Audit report, Colquitt County Board of Education, Moultrie, Georgia, year ended June 30, 1996

GA
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.RI E.?-6 c._7 1995-9{,
AUDIT REPORT COLQUITT COUNTY BOARD OF EDUCATION
MOULTRIE, GEORGIA YEAR ENDED JUNE 30, 1996
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

COLQUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS -OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN RETAINED EARNINGS/FUND BALANCES

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

8

E

COMBINED STATEMENT OF CASH FLOWS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

10

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

12

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

32

COLQUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

EXIBBITS

COMBINING STATEMENTS

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

34

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

36

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

37

2 CASH AND CASH EQUIVALENTS

39

3 INVESTMENTS

40

4 ACCOUNTS RECEIVABLE

41

SCHEDULE OF REVENUE

5

STATE

42

6

TAXES AND OTHER

43

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

44

8

LOTTERY PROGRAMS

45

9

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUNDS

46

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

47

11

BY PROGRAM

48

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

50

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

COLQUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION II COMPLIANCE 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
SECTION ID 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 I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Colquitt County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Colquitt County Board of Education, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
96ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department of Education 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, 1995, were improperly recorded in the year ended June 30, 1996. 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 Board did not record revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 Colquitt County Board of Education as of June 30, 1996, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with
generally accepted accounting principles. In accordance with Government Auditing Standards, we have also
issued a report dated June 30, 1997, on our consideration of the Board's internal control structure and a report dated June 30, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Colquitt County Board of Education taken as a whole. The combining statements (Exhibits G through L) 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 ofthe general purpose financial statements of the Colquitt 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 effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
96ARL-13

A copy of this report has been filed as a permanent 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,

CLV:cm 96ARL-13

Claude L. Vickers State Auditor

COLQUITT COUNTY BOARD OF EDUCATION - 1-

COLQUITT COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30. 1996

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

GOVERNMENTALFUNDTYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 1.750,432.59 $

273,505.69 $

499,587.15

26,463.49

3,101.66

388,870.90

748,268.73

497,371.61

27,801.06 13,765.21

$ 2,165,766.98 $ 1,063,340.69 $ 1,000,060.42

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Retained Earnings Unreserved
Fund Balances Reserved For Continuation of Federal Program For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$

94,098.66 $

437,929.50

19,700.68

2,845.37

329,326.61 67,815.64

$

551,728.84 $

399,987.62

$

154,646.00

$
$ 154,646.00 $ 85,545.88
1,925,575.10 $ 2,165,766.98 $

27,801.06 13,765.21
$ 41,566.27 $
470,045.58 511,611.85 $

532,461.18 532,461.18
67,611.62 600,072.80

Total Liabilities and Fund Equity

$ 2,165,766.98 $ 1,063,340.69 $ 1,000,060.42

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

EXHIBIT"A"

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPES TRUST FUNDS

TOTALS {Memorandum Only) JUNE 30, 1996 JUNE 30, 1995

$

955,043.33 $

128,923.90 $ 3,607,492.66 $ 3,444,048.70

29,565.15

1,116,154.21

26,503.48

627.98

1,661,642.70

827,412.58

27,801.06 13,765.21

34,840.06 16,907.39

$

981,546.81 $

129,551.88 $ 5,340,266.78 $ 5,439,362.94

$

33,019.00

$

33,019.00

$

96,944.03 $

89,806.15

437,929.50

358,841.51

19,700.68

48,302.37

33,019.00

16,152.00

329,326.61

221,853.26

67,815.64

134,439.00

228,187.82

$

984,735.46 $ 1,097,582.11

$

948,527.81

$

948,527.81 $

888,439.25

7,246.43

$

75,000.00

75,000.00

75,000.00

154,646.00

129,161.45

27,801.06 13,765.21 532,461.18

34,840.06 16,907.39 229,744.85

$

948,527.81 $

75,000.00 $ 1,752,201.26 $ 1,381,339.43

0.00

54 551.88

85,545.88 2,517,784.18

83,337.44 2,877,103.96

$

948,527.81 $

129,551.88 $ 4,355,531.32 $ 4,341,780.83

$

981,546.81 $

129,551.88 $ 5,340,266.78 $ 5,439,362.94

-3-

COLQUITT COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes 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 Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 26,635,961.81 $ 12,673.82
8,151,520.64

1,587,148.56 $ 4,221,255.41
642,005.20

$ 34,800, 156.27 $ 6,450,409.17 $

699,035.63 6,258.77
705,294.40

$ 22,596,070.40 $ 3,060,859.04

1,182,199.04 775,968.01 899,538.51 270,647.46
2,268,596.90 438,381.16
3,578,445.40 1,831,064.56
277,793.78 17,724.29
159,645.46
139,175.92 92,571.00

220,745.12 90,713.51 45,150.38
201,905.65 9,931.96
20,830.56 68,595.33
24,299.47 2,669,393.58
25,782.08
62,000.00 $

$ 34,527,821.89 $ 6,500,206.68 $

$

272,334.38 $

-49,797.51 $

916,011.30 916,011.30 -210,716.90

$ $ -641,291.74
$ -641,291.74 $

158.33 $ 581,044.85

158.33 $

581,044.85

$ -368,957.36 $ 2,534,724.34

-49,639.18 $ 571,432.21

370,327.95 229,744.85

-7,039.00 -3,142.18

FUND BALANCE JUNE 30

$ 2,165,766.98 $ 511,611.85$

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

600,072.80

EXHIBIT"B"

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 28,922,146.00 4,233,929.23 8,799,784.61 $
$ 41,955,859.84 $

$ 12,598.72

28,922,146.00 $ 4,233,929.23 8,812,383.33

27,493,079.77 3,909,168.89 7,709,397.57

12,598.72 $ 41,968,458.56 $ 39,111,646.23

$ 25,656,929.44

1,402,944.16 866,681.52 944,688.89 472,553.11 $
2,278,528.86 438,381.16
3,599,275.96 1,899,659.89
277,793.78 42,023.76
2,829,039.04 25,782.08
139,175.92 1,070,582.30

$ 41,944,039.87 $

$

11,819.97 $

$ 25,656,929.44 $ 21,976,787.01

2,032.00

1,402,944.16 866,681.52 944,688.89 474,585.11
2,278,528.86 438,381.16
3,599,275.96 1,899,659.89
277,793.78 42,023.76
2,829,039.04 25,782.08
139,175.92 1,070,582.30

1,260,488.38 757,037.58 960,546.62 426,052.16
2,123,474.79 463,003.40
3,292,622.66 1,684,632.34
140,742.06 30,784.95
2,463,964.99 25,329.93 8,140.48
4,497,344.08

2,032.00 $ 41,946,071.87 $ 40,110,951.43

10,566.72 $

22,386.69 $

-999,305.20

$

581,203.18

-641,291.74

$

-60,088.56

$

-48,268.59 $

3,335,901.40

-7,039.00 -3,142.18

$

581,203.18 $

682,383.35

-641,291.74

-883,430.22

$

-60,088.56 $

-201,046.87

10,566.72 $ 38,784.15

-37,701.87 $ 3,374,685.55

-1,200,352.07 4,579,843.18

-7,039.00 -3,142.18

-806.72 -3,998.84

$ 3,277,451.63 $

49,350.87 $ 3,326,802.50 $ 3,374,685.55 -5-

THIS PAGE LEFT BLANK

COLQUITT COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - {NON-GMP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State.Funds Federal Funds Taxes and Other Funds

$ 25,824,185.00 $ 26,635,961.81

12,673.82

7,715,245.00

8,151,520.64

Total Revenues

$ 33,539,430.00 $ 34,800,156.27

EXPENDITURES

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

$ 23,310,342.27 $ 22,596,070.40

1,232,567.79 724,366.54 927,726.50 226,618.14
2,197,918.39 464,156.55
3,336,112.47 1,692,796.15
265,117.27 20,000.00 99,197.15

1,182,199.04 775,968.01 899,538.51 270,647.46
2,268,596.90 438,381.16
3,578,445.40 1,831,064.56
277,793.78 17,724.29
159,645.46

125,000.00

139,175.92 92,571.00

Total Expenditures

$ 34,621,919.22 $ 34,527,821.89

Excess of Revenues over (under) Expenditures

$ -1,082,489.22 $ 272,334.38

OTHER FINANCING SOURCES {USES)

Other Sources Other Uses

$ -438,953.00 $ -641,291.74

Total Other Financing Sources (Uses)

$ -438,953.00 $ -641,291.74

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -1,521,442.22 $

-368,957 .36

FUND BALANCE JULY 1, 1995

2, 195,886.34

2,534,724.34

Adjustments

FUND BALANCE JUNE 30, 1996

$ 674,444.12 $ 2,165,766.98

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 275,373.00 $ 1,587,148.56

3,889,405.26 4,221,255.41

614,000.00

642,005.20

$ 4,778,778.26 $ 6,450,409.17

$ 1,982,737.48 $ 3,060,859.04

106,814.00 94,436.00 27,017.00
181,959.00 7,464.96

220,745.12 90,713.51 45,150.38
201,905.65 9,931.96

2,085.00 41,379.04

20,830.56 68,595.33

33,340.00 2,464,954.37
27,105.00

24,299.47 2,669,393.58
25,782.08

45,000.00

62,000.00

$ 5,014,291.85 $ 6,500,206.68

$ -235,513.59 $ -49,797.51

$

158.33

$

158.33

$ -235,513.59 $ 789,419.11 152,311.89

-49,639.18 519,684.76

$ 706,217.41 $ 470,045.58

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

COLQUITT COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES
PROPRIETARY FUND TYPE- INTERNAL SERVICE FUND FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 1996

OPERATING REVENUE
Charges for Services OPERATING EXPENSES
Current Administration Bank Service Charges Scholarships Workers Compensation Claims Total Operating Expenses Operating Income (Loss)
NONOPERATING REVENUE Interest Earned Net Income (Loss) Before Operating Transfer
OPERATING TRANSFERS IN Transfers From Other Funds Net Income (Loss) for the Year
RETAINED EARNINGS/
FUND BALANCE JULY 1
RETAINED EARNINGS/
FUND BALANCE JUNE 30

PROPRIETARY FUND TYPE INTERNAL SERVICE FUND

FIDUCIARY FUND

NONEXPENDABLE TRUST

CLASS OF 1988

MCKEE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

$

98,519.15 $

0.00 $

0.00

$

80,068.75

$

55,918.17

$ 135,986.92 $

$ -37,467.77 $

5.00 $ 210.00
215.00 $ -215.00 $

5.00 700.00
705.00 -705.00

37,467.77

$

0.00 $

353.46 138.46 $

1,156.24 451.24

60,088.56

$

60,088.56 $

888,439.25

138.46 $ 6,259.21

451.24 19,946.57

$ 948,527.81 $

6,397.67 $ ====2=0,=39=7.=81=

The notes to the general purpose financial statements are an integral part of this statement. -8 -

EXHIBIT"D"

TYPE FUNDS
ODOM SCHOLARSHIP
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

0.00 $

98,519.15 $ ----8-8,'6-4-7.-95-

$

80,068.75 $

62,602.11

$

39.00

49.00

45.00

2,100.00

3,010.00

3,531.00

55,918.17

42,947.51

$

2,139.00 $ 139,045.92 $ 109,125.62

$

-2,139.00 $

-40,526.77 $

-20,477.67

3,094.28

42,071.75

19,954.86

$

955.28 $

1,544.98 $

-522.81

60,088.56

201,046.87

$

955.28 $

61,633.54 $ 200,524.06

52,450.25

967,095.28

766,571.22

$

53,405.53 $ 1,028,728.82 $ 967,095.28

-9-

COLQUITT COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 1996

Cash Flows from Operating Activities: Cash Received from Contributions to Self-Insurance Employee Benefits Cash Paid for Administrative Costs Cash Paid for Scholarships Cash Paid for Workers' Compensation Claims
Net Cash Provided (Used) by Operating Activities:
Cash Flows from Noncapital Financing Activities: Operating Transfers-In from Other Funds July 1, 1995 Balance Restatement
Net Cash Provided (Used) by Noncapital Financing Activities:
Cash Flows from Investing Activities: Interest Received on Investments Cash Paid for Bank Service Charges
Net Cash Provided by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

PROPRIETARY FUND TYPE INTERNAL SERVICE FUND

FIDUCIARY FUND

NONEXPENDABLE TRUST

CLASS OF 1988

MCKEE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

$

98,519.15

-80,068.75

$

-39,051.17

$

-20,600.77 $

$

60,088.56 $

-210.00 $ -210.00 $
0.00 $

-700.00 -700.00
0.00

$

60,088.56 $

$

10,964.29 $

$

10,964.29 $

$

50,452.08 $

$

904,591.25 $

0.00 $
355.57 $ -5.00
350.57 $ 140.57 $ 6,227.57 $

0.00
1,163.34 -5.00
1,158.34 458.34
19,840.13

Cash and Cash Equivalents - June 30
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Increase in Claims Payable Net Cash Provided from Investing Activities
Net Cash Provided (Used) by Operating Activities

$

955,043.33 $

6,368.14 $===2=0=,2=9=8.=47=

$

-37,467.77 $

16,867.00

$

-20,600. 77 $

-215.00 $ 5.00

-705.00 5.00

-210.00 $

-700.00

======

The notes to the general purpose financial statements are an integral part of this statement. - 10 -

EXHIBIT"E"

TYPE FUNDS
ODOM SCHOLARSHIP
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

98,519.15 $

88,647.95

-80,068.75

-62,602.11

$

-2,100.00

-3,010.00

-3,531.00

-39,051.17

-26,795.51

$

-2,100.00 $

-23,610.77 $

-4,280.67

$

0.00 $

60,088.56 $

201,046.87

687,392.38

$

0.00 $

60,088.56 $

888,439.25

$

3,113.46 $

15,596.66 $

19,795.20

-39.00

-49.00

-45.00

$

3,074.46 $

15,547.66 $

19,750.20

$

974.46 $

52,025.45 $

903,908.78

$

52,162.58 $

982,821.53 $

78,912.75

$

53,137.04 $ 1,034,846.98 $

982,821.53

$

-2, 139.00 $

- - - -39.0-0

-40,526.77 $ 16,867.00
49.00

-20,477.67 16,152.00
45.00

$

-2, 100.00 $

-23,610. 77 $ ====-=4,=28=0=.67=

- 11 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Colquitt County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. 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 governmental 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 Colquitt County Board of Education.
Based upon the application of the above criteria, the Colquitt County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Colquitt 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. Toe 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 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.
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.
- 12 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes 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 presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
PROPRIETARY FUND TYPES - the funds used to account for activities of the Board similar to those found in the private sector, where cost recovery and the determination of net income is useful or necessary for sound fiscal management. Internal service funds are a type of proprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the Board..
WORKERS' COMPENSATION FUND - the internal service fund used to account for Workers' Compensation contributions and expenditures.
FIDUCIARY FUND TYPES - the trust funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLETRUSTFUND Class of 1988 Scholarship Fund and McKee Scholarship Fund- the funds used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarships to graduating seniors of the Colquitt County High School.

- 13 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Odom Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarships to graduating seniors of the Colquitt County High School and awards to be made to fifth graders at Jack Mack Odom Elementary School.
EXPENDABLE TRUST FUNDS Goff Scholarship Fund, Millsap Scholarship Fund and Pippin Scholarship Fund - the funds used to account for scholarships to be made to graduating seniors of Colquitt County High School.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
All proprietary and nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental and expendable trust 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 of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales 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.

- 14 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of these contracts. During fiscal year 1996, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1996, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. 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.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by proprietary funds and nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Colquitt 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 prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. Proprietary fund budgets were prepared and utilized as a management tool to assess the operations of the internal services funds. 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 of general 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.

- 15 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Statement of Revenues, 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 fund balance as reflected on Exhibit "B" of this report:

FUND BALANCE JULY 1, 1995
Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods
Fund Balance July 1, 1995 (Budget Basis)
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JUNE 30, 1996 (Budget Basis)
CASH AND CASH EQUIVALENTS

Special Revenue
Fund $ 571,432.21
-34,840.06 -16,907.39 $ 519,684.76
-49,639.18 $ 4:ZQIQ45.58

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

- 16 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist of grant 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 Colquitt County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on October 5, 1995 (levy date). Taxes were due on December 20, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70. l 03. The Colquitt 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 rate levied for the 1995 tax year (calendar year) for the Colquitt County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

9.10 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

- 17 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Balance Sheet at cost (first-in, first-out). The Board uses the purchases method to account for inventories of purchased foods whereby expenditures are recorded at the time of purchase. Both the donated food commodities inventory and the purchased foods inventory reported on the balance sheet are equally offset by reservations of fund balance which indicates that they do not constitute "available spendable resources" even though they are a component ofnet current assets. The Federally assigned value of donated commodity items received and consumed has not been reflected as revenues and expenditures in the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing .fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than 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, results of operations or cash flows 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.

- 18 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities 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 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 of the counties or municipalities of the 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 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 guar~teed 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, 1996, the bank balances were $8,981,583.29. 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.
- 19 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS AND INVESTMENTS

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, 1996, as follows:

Risk Category
1 2 3
Total

Bank Balance
$ 401,116.05 5,278,297.54 3,302,169.70
$ 8,981,583.29

CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount ofthe Board's total investments was $29,565.15 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness 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 or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

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

- 20 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for workers' compensation claims. A premium is charged by the Internal Service 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 expense and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. An excess coverage insurance policy covers individual claims in excess of $1,000,000.00 loss per occurrence, up to the statutory limit.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

1995 1996

$

0.00 $

42,947.51 $

26,795.51 $

16,152.00

$

16,152.00 $

55,918.17 $

39,051.17 $

33,019.00

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure 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

End ofYear Liability

1995 1996

$

0.00 $

1,591.00 $

1,591.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$805,468.20 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$673,141.48

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $25,153.72

- 21 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: ON-BEHALF PAYMENTS

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost
In the amount of$107,173.00

Note 6: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

94/94S-635-016 94/94S-635-017

$ 1,751,153.33 $ 1,158,532.36 1,325,307.24 1,047,926.01

$ 3,076,460.57 $ 2,206,458.37

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.

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

Note 8: ACCUMULATED EMPLOYEES' LEAVE

Twelve month employees of the Board earn two weeks annual leave. Eleven month employees of the Board

earn one week of annual leave. Maximum accumulation allowed is four weeks. Upon retirement or

termination of employment employees are paid for unused annual leave up to the maximum accumulation

allowed at their current rate of pay. See Note 1 - Compensated Absences



- 22-

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. 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 of employer 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, 1996, was $23,008,197.37; total payroll was $26,385,501.94.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 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 1996 amounted to $3,867,689.07, of which $2,717,268.19 was made by the Board and $1,150,420.88 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll.

- 23 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS

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.

Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1,585.541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. 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, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $2,717,268.19 was actuarially determined and represented .4475% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 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 of age 65. A member applying for service retirement with 10 years of service and retires between

- 24 -

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS
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. 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.
There were 257 employees covered under PSERS for the year ended June 30, 1996.
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 1996 amounted to $8,552.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 10: SURETY BONDS
Mr. William Yearta, School Superintendent through May 31, 1997, was bonded in the amount of$100,000.00 with the State Automobile Insurance Company, Columbus, Ohio, their Bond No. 0047680.
The School Superintendent, Dr. R. Joseph Adams, Jr., effective June 1, 1997, is bonded in the amount of $100,000.00 with the State Automobile Mutual Insurance Company, Columbus, Ohio, their Bond No. 6660938, on which premium is paid through May 31, 1998.

- 25 -

COLQUITT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY

TITLEI

GRANTS TO

EDUCATION OF

LOCAL

CHILDREN WITH EDUCATIONAL MIGRANT

DISABILITIES

AGENCIES

EDUCATION

$ 371,860.84

$

0.00

272,314.83 $ 155,376.18

$ 222,864.00 $ 38,202.51

27,801.06 13,765.21

$ 685,741.94 $ 155,376.18 $

0.00 $ 222,864.00 $ 38,202.51

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
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

$ $ 31,001.24
143,128.85

41,060.47 21,079.02 92,440.09
796.60

$ 174,130.09 $ 155,376.18

$

41,442.29 $

7,600.59

28,865.83

3,611.11

137,168.94

23,473.67

15,386.94

3,517.14

$

222,864.00 $ 38,202.51

$ 27,801.06 13,765.21
$ 41,566.27 470,045.58 $
$ 511,611.85 $

0.00 $ 0.00 $

$ 685,741.94 $ 155,376.18 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 0.00

0.00 $ 222,864.00 $ 38,202.51

See notes to the general purpose financial statements.

- 26-

EXHIBIT"G"

EDUCATION ACT
TITLEII EISENHOWER PROFESSIONAL DEVELOPMENT

TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTS

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

0.00 $

0.00 $ 3,813.76 $

1,609.09 $

0.00

$ 377,283.69 $ 935,275.75

23,690.95

17,225.63

$

18,594.63

748,268.73

358,810.38

s _ _ _ _o_._oo_s _ _ _ _o_.o_o s 21,so4.71 s

18,834.72 $

27,801.06 13,765.21

34,840.06 16,907.39

0.00 $

18,594.63 $ 1,167,118.69 $ 1,345,833.58

$ 5,505.88 $ 21,998.83

3,313.56 15,521.16

$ 27,504.71 $

18,834.72

$

13,674.65 $ 103,778.00 $

63,734.26

722.02

94,098.66

76,606.15

4,197.96

437,929.50

358,841.51

19,700.68

47,031.63

228,187.82

$

18,594.63 $ 655,506.84 $ 774,401.37

$

7,246.43

$

27,801.06

13,765.21

34,840.06 16,907.39

$

41,566.27 $

58,993.88

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

470,045.58

512,438.33

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 511,611.85 $ 571,432.21

$

0.00 $

0.00 $ 27,504.71 $

18,834.72 $

0.00 $

18,594.63 $ 1,167,118.69 $ 1,345,833.58

- 27 -

COLQUITT COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Service Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY

TITLE I

GRANTS TO

EDUCATION OF

LOCAL

CHILDREN WITH EDUCATIONAL MIGRANT

DISABILITIES

AGENCIES

EDUCATION

$ 175,178.00 $ 1,411,970.56

1,806,592~94

$

634,985.20

7,020.00

$ 2,616,756.14 $ 1,418,990.56 $

653.00 $ 1,613,151.29 $ 168,598.22 653.00 $ 1,613,151.29 $ 168,598.22

$ 1,178,307.58 $

124,918.08 21,987.82

$ 2,666,395.32

22,562.22 9,931.96 5,036.10
43,658.16 3,590.38 2,998.26

6,000.00

$ 2,666,395.32 $ 1,418,990.56 $

$ -49,639.18 $

0.00 $

$ -49,639.18 $ 571,432.21
-7,039.00 -3, 142.18
$ 511,611.85 $

0.00 $ 0.00
0.00 $

653.00 $ 1,376,242.63 $ 1,770.63
27,720.91 115,758.03
14,950.00 20,709.09

156,877.77
844.46 10,880.76

56,000.00

653.00 $ 1,613,151.29 $

0.00 $

0.00 $

168,602.99 -4.77

0.00 $ 0.00

0.00 $ 0.00

4.77
0.00 0.00

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-28 -

EXHIBIT"H"

EDUCATION ACT
TITLEII EISENHOWER PROFESSIONAL DEVELOPMENT

TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

35,193.96 $

61,462.00 $ 265,335.95 $

60,733.63 $ 120,020.78 $

$ 89,513.64

1,587,148.56 $ 4,221,255.41
642,005.20

1,064,924.27 3,791,431.55
589,778.08

$

35,193.96 $

61,462.00 $ 265,335.95 $

60,733.63 $ 120,020.78 $

89,513.64 $ 6,450,409.17 $ 5,446,133.90

$

15,433.26 $ 96,195.96 $

63,063.29

$

35,137.21

4,331.79

45,150.38

56.75

878.36

61,906.42

14,056.41

25,782.08

$

35,193.96 $

61,462.00 $ 265,335.95 $

$

0.00 $

0.00 $

0.00 $

36,672.25 $ 118,485.00 $

23,317.51

1,535.78

743.87

60,733.63 $ 120,020.78 $

0.00 $

0.00 $

81,991.59 $ 3,060,859.04 $ 2,281,420.11

7,675.61

220,745.12 90,713.51 45,150.38
201,905.65 9,931.96
20,830.56 68,595.33 24,299.47 2,669,393.58 25,782.08 62,000.00

220,080.51 69,299.84 85,680.79
203,243.44
114,165.41 26,464.99 15,507.72 2,322,834.20 25,329.93 50,800.00

89,667.20 $ 6,500,206.68 $ 5,414,826.94

-153.56 $ -49,797.51 $

31,306.96

153.56

158.33

2,546.40

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ -49,639.18 $

33,853.36

0.00

0.00

0.00

0.00

0.00

0.00

571,432.21

542,384.41

-7,039.00 -3,142.18

-806.72 -3,998.84

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 511,611.85 $ 571,432.21

- 29 -

COLQUITT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1996

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

GEORGIA STATE FINANCING

PROJECT

PROJECT

92/92S-635-024

94-635-025

$ 64,498.32

3,101.66

11.64 $

560.00 $

800.00

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 67,611.62 $

560.00 $ = = = =80=0.0=0

$

560.00 $

800.00

$

560.00 $

800.00

$ 67,611.62 $ $ 67,611.62 $

0.00 $ 0.00 $

0.00 0.00

Total Liabilities and Fund Equity

$ 67,611.62 $

560.00 $

800.00

======

See notes to the general purpose financial statements.

- 30-

EXHIBIT"!"

AND INVESTMENT COMMISSION

PROJECT

PROJECT

94/94S-635-016 94/94S-635-017

LOTTERY PROJECT 97-635-015

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

211,967.43 $

165,601.40 $

58,880.00 $

500,947.15 $

532,157.04

3,101.66

162,143.43

194,025.00

301,974.97

497,371.61

101,162.23

$

405,992.43 $

467,576.37 $

58,880.00 $ 1,001,420.42 $

795,462.70

$

2,845.37

$

117,356.10

211,970.51

25,824.36

41,991.28

$

143,180.46 $

256,807.16

$

1,360.00 $

196,225.59

2,845.37

13,200.00

329,326.61

221,853.26

67,815.64

134,439.00

$

401,347.62 $

565,717.85

$

262,811.97 $

210,769.21 $

58,880.00 $

532,461.18 $

229,744.85

0.00

0.00

0.00

67,611.62

$

262,811.97 $

210,769.21 $

58,880.00 $

600,072.80 $

229,744.85

$

405,992.43 $

467,576.37 $

58,880.00 $ 1,001,420.42 $

795,462.70

- 31 -

COLQUITT COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Taxes and Other Funds
Total Revenues EXPENDITURES
Capital Outlay Building and Building Improvements
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1 Residual Equity Transfer

REGULAR

GEORGIA STATE FINANCING

PROJECT

PROJECT

92/92S-635-024

94-635-025

$

$

6,258.77

$

6,258.77 $

0.00 $ 0.00 $

0.00 0.00

$

920.00 $

$

5,338.77 $

8,369.85 $ -8,369.85 $

123,410.00 -123,410.00

$ 60,000.00 $
$ 60,000.00 $
$ 65,338.77 $ 0.00
2,272.85

8,369.85 $

0.00

8,369.85 $

0.00

0.00 $ 0.00

-123,410.00 125,682.85
-2,272.85

FUND BALANCE JUNE 30

$ 67,611.62 $

0.00 $=====0.=0=0

See notes to the general purpose financial statements.

- 32 -

EXHIBIT"J"

AND INVESTMENT COMMISSION

PROJECT

PROJECT

94/94S-635-016 94/94S-635-017

LOTTERY PROJECT 97-635-015

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

298, 188.64 $

400,846.99 $

$

298,188.64 $

400,846.99 $

0.00 $ 0.00 $

699,035.63 $ 6,258.77
705,294.40 $

2,956,164.00 34,530.11
2,990,694.11

$

310,796.67 $

468,719.78 $

$

-12,608.03 $

-67,872.79 $

3,795.00 $ -3,795.00 $

916,011.30 $ 4,428,236.08 -210,716.90 $ -1,437,541.97

$

225,000.00 $

225,000.00 $

$

225,000.00 $

225,000.00 $

$

212,391.97 $

157,127.21 $

50,420.00

53,642.00

62,675.00 $ 62,675.00 $

581,044.85 $

1,908,340.13 -1,228,503.18

581,044.85 $

679,836.95

58,880.00 $ 0.00

370,327.95 $ 229,744.85
0.00

-757,705.02 987,449.87

$

262,811.97 $

210,769.21 $

58,880.00 $

600,072.80 $

229,744.85

- 33 -

COLQUITT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1996

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Endowment Corpus
Unreserved Undesignated
Total Fund Equity

NONEXPENDABLE TRUST FUNDS

CLASS OF 1988

MCKEE

ODOM

SCHOLARSHIP SCHOLARSHIP SCHOLARSHIP

FUND

FUND

FUND

$

6,368.14 $

20,298.47 $

53,137.04

29.53

99.34

268.49

$

6,397.67 $

20,397.81 $ ===5=3,=40=5=.5=3

$

6,000.00 $

19,000.00 $

50,000.00

397.67

1,397.81

3,405.53

$

6,397.67 $

20,397.81 $ ===5=3=,4=0=5.=53=

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

EXHIBIT"K"

EXPENDABLE TRUST FUNDS

GOFF

MILLSAP

PIPPIN

SCHOLARSHIP SCHOLARSHIP

SCHOLARSHIP

FUND

FUND

FUND

TOTALS

JUNE 30, 1996

JUNE 30, 1995

$

35,338.01 $

1,173.27 $

12,608.97 $

128,923.90 $

116,819.13

166.88

63.74

627.98

621.05

$

35,504.89 $

1,173.27 $

12,672.71 $

129,551.88 $ ===1=1=7,4=40=.1=8

$

35,504.89 $

$ 1,173.27 $ _ _ _1~2,.6...7. _2_7._1

75,000.00 $ 54,551.88

75,000.00 42,440.18

$

35,504.89 $

1,173.27 $

12,672.71 $

129,551.88 $ = =1=17,4=40.=18

- 35 -

COLQUITT COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 1996

EXHIBIT"L"

REVENUES

GOFF SCHOLARSHIP
FUND

MILLSAP SCHOLARSHIP
FUND

PIPPIN SCHOLARSHIP
FUND

TOTALS YEAR ENDED JUNE 301 1996 JUNE 30, 1995

Taxes and Other Funds

$

10,827.91 $

1,027.49 $

743.32 $

12,598.72 $

13,488.58

EXPENDITURES

Current

Support Services

General Administration

$

Other Operations of Non-Instructional

Services

0.00 $

1,012.00 $

1,020.00 $

2,032.00 $

36.00 3,000.00

Total Expenditures

$

0.00 $

1 012.00 $

1,020.00 $

2,032.00 $

3,036.00

Excess of Revenues over (under) Expenditures $

10,827.91 $

15.49 $

-276.68 $

10,566.72 $

10,452.58

FUND BALANCE JULY 1

24,676.98

1,157.78

12,949.39

38 784.15

28,331.57

FUND BALANCE JUNE 30

$

35,504.89 $

1,173.27 $

12,672.71 $

49,350.87 $

38,784.15

See notes to the general purpose financial statements.

- 36 -

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Direct Summer Food Services Program for Children 1995 Grant 1996 Grant Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program
Total U.S. Department of Agriculture
Education, U.S. Department of Through Berrien County Board of Education d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1995 Summer 1996 Grant 1966 Summer Through Georgia Department of Education Elementary and Secondary Education Act Title I Education of Children with Disabilities 1995 Carry-Over Grants to Local Educational Agencies 1996 Grant Title II Eisenhower Professional Development 1995 Regular 1996 Grant Title VI Innovative Education Program Strategies Counseling and Development Center 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Vocational Education - Basic Grants to States High School Program - Basic Grant 1996 Grant Consumer and Homemaking Education 1996 Grant Tech-Prep Education 1996 Grant
Total U. S. Department of Education

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.559 $ 10.559

55,729.00 $ 42,278.53

63,763.28 (3) 42,439.28 (3)

* 10.553

475,611.79

* 10.555 10.550

1,232,973.62 {1}

$ 1,806,592.94 $

(2)
2,560,192.76 (3) {1}
2,666,395.32

84.011 $ 84.011 84.011

61,147.79 $ 69,247.92 38,202.51

61,147.79 69,252.69 (3) 38,202.51

84.009 * 84.010

653.00 1,613,151.29

84.281 84.281

1,723.96 33,470.00

84.298 84.298

5,000.00 56,462.00

653.00 1,613,151.29
1,723.96 33,470.00
5,000.00 56,462.00

- 37 -

84.027 84.173

265,335.95 60,733.63

265,335.95 60,733.63

84.048

107,021.78

84.049

7,999.00

84.243

5,000.00

$ 2,325,148.83 $

107,021.78 7,999.00 5,000.00
2,325,153.60

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice, U. S. Department of Through Office of the Governor Children and Youth Coordinating Council Juvenile Justice and Delinquency Prevention Grant No. 95J-19-9505-0001
Labor, U.S. Department of Through GE1orgia Department of Education Job Training Partnership Act Contract No. 93-8-74 CR Contract No. 94-139-F1994 Contract No. 95-8-74
Total U.S. Department of Labor
OTHER FEDERAL ASSISTANCE
Defense, U.S. Department of Direct Troops to Teachers Program 1996 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16.540 $

442.82 $

442.82

17.250 $ 17.250 17.250
$

36,643.11 $ 39,644.64 13,225.89
89,513.64 $

36,643.11. 39,798.20 (3) 13,225.89
89,667.20

$

12,231.00

(4)

Total Federal Financial Assistance

$ 4,233,929.23 $ 5,081,658.94

Major Programs are identified by an asterisk (*) in front of the CFDA number.

(1) Commodities valued in the amount of $165,360.20 were received during the current fiscal year and were not recorded in the system's financial statements.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 38 -

COLQUITT COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1996

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Southwest Georgia Bank, Moultrie, Georgia
INTEREST BEARING ACCOUNTS
American Banking Company, Moultrie, Georgia
N.O.W. Accounts (2.25%) Certificate of Deposit No. 911001591 (6.25%)
Nations Bank of Georgia, N. A., Moultrie, Georgia
Bonus Checking Account (Variable)
Southwest Georgia Bank, Moultrie, Georgia
Certificates of Deposit No. 916480 (5.60%) No. 916481 (5.60%) No. 916482 (5.60%) No. 916483 (5.60%) No. 916484 (5.60%)
N.O.W. Account (2.25%) Passbook Savings Accounts (3.00%)

$ 390,707.83

$ 2,584,831.64 500,000.00
1,116.05

31,076.31 18,500.00 50,000.00 5,500.00 11,870.00
1,913.24 11,977.59

3,216,784.83

$ 3,607,492.66

See notes to the general purpose financial statements. - 39 -

COLQUITT COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1996
INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (5.361%)

SCHEDULE "3" $ 29,565.15

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

COLQUITT COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1996

SCHEDULE "4"

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

PROPRIETARY FUND TYPE INTERNAL SERVICE FUND

FIDUCIARY FUND TYPE TRUST FUND

Agriculture, U. S. Department of

Summer Food Services Program for Children

$ 15,878.53

$

Colquitt County Tax Commissioner County Wide School Tax

$ 70,030.31

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool

73,255.91 183,180.39
222,864.00
23,690.95 17,225.63

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

$ 495,999.97

Office of the Governor Children and Youth Coordinating Council Juvenile Justice and Delinquency Prevention

442.82

Office of School Readiness Pre-Kindergarten Program

155,328.34

Revenue, Georgia Department of Local Option Sales Tax

318,280.12

Southern Pine Migrant Education Agency Migrant Education Program

38,202.51

Southwest Georgia Regional Development Center Job Training Partnership Act

18,594.63

Various Sources Interest Earned Vendor Overpayment

117.65

47.84

11.64 $ 1,360.00

26,503.48 $

627.98

TOTAL 15,878.53 70,030.31
73,255.91 183,180.39
222,864.00 23,690.95 17,225.63
495,999.97
442.82 155,328.34 318,280.12
38,202.51
18,594.63 27,260.75
1,407.84

$ 388,870.90 $ 748,268.73 $ 497 371.61 $

26,503.48 $

627.98 $ 1,661,642.70

See notes to the general purpose financial statements.

- 41 -

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1996

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 Limited English Speaking Program Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Training Mid-term Adjustment Migrant Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Alternative School Program Instructional Technology Pre-Kindergarten Program Safe Schools Grant Technology Installation
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Leadership Development Program
OTHER Education, Georgia Department of Reimbursement for Facilities
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 14,351,872.00 2,346,372.00 578,721.00 618,361.00 201,122.00 3,971,412.00
817,287.00 284,536.00
97,229.00 467,023.00 950,734.00 111,029.00
40,122.00 103,060.00 437,115.00
5,003.00 -2,005,423.00 2,209,289.00
$ 87,019.00
20,000.00 4,289.87
41,174.91 2,500.00
673,141.48 3,100.00
75,152.00 10,361.83 25,153.72

175,178.00
2,467.00 149,191.82 608,000.00 22,968.00 107,177.00

$ 14,351,872.00 2,346,372.00 578,721.00 618,361.00 201,122.00 3,971,412.00
817,287.00 284,536.00
97,229.00 467,023.00 950,734.00 111,029.00
40,122.00 103,060.00 437,115.00
5,003.00 -2,005,423.00 2,209,289.00
175,178.00 87,019.00
20,000.00 4,289.87
41,174.91 2,500.00
673,141.48 3,100.00
75,152.00 10,361.83 25,153.72
2,467.00 149,191.82 608,000.00
22,968.00 107,177.00

$ 699,035.63

699,035.63

522,166.74

522,166.74

107,173.00

107,173.00

1,932.00

1,932.00

100.00

100.00

$ 26,635,961.81 $ 1,587,148.56 $ 699,035.63 $ 28,922,146.00

- 42 -

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "6"

Taxes County Wide School Tax Local Option Sales Tax Railroad Car Tax Real Estate Transfer Tax
Other Sources Canning Operations Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Interest Earned Sales Adult Meals Breakfast Banquets Lunch Supplemental School Assets Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTAL

$ 4,307,732.08
3,447,725.24 5,244.56
25,952.00

$ 4,307,732.08
3,447,725.24 5,244.56
25,952.00

4,281.63 31,615.39 21,186.33

20,129.85

67,200.34

$

$
72,696.88
7,910.67 103,443.21
36,402.46

152,853.42 61,939.98
386,268.87 18,537.64
22,405.29

$
6,258.77

10,000.00 2,598.72

4,281.63 31,615.39 31,186.33
20,129.85 76,057.83
152,853.42 61,939.98 72,696.88
386,268.87 18,537.64 7,910.67
103,443.21 58,807.75

$ 8,151,520.64 $ 642,005.20 $ 6,258.77 $ 12,598.72 $ 8,812,383.33

See notes to the general purpose financial statements.

- 43 -

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE "7"

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 Tuition Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures
Nonoperating Costs Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 23,321,505.99 $ 3,012,380.17 $ 26,333,886.16

5,665,789.11

604,712.97

6,270,502.08

136,409.80

43,377.81

179,787.61

150,143.31

169,534.10

319,677.41

39,615.75

39,615.75

89,674.86

22,506.10

112,180.96

1,161,785.67

40,630.26

1,202,415.93

50,285.26

50,285.26

99,497.72

99,497.72

107,580.62

69.00

107,649.62

5,000.00

5,000.00

12,374.07

12,374.07

13,632.00

13,632.00

7,521.37

36,669.53

44,190.90

1,182,967.89

647,819.86

1,830,787.75

1,113,954.98

16,468.33

1,130,423.31

32,271.01 1,114,875.99

1,147,147.00

381,980.82

18,817.16

400,797.98

88,821.35

25,856.04

114,677.39

20,129.85

20,129.85

70,308.81

14,324.61

84,633.42

92,571.00 721,504.57

6,000.00 56,000.00 632,660.83

6,000.00 148,571.00 1,354,165.40

$ 34,527,821.89 $ 6,500,206.68 $ 41,028,028.57

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

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30. 1996

SCHEDULE "8"

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

ALTERNATIVE

SCHOOL INSTRUCTIONAL PRE-KINDERGARTEN

PROGRAM TECHNOLOGY

PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

LOTTERY CAPITAL OUTLAY

TOTAL

$

$

598.00 $

27,571.48

1,869.00

121,620.34

596,871.33 131,734.03
16,611.00

9,945.87

$

5,036.10

36,669.53 178,219.48 $
2,998.26

7,464.96

11,736.51 1,087.00 4,064.16

107,177.00

$ 596,871.33 131,734.03 16,611.00
117,122.87 5,036.10
36,669.53 213,853.92
2,998.26
11,736.51 1,087.00 4,064.16

6,000.00 136 213.47 15,503.04

$ 3,795.00

6,000.00
3,795.00 275,205.85

Total Expenditures $

2 467.00 $

149 191.82 $

1 137186.74 $ 221968.00 $ 107 177.00 $ 3i795.oo $ 11422i785.56

See notes to the general purpose financial statements.

- 45 -

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 1996
EXPENDITURES Operating Costs Bank Charges Scholarships
Total Expenditures

SCHEDULE "9"

$

32.00

2,000.00

$ =====2=,0===3=2=.0=0

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

COLQUITT COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE "10"

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

$ 18,257,959.14 $

575,033.20

$ 19,809,419.57 1,323,970.55 $ _ _1.:..,.,_;_;19;.;3.:.;,8c..;.0.;.6..;;..82_
$ 21,133,390.12

-222,670.46 $ 20,910,719.66

$

0.00 $ =====O=.O=O

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

COLQUITT COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1996

GENERAL ANO CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Sub-Total - Regular Category V (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM{*} Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 1,456,836.00

$ 1,311,152.40

3,726, 192.00

3,353,572.80 $

$ 5,183,028.00 90 $ 4,664,725.20 $

1,763,142.00 90

1,586,827.80

3,592,851.00 90

3,233,565.90

1,864,521.00 90

1,678,068.90

968,256.00 90

871,430.40

980,074.00 90

882,066.60

$ 14,351,872.00

$ 12,916,684.80 $

67,348.07 67,348.07
368,154.91 435,502.98

$ 2,144,126.00

$ 1,929,713.40 $

-5,918.00

$ 2,144,126.00

202,246.00

$ 2,346,372.00

$

578,721.00

$ 17,276,965.00

90 $ 90
$ 90 $
$

1,929,713.40 $ 182,021.40
2,111,734.80 $ 520,848.90 $
15,549,268.50 $

-5,918.00 -4,781.87 -10,699.87 -62,566.20 362,236.91

$

492,501.00 90 $

443,250.90 $

125,860.00 90

113,274.00

$

618,361.00

$

556,524.90 $

-1,291.39 1,687.62
396.23

$ 17,895,326.00

$ 16,105,793.40 $

362,633.14

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements.

$

49,617.00

151,505.00

$

49,617.00 $

151,505.00

1,491.67 0.00

$

201,122.00 100 $

=========== 201,122.00 $

1,491.67

- 48 -

SCHEDULE "11"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,311,152.40 $

1,508,732.84 $

40,297.74 $ 1,549,030.58

3,420,920.87

4,524,062.26

138,831.65

4,662,893.91

$ 4,732,073.27 $ 6,032,795.10 $

179,129.39 $ 6,211,924.49 $

0.00

1,586,827.80

2,134,125.53

109,512.94

2,243,638.47

0.00

3,233,565.90

3,861,547.12

390,581.28

4,252,128.40

0.00

1,678,068.90

1,753,895.74

266,506.98

2,020,402.72

0.00

1,239,585.31

1,308,839.56

48,464.14

1,357,303.70

0.00

882,066.60

1,076,916.11

122,261.23

1,199,177.34

0.00

$ 13,352,187.78 $ 16,168,119.16 $ 1,116,455.96 $ 17,284,575.12

$ 1,923,795.40 $

$ 1,923,795.40 $

177,239.53

$ 2,101,034.93 $

$

458,282.70 $

$ 15,911,505.41 $

$ 725,336.37 1,331,933.71 227,827.60
2,285,097.68 $
247,915.54
2,533,013.22 $
397,023.23 $
19,098,155.61 $

800.10 $ 14,852.73 30,836.39 10,961.63

800.10 740,189.10 1,362,770.10 238,789.23

57,450.85 $ 2,342,548.53

9,175.33

257,090.87

66,626.18 $ 2,599,639.40

10,724.68 $

407,747.91

1,193,806.82 $ 20,291,962.43

0.00 0.00
50,534.79

$

441,959.51 $

711,263.96

$

711,263.96

0.00

114,961.62

$

130,163.73

130,163.73

0.00

$

556,921.13 $

711,263.96 $

130,163.73 $

841,427.69

$ 16,468,426.54 $ 19,809,419.57 $ 1,323,970.55 $ 21,133,390.12 $

50,534.79

$

51,108.67

151,505.00

$ =====2=02=,6=1=3=.6=7

$

48,929.27 $

48,929.27

154,051.47

154,051.47

$

202,980.74 $

202,980.74 s=======o=.o=o

- 49 -

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30. 1996

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr. Wayne Lee, Chairman (*) 338 Theron Tillman Road Coolidge, Georgia 31738
Ms. Debora Boyd (*) 901 7th Street, N. W. Moultrie, Georgia 31768
Mr. Jerry S. Meister (*)
P. 0. Box63
Norman Park, Georgia 31771
Mr. Rick Moss (*) 3256 Funston-Sale City Road Doerun, Georgia 31744
Mr. Roy H. Reeves (*) P. 0. Box98 Moultrie, Georgia 31776
Mr. Harry Thompson (*) 5094 Old Adel Road Moultrie, Georgia 31768
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

3,600.00 $

2,509.69

3,600.00

2,709.26

3,600.00

2,452.19

3,600.00

3,105.58

3,600.00

3,814.94

3,600.00

3,424.09

$

21,600.00 $ ===1=8=,0=1=5.=75=

See notes to the general purpose financial statements.

- 50 -

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 30, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Colquitt County Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Colquitt County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 30, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Colquitt County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests of compliance disclosed a material instance of noncompliance, which is described in the Schedule of Findings and Improper or Questioned Costs. As also described in the Schedule of Findings and Improper or Questioned Costs, the material instance of noncompliance noted above has been corrected in the financial statements.

96CRL-20

We considered this material instance of noncompliance in forming our opinion on whether the fiscal year 1996 general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated June 30, 1997 on those general purpose financial statements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 96CRL-20

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 30, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Colquitt County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 30, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Colquitt County Board of Education'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, 1996:

(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.

96CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Colquitt County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements, which is described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:cm 96CRL-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 30, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Colquitt 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 Colquitt County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 30, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the Colquitt 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.

96CRL-90

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office 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 Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
The results of our audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above which is described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph.
In our opinion, the Colquitt County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 96CRL-90

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 30, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Colquitt 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 Colquitt County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 30, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
In connection with our audit of the fiscal year 1996 general purpose financial statements of the Colquitt 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 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, 1996. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:
Types of Services Allowed or Unallowed
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Colquitt County Board of Education'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 Colquitt County Board of Education had not complied, in all material respects, with those requirements.
96CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
t:f/~
Claude L. Vickers State Auditor
CLV:cm 96CRL-120

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Colquitt County Board of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Colquitt County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 30, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management of the Colquitt County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not 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.
In planning and performing our audit ofthe general purpose financial statements ofthe Colquitt County Board of Education for the year ended June 30, 1996, we obtained an understanding of the internal control structure.
96ICL-3

With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing 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 certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Expenditures/Liabilities/Disbursements
(2) 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.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Colquitt County Board of Education's financial statements and this report does not affect our report thereon dated June 30, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:cm 96ICL-3

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 30, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Colquitt County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Colquitt County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 30, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Colquitt County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 30, 1997.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Colquitt County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning ~d performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and 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 30, 1997.
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The management of the Colquitt 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, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection 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 purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level of Effort, 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 of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1996, the Colquitt County Board of Education expended 78% 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 ofthe Board's major Federal financial assistance programs, which

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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.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Administrative Requirements
(2) Eligibility
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Colquitt County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated June 30, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 96ICL-7

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Purchasing Procedures Financial Statements Finding Resolved Audit Control Number 6351-93-03
The audit report for the year ended June 30, 1995, indicated that the Board failed to adhere to the local Board policy DJE dated January 1, 1988, which requires competitive bids to be obtained for purchases in excess of $5,000.00. A review of the Board's procurement system for the year under review noted, additional purchasing procedures were developed and implemented, and tests of these procedures revealed that appropriate internal controls were in effect.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6351-93-04
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$24,577.53 for the salaries portion ofthe Remedial Education Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6351-93-05
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $472.71 for the Staff Development - Professional Development Stipends Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required.
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COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $44,186.50 Audit Control Number 6351-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $44,186.50 for the salaries portion ofthe Remedial Education 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. The underexpenditure of $44,186.50 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.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $27,681.96 Audit Control Number 6351-94-02
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$27,681.96 for the Staff Development - 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. The underexpenditure of $27,681.96 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.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $32,242.75 Audit Control Number 6351-95-01
The audit report for the year ended June 30, 1995, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$32,242.75 for the Remedial Education 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. The underexpenditure of $32,242.75 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.
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COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6351-93-02
The audit report for the year ended June 30, 1995, noted that the management of the Colquitt County Board of Education 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 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.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weak:ness Nonmaterial Noncompliance Audit Control Number 6351-93-07
The audit report for the year ended June 30, 1995, disclosed that the Board's property management records for the Elementary and Secondary Education Act - Title 1 Program (CFDA 84.010) were incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). For the year under review, the records presented for examination were again deficient. These records did not include additions for all purchases made in the period under review and did not include adequate documentation for current year deletions from inventory.
These deficiencies were a result of the Board's disregard of the proper maintenance of its property management records for this program. An inventory system should be implemented that provides for the identification of all equipment purchased and adequate documentation for all deletions as outlined in Chapter 41, of the FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year. Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records.
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COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CURRENT YEAR
EXPENDITURES/1.JABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $50,534.79 Audit Control Number 6351-96-01
For the year under review, the Colquitt County Board of Education reported to the Georgia Department of Education on DE form 0420 underexpenditures of Quality Basic Education (QBE) funds of $50,534.79 for the Remedial Education Program. This underexpenditure occurred because the Board expended less than the minimum expenditure requirement for this QBE Program. 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.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Documentation of Credit Card Charges Financial Statements Reportable Condition - Material Weakness Amount: $820.60 Audit Control Number 6351-96-02
For the year under review, an examination of charges made with the Board's credit card revealed that expenditures totaling $820.60 could not be adequately documented with original invoices. This deficiency occurred because management failed to establish adequate internal controls over the use ofthe Board's credit card. Internal controls should be implemented by the Board to ensure that all credit card expenditures are adequately documented prior to payment and recording of such expenditures in the financial records.
EMPLOYEE COMPENSATION Improper Board Meeting Procedures Financial Statements Nonmaterial Noncompliance Audit Control Number 6351-96-03
For the year under review, our testing revealed that the Board approved pay raises for the Superintendent and five other employees in an executive session of the Board without taking official board action in the regular meeting of the Board. During the course of our engagement, confirmations were sent to Board members serving during the time period these pay raises went into effect to substantiate the increases in salaries. All confirmations were returned with indications that the pay increases were approved in executive session. Formal action was taken by the Board to approve the pay raises during the June 23, 1997, board meeting. The Board should consult with its legal counsel to determine if a recovery of funds is appropriate.
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COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CURRENT YEAR
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number 6351-96-04
For the year under review, the Board failed to transfer local matching funds from the General Fund to the Capital Projects Fund as required for the approved State Capital Outlay Lottery Project for the 1996 fiscal year. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration and the agreement signed by the Board to receive the funding through Georgia Department of Education require that the Board transfer local matching funds by year end and designate those funds by project name and number. A correcting audit adjustment was necessary to transfer $62,675.00 from the General Fund to Lottery Project No. 97-635-015 as required.
ELIGIBILITY Improper Allocation of Title 1 Funds Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 6351-96-05
For the year under review, an examination ofthe Board's procedures for allocating Part A funds, as presented on the Elementary and Secondary Education Act - Title 1 (CFDA 84.010) Program application (DE-0370), revealed, that the Board failed to meet the allocation requirement for Part A funds to Norman Park Elementary. The U.S. Department of Education's Compliance Supplement (page 21) dated, June 21, 1996
states: "If a Local Education Agency (LEA) serves any attendance area with less than a 35 percent poverty
rate, the LEA must allocate all its participating areas an amount per poor child that equals at least 125 percent of the LEA's Part A allocation per poor child." This procedure for allocating funds was not observed by the Board. The Board should implement procedures to ensure that Title 1 funds are allocated properly to all eligible attendance areas the Board elects to serve. Also, the Georgia Department of Education should review this matter to determine if a reclaim of funds is appropriate.
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COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
SUBSEQUENT YEAR EMPLOYEE COMPENSATION Additional Salary Payment Financial Statements Amount: $21,091.80 Audit Control Number 6351-97-01 Subsequent to the year ended June 30, 1996, a review of the board minutes pertaining to the December 9, 1996 meeting of the Colquitt County Board of Education revealed that the Board approved an additional payment for the superintendent, Billy M. Yerta, of $21,091.80 for unused sick leave. Neither the contract with the superintendent nor the Board's sick leave policy provides for purchasing employees' unused sick leave. Additional salary payments are in violation ofArticle ill, Section VI, Paragraph VI ofthe Constitution of the State of Georgia which provides, in part, as follows:
"The General Assembly shall not grant or authorize extra compensation to any public officer, agent, or contractor after the service has been rendered or the contract entered into". This improper expenditure resulted because the Board disregarded the legal restrictions prohibiting extra compensation. Reimbursement of $21,091.80 should be secured for deposit to the Board's General Fund.
Note: The Colquitt 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.
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