CENTER AND LIBRARY EQUIPMENT PRE-KINDERGARTEN PROGRAM TOTAL $ $ 11,087.21 $ 79,266.45 95,657.76 171351.00 68,320.36 $ 124,095.97 $ 147,586.81 $ 230,841.72 $ 60,233.20 14,856.82 787.20 580.62 32,356.62 272.21 880.00 230,841.72 60,233.20 14,856.82 1,859.20 580.62 151,652.28 272.21 880.00 12,824.00 95,657.76 235,980.36 353,632.39 $ 792,814.17 - 35 - COFFEE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1995 SCHEDULE "9" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit Amount of Underexpenditure for Total Allotment THIRTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS $ 14,862,356.00 $ 485,189.00 $ 15,770,275.82 1,259,258.79 $ $ 17,029,534.61 1,133,437.80 -195,847.17 $ 16,833,687.44 $ 0.00 $ = = = = =0.=00 See notes to the general purpose financial statements. - 37 - COFFEE COUNTY BOARD Of EDUCATION ANALVSIS Of MINIMUM EXPENDITURE REOUIREMENTS - BY PROGRAM GENERAL FUND - OUALIIY BASIC EDUCATION PBQGRAMS YEAR ENDED JUNE 30 1995 GENERAL Ali:! ~El;B EDUCAT!Qf)I PROGRAMS Kindergarten M Gradel 1 3 M Sub-To1a1 - K-3 Grades 4 - 5 M Grades 6 - aM Grades 9 12 M High School Laborat0ries M Vocational Education Laboratories C, Total General and career Education Programs SPECIAL EDUCATION PBQGRAMS Regular Programs categoiy IM Category II (') Category Ill M Category IV (') Sul>TotaJ - Regular Category V (Gilled) (') Total Speclal Education Programs REMEDIAL EDUCATION PROGRAM C".l Total Thirteen Weighted Programs MEOIA CENTER PROGRAMS Salaries Operations Total Media Center Programs Total Thirteen Weighted and Media Center Programs STAFF DEVELOPMENT PROGRAMS Cost d Instruction Professional Development Total Staff Development M Identifies Thirteen Weighted Programs. ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED ORIGINAL _!,_ ORIGINAL MIO-TERM $ 1,271,275.00 $ 1,144,147.50 $ 3.110,911.00 2,799,819.90 $ 4,382,186.00 90 $ 3,943,967.40 $ 1,525,132.00 90 1,372,618.80 2,543,249.00 90 2,288,924.10 926,978.00 90 834,280.20 1,552,685.00 90 1,397,416.50 634.658.00 90 571,192.20 $ 11,564,888.00 $ 10,408,399.20 $ 0.00 271,245.00 271,245.00 0.00 36,600.00 0.00 0.00 0.00 307,845.00 $ 1,978,537.00 $ 1,780,683.30 $ 0.00 s $ 1,978,537.00 90 1,780,683.30 $ 192.039.00 90 172,835.10 $ 2, 170.576.00 $ 1,953,518.40 $ $ 355,226.00 90 $ 319,703.40 $ $ 14,090,690.00 $ 12,681,621.00 $ O.OQ 0.00 0.00 -36,600.00 271,245.00 $ 392,404.00 90 $ 353,163.60 $ 0.00 108.017.00 90 97,215.30 0.00 s 500,421.00 $ 450,378.90 $ 0.00 s 14,591,111.00 s 13,131,999.90 S 271,245.00 $ 39,169.00 $ 39,169.00 $ 0.00 127,368.00 127,368.00 0.00 $ 166,537.00 100 $ 166,537.00 $ 0.00 See notes to the general purpose financial statements. - 38 - SCHEDULE "10" TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 1,144,147.50 $ 1,449,624.32 $ 99,507.45 $ 1,549,131.77 3,071,064.90 3,158,405.15 373,193.37 3,531,598.52 s s $ 4,215,212.40 4,608,029.47 472,700.82 $ 5,080,730.29 $ 0.00 1,372,618.80 1,502,578.33 41,634.11 1,544,212.44 0.00 2,325,524.10 3,013,929.19 184,849.65 3,198,778.84 0.00 834,280.20 920,913.25 124,155.80 1,045,069.05 0.00 1,397,416.50 1,645,897.62 114,188.74 1,760,086.36 0.00 571,192.20 692,408.22 140,350.83 832,759.05 0.00 $ 10,716,244.20 $ 12,383,756.08 $ 1,077,879.95 $ 13,461,636.03 $ 1,780,683.30 $ 94,539.71 $ 559,037.81 1,470,808.23 145,191.32 2,465.46 $ 10,084.10 30,719.30 3,547.49 97,005.17 569,121.91 1,501,527.53 148,738.81 $ 1,780,683.30 $ 2,269,577.07 $ 46,816.35 $ 2,316,393.42 0.00 172,835.10 201,788.94 4,668.29 206,457.23 0.00 $ 1,953,518.40 $ 2,471,366.01 $ 51,484.64 $ 2,522,850.65 $ 283,103.40 s 344,706.55 $ 4,073.21 $ 348,779.76 0.00 $ 12,952,866.00 $ 15,199,828.64 $ 1,133,437.80 $ 16,333,266.44 $ 353,163.60 $ 570,447.18 $ 570,447.18 0.00 97,215.30 $ 125,820.99 125,820.99 0.00 $ 450,378.90 $ 570,447.18 $ 125,820.99 $ 696,268.17 $ 13,403,244.90 $ 15,770,275.82 $ 1,259,258.79 $ 17,029,534.61 $ 0.00 $ 39,169.00 127,368.00 s_ _1_66_..5_3_1_.oo_ $ 134,391.10 $ 134,391.10 120,782.96 120,782.96 $ 255,174.06 $ 255,174.06 s _ _ _ _ _ _ _o_.oo_ - 39 - COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30. 1995 SCHEDULE 11" BOARD MEMBER ADDRESS Mr. Victor Tanner, Chairman (*) 2n Tillman Tanner Road NichoUs, Georgia 31554 Mr. Leo Brooks (*) 1220 St Andrews Drive Douglas, Georgia 31533 Ms. Annie Lott 1501 Cypress Lane Douglas, Georgia 31533 Ms. Betty Jo Milhollin (*) 401 Smith Street Broxton, Georgia 31519 Mr. Joseph D. Murray(*) P. 0. Box 1212 Douglas, Georgia 31534 Mr. Gene Wade (*) P. 0. Box937 Douglas, Georgia 31534 COMPENSATION TRAVEL $ 2,400.00 $ 1,133.00 1,200.00 1,384.68 1,200.00 2,400.00 22.26 2,400.00 2,654.63 2,400.00 (*) Denotes Board Members Serving as of June 30, 1995 $ 12,000.00 $ ====5=,1=94=.5=7 See notes to the general purpose financial statements. - 40 - SECTION II COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 19, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe 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 ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated June 19, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance with laws, regulations, contracts, and grants applicable to 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. The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 95CRL-10 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:dt 95CRL-I0 CLAUDE L. VICKERS STATE AUDllOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 19, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe 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, 1995, and have issued our report thereon dated June 19, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have applied procedures to test the 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 ofFederal Financial Assistance, for the year ended June 30, 1995: (I) 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. 95CRL-50 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Coffee County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:dt 95CRL-50 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 19, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Coffee County Board ofEducation SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Coffee County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated June 19, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Coffee County Board ofEducation's compliance with the requirements governing: (I) Types of Services Allowed or Unallowed (5) Applicable Special Tests and Provisions (2) Eligibility (3) Matching, Level ofEffort, and/or Earmarking (6) Other Requirement Claims for Advances and Reimbursements (4) Reporting These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Coffee County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. 95CRL-80 Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the 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, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this 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, 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:dt 95CRL-80 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 19, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Coffee County Board ofEducation SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Ladies and Gentlemen: We have audited the general purpose financial statements of the Coffee County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated June 19, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. In connection with our audit ofthe fiscal year 1995 general purpose financial statements of the Coffee County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, 11Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung: (1) Types of Services Allowed or Unallowed (2) Eligibility Our procedures were substantially less in scope than an audit, the objective 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. 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. 95CRL-120 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. 'This restriction is not intended to limit the distribution of this report which is a matter ofpublic record. Respectfully submitted, CLV:dt 95CRL-120 Claude L. Vickers State Auditor SECTION III INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 19, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe 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 of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated June 19, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. The management ofthe Coffee County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because 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 95ICL-3 procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation ofpolicies and procedures may deteriorate. In planning and perfonning our audit of the general purpose financial statements ofthe Coffee County Board ofEducation for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions ofmanagement 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 internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness. This condition was considered in detennining the nature, timing, and extent of the procedures to be performed in our audit ofthe Coffee County Board ofEducation financial statements and this report does not affect our report thereon dated June 19, 1996. 95ICL-3 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:dt 95ICL-3 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 19, 1996 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe 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 of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated June 19, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Coffee County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 19, 1996. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Coffee County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial_ assistance program. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 95ICL-5 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 19, 1996. 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, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because ofinherent limitations in any internal control structure, errors, 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 ofthe design and operation of policies and procedures may deteriorate. For the purposes of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: GENERAL REOIBREMENTS SPECIFIC REQUIREMENTS {I) 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. During the year ended June 30, 1995, the Coffee County Board of Education expended 73% of its total Federal financial assistance under major Federal financial assistance programs. 95ICL-5 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 ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. 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 ofthis report which is a matter of public record. Rz~ CLV:dt 95ICL-5 Claude L. Vickers State Auditor 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, 1995 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, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds 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 ofEducation to refund this underexpenditure as required. The underexpenditure of$19,043.15 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $34,784.38 Audit Control Number 6341-94-01 The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$34,784.38 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$34,784.38 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. 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, 1994, noted that the management of the Coffee County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, and equipment owned by the - 1- COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 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 Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. CURRENT YEAR FEDERAL FINANCIAL REPORTS Failure to Obtain Budget Amendment Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6341-95-01 The project completion report for the Education ofthe Handicapped Act - Title VI, B Flow Through Program (CFDA 84.027), 1995 Regular project included expenditures in the amount of $1,580.29 for student transportation. However, the approved budget for this project only authorized $500.00 for student transportation expenditures. The instructions for this project requires an approved budget amendment when expenditures for a budget category exceeds 120 percent ofthe approved budget category amount. The Coffee County Board ofEducation did not obtain the required budget amendment. This condition occurred because of management's misunderstanding ofinstruction for amending the Special Education Comprehensive Plan Budget (DE0885). The Board should contact the Georgia Department of Education to resolve this finding. Note: The Coffee County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report. -2-