Audit report, Cook County Board of Education, Adel, Georgia, year ended June 30, 1994

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

AUDIT REPORT COOK COUNTY BOARD OF EDUCATION
ADEL, GEORGIA YEAR ENDED JUNE 30, 1994

COOK 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 AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

ANDEXPENDABLETRUSTFUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

26

3 INVESTMENTS

27

4 ACCOUNTS RECENABLE

28

5 DEBT SERVICE REQUIREMENTS TO MA TIJRITY

29

SCHEDULE OF REVENUE

6

STATE FUNDS

30

7

LOCAL AND OTHER FUNDS

31

COOK COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

32

9

LOTTERY PROGRAMS

33

10

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

34

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

11

OVERALL

35

12

BY PROGRAM

36

13 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

38

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

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

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Cook County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Cook County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

94ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Cook County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Cook County Board ofEducation taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 13 which includes the Schedule ofFederal Financial Assistance) are presented for purposes of additional analysis and are not a required part ofthe general purpose financial statements of the Cook 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.
A copy ofthis 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,
~~
Claude L. Vickers State Auditor
CLV:jy 94ARL-13

COOK COUNTY BOARD OF EDUCATION - 1-

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capita 1 lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

130,234.95 $ 297,390.09

602,173.00 $

892,596.44

68,231.12

125,444.39

683,785.26

25,287.91

DEBT SERVICE
FUND 49,929.74
1,865.16

15,129.31 6,414.00

Total Assets

$ 1 116 350.42 $ 444 377.79 $ 1 285 958.26 $ 51 794.90

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainage Payable Capita 1 Lease Agreements General Dbl igation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Ba 1ances/Quest i oned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Un designated
Total Fund Equity

89,325.13 $

34,105.77 81,949.86
4,556.97

468,504.24 215,281.02

89 325.13 $ 120 612.60 $ 683 785.26

18,788.44

8,700.13

51,794.90

15,129.31 6,414.00
_____ $

602 173.00

18,788.44 $ 30,243.44 $ 602,173.00 $ 51,794.90

1 008 236.85 027 025.29 $

293 521.75 323 765.19 $

0.00 602 173.00 $

0. 00 51 794.90

Total Liabilities and Fund Equity $ 1 116 350.42

444 377.79 $ 1 285 958.26 $ 51 794.90

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

EXHIBIT "A"

FIDUCIARY FUND TYPE
TRUST FUND

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS (Memorandum On1 :z:l JUNE 30 1994 JUNE 30

1993

5,091.67

1,084,819.45$ 801,975.21

892,596.44

515,488.69

879,325.93

160,827.20

25,287.91

51,794.90

15,129.31 6,414.00
51,794.90

16,572.75 4,134.96
46,024.41

lB,205.10 304 65B. 68

lB,205.10 304 658. 68

8B,975.59 13B 925 .13

5 091.67 $ 374 658.68 $ 3 27B 231.72 $ 1 772 923.94

304,658. 6B 70 000.00
374 658. 68 $

123,430.90 $ 81,949.86 4,556.97
468,504.24 215,281.02 304,658.68
70 000.00
268 381. 67 $

100,261.41 67,371.14 12,923.74 36,962.00
138,925.13 135 000.00
491 443. 42

091.67 091.67

8,700.13 $ 51,794.90
18, 7B8. 44

7,119.51 46,024.41
115 .15

15,129.31 6,414.00
602 173.00

16,572.75 4,134.96 327 173.00

702,999.78 $ 401,139.78

306 850. 27 009 850.05 $

880 340.74 281 480.52

5 091.67 $ 374 658.68 $ 3 278 231.72 $ 1 772 923.94

- 3-

C COMBINED STATEMENT OF
GOVERNMENT

COUNTY BOARD OF EDUCATION UES EXPENDITURES AND CHANGES IN FUND BALANCES ND TYPES AND EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Admi ni strati on Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Ope rat i ans of Non-Instruct i anal Services
Capital Outlay Debt Service
Principal Retirement Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES [USES)
Capita 1 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
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

8,116,762.37 $ 30B,288.06 $ 2,275,045.15

48,899.40 1,539,450.63

2 802 259.00

201 451.35

$10 967 920.77 $ 2 049 190.04 $ 2 275 045.15

6,460,101.90 $
411,566.40 310,7B9.21 293,756.67 226,689.33 73S,913.93
8B, 952. 09 1,177,311.87
507,319.77 25,I3B.43 B,246.05 5,000.00 62,289.28 85,910.51 27,198.25
79,8B7 .45 4,220.12

B02, 902. 05
112,042.95 24,439.04 23,057.31 B9,353.78
2,099.B6 3,154.55 76,518.76 29,075.94 B65,8I0.87
$ 2,275,045.15

$10 510 291. 26 $ 457 629.51 $

02B 455 .11 20 734.93

2 275 045 .15 0.00

245,621.00 $
-277 71B.85
-32 097 .85 $

2,718.B5 $ 275,000.00 2 71B.85 $ 275 000. 00

425,531.66 $ 601,493.63

23,453. 7B $ 299,475.81

275,000.00 327,173.00

-1,443.44 2 279.04

$ 1 027 025.29 $ 323 765.19 $ 602 173.00

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

EXHIBIT "B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE
EXPENDABLE TRUST FUND

TOTALS
(Memorandum Only) YEAR ENDED
JUNE 30 1994 JUNE 30

1993

$10,700,095.5B 1,588,350.03
78 758.63 3 082 468.98

0.00 $10,700,095.58$ 8,032,876.96 1,588,350.03 1,555,626.11 3 082 468.98 2 779 206.81

78 758.63 $15 370 914.59 $_ _ _~o~.o=o $15 370 914.59 $12 367 709.88

7,263,003.95$

523,609.35 335,228.25 316,813.98 316,043.11 735,913.93
88,952.09 1,179,411.73
510,474.32 101,657.19
37,321.99 870,810.87
62,289.28 85,910.51 2,302,243.40

65,000.00 7,687.50 300. 64

144,887.45 11,907.62 300. 64

72 988.14 $14 886 779.66 $

5 770.49

484 134.93 $

925.00 $ 7,263,928.95$ 7,095,995.46

I, 105. 00
96. 00 96. 00

523,609.35
335,228.25 316,813.98 316,043.11 735,913.93
88,952.09 1,180,516.73
510,474.32 101,657.19 37,321.99 870,906.87
62,385.28 85,910.51 2,302,2.43.40

472,080.04 303,937.77 300,682.26 267,305.44 701,119.29
89,297.37 834,701.99 463,220.03 116,218.83
771,830.71 57,102.29 99,680.53
198,023.00

144,887.45 11,907.62 300. 64

90,693.29 12,375.00
12. 00

222. 00 $14 889 001.66 $11 874 275 .30

-2 222.00 $ 481 912.93 $ 493 434. 58

245,621.00 277,718.85 -277 718.85
245 621.00

5,770.49 46,024.41

729,755.93 1,274,166.85

-1,443.44 2 279.04

245,621.00 $ 111,301.56

277,718.85

291,029.00

-277 718.85 -291 029.00

245 621. 00 $ Ill 301.56

-2,222.00 $ 727,533.93$ 7,313.67 1,281,480.52

604,736.14 678,897.70

-1,443.44 2 279.04

-1,890.65 -262. 67

51 794.90 $ 2 004 758.38 $

5 091.67 $ 2 009 850.05 $ 1 281 480.52

- 5-

CHANGES IN FUND BALANCES UND TYPES

EXHIBIT "C"

ACTUAL PER
EXHIBIT "B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

REVENUES

State Funds Federal Funds Loca1 and Other Funds

$10,700,095.58 $ 1,588,350.03 3,082,468.98

0.00 $10,700,095.58 $10,126,555.50 $ 573,540.08

1,588,350.03 1,561,450.47

26,899.56

3,082,468.98 2,741,498.18 340,970.80

Total Revenues EXPENDITURES

- - - - $15,370,914.59 $

0.00 $15,370,914.59 $14,429,504.15 $ 941,410.44

Current
Su~~n Instruction ~:~~l ~::
IIIJlrovement of Instructional Services Educati ona1 Medi a Services General Adninistration School Achinistration Business Adninistration Maintenance and Opera ti on of Pl ant Student Transportation Services Central Support Services Other Support Services Food Services Operation Ccmoonity Service OpE!rations Other Operations of Non-Instructional Services
B:ctti~re~~~ay

$ 7,263,003.95 $ 523,609.35 335,228.25 316,813.98 316,043 .II 735,913.93 88,952.09
1,179,411.73 510,474.32 101,657.19 37,321.99 870,810.87 62,289.28
m:~~u~ 85,910.51
2

0.00 $ 7,263,003.95 $ 7,243,441.99 $ -19,561.96

523,609.35 335,228.25 316,813.98 316,043 .II 735,913.93 88,952.09
1m:1}Ui 101,657.19 0lUfU~ 62,289.28

531,138.08 321,133.00 270,476.55 321,863.39 743,990.41 93,915.33 875,658.57 530,927.05 93,014.10
7~\j~gJ~ 50,000.00

7,528.73 -14,095.25 -46,337 .43
5,820.28 8,076.48 -3oHini 20,452 .73 -8,643.09 -igJ~Ui -12,289.28

m:~~u~ 85,910.51 109,420.00

2

2,200,466.00

72,787.50

-1~U~Ui -84,308.21

Tota1 Expendi tures

$14,886,779.66 $

0.00 $14,886,779.66 $14,217,111.64 $ -669,668.02

Excess of Revenues over (under) Expenditures

484,134.93 $

0.00 $ 484,134.93 $ 212,392.51 $ 271,742.42

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

523,339.85 $ -277, 718 .85

0.00 $ 523,339.85 $ 299,000.00 $ 224,339.85

-277 ,718.85 -299,000.00

21,281.15

Total Other Financing Sources (Uses)

245,621.00 $

0.00 $ 245,621.00 $

0.00 $ 245,621.00

Excess of Revenues and other Financing Sources

over (under) Expenditures and Other

Financing Uses

$ 729,755.93 $

FUND BALANCE JULY 1, 1993

1,274,166.85

0.00 $ 729,755.93 $ 212,392.51 $ -20,707.71 1,253,459.14 1,285,219.64

517,363.42 -31,760.50

ADJUSTMENTS

Prior Year (Net) FOOD INVENTa!Y - NET CHANGE IN PERIOD

-17 ,356.47

17,356.47

Donated Camedi ti es Purchased Food

-1,443.44

1,443.44

0.00

0.00

2,279.04

-2,279.04

0.00

0.00

Fl.IND BALANCE JUNE 30, 1994

$ 2,004,758.38 $ -21,543.31 $ 1,983,215.07 $ 1,480,255.68 $ 502,959.39

The notes to the general purpose financial statements are an integral part of this statement. - 6-

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Cook County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Cook County Board of Education.
Based upon the application of the above criteria, the Cook County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Cook 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, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 7-

COOK COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board ofeducation.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the Georgia State Financing and Investment Commission Project Number 94-637-027.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the trust fund used to account for assets held by a government unit in a trustee capacity for individuals and/or other funds. This fund includes:
EXPENDABLE TRUST FUND Self-Insured Employee Benefit Fund - the fund used to account for Unemployment Compensation contributions and expenditures.

- 8-

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recogniz.ed when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and
- 9-

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Cook County Board of Education has a legally authorized nonappropriated budget which is formally approved by' the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including N.0.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 INVEST:MENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(1) Obligations issued by the State of Georgia orby other states,
(2) Obligations issued by the United States government,

- 10 -

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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 Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

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

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other granters 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 Cook County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 18, 1993 Qevy date). Taxes were due on January 20, 1994. The lien date for property taxes was January I, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria ofGASB codification section P70.103. The Cook 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.

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

School Operations School Bonds

16.86 mills
---21. mills

17 37 mills

- 11 -

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1994, are recorded as prepaid items.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.

- 12 -

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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 in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one ofor 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 ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $2,134,356.82. 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.
- 13 -

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS

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

The Board's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category I 2 3 Total
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Bank Balance
$ 400,000.00 444,314.34
I 290 042.48
$ 2 134 356 82

Category I - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or. unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 1994, the carrying amount of the Board's total investments was $892,596.44 and consisted entirely offunds in the Local Government Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool.

Note 3 : NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Each fund contributes their pro rata share to the Unemployment Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, a total of$2,222.00 was paid in claims.

- 14 -

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 5: GENERAL LONG-TERM DEBT

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

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$ 138,925.13 $ 135,000.00 $ 273,925.13

Additions

245,621.00

245,621.00

Deductions

79 887.45

65 000.00 144 887.45

Balance June 30, 1994

$ 3()1658 68 $ Z0 00Q 00 $ 374 658 6

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1995 1996 1997 1998 1999 2000 and thereafter

$ 54,601.74 $ 53,354.04 52,292.64 39,463.23 34,090.08
161 927.72

72,625.00 $

127,226.74 53,354.04 52,292.64 39,463.23 34,090.08 161 927.72

Total Principal and Interest

$ 395,729.45 $ 72 625 QQ $ 468 354 45

Deduct: Imputed Interest

91 070.77

Net Present Value ofFuture Minimum Lease Payments

$ 304 ~58 68

- 15 -

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$257,856.39 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery funds in the amount of $253,160.24 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

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

$ 2,418.95 62,676.95 5,452.00 87,372.07 99 936.42
$ 257 856 39

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

Project

Unearned Executed Contracts

Fundin
AvailabTe From State

94-637-027

$ 3 263 879 85 $ 3 360 924 85

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 ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

- 16 -

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years ofcreditable 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 ofdisability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $7,040,575.00 total payroll was $8,019,949.95.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $1,253,928.98, of which $831,491.97 was made by the Board and $422,437.01 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) ofcovered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
- 17 -

COOK COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 8: RETIREMENT PLANS

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost Unfunded pension benefit obligation

12 821 722 000.00
$ I 090 292 ooo oo

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $831,491.97 was actuarially determined and represented .1594% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school 5YS1ems are covered by the Public School Employees Retirement System ofGeorgia (PSERS). All employer's contributions are made by the State ofGeorgia.

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years ofservice and retires between the ages of60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years ofcreditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe 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.

- 18 -

COOK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 8: RETIREMENT PLANS
Members become fully vested after ten years of service. If a member tenninates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 89 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contnbution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially detennined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $2,916.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. Larry Hunt, is bonded in the amount of $10,000.00 with the Hartford Insurance Company of the Southeast, Maitland, Florida, their Bond No. RN4378920, on which premium is paid through December 31, 1996.

- 19 -

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Canoodi ti es Purchased Food

SCHOOL FOOO
SERVICES FUND

ADULT EDUCATION

STATE PRESCHOOL HANOI CAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

270,092.67 $ 20,805.83

2,623.25 $

9,523.35

3,137.76

6,100.21

15,129.31 6,414.00

Total Assets

312,441.81 $ 2,623.25 $ 9,523.35 $ 3,137.76 $ 6,100.21

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Li abil iti es
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Canoodi ti es Purchased Food
Unreserved Undesi gnated
Tota1 Fund Equity

$ 9,523.35

3,137.76 $

4,433.55 1,666.66

9,523.35 $ 3,137.76 $ 6,100.21

15,129.31 6,414.00

21,543.31

290,898.50 $ 2,623.25 $

0.00 $

0.00 $

0.00

312 ,441.81 $ 2,623.25 $

0.00 $

0.00 $

0.00

Total Liabilities and Fund Equity

312,441.81 $

2,623.25 $

9,523.35 $ 3,137.76 $ ===========

6,100.21

See notes to the genera1 purpose fi nanci a1 statements.

- 20 -

EXHIBIT "E"

ELEMENTARY AND SECONDARY EDUCATION ACT

CHAPTER 1

EDUCATl ON OF DEPRIVED
CHILDREN

MIGRANT PROGRAM

CHAPTER 2
BLOCK GRANT FLOW THROUGH

TITLE II EISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
TITLE VI, B

FLOW THROUGH

PRESCHOOL PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

15,482.77 $ 54,092.54

990.66 $ 667. 26

0.00

3,239.06

308,051.97 $ 322,855.89

12,751.00 22,214.00 $ 11,776.00 125,444.39

73,957.98

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

15,129.31 6,414.00
------------- -------------

16,572.75 4,134.96

69,575.31 $ 1,657.92 $
----

0.00 $ 12,751.00 $ 25,453.06 $ 11,776.00 $ 455,039.67 $ 417,521.58

13,855.33 $ 232. 92 55,612.52 1,425.00
107 .46
69,575.31 $ 1,657.92

4,050.87 $

$ 4,376.64
17,203.66
3,872.76

4,050.87 $ 25,453.06 $
------------

3,473.25 $ 10,661.88

1,683.98

34,105.77 $

6,042.02

81,949.86

576.75

4,556.97

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

37,750.89 67,371.14 12,923.74

11,776.00 $ 131,274.48 $ 118,045.77

8,700.13

8,700.13

0.00 $--------0-.0--0 $---------0-.0--0 0.00 $--------0-.0--0 $---------0-.0--0 $

0.00 $ 8,700.13 $

8,700.13 $ 7,119.51

15,129.31 6,414.00

16,572.75 4,134.96

30,243.44 $ 27 ,B27 .22

0.00 $----------0-.0--0 293,521.75 271,648.59

0.00 $

0.00 $ 323,765.19 $ 299,475.81

69,575.31 $ 1,657.92 $ ----

0.00 $ 12,751.00 $ 25,453.06 $ 11,776.00 $ 455,039.67 $ 417,521.58

- 21 -

REVENUES
State Funds Federal Funds
Local and Other Funds
Total Revenues
E--X-P-E-N-D-IT-U-R-E-S-
Current Instruction Support Services Pupi 1 Services I~rovement of Instructional Services Educational Media Services General Adninistration Maintenance and Operation of Plant Student Transportation Services Central Support Services Otber Support Services Food Services Operation
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 Jnventory - Net Change in Period Donated Cannodit i es Purchased Food

SCHOOL FOOO
SERVICES
FUND

ADULT EDUCATION

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

59,906.00 $ 626,326.68 201,451.35
887,684.03 $

o.oo $

63,854.00 $ 184,528.06 $

26,493.00

0.00 $ 63,854.00 $ 184,528.06 $ 26,493.00

865,810.87 865,810.87 $
21,873.16 $

0.00 $

28,040.03 $

155,508.51 $
22,395.23 5,274.92

35,813.97

2,099.86 1,891.66
76.73

6,990.47 7,092.35
12,410.18

0.00 $ 63,854.00 $ 187,246.91 $ 26,493.00

0.00 $

0.00 $ -2,718.85 $

0.00

21,873.16 $ 289,733.05

0.00 $ 2,623.25

-1,443.44 2,279.04

2,718.85

0.00 $ 0.00

0.00 $ 0.00

0.00 0.00

FUND BALANCE JUNE 30

312,441.81 $ 2,623.25 $

0.00 $

0.00 $

0.00

==========

See notes to the genera1 purpose fi nancia1 statements.

- 22 -

EXHIBIT "F"

ELEMENTARY AND SECONDARY EDUCATION ACT

CHAPTER 1

EDUCATION OF DEPRIVED CHILDREN

MIGRANT PROGRAM

CHAPTER 2
BLOCK GRANT FLOW THROUGH

TITLE !I EISENHOWER
MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
TITLE VI, B

FLOW THROUGH

PRESCHOOL PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

548,693.08 $ 10,655.38 $

23,111.00 $

12,751.00 $ 200,889.24 $

$ 308,288.06 $ 104,161.00 90,531.25 1,539,450.63 1,528,417.11
201,451.35 203,381.86

548,693.08 $ I0,655.38 $ 23,111.00 $ 12,751.00 $ 200,889.24 $ 90,531.25 $ 2,049,190.04 $ 1,835,959.97

464,409.64 $ 11,390.09 1,000.00 5,302.13 48,982.10
28,999.21
548,693.08 $ 11,390.09 $

$ 23,057.31
53.69
23,111.00 $

114,662.57 $ 21,900.74 $ 802,902.05 $ 698,764.75

10,407.99 27 .68

36,840.31 3,004.54
17,481.15
1,262.89 27,637.78

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

44,715.06 449.46
10,398.98
13,067.01

112,042.95 24,439.04 23,057.31 89,353.78 2,099.86 3,154.55 76,518.76 29,075.94
865,810.87

83,409.25 24,800.88 22,898.96 76,435.69
2,567.38 83,467.38
763,861.71

10,435.67 $ 200,889.24 $ 90,531.25 $ 2,028,455.11 $ 1,756,206.00
-------------

0.00 $ -734. 71 $

0.00 $ 2,315.33 $

0.00 $

0.00 $ 20,734.93 $ 79,753.97

0.00 $ 0.00

-734.71 $ 734.71

0.00 $
=

0.00 $

0.00 $ 0.00

2,315.33 $ 6,384.80

0.00 $ 8,700.13 $

2,718.85

18,191.00

0.00 $ 0.00

0.00 $ 23,453.78 $ 97,944.97 0.00 299,475.81 203,6B4.16

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

-1,443.44 2,279.04

-1,890.65 -262.67

0.00 $

0.00 $ 323,765.19 $ 299,475.81

- 23 -

COOK COUNTY BOARO OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "1" Page 1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1994 Contract Food Services Schoo1 Breakfast Program 1993 Grant 1994 Grant National School Lunch Program
1993 Grant 1994 Grant Food Distribution Program (1)

10.558 $ 2,179.15 $ 2,179.15 $ 2,179.15

(2)

10.553 10.553
*10.555 *10.555
10.550

134,367.73
426,385.12 63,394.68

4,477.83 129,236.69
3,910.75 410,710.33
N/A

134,367.73

(2)

426,385.12 $ 802,416.19(3)

63,394.68

63,394.68

Total U. S. Department of Agriculture

626,326.68 $ 550,514.75 $ 626,326.68 $ 865,810.87
-------------

Education, U. S. Department of Through Berri en County Board of Education d/b/a Southern Pine Mi grant Education Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1993 Sumner 1994 Regular 1994 Sumner Through Georgia Department of Education Drug-Free Schools and CIJIIIIJnities Act 1994 Grant Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Regular 1993 Carry-Over 1994 Regular Chapter 2 Bl eek Grant - Fl ow Through 1993 Regular 1994 Regular Title II Eisenhower Mathematics and Science
Education 1993 Regular 1994 Regular
Individuals with Disabilities Education Act Title VJ, B Fl ow Through 1993 Regular 1993 Carry-Over 1994 Regular

84.011 84.011 $ 84.011
84.186
*84.010 *84.010 *84.010
84.151 84.151
84.164 84.164
84 .027 84.027 84.027

9,988.12 1,050.00 26,493.00
60,617.00 520,550.00
23,111.00
12,751.00
51,680.00 197,230.00

1,110.44 9,988.12 $

9,988.12 667 .26

26,493.00

26,493.00

48,577.32 60,617.00 434,091.00

60,617 .oo
488,076.08

-1,388.80 23,111.00

23,111.00

12,751.00

9,325.13 51,680.00 130,868.00

51,680.00 149,209.24

734. 71 9,988.12
667 .26 26,493.00
60,617.00 488,076.08
23,111.00
6,384.80 4,050.87
51,680.00 149,209.24

- 24 -

COOK COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 I 994

SCHEDULE "l" Page 2

FUNDING AGENCY PROGRAM/GRANT

CFOA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Through Georgia Department of Education Individuals with Disabilities Education Act Title VI, B Preschool Program 1992 Carry-Over 1993 Regular 1993 Carry-Over 1994 Regular Vocational Education - Basic Grants to States High Schoo1 Program Basic Grant 1993 Grant 1994 Grant Tech-Prep Education 1994 Grant

B4.173 B4.173 B4.173 $ B4.173

51,416.00 61,455.00

4,420. DO -Jl,020.82
51,416.00 $ 27,916.00

51,416.00 $ 39,115.25

51,416.00 39,115.25

84.048

2,331.00

B4.048

23,899.40

23,604.40

23,899.40

(4)

B4.243

25,000.00

25,000.00

25,000.00

(4)

Total U. S. Department of Education

$ 1,065,240.52 $ 918,138.79 $ 962,023.35 $ 9Jl,543.33

Total Federal Financial As~istance

$1,691,567.20 $1,468,653.54 $1,588,350.03 $1,777,354.20

Major Programs are identified by an asterisk (*) in front of the CFDA nunber.
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonroonetary assistance for donated ccmrodities 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 1994 National School lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

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

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

SCHEDULE "2"

NONI NTEREST BEAR! NG ACCOUNTS
Adel Banking Company, Adel, Georgi a
Farmers and Merchants Bank, Adel, Georgi a

INTEREST BEARING ACCOUNTS

Bank of Lenox, Adel , Georgi a
N.O.W. Account

(2.25%)

Farmers and Merchants Bank, Adel, Georgi a
N.O.W. Account (2.75%)

17,813.81 660,751.18 678,564.99

136,161.79

270,092.67

406,254.46

$1,084,819.45

See notes to the general purpose financial statements. - 26 -

COOK COUNTY BOARD OF EDUCATION INVESTMENTS
JUNE 30 1994
INVESTMENT POOL
Office of Treasury and Fi sea 1 Services Local Government Investment Pool (4.237%)

SCHEDULE "3" 892,596.44

See notes to the general purpose financial statements. - 27 -

COOK COUNTY BOARD OF EOUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "4"

Berri en County Board of Education d/b/a Southern Pine Migrant Education Agency ESEA - Chapter 1 Migratory Education Program
Cook County Tax Canni ss i oner County Iii de Bond Tax County Wide Schoo 1 Tax
Education, Georgia Department of Food Services Schoo1 Breakfast Program National School Lunch Program Vocational Education State Funds Federal Funds lottery Programs Canputers in Cl assrooms Safe Schools Grant Other State Programs Innoyat i ve Programs Federa 1 Programs ESEA Chapter 1 Education of Deprived Children Title II Individuals with Disabilities Education Act - Title VI, B Fl ow Through Preschool Program
Georgia State Financing and Investment Cannission Reintmrsement on Construction Projects

GENERAL FUND

GOVERNMENTAL FUNO TYPES

SPECIAL REVENUE FUND

CAPITAL PROJECTS
FUND

OEBT SERVICE FUND

TOTAL

60,917.12

667. 26

667 .26

1,865.16

1,865.16 60,917.12

2,219.00 295.00
4,800.00

5,131.04 15,674.79
l,D37.90 2,099.86

5,131.04 15,674.79
2,219.00 295.00
1,037.90 2,099.86
4,800.00

54,092.54 12,751.00
22,214.00 11,776.00

54,092.54 12,751.00
22,214.00 11,776.00

683,785.26

683,785.26

68,231.12 $ 125,444.39 $ 683,785.26 $ =========

1,865.16 $ 879,325.93

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

COOK COUNTY BOARD OF EDUCATION DEBT SERVICE RFOUIREMENTS TO MATURITY
JUNE 30 1994

SCHEDULE "5"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995
CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July I, 1993 Bonds Retired During Period
Bonds Payable at June 30, 1994
MATURITY DATES Semi-Annual Interest Payment Oates Annual Debt Retirement Date

TOTAL DEBT SERVICE

1974 ISSUE

INTEREST

PRINCIPAL

72,625.00 $

2,625.00 $ 70,000.00

135,000.00 65,000.00
70,000.00

MAY - NOV NOV

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

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

SCHEDULE "6"

AGENCY /FUNDING

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

GRANTS Education. Georgi a Department of Quality Basic Education General and Career Education Programs Speci a 1 Education Programs Remedial Education Program Media Center Programs Staff Development Programs lndi rect Cost Pupi 1 Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share ducat i anal Equalization Funding Grant Food Services Vocational Education Other State Programs Innovative Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and Performance-Based Certi fi cation Teachers Retirement Lottery Programs
Coll'.lputers in Cl ass rooms Pre-Kindergarten Program Safe Schools Grant

$ 4,604,127 .oo
626,925.00 228,212.00 200,893.00
64,168.00 1,382,534.00
295,443.00 87,261.00
184,181.00 218,871.00
67,237.00 40,159.00 -673, 730. 00 718,005.00
$ 45,529.00
4,800.00 5,760.00
1,800.00 12,087.37

59,906.00
63,854.00
28,385.90 154,042.30
2,099.86

4,604,127.00 628,925.00 228,212.00 200,893.00 64,168.00
1,382,534.00
295,443.00 87,261.00
184,181.00 218,871.00
67,237.00 40,159.00 -673, 730. DO 718,005.00 59,906.00 45,529.00
4,800.00 5,760.00 63,854.00
I ,BOO. 00 12,087.37
28,385.90 154,042.30
2,099.86

Financing and Investment Cammi ssi on, Georgi a State Reimbursement on Construction Projects

$2,275,045.15 2,275,045.15

OTHER Education. Georgi a Department of Reimbursement for Computer Expenses

500. 00

500. 00

$ 8,116,762.37 $ 308,288.06 $2,275,045.15 $10,700,095.58

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

COOK COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 3D 1994

SCHEDULE "7"

Taxes County Wide Bond Tax County Wide School Tax Rail road Car Tax Real Estate Transfer Tax
Other Antitrust Milk Settlement Funds Community Services Activities Interest Earned Jury Duty Fees lost and Damaged Books Rents Sal es Meals School Assets Shared Service Contributions Berri en County Board of Education Tuition Other

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

DEBT SERVICE
FUND

TOTAL

2,607 ,836.D5 257. 26
6,403.59

31,634.40 30,960.26
621.54 2,698.52 12,025.00
11,888. 4D
9D ,321.33 4,115.00 3,497.65

1,382.35 7,048.26
192,937.13
83. 61

78,556.87 2D1. 76

78,556.87 2,607 ,836.D5
257. 26 6,605.35

1,382.35 31,634.40 38,008.52
621. 54 2,698.52 12,025.00
192,937.13 11,888.40
90,321.33 4, 115.0D 3,581.26

$2,802,259.00$ 201,451.35$

78,758.63$ 3,082,468.98

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

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

SCHEDULE "8"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

EXPENDITURES

Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Commodl ty Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperati ng Costs Principal and Interest Bui 1ding and Building Improvements Equipment

7,097,855.94 l,653,8B0.88
56,032.44 43,100.96
8,034.97 34,990.04 32,911.33 55,319.49 54,015.97 43,167.75
6,659.10 8,327.82 405,972.64 314,876.85
98,210.33 20,208.23
5,442.70
84,107.57 26,811.00 460,365.25

922,094.01 213,175.26
16,648.06 19,818.94
15,601.62 3,689.25
2,226.32 4,624.51 76,518.76 7,501.08 188,663.28
418,963.28 11,802.70 1,565.00 6,637.90

8,019,949.95 1,867,056.14
72,680.50 62,919.90
8,034.97 34,990.04 48,512.95 59,008.74 54,015.97 45,394.07
4,624.51 83,177.86 15,828.90 594,635.92 314,876.85 418,963.28 110,013.03 21,773.23 12,080.60

$ 2,275,045.15 118,925.14

84,107.57 2,301,856.15
579,290.39

Total Expenditures

$10,510,291.26 $ 2,028,455.11 $ 2,275,045.15 $14,813,791.52
============= ============= =-=====

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

COOK COUNTY BO ARO OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
I OTTFRY PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE "9"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Rents Other Purchased Services Supplies Dues and Fees Other Expenditures
Non operating Costs Equipment
Total Expenditures

COMPUTERS IN
CLASSROOMS

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

5,026.30 23,359.60

75,959.I4 16,999.66
2,721.74 98. 52 76. 73
37,081.14 180. 00
1,644.22

22,000.00 $

2,099.86

75,959.14 16,999.66
2,721.74 98. 52 76. 73
42,107.44 180. 00
1,644.22
47,459.46

28,3B5.90 $

156,761.15$

2,099.86$ 187,246.91

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

COOK COUNTY BOARD OF FOUCATI ON SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30 1994
EXPENDITURES
Operating Costs Unemployment Compensation Claims

SCHEDULE "10" 2,222.00

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

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

SCHEDULE "11"

Minimum Expenditure Requirements {Total Allotment)
Expenditures on Cambi ned Program Basis Salaries Operations
Less: Expenditures for Medi a Center Programs in Excess of Total Media Allotment Expenditures for Staff Deve 1apment Programs in Excess of Total Staff Development Allotment for: Cost of Instruction
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 5,702,316.00 $ 64,168.00

$ 5,719,393.59 412,618.57

70,80B.61

6,132,012.16

70,808.61

-89, 466. 29

-25 ,313. 90

$ 6,042,545.87

45,494.71

0. 00 $ 18,673.29

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

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 Ill (*) Category IV (*) Itinerant Supplenental Speech
Sub-Total - Regular
Category V (Gifted) (*)
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*)
MEDIA CENTER PROGRAMS

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

...!...

ORIGINAL

MID-TERM

TOTAL REQUIRED

458,047.00 I 159 604.00
$ 1,617,651.00 90
635,352.00 90 1,070,157.00 90
661,273.00 90 331,612.00 90 288 082. 00 90

412,242.30 I 043 643.60 $
$ 1,455,885.90 $
571,816.80 963,141.30 595,145.70 298,450.80 259 273 .80

412,242.30 40 159.00 I 083 802.60 40,159.00 $ 1,496,044.90
571,816.80 963,141.30 595,145.70 298,450.80 259 273.80

$ 4 604 127. 00

$ 4 143 714.30 $ 40 159.00 $ 4 183 873.30

554,109.00

498,698.10 $

0.00 $ 498,698.10

554,109.00 90 74 816.00 90 628 925. 00 228 212.00 90 200 893.00 90

498,698.10 $
67 334 .40
566 032.50 $ 205 390.80 $ 180 803.70 $

0.00 $ 498,698.10 67 334.40
0.00 $ 566 032.50 0.00 $ 205 390.80 0.00 $ 180 803 .70

Total Thirteen Weighted and Media Center $ 5 662 157 .00

STAFF DEVELOPMENT PROGRAMS (1)

Cost of Instruction

21,891.55 100

Professional Development

42 276.45 100

$ 5 095 941.30 $
21,891.55 $ 42 276.45

40 159.00 $ 5 136 100.30

0.00 $

21,891.55 42 276.45

Total Staff Development

64 168. 00

64 168.00 $

0.00 $ 64 168.00

$ 5 726 325. 00
(*) Identifies Thirteen Weighted Programs.
Note: (!) $7,460.55 of the allotment for Professional Developrrent has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statements.
- 36 -

$ 5 160 109.30 $ 40 159.00 $ 5 200 268.30

SCHEDULE "12"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNDEREXPENDITURE
FDR REQUIRED ALLOTMENT

401,955.30 $

463,649.15

1 049 843.10

1 141 645.14

$ 1,451,798.40 $ 1,605,294.29 $

555,066.90

636,098.13

935,826.30

958,525.52

570,085.20

797,713.38

285,932.70

313,266.41

226 959.30

338 603.10

$ 4 025 668.80 $ 4 649 500.83 $

0.00 0.00 0.00 0.00 0.00 0.00
0.00

10,287.00 $ 33 959.50 44,246.50 $ 16,749.90 27,315.00 25,060,50 12,518.10 32 314.50

16,913.49 59 818.11 76,731.60 $ 44,045.45 80,906.38 59,304.03 19,735.80 48 794.29

158 204. so $ 329 517.55 $

0.00 0.00 0.00 0.00 0.00 0.00
0.00

11,345.40 $ 172,230.30 290,464.20 10,084.50
865.80 1 775. 70
486,765.90 $
65 556. 90
55~ ~22.80 $
201 938.40 $
140 979.60 $

1,065.23 206,967.30 285,789.54
20,408.14
514,230.21 $ 117 962.69 $ 632 192.90 206 181 .42 $ 231 518.44 $

$ 4 920 909.60 $ 5 719 393.59 $

$ 4 920 909.60 $ 5 719 393.59 $

0.00 0.00 0.00 0.00 0.00
0.00

554 .40 $ 3,513.60 7,535.70
328.50

1,505.00 1,668.24 13,593.76
406.32

11,932.20 $
1 777 .so
13 709.70 $ 3 452.40 $ 39 824. 10 $

17,173.32 $ 3 559.75 $ 20 733. 07 3 527. 10 $ 58 840.85 $

0.00 0.00
0.00 0.00

215 190.70 $ 412 618.57 $

0.00

21,891.55 $ 42 276.45

47,205.45 $ 23 603.16

0.00 18 673.29

64 168. 00 $

70 808.61 $

18 673.29

279 358. 70 $ 483 427.18 $

18 673.29

- 37 -

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

SCHEDULE "13"

BOARD MEMBER ADDRESS
Mr. Frank Moody, Chairman (*) 508 North Poplar Street Adel, Georgi a 31620
Mr. Laddie Darden (*) Route 1, Box BS Lenox, Georgia 31637
Mr. Michael Di nnerman (*) P. 0. Box 308 Adel, Georgia 31620
Mr. Charlie Merwin (*) Route 1, Box 363 Adel, Georgi a 31620
Mr. Scotty Whitaker (*) Route 2, Box 434 Adel, Georgi a 31620

COMPENSATION

TRAVEL

1,400.00$

494.57

850.00

137.08

1,350.00

558.20

1,250.00

134.55

1,300.00

560.57

6,150.00$

1,B84.97

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

See notes to the genera 1 purpose fi nanci a1 statements. -38 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 28, I995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Cook County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Cook County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 28, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Cook 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 perform~d tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the Cook County Board ofEducation complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
94CRL-10

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 28, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Cook County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 28, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Cook 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 ofFederal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-40

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 28, 1995

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

SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Cook County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated April 28, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Cook 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 ofEffort, and/or Earmarking

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, I994. The management of the Cook County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office 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 Cook County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Cook County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 28, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Cook County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated April 28, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Cook County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion.

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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 Cook County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~A
Claude L. Vickers State Auditor
CLV:jy 94CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 28, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Cook County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Cook County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated April 28, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements ofthe Cook County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Cook County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation
94ICL-3

ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

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

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

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

We noted 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 of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(1) Accounting Controls (Overall)

(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.

94ICL-3

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of 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 ofthe Cook County Board ofEducation's financial statements and this report does not affect our report thereon dated April 28, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

CLV:jy 94ICL-3

R,~
Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 28, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Cook County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Cook County Board of Education as qf and for the year ended June 30, 1994, and have issued our report thereon dated April 28, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated April 28, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement and about whether the Cook County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB

94ICL-7

Circular A-128. This report addresses our consideration ofintemal 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 April 28, 1995.

The management of the Cook 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 ofEffort, and/or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

For all of the internal control structure categories listed above, we obtained an understanding of the design 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, 1994, the Cook County Board ofEducation expended 61 % of its total Federal financial assistance under major Federal financial assistance programs.

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We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute ofCertified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the 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, a reportable condition was noted in the following control category:
Administrative Requirements
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 condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Cook County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated April 28, 1995.
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 ofthis report which is a matter of public record.
~::
Claude L. Vickers State Auditor
CLV:jy 94ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

COOK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Finding Resolved Audit Control Number 6371-93-01
The audit report for the year ended June 30, 1992, reported salary overpayments of$158.94 by the Board to one teacher. This questioned cost had not been resolved at June 30, 1994. However, subsequent to the year under review, the $158.94 was refunded.
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 6371-93-04
The audit report for the year ended June 30, 1993, stated that a review ofcash management procedures for the Individuals with Disabilities Education Act - Title VI, B - Preschool Program (CFDA 84.173) disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations by the Board.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $115.15 Audit Control Number 6371-93-05
The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Stipends Program had an underexpenditure ofQuality Basic Education (QBE) funds of $115.15 for the required minimum allotment. 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$115.15 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.

COOK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Overpayment of Salary Financial Statements Amount: $3,563.00 Audit Control Number 6371-93-06
The audit report for the year ended June 30, 1993, reported an overpayment of $3,563.00 on an employee's 1993 salary contract. This questioned cost had not been resolved at June 30, 1994. Reimbursement of $3,563.00 should be secured from the employee involved and deposited to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Individual not Designated to Oversee Compliance Federal Financial Assistance Finding Resolved Audit Control Number 6371-93-07
The audit report for the year ended June 30, 1993, noted that the Cook County Board ofEducation did not have an individual designated to oversee civil rights compliance as required by 34 CFR 104.7 and 34 CFR 106.8. At the Board meeting held on June 27, 1994, the Board approved the designation ofan individt1al to oversee civil rights compliance as required by the regulations.
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 6371-93-08
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter 1 Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations by the Board.

COOK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994

PRIOR YEAR/CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6371-93-02

The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance of accounting functions and related procedures. In the year under review, no improvements in adequate separation of employee duties were made. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.

Note: Federal financial assistance programs affected by this finding are as follows:

Chapter 1 Program

(CFDA 84.010)

School Food Services Fund

(CFDA 10.550, 10.553, 10.555, 10.558)

GENERAL FIXED ASSETS Failure to Maintain General Filced Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6371-93-03

The audit report for the year ended June 30, 1993, stated that the management ofthe Cook County Board of Education has chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group.

COOK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $18,673.29 Audit Control Number 6371-94-01
For the year under review, the Board reported to the Georgia Department ofEducation on DE Form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $47,205.45 for the Staff Development - Cost oflnstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for Staff Development Cost of Instruction Program purposes resulting in an underexpenditure of S18,673.29 for the minimum required allotment of $42,276.45 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
Note: The Cook County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.