Audit report, Crawford County Board of Education, Roberta, Georgia, year ended June 30, 1996

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AUDIT REPORT CRAWFORD COUNTY BOARD OF EDUCATION
ROBERTA, GEORGIA YEAR ENDED JUNE 30, 1996
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

CRAWFORD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
I,

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

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

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

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 CASH AND CASH EQUIVALENTS

26

3 ACCOUNTS RECEIVABLE

27

4 DEBT SERVICE REQUIREMENTS TO MATURITY

28

SCHEDULE OF REVENUE

5

STATE

29

6

TAXES AND OTHER

30

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

31

8

LOTTERY PROGRAMS

32

CRAWFORD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS .

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

33

10

BY PROGRAM

34

I I SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

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

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

CRAWFORD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1997

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

96ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were improperly recorded in the year ended June 30, 1996. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The 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 Crawford County Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 13, 1997, on our consideration ofthe Board's internal control structure and a report dated March 13, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Crawford County Board ofEducation taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements ofthe Crawford County Board ofEducation. 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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:dt 96ARL-13

Claude L. Vickers State Auditor

CRAWFORD COUNTY BOARD OF EDUCATION - 1-

CRAWFORD COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1996

ASSETS
Cash and Cash Equivalents
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 Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

30,469.64 $ 126,870.36 $

163.39 $

148,116.78

113,756.90

4,868.20

DEBT SERVICE
FUND
147,418.90
10,311.27

16,451.48 7,090.73

$ 183,454.62 $ 264,169.47 $

163.39 $ 157,730.17

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Unearned Lottery Funds Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Deficit Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

85,697.93 $

300,000.00

45,654.53 21,470.35
2,951.43

$ 385,697.93 $ _ _7:.,:0:.z.::,0:.:.7~6.;::.31.;..

$

$

25,259.76

4,202.52

$ 157,730.17

$

25,259.76 $

-227,503.07 0.00

$ -202,243.31 $

16,451.48 7,090.73

27,744.73

$

166,348.43 $ _ _ _1:..:63=.3=-9

194,093.16 $

163.39 $

157,730.17
0.00 157 730.17

$ 183,454.62 $ 264,169.47 $

163.39 $ 157,730.17

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

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

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

$ 304,922.29 $ 264,171.89

272,184.95

235,343.83

4,868.20

10,027.54

16,451.48 7,090.73

17,909.33 7,560.71

$

157,730.17

157,730.17

129,429.05

1,117,269.83 367,166.28

1,117,269.83 367,166.28

1, 195,570.95 320,668.43

s______ 1,6421166.28 $ 2,247,683.93 $ 2,180,681.73

$ 131,352.46 $

15,105.87

21,470.35

38,559.89

300,000.00

175,000.00

2,951.43

1,881.08

24,750.58

$

367,166.28

367,166.28

320,668.43

1,275,000.00

1,275,000.00

1,325,000.00

$

1,642,166.28 $ 2,097,940.52 $ 1,900,965.85

$

4,202.52 $

1,144.45

157,730.17

129,429.05

25,259.76

48,208.21

16,451.48 7,090.73
$ 210,734.66 $
-227,503.07 166,511.82
$ 149 743.41 $

17,909.33 7560.71
204,251.75
-78,573.53 154,037.66
279,715.88

$

1,642,166.28 $ 2,247,683.93 $ 2,180,681.73

-3-

QRAWFQRD gQl,!NTY QARP Qf !;;Dl,!geinoN
QQMfi!IN!;Q ~IAil;ME!fi QE BMNl,!!;, !;XPl;NDIIUBE ~Q Q~!:zl; IN E!.!NQ BALANQI;~
&.L gQ,)lERNMENI&, F!,!N!;! ])'.fE YEAR ENDED J!,!NE 30, 1996

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS
(M!!morandum On!x}
YEAR ENDED
JUNE 301 1996 JUNE 301 1995

B~N!.!~
State Funds Federal Funds Taxes and Other Fund&

$ 5,847,392.79 $ 65,483.65
2,173,007.01

428,695.89 928,591.33 185,187.98 $

$ 3.69 $ 174,021.44

6,276,088.68 $ 6,160,523.66

994,074.98

881,252.29

2,532~0.12 2,138,573.77

Tolal Revenues

$ 8,085,883.45 $ 1,542,475.20 $

3.69 $ 174,021.44 $ 9,802,383.78 $ e,1so1349.n

EXfENDII.\.!BE~

Current Instruction Support Services Pupil Services Improvement of Instructional Service& Educational Media Services General Administration School Administration Business Administration
or Maintenance and Operation Plant
Student Transpollation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services Capital Outlay
Debi Service
Principal Interest
Paying Agent Fees

$ 5,344,574.58 $
223,348.71 120,588.44 197,143.36 146,992.74 526,258.64
58,363.16 876,937.78 616,423.47
59,254.87 3,080.22
84.69 n,sse.24 24,295.19
171,662.15 32,264.75

635,909.08 $ 73,939.96 8,805.07 68,459.73
223.44 21,966.24 719,402.59

0.00

$ 5,980,483.66 $ 5,388,381.52

297,288.67 129,393.51 197,143.36 215,452.47 526,258.64
58,363.16 876,937.78 616,646.91
59,254.87 25,046.46 719,487.28 n,sse.24 24,295.19

285,323.36 131,753.51 200,293.04 214,606.54 476,293.12
10,962.52 810,378.84 476,518.99
61,983.69 210,715.06 699,860.50 49,084.29 165,480.70

$ 50,000.00 94,525.00 1,195.32

221,662.15 126,789.75
1,195.32

173,977.n 130,583.98
1,219.48

Total Expenditures
or Excess Revenues over (under) Expenditures

$ 8,474,161.99 $ 1,528,706.11 $ $ -388,278.54 $ 13,769.09 $

0.00 $ 145,no.32 $ 10,148,588.42 $ 9,487,416.86 3.69 $ 28,301.12 $ -346,204.64 $ -307,067.14

Qit!!;B FINANQl!::jG O!.!RQES (l.!!;;S}

Capital Leases Operating Transfers In Operating Transfers Out

$ 218,160.00

$ 218,160.00 $ 190,360.00 4,683.88
-4,683.88

Total Other Financing Sources (Uses)

$ 218,160.00

$ 218,160.00 $ 190,360.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ :110,118.54 $

13,769.09 $

3.69 $ 28,301.12 $ -128,044.64 $ -116,707.14

fUND BALANQE JULY 1

-32,124.77

182,251.90

159.70 129,429.05

279,715.88

391,058.39

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-1,457.85 -469.98

-1,457.85 -469.98

2,580.54 2,784.09

E!.!!::lP ALANC!; J!,!N!;; 30

$ -202,243.31 $ 194,093.16 $

163.39 $ 157i730.17 $

149i743.41 $ 279,715.88

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

CRAWFORD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - lNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

EXHIBITc

.,,.
REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Other Sources
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1, 1995
Adjustments

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 5,783,451.00 $ 5,847,392.79

100,000.00

65,483.65

2,2031618.00 211731007.01

$ 8,087,069.00 $ 8,085,883.45

$ 5,249,165.37 $ 5,344,574.58

208,040.36 123,299.08 169,529.83 178,223.62 563,503.57 27,717.34 811,137.58 523,468.48
51,567.25
63,850.26 1,500.00

223,348.71 120,588.44 197,143.36 146,992.74 526,258.64
58,363.16 876,937.78 616,423.47
59,254.87 3,080.22
84.69 72,889.24 24,295.19 203,926.90

$ 7,971,002.74 $ 8,474,161.99

$ 116,066.26 $ -388,278.54

$ 218,160.00

$ 116,066.26 $ -170,118.54

8,969.63

-32,124.77

-22,049.04

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 372,664.10 $ 428,695.89

756,013.96

928,591.33

167,045.73

1851187.98

$ 11295,723.79 $ 1,5421475.20

$ 456,377.73 $ 635,909.08

73,939.96 8,805.07

66,425.00

68,459.73

22,000.00 645,674.28

223.44
21,966.24 719,402.59

$ 1,190,477.01 $ 1,528,706.11 $ 105,246.78 $ 13,769.09

$ 105,246.78 $ 13,769.09

193,263.25

156,781.86

-14,127.07

FUND BALANCE JUNE 30. 1996

$ 102,986.85 $ -202,243.31

$ 284,382.96 $ 170,550.95

The notes to the general purpose financial statements are an integral part of this statement. -5-

THIS PAGE LEn BLANK

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Crawford County Board ofEducation (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 ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.

The more significant of the Board's accounting policies are described below.

REPORTING ENTITY

In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Crawford County Board ofEducation.

Based upon the application of the above criteria, the Crawford County Board ofEducation is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Crawford 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.

A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial

reporting device designed to provide accountability for certain assets and liabilities that are not recorded in

the funds because they do not directly affect expendable available financial resources.



- 7-

CRAWFORD COUNTY BOARD OF EDUCATION

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1996

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board'seducational activities. Governmental Fund Types include:
GENERAL FUND-the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
.BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet.
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CRAWFORD COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property ta,ces, 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 1996, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion ofthe compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Crawford County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is

- 9-

CRAWFORD COUNTY BOARD OF EDUCATION

EXlilBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

Special Revenue
Fund

FUND BALANCE JULY 1, 1995

$ 182,25 I. 90

Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods

-17,909.33 -7,560.71

Fund Balance July 1, 1995 (Budget Basis)

$ 156,781.86

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

$ 13,769.09

FUND BALANCE JUNE 30, 1996 (Budget Basis)

$ 170,550 95

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The

- 10 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

. JUNE 30, 1996

Note 1: StThfMARY OF SIGNIFICANT ACCOUNTING POLICIES

placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from infonnation 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 Crawford County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on October 30, 1995 (levy date). Taxes were due on January 20, 1996. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P?0.103. The Crawford 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 1995 tax year (calendar year) for the Crawford County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

18.25 mills 1.33 mills

19.58 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). 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.

- 11 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUM?dARY OF SIGNIFICANT ACCOUNTING POLICIES
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1996, 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. Bond premiums and discounts, as well as issuance costs, are recognized during the year bonds are issued. Issuance costs, whether or not withheld from actual net proceeds, are reported as capital project expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures 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 orily to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secur,e. d after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding

- 12 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS

public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

Acceptable secl,lI'ity for deposits consists of any one of or any combination of the following:

(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

{3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of

the State of Georgia,



(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities

of the State of Georgia,



(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $820,333.68. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

- 13 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\.1ENTS

JUNE 30, 1996

Note 2: DEPOSITS

The Board's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category 1 2
3
Total Note 3: NON-MONETARY TRANSACTIONS

Bank Balance $ 247,418.90
479,973.00 92,941.78
$ 820,333.68

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 MANAGE1\.1ENT

The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; and unemployment compensation.

The Board has obtained commercial insurance for risk ofloss associated with torts, assets and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.

The Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to this risk in the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1995 1996

Beginning of Year Liabilitt

Claims and Changes in Estimates

Claims Paid

EndofYear
Liabilitt
,",

$

0.00 $

1,480.00 $

1,480.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

- 14 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 4: RISK MANAGEMENT

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Crawford County Board ofEducation has entered into various lease agreements as lessee for purchase ofbuses, portable classrooms and equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1989

6.10% - 7.30% $ 1,275,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows:

Balance July 1, 1995 Additions Deductions Balance June 30, 1996

General

Capital

Obligation

Leases

Bonds

Total

$ 320,668.43 $ 1,325,000.00 $ 1,645,668.43

218,160.00

218,160.00

171,662.15

50,000.00

221,662.15

$ 36:Z 166 28 $ l~:ZSQQQ QQ $ 164216628

- 15 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: GENERAL LONG-TERM DEBT

At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year
Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1997 1998 1999 2000 2001 2002 and thereafter

$ 176,757.97 $ 146,225.00 $ 322,982.97

125,599.27

152,540.00

278,139.27

69,584.62

153,120.00

222,704.62

48,059.20

153,290.00

201,349.20

158,040.00

158,040.00

1253,610.00 1253,610.00

Total Principal and Interest Deduct: Imputed Interest

$ 420,001.06 $201682500 $ 2436 82606 $ 48,803.24

Net Present Value ofFuture Minimum Lease Payments

$ 371 197 82

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$158,223.03 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$128,714.~9

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$7,535.64

Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$21,973.00

Note 7: CONTINGENT LIABILITIES .

Amounts received or receivable principally from the Federal government are subject to audit and review .by granter agencies. This could result in requests for reimbursement to the granter 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.

- 16 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 7: CONTINGENT LIABILITIES
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitledto receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $5,141,954.09~ total payroll was $5,835,109.94.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
- 17 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\.1ENTS

JUNE 30. 1996

Note 8: RETIRE1\.1ENT PLANS

Total contn'butions made during fiscal year 1996 amounted to $864,362.84, of which $607,264.65 was made by the Board and $257,098.19 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

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

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1,585,541.000,00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $607,264.65 was actuarially determined and represented .0999% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.

- 18 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\1ENTS

JUNE 30, 1996

V
Note 8: RETIRE1\1ENT PLANS
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. 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.
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.
There were 55 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $1,836.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 9: SURETY BONDS
Mr. C. Eugene Trammell, School Superintendent through June 30, 1996, was bonded in the amount of $25,000.00 with the Ohio Casualty Insurance Company, Hamilton, Ohio, their Bond No. 2640248.
The School Superintendent, Mr. Charles W. Keily, effective July 1, 1996, is bonded in the amount of $250,000.00 with the Ohio Casualty Insurance Company, Hamilton, Ohio, their Bond Nos. 3-405-484 and 3428-001, on which premium is paid through December 3 1, 1997.

- 19 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY

TITLE I

GRANTS TO

LOCAL

STATE

EDUCATIONAL

SCHOOL

AGENCIES IMPROVEMENT

$ 181,173.38

$

2,556.10

12,100.34 $ 33,300.00 $ 58,757.00

16,451.48 7,090.73

$ 216,815.93 $ 33,300.00 $ 58,757.00 $

2,556.10

UABILmEs AND FUND EOUIJY
LIABILmES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Unearned Lottery Funds
Total Liabilities
FUNDEOUIJY
Fund Balances Reserved For Continuation of Federal Program For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 5,755.85 $

$ 14,038.51

26,491.31

12,886.78

1,052.84

58,757.00 $

$ 26,925.29 $ 33,300.00 $

58,757.00 $

2,556.10 2,556.10

$ 16,451.48 7,090.73

$ 23,542.21

166,348.43 $

0.00 $

0.00 $

0.00

$ 189,890.64 $

0.00 $

0.00 $

0.00

$ 216,815.93 $ 33,300.00 $

58,757.00 $

2,556.10

See notes to the general purpose financial statements.

-20-

EXHIBIT"E"

EDUCATION ACT
TITLE II EISENHOWER PROFESSIONAL DEVELOPMENT

mLEVI INNOVATIVE EDUCATION PROGRAM STRATEGIES

INDIVIDUALS WITH DISABILmES EDUCATION ACT
PARTS SPECIAL EDUCATION FLOW THROUGH PRESCHOOL

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

5,083.15

$ 2,399.90 $

492.91 $ 191,705.44 $ 163,865.56

$

3,271.51

5,148.00

1,180.05

113,756.90

98,913.29

1,258.14

16,451.48 7,090.73

17,909.33 7,560.71

$

5,083.15 $

3,271.51 $ 7,547.90 $

1,672.96 $ 329,004.55 $ 289,507.03

$

322.23

$ 64,835.08 $ 26,957.71

320.16 $ 1,868.27 $

380.18

45,654.53

15,105.87

1,670.92

5,679.63

1,233.02

21,470.35

38,559.89

$

880.63

958.20

59.76

2,951.43

1,881.08

24,750.58

$

880.63 $

3,271.51 $ 7,547.90 $

1,672.96 $ 134,911.39 $ 107,255.13

$

4,202.52

$

4,202.52

0.00 $

$

4,202.52 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$

4,202.52 $

1,144.45

1,759.45

$ 0.00 0.00 $

16,451.48 7,090.73
27,744.73 $
166,348.43
194,093.16 $

17,909.33 7,560.71
28,373.94
153,877.96
182,251.90

$

5,083.15 $

3,271.51 $ 7,547.90 $

1,672.96 $ 329,004.55 $ 289,507.03

-21 -

CRAWFORD COUNlY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES ANP CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1996

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY

TITLEI

GRANTS TO

LOCAL

STATE

EDUCATIONAL SCHOOL

AGENCIES IMPROVEMENT

$ 42,884.00 $ 385,811.89

503,801.08

$

185,187.98

731,873.06 $ 385,811.89 $

299,757.00 $ 299,757.00 $

15,000.00 15,000.00

$ 312,452.93 $
73,939.96 304.49

$ 719,402.59

223.44 631.80

248,472.46 $
33,947.02 17,337.52

6,628.48 4,374.60
3,996.92

s 119,402.59 s 387,552.62 s
s 12,470.47 s -1,740.73 s

299,757.oo s _ _...;.1s=,ooo~.;.;;oo~
o.oo s_ _ ___;.o.;.;;.oo~

$ 12,470.47 $ 179,348.00

-1,740.73 $ 1,740.73

-1,457.85 -469.98

$ 189,890.64 $

0.00 $

0.00 $

0.00

0.00

0.00

o.oo s_____o._oo_

J\

See notes to the general purpose financial statements.

-22-

EXHIBITF"

EDUCATION ACT
TITLE II EISENHOWER PROFESSIONAL DEVELOPMENT

TITLEVI INNOVATIVE EDUCATION PROGRAM STRATEGIES

INDMDUALS WITH

DISABILmES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

TOTALS YEAR ENDED JUNE 301 1996 JUNE 30, 1995

$ 428,695.89 $ 669,860.78

$

7,490.37 $

11,974.59 $ 79,748.00 $

10,820.29

928,591.33

766,097.17

185,187.98

185,587.22

$

7,490.37 $

11,974.59 $ 79,748.00 $

10,820.29 $ 1,542,475.20 $ 1,621,545.17

$

290.67 $

11,951.62 $ 45,292.63 $

10,820.29 $ 635,909.08 $ n1,1s1.98

4,125.98 15.65

41.69

34,455.37

73,939.96 8,805.07
68,459.73
223.44 21,966.24 719,402.59

80,456.52 14,342.80 21,735.38 67,861.82 2,549.13 4,114.69 21,038.00 699,553.12 33,386.00

11,969.49 1,870.05

$

4,432.30 $

11,993.31 $ 79,748.00 $

10,820.29 $ 1,528,706.11 $ 1,680,644.98

$

3,058.07 $

-1s.n s

0.00 $

0.00 $

13,769.09 $ -59,099.81

$

3,058.07 $

1,144.45

-1s.n s
1s.n

0.00 $ 0.00

$ 41,687.00 4,683.88
$ 46,370.88

0.00 $ 0.00

13,769.09 $ 182,251.90

-12,728.93 189,616.20

-1,457.85 -469.98

2,580.54 2,784.09

$

4,202.52 s _ _ _ _o_.oo_s ______o_.oo_s _ _ _ _ _o_.oo_s 194,093.16 s 1s2,251.9o

- 23-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1996 Grant Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1996 Grant State School Improvement Grants 1996 Grant Title II Eisenhower Professional Development 1995 Regular 1996 Grant Title VI Innovative Education Program Strategies 1995 Regular 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1994 Regular 1996 Grant Preschool 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant
Total U. S. Department of Educat_ion

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.558 $ 10,684.97

(2)

10.553
* 10.555
10.550
$

139,566.52
303,360.67 $ 50,188.92
503,801.08 $

(2)
669,213.67 (3) 50,188.92
719,402.59

84.010 $ 84.218

299,757.00 $ 15,000.00

299,757.00 15,000.00

84.281 84.281

-880.63 8,371.00

263.82 4,168.48

84.298 84.298

-18.72 11,993.31

11,993.31

84.027 84.027
84.173

-6,246.41 79,748.00
10,820.29

79,748.00 10,820.29

84.048 84.243
$

28,187.00 33,500.00 480,230.84 $

(4) (4) 421,750.90

- 24 -

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

SCHEDULE "1"

..,. FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Teacher and Teacher's Aide Placement Assistance Program 1996 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ 10,043.06 $

10,043.06

Total Federal Financial Assistance

$

The Major Program is identified by an asterisk (*) in front of the CFDA number.

994,074.98 $

1,151,196.55

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received. and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

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

CRAWFORD COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1996
INTEREST BEARING ACCOUNTS
Southland Bank, Roberta, Georgia
Money Market Accounts (3.00%) N.O.W. Accounts (2.50%)

SCHEDULE "2"
$ 168,941.42 135,980.87
$ 304,922.29

See notes to the general purpose financial statements.

- 26 -

CRAWFORD COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "3"

Crawford County Comprehensive High School Recovery of Prior Year Questioned Cost
Crawford County Tax Commissioner County Wide Bond Tax County Wide School Tax
Defense, United States Department of Teacher and Teacher's Aide Placement Assistance Program
Education,GeorgiaDepartmentof Food Services Child and Adult Care Food Program School Breakfast Program National School Lunch Program Other State Programs Alternative Programs lottery Programs Alternative School Program Federal Programs Elementary and Secondary Education Ad.. Title I Grants to Local Educational Agencies TltleVI Innovative Education Program Strategies Individuals with Disabilities Education Ad.. Part B - Special Education Flow Through Preschool
Office of School Readiness Pre-Kindergarten Program

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$

175.00

$

175.00

104,898.72

$

10,311.27

10,311.27 104,898.72

10,043.06

10,043.06

$
33,000.00

1,621.73 4,935.11 5,543.50
24,300.00

1,621.73 4,935.11 5,543.50
33,000.00
24,300.00

58,757.00 3,271.51
5,148.00 1,180.05
9,000.00

58,757.00 3,271.51
5,148.00 1,180.05
9,000.00

$ 148,116.78 $ 113,756.90 $

10,311.27 $ =====2=72='=184==.95=

See notes to the general purpose financial statements.

27

CRAWFORD COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30, 1996

SCHEDULE "4"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1997
1998 1999 2000 2001 2002 2003 2004 2005
2006 2007
2008 2009

TOTAL DEBT SERVICE

1989 ISSUE

INTEREST

PRINCIPAL

$ 146,225.00 $ 91,225.00 $

55,000.00

152,540.00

87,540.00

65,000.00

153,120.00

83,120.00

70,000.00

153,290.00

78,290.00

75,000.00

158,040.00

73,040.00

85,000.00

157,047.50

67,047.50

90,000.00

155,657.50

60,657.50

95,000.00

153,865.00

53,865.00

100,000.00

156,665.00

46,665.00

110,000.00

158,690.00

38,690.00

120,000.00

154,930.00

29,930.00

125,000.00

155,805.00

20,805.00

135,000.00

160,950.00

10,950.00

150,000.00

$ 2,016,825.00 $ 741,825.00 $ 1,275,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired During Period

$ 1,325,000.00 50,000.00

Bonds Payable at June 30, 1996

$ 1,275,000.00

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

DEC 1 -JUN 1 JUN 1

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

CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Mid-term Adjustment Regular Migrant Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs Alternative Programs Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Technology Training Lottery Programs Alternative School Program Instructional Technology Pre-Kindergarten Program
Human Resources, Georgia Department of Worker Adjustment Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 3,079,402.00 661,334.00 135,096.00 132,226.00 47,422.00 941,900.00
241,597.00 78,396.00 115,644.00 127,710.00 70,363.00 9,065.00
26,649.00 625.00
-502,860.00 450,180.00
$
30,492.66 5,000.00 6,997.65
128,714.39 -993.25 -363.00 5,380.13
7,535.64 25,765.00

$ 3,079,402.00 661,334.00 135,096.00 132,226.00 47,422.00 941,900.00

241,597.00 78,396.00
115,644.00 127,710.00
70,363.00 9,065.00

42,884.00

26,649.00 625.00
-502,860.00 450,180.00
42,884.00

30,492.66 5,000.00 6,997.65
128,714.39 -993.25 -363.00 5,380.13 7,535.64
25,765.00

23,567.46 15,459.46 261,686.81

23,567.46 15,459.46 261,686.81

2,141.57

2,141.57

85,098.16

85,098.16

211973.00

211973.00

$ 5,847,392.79 $

428,695.89 $ 6,276,088.68

See notes to the general purpose financial statements.

- 29 -

CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30. 1996

SCHEDULEf!'

Taxes
County Wide Bond Tax County Wide School Tax
Railroad Car Tax Real Estate Transfer Tax
Other Sources Broadcasting Royalties Heartland Wireless Communications Interest Earned Recovery of Prior Year Questioned Cost Audit Fees for School Activity Accounts
Sales Adult Meals Contracted Meals Lunch Supplemental
School Assets Shared Service Contributions
Middle Georgia Regional Educational Service Agency
Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 2,116,890.69 4,120.00 11,520.05

$ 169,427.16 $ 169,427.16 2, 116,890.69 4,120.00 11,520.05

10,000.00 7,267.89 $

4,016.18 $

525.00

936.50

32,526.14 7,234.70
118,744.66 22,608.65

12,883.66 8,863.22

57.65

3.69

4,594.28

10,000.00 15,882.04

525.00

32,526.14 7,234.70
118,744.66 22,608.65 936.50

12,883.66 8,920.87

$ 2,173,007.01 $ 185,187.98 $ _ _ _ _3._69_ $ 174,021.44 $ 2,532,220.12

See notes to the general purpose financial statements.

- 30 -

CRAWFORD COUNTY BOARD OF EDUCATION SCHE:DULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30. 1996

SCHEDULE '7"

.,,,
EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Interest Expense Other Expenditures
Nonoperating Costs Prjncipal and Interest Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 5,056,349.28 $ 1,524,013.00 27,670.24 96,293.57 16,648.54 18,417.42 182,234.25 19,184.89 29,841.96 41,503.41
208,056.28 8,276.87
362,115.98 261,012.38
86,030.59 27,015.75 16,214.07
1,995.33

778,760.66 $ 212,165.76
5,052.12 13,921.43
11,849.91
2,326.86 3,310.80
471.80 92,730.76
357,321.82 1,450.53 5,446.76

5,835,109.94 1,736,178.76
32,722.36 110,215.00
16,648.54 18,417.42 194,084.16 19,184.89 29,841.96 43,830.27 3,310.80 208,056.28 8,748.67 454,846.74 261,012.38 357,321.82 87,481.12 32,462.51 16,214.07
1,995.33

203,926.90 5,909.60 13,732.00
267,719.68

43,896.90

203,926.90 5,909.60 13,732.00
311,616.58

Total Expenditures

$ 8,474,161.99 $ 1,528,706.11 $ 10,002,868.10

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

CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE 8"

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

ALTERNATIVE SCHOOL PROGRAM

INSTRUCTIONAL TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

$

$

1,500.00

7,700.00

141395.00 $

151459.46

251,003.18 $ 70,3TT.81 1,159.92 115.00 160.00 471.80 24,503.75 40.16 569.54

251,003.18 70,3TT.81 1,159.92 1,615.00 160.00 471.80 32,203.75 40.16 569.54

97.00

291951.46

Total Expenditures

$

23,595.00 $

15,459.46 $

348,498.16 s_,_...3.s.1. =15..,5,..2..6....2..

See notes to the general purpose financial statements.

- 32

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 4,034,707.00 $

139,009.00

$ 4,465,068.34 505,017.66 $ _ _..;4..;75.;;.:.'.;;.;57..;.1..;.3_9
$ 4,970,086.00

-57,501.93 $ 4,912,584.07

$

0.00 $ =====0.=00

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

CRAWFORD COUNTY BOARD Of EDUCATION
ANALYIS Of MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND CUAUIY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1996

Gl;t:lERAL ANQ ~EEB EDUCATIQ!:l ffiOGMMS
Kindergarten M Grade& 1 - 3 M
SUl>-Tatal K-3 Grades 4 5 M
Grades 6- aM
Grades 9 - 12 M High School Laboratories M Vocational Education Laboratories (")
Tatal General and Career Education Programs SPECIAL EDUCATION ffiOGRAMS
Regular Programs Category IM Category II M Category Ill (") Category IV (") SUb-Tatal - Regular Category V (Gifted) M Total Special Education Programs
<1 REMEDIAL EDUCATION PRQGMM
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operation&
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ..JL

ORIGINAL

MID-TERM

$

281,449.00

$

253,304.10 $

783,446.00

705,101.40

$ 1,064,895.00 90 $

958,405.50 $

379,452.00 90

341,506.80

683,717.00 90

615,345.30

303,169.00 90

272,852.10

350,718.00 90

315,646.20

297,451.00 90

267,705.90

$ 3,079,402.00

$ 2,771,461.80 $

0.00 0.00 26,649.00
26,649.00

$

616,218.00

$

554,596.20 $

0.00

$

616,218.00 90 $

554,596.20 $

45,116.00 90

40,604.40

$

661,334.00

$

595,200.60 $

$

135,096.00 90 $

121,586.40 $

$ 3,875,832.00

$ 3,488,248.80 $

0.00
0.00 0.00 26,649.00

$

103,899.00 90 $

93,509.10 $

0.00

28,327.00 90

25,494.30

$

132,226.00

$

119,003.40 $

0.00

$ 4,008,058.00

$ 3,607,252.20 $

26,649.00

$

11,683.00

$

11,683.00 $

0.00

35,739.00

35,739.00

0.00

$

47,422.00 100 $

47,422.00 $

0.00

. .

See notes to the general purpose financial statements.

- 34 -

SCHEDULE "10"

::; TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

253,304.10 $

385,889.10 $

13,706.02 $

399,595.12

705,101.40

749,044.46

37,390.87

786,435.33

$

958,405.50 $ 1,134,933.56 $

51,096.89 $ 1,186,030.45 $

0.00

341,506.80

566,241.90

28,884.00

595,125.90

0.00

641,994.30

851,725.64

42,061.08

893,786.72

0.00

272,852.10

339,408.65

46,195.57

385,604.22

0.00

315,646.20

391,864.93

76,533.17

468,398.10

0.00

267,705.90

375,165.60

13,272.06

388,437.66

0.00

$ 2,798,110.80 $ 3,659,340.28 $

258,042.77 $ 3,917,383.05

$

554,596.20

$

22,211.02 $ 652.66
270,769.76 192,786.50

161,074.34 $ 79.39
3,186.99 28,194.26

183,285.36 732.05
273,956.75 220,980.76

$

554,596.20 $

486,419.94 $

192,534.98 $

678,954.92

0.00

40,604.40

39,633.36

9,438.10

49,071.46

0.00

$

595,200.60 $

526,053.30 $

201,973.08 $

728,026.38

$

121,586.40 $

119,393.10 $

15,555.54 $

134,948.64

0.00

$ 3,514,897.80 $ 4,304,786.68 $

475,571.39 $ 4,780,358.07

$

93,509.10 $

160,281.66

$

160,281.66

0.00

25,494.30

$

29,446.27

29,446.27

0.00

$

119,003.40 $

160,281.66 $

29,446.27 $

189,727.93

$ 3,633,901.20 $ 4,465,068.34 $

505,017.66 $ 4,970,086.00 $

0.00

$

11,683.00

35,739.00

s _ _ _47.,.4,_2,.2.0...0.

$

34,849.70 $

34,849.70

10,483.23

10,483.23

$

45,332.93 $

45,332.93 s _ _ _ _.,.2._oa_9_.0_1

- 35 -

CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1996

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Willie J. Reynolds, Chairman (*) P.O.Box751 Roberta, Georgia 31078
Mr. Raymond Dickey (*) P. 0. Box652 Roberta, Georgia 31078
Mr. Richard Hatcher (*) Route 1, Box 448 Lizella, Georgia 31052
Mrs. Linda G. Walton (*) Route 2, Box 1380 Fort Valley, Georgia 31030
Mr. David Wdliams (*) P. 0. Box67 Roberta, Georgia 31078
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

3,000.00 $

229.95

3,000.00

685.80

2,400.00

588.00

2,400.00

665.71

2,400.00

1,279.08

$

13,200.00 $ ====3=4=48=.5=4

See notes to the general purpose financial statements.

- 36 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Crawford 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 Crawford County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 13, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Crawford County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-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.
V
Respectfully submitted,

CLV:dt 96CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Crawford 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 Crawford County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon daied March 13, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We hav.e applied procedures to test the Crawford County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the ye~ ended June 30, 1996:

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

96CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that.caused us to believe that the Crawford County Board ofEducation hacf'not complied, in all material respects, with those requirements. However, the results ofour procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:dt
96CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Crawford 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 Crawford County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 13, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Crawford County Board ofEducation'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 program, which is identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1996. The management of the Crawford County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

96CRL-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 ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Crawford County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance program for the year ended June 30, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intendedto limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:dt 96CRL-80

~Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Crawford County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 13, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1996 general purpose financial statements of the Crawford County Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as r~quired by Office ofManagement and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by 0MB Circular A-128, we have perfonned auditing procedures on the selected transactions to test compliance with the requirements governmg:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an

opinion on the Crawford County Board ofEducation's compliance with these requirements. Accordingly, we

do not express such an opinion.



96CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing c~e to our attention that caused us to believe that the Crawford County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:dt 96CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Crawford 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 Crawford County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 13, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management ofthe Crawford County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

96ICL-4

In planning and performing our audit of the general purpose financial statements of the Crawford County Board ofEducation for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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) Cash and Cash Equivalents
(3) General Ledger
(4) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses:
(1) Accounting Controls (Overall)
(2) Cash and Cash Equivalents
(3) General Fixed Assets
96ICL-4

These conditions were considered in determining the nature, timing, and extent of the procedures to be perfonned in our audit ofthe Crawford County Board ofEducation's financial statements and this report does not.,,a, ffect our report thereon dated March 13, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 96ICL-4

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Crawford 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 Crawford County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 13, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Crawford County Board of Education's compliance with requirements applicable to the major Federal financial assistance program and have issued our opinion thereon dated March 13, 1997.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Crawford 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, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs.and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 13, 1997.
96ICL-11

The management ofthe Crawford County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The'objectives ofan 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 ofthe 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 REOIBREMENTS

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, 1996, the Crawford County Board of Education expended 60% of its total Federal financial assistance under a major Federal financial assistance program and the following nonmajor Federal financial assistance program:

Elementary and Secondary Education Act Title I - Grants to Local Educational Agencies

96ICL-11

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 preyenting or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the Board's major Federal financial assistance program, which is identified in the Schedule of Federal Financial Assistance, and the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control 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 conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Crawford County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance program for the year ended June 30, 1996, and this report does not affect our report thereon dated March 13, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
c:::P~
Claude L. Vickers State Auditor
CLV:dt 96ICL-11

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
V
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Travel Expense Reimbursement Procedures Financial Statements Finding Deleted Audit Control Number 6391-93-01
The audit report for the year ended June 30, 1990, reported deficiencies in the Board's recording of expenditure transactions resulting in travel overpayments in the amount of$673.97. As ofJune 30, 1996, no action has been taken by the Board to collect these questioned costs. Reference to these questioned costs will not appear in subsequent audit reports; however, the Board is not relieved of their responsibilities related to this matter.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6391-93-06
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $4,789.43 for the StaffDevelopment - Professional Development Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditures Financial Statements Finding Resolved Audit Control Number 6391-93-07
The audit report for the year ended June 30, 1994, noted that payments of $525.00 were made from the Board's General Fund for audit fees of school activity accounts. For the year under review, a partial reimbursement of $350.00 was deposited to the Board's General Fund leaving a balance of $175.00 at June 30, 1996. However, subsequent to year end, reimbursement of the remaining $175.00 was deposited to the Board's General Fund and this amount is included in Accounts Receivable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 6391-93-10

The audit report for the year ended June 30, 1994, reported that the Board failed to submit a copy of the 1993 audit report to the Georgia Forestry Commission from whom the Board received Procurement Assistance to Small Businesses (CFDA 59.009) funds. During the year under review, the Board again failed to submit a copy ofthe 1993 report to the Georgia Forestry Commission. However, a copy of the 1993 audit report was submitted subsequent to year end.

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $8,290.87 Audit Control Number 6391-94-02

The audit report for the year ended June 30, 1994 stated that the Board had underexpenditures of Quality Basic Education (QBE) funds of $444.96 for the operations portion of the Category V - Gifted, Special Education Program, $511.55 for the operations portion of the Remedial Education Program and $7,334.36 for the operations portion ofthe Media Center Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund these underexpenditures as required. The total underexpenditure of $8,290.87 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $14,879.82 Audit Control Number 6391-94-03

The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality

Basic Education (QBE) funds of$14,879.82 for the StaffDevelopment - Professional Development Stipends

Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia

Department ofEducation to refund this underexpenditure as required. The underexpenditure of $14,879.82

should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share

for the QBE programs in a subsequent fiscal period.

,._

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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
'Ii
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $454. 74 Audit Control Number 6391-94-04
The audit report for the year ended June 30, 1994, reported that testing of employee compensation payments revealed one instance where an employee was overpaid in the amount of $454.74. For the year under review, no reimbursement was received for this overpayment. The Board should obtain reimbursement of $454.74 for deposit to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to File Completion Report/UnearnedLottery Funds Financial Statements Finding Resolved Audit Control Number 6391-94-05
The audit report for the year ended June 30, 1994, reported that an examination of the Board's compliance with regulations for the Lottery Program - Safe Schools Grant, revealed that the Board failed to file a final completion report for this program as required by guidelines established by the Georgia Department of Education. Additionally, accounting procedures applicable to the program revealed unearned lottery funds in the amount of$783.25, which were required to be refunded to the Georgia Department ofEducation. In the year under review, the Board again failed to file a final completion report for the grant and to refund the unearned lottery fund balance. However, subsequent to year end, unearned funds in the amount of $783.25 were refunded and a completion report was sent to the Georgia Department ofEducation as required. This amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
AUDIT FOLLOW-UP/RESOLUTION Unearned Lottery Funds Financial Statements Finding Resolved Audit Control Number 63 91-94-06
The audit report for the year ended June 30, 1994, reported that an examination of the Board's compliance with regulations established by the Georgia Department of Education for the Lottery - Pre-Kindergarten Program, revealed severe deficiencies in the internal controls and accounting procedures utilized by the Board resulting in unearned lottery funds in the amount of $23,967.33. For the year under review, no refund of the unearned lottery funds was noted. However, subsequent to year end, unearned funds in the amount of $23,967.33 were refunded to the Georgia Department ofEducation and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Time and Attendance Records Not Utilized Federal Financial Assistance Finding Resolved Audit Control Number 6391-94-07
The audit report for the year ended June 30, 1994, reported that a review of salaries charged to the Individuals with Disabilities Education Act - Part B - Special Education - Flow Through program (CFDA 84.027) revealed that in one instance the Board charged an employee's salary and benefits to the program in error when the employee did not work for the program. For the year under review, no refund of the questioned cost was made. However, subsequent to year end, questioned cost in the amount of$6,246.41 was refunded to the Georgia Department ofEducation and this amount is included n Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan Federal Financial Assistance Finding Resolved Audit Control Number 6391-94-08
The audit report for the year ended June 30, 1995, disclosed that the Board could not document that corrective action plans for the 1993 and 1994 audit reports, as required by Office ofManagement and Budget Circular A-128, were submitted to the Georgia Department of Education from whom the Board received Federal financial assistance. In the year under review, the Board failed to file a complete corrective action plan. However, subsequent to year end, the Board submitted corrective action plans for the 1993, 1994 and 1995 audit reports as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Documentation ofLegal Compliance Financial Statements Finding Resolved Audit Control Number 6391-95-01
The audit report for the year ended June 30, 1995, revealed that the Board had entered into four multi-year lease agreements for office equipment. The Board was unable to provide the original agreements or any other documentation containing the terms or length of these leases to ensure compliance with State laws. For the year under review, documentation was provided and the four multi-year lease agreements were in compliance with State law.
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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
.,..
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $500.00 Audit Control Number 6391-95-02
The audit report for the year ended June 30, 1995, reported that testing of employee compensation revealed one instance where an employee was overpaid in the amount of $500.00. For the year under review, no reimbursement ofthe overpayment was noted. The Board should obtain reimbursement of the overpayment for deposit into the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Delinquent Completion Reports Financial Statements Finding Resolved Audit Control Number 6391-95-03
The audit report for the year ended June 30, 1995, noted that the Board failed to file various state program completion reports by the required dates, in accordance with regulations established by the Georgia Department of Education. For the year under review, completion reports were filed as required.
AUDIT FOLLOW-UP/RESOLUTION Encumbrances Reported as Expenditures Financial Statements Finding Resolved Audit Control Number 6391-95-05
The audit report for the year ended June 30, 1995, revealed that the expenditures reported to the Georgia Department of Education on the completion report for the Lottery - Pre-Kindergarten Program included encumbrances in the amount of $1,713.19. For the year under review, no refund of the questioned cost was noted. However, subsequent to year end, questioned cost in the amount of $1,713.19 was refunded to the Georgia Department ofEducation and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Expired Grant Balance Financial Statements Finding Resolved Audit Control Number 6391-95-06
The audit report for the year ended June 30, 1995, revealed that an unexpended grant balance in the amount of$2,507.34 remained on hand after the close ofthe grant period for the Alternative Programs State grant. For the year under review, no refund ofthis expired grant balance was noted. However, subsequent to year end, the expired grant balance of$2,507.34 was refunded to the Georgia Department ofEducation and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
AUDIT FOLLOW-UP/RESOLUTION Expired Grant Balance Financial Statements Finding Resolved Audit Control Number 6391-95-07
The audit report for the year ended June 30, 1995, revealed that the Board failed to refund an unexpended grant balance in the amount of $993.25 which remained on hand after the close of the grant period for the Innovative Programs State grant. For the year under review, no refund of this expired grant balance was noted. However, subsequent to year end, the expired grant balance of $993.25 was refunded to the Georgia Department ofEducation and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
AUDIT FOLLOW-UP/RESOLUTION Expired Grant Balance Financial Statements Finding Resolved Audit Control Number 6391-95-08
The audit report for the year ended June 30, 1995, revealed that an unexpended grant balance in the amount of $60.05 remained on hand after the close of the grant period for the Remedial Summer School Program. For the year under review, no refund of this expired grant balance was noted. However, subsequent to year end, the expired grant balance of $60.05 was refunded to the Georgia Department of Education and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
V
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Grant Documentation Financial Statements Amount: $68,491.54 Audit Control Number 63 91-95-09
The audit report for the year ended June 30, 1995, revealed that the Board could not provide documentation defining where the Lottery Programs - Distant Learning and Instructional Technology grants were utilized. During the audit of the year under review, documentation again could not be provided. The Board should provide documentation to the Georgia Department of Education that the funds were expended as required or a refund in the amount of$68,491.54 should be made to the Georgia Department of Education.
AUDIT FOLLOW-UP/RESOLUTION Failure to Utilize Grant Funds Financial Statements Finding Resolved Audit Control Number 6391-95-10
The audit report for the year ended June 30, 1995, noted that the Board received a State grant for the Preschool Handicapped Program which was not utilized and an expired grant balance in the amount of $14,928.00 remained on hand at June 30, 1995. For the year under review, no refund of the expired grant balance was noted. However, subsequent to year end, the expired grant balance of$14,928.00 was refunded to the Georgia Department of Education and this amount is included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
AUDIT FOLLOW-UP/RESOLUTION Unearned Lottery Funds Financial Statements Finding Resolved Audit Control Number 6391-95-12
The audit report for the year ended June 30, 1995, revealed that an unexpended grant balance in the amount of$27.54 remained on hand after the close of the grant period for the Lottery Program - Alternative School Program. For the year under review, no refund of the unearned lottery funds was noted. However, subsequent to year end, unearned lottery funds in the amount of $27.54 were refunded to the Georgia Department ofEducation and this amount is.included in Accounts Payable as shown on the Combined Balance Sheet, Exhibit "A", of this report.
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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Delinquent Completion Reports Federal Financial Assistance Finding Resolved Audit Control Number 6391-95-13

The audit report for the year ended June 30, 1995, revealed that the Board failed to file various Federal program completion reports by the required date in accordance with regulations established by the Georgia Department ofEducation. For the year under review, completion reports were filed as required.

AUDIT FOLLOW-UP/RESOLUTION Project Completion Report not Supported by Accounting Records Federal Financial Assistance Finding Resolved Audit Control Number 6391-95-14

The audit report for the year ended June 30, 1995, stated that a comparison ofthe Board's project completion report for the Elementary and Secondary Education Act, Title VI, Innovative Education Program Strategies 1995 Regular Program (CFDA 84.298) to the accounting records revealed that the project completion report was not supported by total revenues and expenditures. For the year under review, a corrected completion report was submitted along with refund of the unexpended grant balance in the amount of $18.72.

PRIOR YEAR/CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS .; Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6391-93-03

The audit report for the year ended June 30, 1995, 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 improvement in adequate separation of employee duties was noted. This deficiency was a result of management'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: All Federal Financial Assistance Programs listed in the Schedule of Federal Financial Assistance,

Schedule 111 11 of this report, are affected by this finding.

"'

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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEARENDEDJUNE30, 1996
....
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6391-93-04
The audit report for the year ended June 30, 1995, noted that the management of the Crawford County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the .Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CASH AND CASH EQUIVALENTS - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Control Number 6391-93-05
The audit report for the year ended June 30, 1995, stated that the Board's accounting procedures were insufficient to provide for adequate internal control over the bank reconciliation process. During the year under review, no attempt was made by the Board personnel to strengthen the accounting procedures over the bank accounts. The following severe deficiencies continued to exist.
( 1) The monthly bank statements for the general operating account were not reconciled to the general ledger during the year under review.
(2) Receipts from governmental entities deposited to the general operating account in the amount of $22,902.13 were not recorded timely.
(3) The Board had not determined which checks cleared the bank, therefore, the Board was unable to produce outstanding check lists.
Due to the fact that the general operating account had not been reconciled, alternative procedures were utilized to verify the Board's financial statement's cash balance. An estimated cash balance was determined by tracing the checks written and deposits made on the accounting records to the subsequent period's bank statements.
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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Control Number 6391-93-05
An unlocated variance of$6,338.40 remained between the reported book balance for cash and the estimated cash balance. No adjustment was made to the accounting records for this unlocated variance.
The above deficiencies were a result of management's disregard of proper internal control procedures over cash and bank reconciliations that are necessary to adequately safeguard assets and record the cash operations ofthe Board. Appropriate controls should be immediately implemented to safeguard the cash operations of the Board.
Note: All Federal Financial Assistance Programs listed in the Schedule of Federal Financial Assistance, Schedule "l" ofthis report are affected by this finding.
GENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled Financial Statements Nonmaterial Noncompliance Audit Control Number 6391-95-04
The audit report for the year ended June 30, 1995, noted that the detailed listing of salary and travel payments made to employees was not reconciled with the general ledger as presented for audit. For the year under review, it was again noted that the detail listing ofsalary and travel payments did not reconcile with the general ledger. These unlocated differences totaling $1,260.12 are reflected in Supplementary Information Summary and Schedule of Salaries and Travel, which is issued under separate cover. This condition occurred because management did not ensure that amounts submitted to the Georgia Department of Audits were reconciled to the Board's general ledger. Procedures should be established by the Board to ensure that the detailed listing of salary and travel is reconciled to the accounting records.
GENERAL LEDGER Inadequate Accounting Records Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 6391-95-11
The audit report for the year ended June 30, 1995, revealed that accounting records applicable to several State grants were not maintained on an individual project basis as required by Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA). For the year under review, it was again
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CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
'Ii
PRIOR YEAR/CURRENT YEAR
GENERAL LEDGER Inadequate Accounting Records Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 6391-95-11
noted that the Board recorded most State lottery grants in the General Fund even though the Board had been instructed by the Georgia Department ofEducation to maintain these programs in a separate Special Revenue Fund.
For reporting purposes, extensive audit work was necessary to separate the lottery revenues and expenditures for each ofthe programs reflected in this report. The Board should implement measures to properly account for each programs expenditures and revenues in accordance with individual program instructions and the provisions ofFMGLUA.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditures Requirements Financial Statements Nonmaterial Noncompliance Amount: $2,089.07 Audit Control Number 6391-96-01
For the year under review, the Board had an underexpenditure of Quality Basic Education (QBE) funds of $2,089.07 for the StaffDevelopment Program. The underexpenditure occurred because the Board expended less than the minimum expenditure requirement for this QBE program. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
ALLOWABLE COST/COST PRINCIPLES Unallowable Expenditures Federal Financial Assistance Nonmaterial Noncompliance Amount: $10,043.06 Audit Control Number 6391-96-02
A review of salaries charged to the Troops to Teachers Program revealed that the Board received reimbursement for salaries when the employee did not work in an area which was allowable under the terms
- 11 -

CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CURRENT YEAR ALLOWABLE COST/COST PRINCIPLES Unallowable Expenditures Federal Financial Assistance Nonmaterial Noncompliance Amount: $10,043.06 Audit Control Number 6391-96-02
ofthe program. This questioned amount occurred because the Board believed the employee salary qualified for full reimbursement. The U. S. Department ofDefense should review this matter to determine the allowability of these expenditures.
ADMINISTRATIVE REQUIREMENTS Failure to Maintain Separate Accountability Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6391-96-03
For the year under review, the accounting records applicable to the Vocational Education - Basic Grants to States Program (CFDA 84.048) were maintained within the General Fund. The Georgia Department of Education's Revised Guidelines for Requisitioning Vocational Funds requires that beginning in fiscal year 1996, Federal vocational projects should be accounted for in separate "Special Revenue Funds" by project. This condition occurred because management disregarded instructions from Georgia Department ofEducation to maintain this program in a separate Special Revenue Fund.
The Georgia Department of Education should review this matter to determine if a reclaim of funds is appropriate.
Note: The Crawford 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.
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