Audit report, Columbia County Board of Education, Appling, Georgia, year ended June 30, 1997

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AUDIT REPORT COLUMBIA COUNTY BOARD OF EDUCAnON
APPLING, GEORGIA YEAR ENDED JUNE 30, 1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

COLUMBIA COUNTY BOARD OF EDUCAnON - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

7

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

8

E

STATEMENT OF CASH FLOWS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

9

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

10

ADDITIONAL FINANCIAL INFORMAnON

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

28

2 SCHEDULE OF STATE REVENUE

30

COLUMBIA COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

31

4 SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX FUNDS

32

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

35

6

BY PROGRAM

36

SECTIONll
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND 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
April 13, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Columbia County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Columbia County Board of Education, as of and for the year ended June 30, 1997, as listed in the table of contents. These generalpurpose financial statements are the responsibility ofthe Columbia County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in 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 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.

97ARL-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 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 referred to above present fairly, in all material respects, the financial position of the Columbia County Board of Education as of June 30, 1997, and the results of its operations and the cash flows of its proprietary fund for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated April 13, 1998, on our consideration of the Columbia County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Columbia County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through J) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits o/States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects 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.
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,
?t~~
Claude L. Vickers State Auditor
CLV:gp 97ARL-13

COLUMBIA COUNTY BOARD OF EDUCATION

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

EXHIBIT "A"

DEBT SERVICE
FUND

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30, 1997 JUNE 30, 1996

$

639,837.60 $

1,865.00

$ 2,580,257.23 $ 7,034,577.57

$ 2,251,798.89

15,003,144.83

16,886,611.31

94,121.81

8,409,687.36

7,245,313.49

1,514.00

24,043.00

22,172.42

41,523.60 19,101.64

35,952.35 22,835.64

$

2,345,920.70

2,345,920.70

1,587,408.94

51,749,079.30 1.495,870.83

51,749,079.30 1.495,870.83

54,767,591.06 2,208,898.10

$ 2,345,920.70 $

639,837.60 $

1,865.00 $

55,590,870.83 $ 81,668,271.91 $ 89,813,231.46

$

92,462.58

$

92.462.58

$ 3,503,927.32 $ 3,168,089.84

8,031,927.95

7,246,508.06

17,023.04

5,933.19

140,498.25

1,377,096.62

299,500.00

1,407,340.55

22,172.42

$

1,495,870.83

1,495,870.83

2,208,898.10

54,095,000.00

54,095,000.00

56,355,000.00

$

5M90,870.83 $ 67,605,919.81 $ 71,768,866.36

$

547,375.02

$ 2,345,920.70

0.00 $ 2,345,920.70 $

0.00 $ 547,375.02 $

$ 2,345,920.70 $

639,837.60 $

1,865.00 1,865.00

$

547,375.02 $

517,282.05

2,345,920.70

226,135.00 1,587,408.94
71,309.81

41,523.60 19,101.64 285,128.37 10;001.00

35,952.35 22,835.64 4,161,147.97
2,286.00

-11,158.82 10,824,460.59

11,420,007.34

$ 14,062,352.10 $ 18,044,365.10

1,865.00 $

55,590,870.83 $ 81,668,271.91 $ 89,813,231.46

-3-

COLUMBIA COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1997

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases 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

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 52,491,994.09 $ 166,401.03
23,465,090.21 1,094,710.59
$ 77,218,195,92 $

1,864,925.59 3,208,389,75
3,001,264.19 $
8,074,579.53 $

65,244.04 65,244,04

$ 53,415,687,68 $
3,233,209,99 1,699,167.99 2,089,426.65
845,013.38 5,408,779.25
800,237.69 6,342,203.93 3,439,193.10
375,241.51 1,334.73 6,558.30
63,519.70 24,617.75
323,190,74 30,306.74

2,339,967.31
447,878.27 109,222.10
112,010,65
3,367.39 8,725.10
7,352.67 4,488,549.04
782.57 $
384,773.33 80,477.20

4,057,551.67

$ 78,097,689.13 $

$

-879,493.21 $

7,983,105.63 $ 91,473.90 $

4,057,551.67 -3,992,307.63

$

$

-229,330.53

$

-229,330.53 $

124,330,53 $ 124,330.53 $

105,000.00 105,000.00

$ -1,108,823.74 $ 10,404,292.25

215,804.43 $ 1,371,947.89

-3,887,307.63 4,171,278.18

FUND BALANCE JUNE 30

$

9,295,468,51 $

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

-4-

1,587,752.32 $ ===2=:83=,9=7=0=.5==5

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30,1997

JUNE 30,1996

$ 54,356,919.68

3,374,790.78

$ 6,066,438.75

29,531,528.96

128,235.54

4,289,454.36 $

$ 6,194,674.29 $ 91,552,693.78 $

$
1,865.00 1,865.00 $

54,356,919.68 $ 3,374,790.78
29,531,528.96 4,291,319.36
91,554,558.78 $

57,498,733.90 3,638,495.00
27,729,897.97 4,334,448.03
93,201,574.90

$ 55,755,654.99 $

3,681,088.26 1,808,390.09 2,089,426.65
957,024.03 5,408,779.25
800,237.69 6,345,571.32 3,447,918.20
375,241.51 8,687.40
4,495,107.34 63,519.70 25,400.32
4,057,551.67

$ 2,260,000.00 3,159,772.50 8,545.82

2,967,964.07 3,270,556.44
8,545.82

$ 5,428,318.32 $ 95,566,664.75 $

$

766,355.97 $ -4,013,970.97 $

0.00 $ 55,755,654.99 $ 52,754,892.10

3,681,088.26 1,808,390.09 2,089,426.65
957,024.03 5,408,779.25
800,237.69 6,345,571.32 3,447,918.20
375,241.51 8,687.40
4,495,107.34 63,519.70 25,400.32
4,057,551.67

2,830,381.20 1,914,575.57 1,873,772.77
798,417.53 4,351,516.96
864,778.41 5,621,579.17 3,356,085.48
403,447.25 417,689.59 4,329,859.21
47,735.94 21,702.86 20,526,415.17

2,967,964.07 3,270,556.44
8,545.82

2,950,163.78 3,333,376.71
8,691.43

0.00 $ 95,566,664.75 $ 106,405,081.13

1,865.00 $ -4,012,105.97 $ -13,203,506.23

$

229,330.53

-229,330.53

$

0.00

$

766,355.97 $ -4,013,970.97 $

1,579,564.73

17,527,083.05

$ 2,120,000.00

$

229,330.53

629,502.99

-229,330.53

-725,079.05

$

0.00 $ 2,024,423.94

1,865.00 $ 0.00

-4,012,105.97 $ -11,179,082.29

17,527,083.05

28,706,165.34

$ 2,345,920.70 $ 13,513,112.08 $===1;0=,8=6=5.=00=$ 13,514,977.08 $ 17,527,083.05

-5-

THIS PAGE LEFT BLANK

COLUMBIA COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,1997

EXHIBIT"C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 50,411,840,00 $ 52,491,994,09

142,000.00

166,401.03

23,208,617,00 23,465,090.21

749,675.00

1,094,710.59

Total Revenues

$ 74,512,132.00 $ 77,218,195,92

EXPENDITURES

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

$ 53,790,575,00 $ 53,415,687,68

3,130,745.00 1,755,561.00 2,098,784.00
839,649.00 5,390,689.00
888,751.00 6,564,241,00 3,590,069.00
365,695,00 1,705.00 1,873.00

3,233,209.99 1,699,167.99 2,089,426.65
845,013.38 5,408,779.25
800,237.69 6,342,203.93 3,439,193.10
375,241.51 1,334,73 6,558.30
63,519,70 24,617.75 353,497.48

Total Expenditures

$ 78,418,337.00 $ 78,097,689,13

Excess of Revenues over (under) Expenditures

$ -3,906,205,00 $ -879,493.21

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -200,000.00 $ -229,330.53

Total Other Financing Sources (Uses)

$ -200,000.00 $ -229,330.53

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -4,106,205.00 $ -1,108,823,74

FUND BALANCE JULY 1, 1996

10,579,663.81 10,404,292.25

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 2,322,415.00 $ 1,864,925,59

1,470,000.00

3,208,389.75

4,181,056.00

3,00.1,264.19

$ 7,973,471.00 $ 8,074,579.53

$ 2,816,645.00 $ 2,339,967,31

498,554.00 110,537.00

447,878.27 109,222.10

118,626.00

112,010.65

851.00 34,733,00

3,367.39 8,725.10

12,124.00 4,676,938.00

7,352,67 4,488,549.04

9,858,00

782.57 465,250.53

$ 8,278,866.00 $ 7,983,105.63

$ -305,395.00 $

91,473.90

$

0.00 $

124,330,53

$

0.00 $

124,330.53

$ -305,395,00 $

215,804043

1,390,938.38

1,371,947.89

FUND BALANCE JUNE 30,1997

$ 6,473,458.81 $ 9,295,468.51

$ 1,085,543.38 $ 1,587,752,32

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

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND YEAR ENDED JUNE 30. 1997

EXHIBIT "0"

OPERATING REVENUES Charges for Services
OPERATING EXPENSES Current Support Services General Administration Business Administration Total Operating Expenses Operating Income
NONOPERATING REVENUES Interest Earned Net Income (Loss) Before Operating Transfers from Other Funds Operating Transfers from Other Funds Total Income
RETAINED EARNINGS JULY 1
RETAINED EARNINGS JUNE 30

PROPRIETARY FUND TYPE INTERNAL SERVICE FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30,1996

$

108,519.24 $

108,519.24 $

116,565.22

$

112,038.75 $

112,038.75 $

116,492.10

73.12

$

112,038.75 $

112,038.75 $

116,565.22

$

-3,519.51 $

-3,519.51 $

0.00

33,612.48

33,612.48

33,835.33

$

30,092.97 $

30,092.97 $

33,835.33

95,576.06

$

30,092.97 $

30,092.97 $

129,411.39

517,282.05

517,282.05

387,870.66

$

547,375.02 $

547,375.02 $ =====5..1.7.=:,2=8=2=.0=5

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

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND YEAR ENDED JUNE 30, 1997

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Received from Charges for Services Cash Paid for Other Purchased Services Cash Paid for Supplies Cash Paid for Workers' Compensation Claims
Net Cash Provided (Used) by Operating Activities
Cash Flows from Noncapital Financing Activities: Operating Transfers In
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

PROPRIETARY FUND TYPE INTERNAL SERVICE FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

108,519,24 $

108,519,24 $

-13,124,23

-13,124.23

-85.44

-85.44

-101,422.05

-101,422.05

116,565,22 -17,385.58
-73.12 -60,759.47

$

-6,112.48 $

-6,112.48 $

38,347.05

$

95,576.06

$

33,612.48 $

33,612.48 $

33,835.33

$

27,500.00 $

27,500.00 $

167,758.44

$

612,337.60 $

612,337.60 $

444,579.16

Cash and Cash Equivalents - June 30

$

639,837.60$

639,837.60 $ .......====6=12==,3'=3=7,=60=

Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Increase in Claims Payable
Net Cash Provided (Used) by Operating Activities

$

-3,519.51 $

-3,519.51

-2,592.97

-2,592.97 $ _ _.;.;38;.:.;,34:...;.;..7.;.:,.05.;.

$

-6,112,48 $

-6,112.48 $ -====38;;,:,3;;.,;4~7.=05=

The notes to the general purpose financial statements are an integral part of this statement. - 9-

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Columbia County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its fmancial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
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 fmancial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all fmancial 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 received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
- 10-

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees.
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.
Internal Service Fund - the fund used to account for the Board's risk financing and insurance related activities.
FIDUCIARY FUND TYPES - the 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:
EXPENDABLE TRUST FUND Jason Davis Sportsmanship Award - the fund used to account for donations which may be granted to a Greenbrier High School senior football or baseball player who maintains at least a C average and exhibits an exceptional sportsmanlike attitude.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A fmancial reporting device used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental 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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

- 11 -

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Proprietary 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 ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1996 and ending in early June 1997. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1996 and ending in August 1997. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In the prior year, $7,844.21 in interest earned on the proceeds from the 1994 bond issue were reported in the Debt Service Fund. This amount should have been reported in the Capital Projects Fund. The fund balances at July 1, 1996, for these funds have been restated as appropriate.
BUDGET
The Columbia 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
- 12 -

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
aggregate level. The proprietary fund budget was prepared and utilized as a management tool to assess the operations of the internal service fund. The budget for governmental funds was prepared in accordance with 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.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits 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 options for 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,
(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,
- 13 -

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreements, and

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

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants 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 Columbia County Board of Commissioners fixed the property tax levy for the 1996 tax year (calendar year) on August 28, 1996 (levy date). Taxes were due on November 15, 1996. The lien date for property taxes was January 1, 1996. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1997 since their collection meets the criteria of GASB codification section P70.103. The Columbia 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. In addition, the Clerk of the Superior Court of Columbia County collects intangible recording taxes for the Board of Education, withholds 6.0% of the taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

Tax millage rates levied for the 1996 tax year (calendar year) for the Columbia County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

14.76 mills 3.75 mills

18.51 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). The Board uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventories reported on the

- 14-

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1997, are recorded as prepaid items.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates 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.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
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.

- 15 -

COLUMBIA COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present fmancial 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

DEFICIT FUND BALANCES

Funds reporting a deficit fund balance position at June 30, 1997, which are not readily apparent on the general purpose financial statements are as follows:

Fund Type/Fund Name
Capital Projects Fund Special Purpose Local Option Sales Tax

Deficit Balance $ 11.158.82

Collections of Special Purpose Local Option Sales Tax proceeds in subsequent fiscal periods will fund this deficit.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZAnON 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 11 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 anyone 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,

- 16-

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS AND INVESTMENTS

(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 guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZAnON OF DEPOSITS At June 30,1997, the bank balances were $5,915,977.66. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging fmandal 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, 1997, as follows:

Risk Category

Bank Balance

1

$ 398,319.93

2

4,058,055.87

3

1,459,601.86

Total

$ 5,915,977.66

CATEGORIZAnON OF INVESTMENTS At June 30, 1997, the carrying amount of the Board's total investments was $15,003,144.83 and consisted entirely of funds invested 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

- 17 -

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS AND INVESTMENTS

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. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: INTERFUND ASSETS AND LIABILITIES

Due to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund transactions ofthe Board at June 30, 1997:

General Fund Special Revenue Fund
School Food Services Fund Capital Projects Fund
Special Purpose Local Option Sales Tax

Due From Other Funds

Due To Other Funds

$ 22,172.42

$ 15,783.60

6,388.82

$ 22,172.42 $ 22,172.42

Note 5: 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 participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994 to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with two companies according to their specialty for property, boiler and machinery, general liability and automobile risks. Payment of excess insurance for the system varies by line of coverage. Property and blanket bond coverage was purchased to cover 100% of specific losses in excess of$ 100,000.00 per occurrence, up to $100,000,000.00 for each occurrence. Boiler and machinery coverage was purchased

- 18 -

COLUMBIA COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 5: RISK MANAGEMENT

to cover 100% of specific losses in excess of $100,000.00 per occurrence. General liability coverage was purchased to cover 100% of specific losses in excess of $250,000.00 per occurrence. Auto liability was purchased to cover 100% of specific losses in excess of $100,000.00 per occurrence after member deductible.

The Board has established a limited risk management program for workers' compensation claims. A premium is charged by the Internal Service Fund to the General Fund to cover actual claims and to build a level of retained earnings. A premium is charged by the Internal Service Fund to the Special Revenue Fund - School Food Services Fund to cover actual claims. 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit.

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

1996 1997

Beginning of Year Liability

Claims and Changes in Estimates

$

56,708.50 $

99,106.52 $

$

95,055.55 $

98,829.08 $

Claims Paid

End of Year Liability

60,759.47 $ 101,422.05 $

95,055.55 92.462.58

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:

1996 1997

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

5,874.00 $

$

0.00 $

5,358.00 $

Claims Paid

End of Year Liability

5,874.00 $

0.00

5,358.00 $

0.00

The Board has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent All Employees

$ 50,000.00 $ 200,000.00

- 19-

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 6: GENERAL LONG-TERM DEBT

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

GENERAL OBLIGATION BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1976 General Government - Refunding - Series 1986 General Government - Series 1990 General Government - Series 1991 General Government - Refunding - Series 1992 General Government - Refunding - Series 1993 General Government - Refunding - Series 1994 General Government - Series 1994A

6.1% - 6.2% 6.6% -7.2% 6.7% - 7.375% 6.0%-7.0% 4.5%-6.0% 3.45% - 4.9% 4.0% - 5.2% 4.65% -7.0%

$ 3,980,000.00 770,000.00 345,000.00 800,000.00
7,315,000.00 8,910,000.00 9,645,000.00 22,330,000.00

$54,095,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1997, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1996

$ 2,208,898.10 $56,355,000.00 $58,563,898.10

Deductions Payments Savings on Early Payoff of Lease

707,964.07 5,063.20

2,260,000.00

2,967,964.07 5,063.20

Balance June 30, 1997

$ 1.495,870,83 $54,095,000,00 $55,590,870.83

At June 30, 1997, payments due by fiscal year which includes principal and interest for these items are as follows:

- 20-

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 6: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1998 1999 2000 2001 2002 2003 - 2007 2008 - 2012 2013 - 2017

$ 608,651.86 566,419.09 465,250.54

$ 5,511,847.50 5,588,567.50 5,681,782.50 5,857,370.00 5,959,100.00
28,649,980.00 20,946,667.50
3,097,187.50

$ 6,120,499.36 6,154,986.59 6,147,033.04 5,857,370.00 5,959,100.00
28,649,980.00 20,946,667.50
3,097,187.50

Total Principal and Interest

$ 1,640,321.49 $81.292.502.50 $82.932.823.99

Deduct: Imputed Interest

144,450.66

Net Present Value of Future Minimum Lease Payments

$ 1.495.870.83

Note 7: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal years 1993 and 1994, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1997, $15,595,000.00 of bonds are outstanding and are considered defeased.

Note 8: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$I,131,710.53 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$913,189.30

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$29,853.23

- 21 -

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 8: 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$188,668.00

Note 9: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1997, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

94-636-026 Euchee Creek Elementary School Greenbrier Elementary School Greenbrier High School Stadium Harlem High School Stadium Multi-Campus Site Development RenovationslImprovements to High School Stadiums

$ 107,597.18 662,667.00 817.56 2,751.06 15,495.61 7,042.47 489,300.00

$ 1,850,000.00

$ 1.285.670.88 $ 1.850,000.00

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

Note 10: CONTINGENT LIABILITIES

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

Note 11: ACCUMULATED EMPLOYEES' LEAVE

The Board's administrative staff and certain other full-time employees earn one day per month of annual leave. Annual leave may be accumulated to a maximum of 20 days, and upon retirement or termination of employment an amount based on unused leave, up to the maximum accumulation, is paid to employees at the employees rate of pay at the time of termination or retirement. See Note 1 - Compensated Absences

- 22-

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 12: 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 defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

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. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 5,680,812.44 $ 5,171,941.06 $ 4,667,687.92

- 23 -

COLUMBIA COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET
SPEC~LREVENUEFUND
JUNE 30, 1997

EXHIBIT"G"

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

SCHOOL FOOD
SERVICES FUND

LOTIERY

FEDERAL

TOTALS

PROGRAMS PROGRAMS JUNE 30, 1997 JUNE 30, 1996

$ 842,103.22 $ 74,881.49

$ 916,984.71 $

571,547.57

913,319.08

913,319.08

865,699.82

8,787.16 100,000.00 $ 229,001.25

337,788.41

514,048.08

41,523.60 19,101.64

41,523.60 19,101.64

35,952.35 22,835.64

$ 1,824,834.70 $ 174,881.49 $ 229,001.25 $ 2,228,717.44 $ 2,010,083.46

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Due to Other Funds

$ 27,399.12 $

$ 17,457.85 $ 47,306.11

49,022.39

203,840.93 127,575.38 135,590.94

16,988.80

15,783.60

27,399.12 $ 113,786.35 467,007.25
16,988.80 15,783.60

64,863.03 114,359.09 456,007.05
2,906.40

Total Liabilities

$ 237,082.38 $ 174,881.49 $ 229,001.25 $ 640,965.12 $

638,135.57

FUND EQUITY

Fund Balances Reserved For Capital Lease Purchases For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated

$ 41,523.60 19,101.64
1,527,127.08 $

0.00 $

$

226,135.00

$

41,523.60

19,101.64

0.00 1,527,127.08

35,952.35 22,835.64
1,087,024.90

Total Fund Equity

$ 1,587,752.32 $

0.00 $

0.00 $ 1,587,752.32 $ 1,371,947.89

Total Liabilities and Fund Equity

$ 1,824,834.70 $ 174,881.49 $ 229,001.25 $ 2,228,717.44 $ 2,010,083.46

See notes to the general purpose financial statements.

- 24-

COLUMBIA COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1997

EXHIBIT "H"

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

REVENUES

State Funds Federal Funds Other Funds

$ 341,870.00 $ 1,523,055.59

$

1,639,104.43

$ 1,569,285.32

2,949,514.04

51,750.15

1,864,925.59 $ 3,208,389.75 3,001,264.19

2,304,366.00 3,196,862.88 2,388,985.58

Total Revenues

$ 4,930,488.47 $ 1,574,805.74 $ 1,569,285.32 $ 8,074,579.53 $ 7,890,214.46

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations
Debt Service Principal Payments Interest Payments

$ 1,266,748.95 $ 1,073,218,36 $ 2,339,967.31 $ 4,231,355.17

$ 4,488,549.04

167,170.63 1,628.14
20,035.24 2,832.19 550.00 1,055.59

280,707.64 107,593.96
91,975.41 535.20
8,175.10 6,297.08
782.57

447,878.27 109,222.10 112,010.65
3,367.39 8,725.10 7,352.67 4,488,549.04
782.57

406,148.94 234,310.78 109,875.71 120,630.32
27,971.22 32,638.59 4,323,633.84 15,315.44

384,773.33 80,477.20

384,773.33 80,477.20

875,163.78 54,339.21

Total Expenditures

$ 4,488,549.04 $ 1,925,271.27 $ 1,569,285.32 $ 7,983,105.63 $ 10,431,383.00

Excess of Revenues over (under) Expenditures

$ 441,939.43 $ -350,465.53 $

0.00 $

91,473.90 $ -2,541,168.54

OTHER FINANCING SOURCES

Capital Leases Operating Transfers In

$ 124,330.53

$ 2,120,000.00

$ 124,330.53

629,502.99

Total Other Financing Sources

$ 124,330.53

$ 124,330.53 $ 2,749,502.99

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ 441,939.43 $ -226,135.00 $

0.00 $ 215,804.43 $ 208,334.45

FUND BALANCE JULY 1

1,145,812.89 226,135.00

0.00 1,371,947.89 1,163,613.44

FUND BALANCE JUNE 30

$ 1,587,752.32 $=====0.=00=$====0,=.0==0 $ 1,587,752.32 $ 1,371,947.89

See notes to the general purpose financial statements.

- 25-

COLUMBIA COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1997

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30,1997 JUNE 30, 1996

$ 470,819.53

$

0.00 $

470,819.53 $ 5,628,147.78

755.17

755.17

630,494.26

$

729,620.00

729,620.00

729,620.00

$ 471,574.70 $

729,620.00 $

0.00 $ 1,201,194.70 $ 6,988,262.04

LIABILITIES AND FUND EqUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable Due to Other Funds
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Deficit Undesignated
Total Fund Equity

$

$

948.08

140,498.25

45,000.00

$ 186,446.33 $

$ 285,128.37 $
0.00 $ 285,128.37 $

465,119.00 $
254,500.00
719,619.00 $

$ 4,770.00
6,388.82 11,158.82 $

465,119.00 5,718.08 $
140,498.25 299,500.00
6,388.82

40,390.90 1,377,096.62 1,407,340.55

917,224.15 $ 2,824,828.07

10,001.00
$ 0.00
10,001.00 $

$
-11,158.82 0.00
-11,158.82 $

285,128.37 $ 4,161,147.97

10,001.00

2,286.00

-11,158.82 0.00

0.00

283,970.55 $ 4,163,433.97

Total Liabilities and Fund Equity

$ 471,574.70 $

729,620.00 $

0.00 $ 1,201,194.70 $ 6,988,262.04

See notes to the general purpose financial statements.

- 26-

See notes to the general purpose financial statements.

-27 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30,1997

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U, S, Department of Pass-Through From Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1997 Contract Food Services School Breakfast Program 1997 Grant National School Lunch Program 1997 Grant Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 1997 Contract
Total U, S, Department of AgricUlture
Education, U. S, Department of Direct Impact Aid 1997 Grant Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1997 Grant Title II Eisenhower Professional Development 1997 Grant Title VI Innovative Education Program Strategies 1997 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1997 Grant Preschool 1997 Grant Safe and Drug-Free Schools 1997 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1997 Grant Tech-Prep Education 1997 Grant
Total U, S, Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10,558
* 10,553 * 10,555
10.550

N/A $

2,354.51

(2)

N/A

205,600,83

(2)

N/A

1,117,191,30 $

4,193,107.68 (3)

N/A

300,355.26

295,441.36

10,558

N/A $

13,602,53 1,639,104,43 $

(2) 4,488,549.04

84,041

$

47,598.00

(5)

84.010

N/A

84.281

N/A

84.298

N/A

788,134.96 $ 47,562.00 59,017.00

788,134.96 47,562.00 59,017,00

84.027

N/A

84.173

N/A

84.186

N/A

472,541,79 47,215,50 31,323.07

472,541.79 47,215.50 31,323,07

84.048 84,243

N/A N/A
$

73,491.00 50,000,00 1,616,883,32 $

73,491.00 50,000.00 1,569,285,32

- 28-

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1997

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense, U, S, Department of Direct Department of the Army ROTC, Program 1997 Grant National Science Center 1997 Contract
Total U. S. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$

117,251,51

(4)

1,551,52

(4)

$ _ _..:..11.:.;:8:,:.:,8:.::0.=;;3.",,03=..

Total Federal Financial Assistance

$

3,374,790.78 $

6,057,834,36

N/A = Not Available
Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1997 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. (5) Funds eamed on this program do not require reporting of expenditures.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Columbia County Board of Education and is presented on the modified accrual basis of accounting which is the same basis of accounting used in the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

- 29-

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1997

SCHEDULE "2"

AGENCYIFUNDING
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 Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Deferred Summer Salaries (Fiscal Year 1996) Deferred Summer Salaries (Fiscal Year 1997) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Instructional Technology Technology Installation
Community Affairs. Georgia Department of Local Assistance Grant Governor's Emergency Funds (1)
Office of Highway Safety Youth Alcohol Grant
Office of Planning and Budget Georgia Arts Challenge Grant
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 33.294,951,00 3.951.374,00 681.597,00 1.376,450,00 434.258,00 8.999,383.00
1.375.040.00 381,546.00 43.078.00
1.268.756.00 128.753.00 301.954.00 680,630.00 3.080.00 104.709.00 135.783.00
-6.844.585.00 -5,777.092.00 6.848,040.00 3,026,370.00
$ 369,000.00
112,183.00 33.508.84 1.465.76
913.189.30 4,800.00 6,272.00
166,000.00 164.978.92
12,886.07 29,853.23

$
341.870.00 340,920.00 100.000,00

33,294.951,00 3.951.374,00 681.597,00 1.376.450,00 434.258,00 8.999.383,00
1.375.040.00 381.546.00 43.078.00
1.268.756.00 128.753.00 301.954.00 680,630.00 3.080.00 104.709.00 135.783.00
-6.844,585.00 -5.777,092.00 6.848.040.00 3.026.370.00
341.870.00 369.000.00
112.183.00 33.508.84
1.465,76 913.189.30
4.800.00 6.272.00 166,000.00 164,978.92 12,886.07 29.853.23
340.920.00 100.000.00

26,250.00 15,000.00

26.250.00 15.000.00

1.863.97

1.863.97

32.000.00

32.000.00

1.082,135.59

1,082,135.59

188,668.00

188,668.00

$ 52,491,994.09 $

1,864,925.59 $ 54,356,919.68

(1) Assist Lakeside High School with Renovating the Existing Stadium

See notes to the general purpose financial statements.

- 30-

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1997

SCHEDULE "3"

EXPENDITURES

INSTRUCTIONAL TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TECHNOLOGY INSTALLATION

TOTAL

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

General Administration

Maintenance and Operation of Plant

Student Transportation Services

Other Support Services

Debt Service

Principal

Interest

236,161,37 $
384,773,33 80,477.20

930,587.58 $
167,170,63 1,628,14
20,035.24 2,832,19 550.00 1,055,59

100,000,00 $ 1,266,748,95
167,170,63 1,628.14
20,035.24 2,832,19 550,00 1,055,59
384,773,33 80,477.20

Total Expenditures

$

701,411,90 $

1,123,859,37 $

100,000,00 $ 1,925,271,27

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Instructional Technology Pre-Kindergarten Program Technology Installation

$

1,033,020,54

701,411.90 90,838.83
100,000,00

$

1,925,271.27

See notes to the general purpose financial statements.

- 31 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX FUNDS
YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PROJECT
Payment of Principal and Interest on the Outstanding General Obligation Bonds of the District Which Fall Due From October 1, 1997 Through October 1, 2002. This Does Not Include the Entire Amount of Such Payments. The Balance of Such Payments Shall be Made From Other Funds of the District.
Construction of Lakeside High School Technical Laboratory and Modification of Technical Laboratory at Evans High School
Acquisition of Land in Grovetown Area as a Site for Future School(s)
Renovations and Improvements to the Stadiums at Evans High School, Lakeside High School, Greenbrier High School and Harlem High School
Addition of Ten Classrooms at Blue Ridge Elementary School
Construction of a New Middle School
Purchase of School Buses
Replacement and Refurbishment of Flooring at Belair Elementary School, Evans Middle School, Brookwood Elementary School Gym, Columbia Middle School, North Harlem Elementary School, North Columbia Elementary School, Westmont Elementary School, Harlem Middle School and Grovetown Elementary School
Paving Projects at the Transportation Facilities of the School District, the Maintenance Facilities of the School District, the Evans High School Track, the Harlem High School Track, and the Parking Facilities for Harlem High School, Westmont Elementary School, North Columbia Elementary School, Martinez Elementary School, Brookwood Elementary School, Evans Elementary School, Harlem Middle School, Columbia Middle School and South Columbia Elementary School

ESTIMATED COST

AMOUNT EXPENDED IN CURRENT
YEAR

AMOUNT EXPENDED
IN PRIOR YEARS

$ 29,636,433.00

$

0.00

405,000.00 500,000,00 $

6,388,82

1,850,000.00
670,000.00 7,200,000.00 1,200,000.00

4,770.00

1,400,000.00

1,400,000.00

- 32-

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX FUNDS
YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

PROJECT
Electrical Upgrades to Support Automation in All Schools
Purchase of Computers for All Schools
Painting at Evans High School, South Columbia Elementary School, Belair Elementary School, Martinez Elementary School, Harlem High School, Blue Ridge Elementary School, North Columbia Elementary School and Harlem Middle School
Canopies at Euchee Creek Elementary School and Greenbrier Elementary School
Replacement and Renovation of Windows at Columbia Middle School, Evans Middle School, Harlem Middle School and North Columbia Elementary School
Facade Upgrades at Martinez Elementary School and Harlem Middle School
Replacement of Heating, Ventilation and Air Conditioning Systems and Roof of Evans Elementary School
Modifications and Renovations at Crossroads Academy Alternative School
Acquisition and Installation of Energy Management Control Systems in All Schools

ESTIMATED COST

AMOUNT EXPENDED IN CURRENT
YEAR

AMOUNT EXPENDED
IN PRIOR YEARS

$ 2,000,000,00 2,500,000,00

800,000,00 50,000,00
750,000.00 600,000.00 525,000.00 250,000.00 263,567.00

$ 52,000,000.00 $

11,158.82 $====0=,0==0

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

THIS PAGE LEFT BLANK

COLUMBIA COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1997

SCHEDULE "5"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries (1) (2) Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$ 39,982,852.00 $ _ _1:.J..,1:..::;9..=.!6,~52::..:1~.0~0

$ 46,493,874.15 2,701,340.57 $ _--,2=,...;,.44,;.,.;1-,-"7...;;5=3.=26,,,,-
$ 49,195,214.72

-596,895.27 $ 48,598,319.45

Amount of Underexpenditure for Total Allotment

$

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

Note: (1) Salary accruals (July and August 1997 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1996 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

See notes to the general purpose financial statements. - 35 -

COLUMBIA COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1997

GENERAL AND 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 III (*) Category IV (*) Sub-Total - Regular Category VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*) Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Fourteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. (1) Salary accruals (July and August 1997 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program gUidelines.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 3,326,818.00 8,918,617.00
$ 12,245,435.00 4,326,372.00 7,475,975.00 4,821,364.00 2,943,016.00 1,482,789.00
$ 33,294,951.00

$ 2,994,136.20

8,026,755.30 $

90 $ 11,020,891.50 $

90

3,893,734.80

90

6,728,377.50

90

4,339,227.60

90

2,648,714.40

90

1,334,510.10

$ 29,965,455.90 $

678,480.00 678,480.00
678,480.00

$ 3,387,645.00

$ 3,048,880.50 $

0.00

$ 3,387,645.00

563,729.00

$ 3,951,374.00

$

681,597.00

$ 37,927,922.00

90 $ 3,048,880.50 $

90

507,356.10

$ 3,556,236.60 $

90 $

613,437.30 $

$ 34,135,129.80 $

0.00
0.00 0.00 678,480.00

$ 1,098,942.00 90 $ 277,508.00 90

989,047.80 $ 249,757.20

$ 1,376,450.00

$ 1,238,805.00 $

0.00 0.00

$ 39,304,372.00

$ 35,373,934.80 $

678,480.00

$

120,991.00

313,267.00

$

120,991.00 $

313,267.00

2,150.00

$

434,258.00 100 $

434,258.00 $

2,150.00

(2) Salary accruals (J uly and August 1996 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

- 36 -

SCHEDULE "6"

TOTAL REQUIRED

ACTUAL EXPENDITURES SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 2,994,136.20 $ 4,241.024.08 $

109,622.03 $ 4,350,646.11

8,705,235.30

10,367,336.78

375,017.92

10,742,354.70

$ 11,699.371.50 $ 14,608,360.86 $

484,639.95 $ 15,093,000.81 $

0.00

3,893,734.80

5,171,702.64

236,293.08

5,407,995.72

0.00

6,728,377.50

7,953,222.42

559,538.78

8,512,761.20

0.00

4,339,227.60

4,971,677.50

626,068.57

5,597,746.07

0.00

2,648,714.40

4,288,969.46

136,814.32

4,425,783.78

0.00

1,334,510.10

1,784.869.98

217,393.23

2,002,263.21

0.00

$ 30,643,935.90 $ 38,778,802.86 $ 2,260,747.93 $ 41,039,550.79

$ 3,048,880.50 $

1,111,648.96 $ 647,346.85
2,553,480.38 341,067.64

16,486.86 $ 8,473.45 120,478.17 7,718.39

1,128,135.82 655,820.30
2,673,958.55 348,786.03

$ 3,048,880.50 $ 4,653,543.83 $

153,156.87 $ 4,806,700.70

0.00

507,356.10

693,918.76

18,754.67

712,673.43

0.00

$ 3,556,236.60 $ 5,347,462.59 $

171,911.54 $ 5,519,374.13

$

613,437.30 $

653,850.74 $

9,093.79 $

662,944.53

0.00

$ 34,813,609.80 $ 44,780,116.19 $ 2,441,753.26 $ 47,221,869.45

$

989,047.80 $ 1,713.757.96

$ 1,713,757.96

0.00

249,757.20

$

259,587.31

259,587.31

0.00

$ 1,238,805.00 $ 1,713,757.96 $

259,587.31 $ 1,973,345.27

$ 36,052,414.80 $ 46,493,874.15 $ 2,701,340.57 $ 49,195,214.72 $

0.00

$

123,141.00

313,267.00

$ ==4=3""6=,4=08",,.=00=

$

260,075.50 $

260,075.50

176,486.46

176,486.46

$

436,561.96 $

436,561.96 $=======0.;;;00;,

- 37 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 13, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Columbia County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Columbia County Board of Education as of and for the year ended June 30, 1997, and have issued our report thereon dated April 13, 1998. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose fmancial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Columbia County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Columbia County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its
97YB-40

operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Columbia County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the fmancial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-63 61-97-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the nonnal course of perfonning their assigned functions. Our consideration of the internal control over fmancial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended for the infonnation of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:gp 97YB-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 13, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Columbia County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Columbia County Board of Education with the types of compliance requirements described in the Us. Office ofManagement and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to its major Federal program for the year ended June 30, 1997. Columbia County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major Federal program is the responsibility of Columbia County Board of Education's management. Our responsibility is to express an opinion on Columbia County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Columbia County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Columbia County Board ofEducation's compliance with those requirements.

97SA-I0

In our opinion, the Columbia County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to its major Federal program for the year ended June 30, 1997.
Internal Control Over Compliance
The management of Columbia County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and perfonning our audit, we considered Columbia County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to detennine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the nonnal course of perfonning their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended for the infonnation of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,

CLV:gp 97SA-IO

Claude L. Vickers State Auditor

SECTION ill AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

COLUMBIA COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6361-93-03 6361-94-01

Unresolved - See Corrective Action/Response Previously Reported Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6361-93-03

The Board continues to work toward establishing a complete system-wide General Fixed Assets Account Group. The staff is in the process of locating past records, entering current records and making adjustments as needed. Current workloads and manpower shortages continue to slow progress.

SECTION IV FINDINGS AND QUESTIONED COSTS

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Columbia County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Columbia County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Columbia County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Qver Major Programs The audit report for the Columbia County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Columbia County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510fa) ofOMB Circular A-133 The Columbia County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofQMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services.,. National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Columbia County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
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COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6361-97-01 The Columbia County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements 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 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. Management's Response: The Board continues to work toward establishing a complete system-wide General Fixed Assets Account Group. The staff is in the process of locating past records, entering current records and making adjustments. Current workloads and manpower shortages continue to slow progress. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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