Audit report, DeKalb County Board of Education, Decatur, Georgia, year ended June 30, 1996

! GA I A<l.CO
, ,Ri
ezto
03 1qqs-q1o
AUDIT REPORT DEKALBCOUNTYBOARDOFEDUCATION
DECATUR, GEORGIA YEAR ENDED JUNE 30, 1996
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

DEKALB COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIDBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS

7

E

COMBINED STATEMENT OF CASH FLOWS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS

8

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

34

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

36

K

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS

COMBINING BALANCE SHEET

38

L

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

39

DEKALBCOUNTYBOARDOFEDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

44

2 CASH AND CASH EQUIVALENTS

48

3 INVESTMENTS

49

4 ACCOUNTS RECEIVABLE

50

5 NOTES RECEIVABLE

55

6 DEBT SERVICE REQUIREMENTS TO MATURITY

56

SCHEDULE OF REVENUE

7

STATE

58

8

TAXES AND OTHER

60

SCHEDULE OF EXPENDITURES BY OBJECT

9

GENERAL AND SPECIAL REVENUE FUNDS

61

10

LOTTERY PROGRAMS

62

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

11

OVERALL

65

12

BY PROGRAM

66

13 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

68

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

DEKALB COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION ill INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 1, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the DeKalb County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) ofthe DeKalb 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 ofthe 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 ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were improperly recorded in the year ended June 30, 1996. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
* The Board did not record inventories of purchased foods and Federal donated commodities housed at the various school sites in its general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the DeKalb County Board of Education as of June 30, 1996, and the results of its operations and the cash flows of its proprietary funds for the year then ended, in conformity with generally
accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a
report dated July 1, 1997, on our consideration ofthe Board's internal control structure and a report dated July 1, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the DeKalb County Board of Education taken as a whole. The combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 13 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements of the DeKalb County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
96ARL-13

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
L~
Claude L. Vickers
State Auditor
CLV:cm 96ARL-13

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fund Type/Fund Name

Deficit Balance

Proprietary Fund Type Internal Service Fund Dental Reserve Fund

$ 1,189,468.67

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of any one of or any combination of the following:

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

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

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

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

(5) Bonds of any public authority created by the laws ofthe 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.

- 16 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned ''Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
DEFICIT FUND BALANCES
The following fund reported a deficit fund balance position at June 30, 1996, which is not readily apparent on the general purpose financial statements:

- 15 -

DEKALB COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

NOTES RECEIVABLE

Notes receivable consist of a promissory note from Yeshiva High School, Incorporated for the purchase of property from the Board. The maturity date for the note is October 30, 1996, and the note is earning interest at 9% per annum.

PROPERTY TAXES

The DeKalb County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on June 13, 1995 (levy date). Taxes were due on November 15, 1995 and could be paid in two installments on August 15, 1995 and November 15, 1995 (due dates). The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The DeKalb County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 1.9% 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 DeKalb County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds
INVENTORIES

23.73 mills ~mills
24.63 mills

FOOD INVENTORIES Inventories reported on the Combined Balance Sheet are comprised of purchased bulk commodities for resale to individual school lunchrooms within the DeKalb County School system and are valued at cost (first-in, first-out). The Board uses the purchase method to account for these inventories whereby expenditures are recorded at the time ofpurchase. Such inventories are maintained as a part of an Internal Service Fund and are equally offset with a corresponding reservation of fund balance as this amount is not available for discretionary expenditures.

Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Other purchased foods inventories housed at the various school lunchrooms are recorded as revenue and expenditures at the time they are received at cost. Inventories of donated food commodities and other purchased foods housed at the various school lunchrooms used in the preparation of meals are not reported on the Combined Balance Sheet. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.

- 14 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues ofinvestment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
ACCOUNTS RECEIVABLE
Accounts receivable consist of grant reimbursements due from Federal, State or other granters for expenditures made but not reimbursed .and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables

- 13 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus Grivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1996, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1996, compensation under these employment contracts had been earned, but two 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 of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The DeKalb County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the function/object/project/program level. Proprietary fund budgets were prepared and utilized as a management tool to assess the operations of the internal services funds. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
- 12 -

DEKALB COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FIDUCIARY FUND TYPE - the agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material accrued compensated absences.
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. 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.
All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
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 taxes, beverage tax, 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.
- 11 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofthese 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 of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities.
Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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.
PROPRIETARY FUND TYPE - the funds used to account for activities ofthe Board similar to those found
in the private sector, where cost recovery and the determination ofnet income is useful or necessary for sound fiscal management. Internal service funds are a type of proprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the Board.
INTERNAL SERVICE FUNDS Dental Resenre Fund - the fund used to account for the Board's dental insurance risk financing and related activities.
Warehouse Senrice Fund -the fund used to account for food inventories purchased by the Board for the School Food and Nutrition Program and Athletic Fund - concession sales.
- 10 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The DeKalb County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the DeKalb County Board of Education.
Based upon the application of the above criteria, the DeKalb County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in DeKalb County, Georgia, excluding that area encompassed by the City of Decatur. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted
-9-

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

EXHIBIT"E"

DENTAL RESERVE
FUND

WAREHOUSE SERVICE FUND

TOTALS {Memorandum Onl:z:}
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

Cash Flows from Operating Activities:

Cash Received from Charges for Services

$ 2,370,369.31 $ 1,668,668.47 $ 4,039,037.78 $ 3,882,236.79

Cash Paid for Sales - Food Supplies

-1,854, 164.92 -1,854, 164.92 -1,853,622.32

Cash Paid for Group Dental Claims

-2,310,056.60

-2,310,056.60 -2,283,682.50

Cash Paid for Group Dental Processing Fees

-244, 701.48

-244, 701.48

-235,627.04

Net Cash Provided (Used) by Operating Activities

$ -184,388.77 $ -185,496.45 $ -369,885.22 $ -490,695.07

Cash Flows from Noncapital Financing Activities: Transfers From Other Funds

$

300,000.00 $

300,000.00

Cash Flows from Investing Activities: Interest Received on Investments Purchase of Investments

$

1,853.24 $

3,813.41 $

5,666.65 $

3,096.41

-300,000.00

-300,000.00

Net Cash Provided (Used) by Investment

Activities

$

1,853.24 $ -296, 186.59 $ -294,333.35 $

3,096.41

Net Increase (Decrease) in Cash

$ -182,535.53 $ -181,683.04 $ -364,218.57 $ -487,598.66

Cash and Cash Equivalents - July 1

-312,220.46

242,319.93

-69,900.53

417,698.13

Cash and Cash Equivalents - June 30

$ -494,755.99 $

60,636.89 $ -434,119.10 $ -69,900.53

Reconciliation of Operating Income to Net

Cash Provided (Used) by Operating

Activities:

Operating Income (Loss)

$ -208,463.92 $ -183,713.88 $ -392,177.80 $ -1, 163,238.12

Increase in Account Receivable

-88.67

-88.67

Increase (Decrease) in Accounts Payable

-1,693.90

-1,693.90

1,905.52

Increase in Claims Payable

24,075.15

24,075.15

670,637.53

Net Cash Provided (Used) by Operating Activities

$ -184,388.77 $ -185,496.45 $ -369,8,85.22 $ -490,695.07

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

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "D"

COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS

YEAR ENDED JUNE 30, 1996

OPERATING REVENUES
Group Dental Insurance Sales - Food Supplies
Total Operating Revenues
OPERATING EXPENSES
Current Salaries Employee Benefits Travel of Employees Other Purchased Services Supplies Energy Group Dental Claims Group Dental Claims Processing Fees
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES
Interest Earned
Income Before Transfers
TRANSFERS FROM OTHER FUNDS
Net Income (Loss)
RETAINED EARNINGS JULY 1
Inventory - Net Change in Period

DENTAL RESERVE
FUND

WAREHOUSE SERVICE FUND

TOTALS {Memorandum Onl~
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 2,370,369.31

$ 2,370,369.31 $

$ 1,668,757.14

1,668,757.14

2,396,416.90 1,485,819.89

$ 2,370,369.31 $ 1,668,757.14 $ 4,039,126.45 $ 3,882,236.79

$ 153,266.81 $
34,617.57 3,678.71
125,688.59 1,535,219.34

153,266.81 $
34,617.57 3,678.71
125,688.59 1,535,219.34

$ 2,334,131.75
244,701.48

2,334,131.75 244,701.48

170,585.79 39,299.46 1,422.22
220,720.49 1,415,075.88
8,424.00 2,954,320.03
235,627.04

$ 2,578,833.23 $ 1,852,471.02 $ 4,431,304.25 $ 5,045,474.91

$ -208,463.92 $ -183,713.88 $ -392, 177.80 $ ~1. 163,238.12

1,853.24

3,813.41

5,666.65

3,096.41

$ -206,610.68 $ -179,900.47 $ -386,511.15 $ -1,160,141.71

300,000.00

300,000.00

$ -206,610.68 $ 120,099.53 $

-86,511.15 $ -1,160,141.71

-982,857.99

461,570.57

-521,287.42

633,424.06

-5,725.14

-5,725.14

5,430.23

RETAINED EARNINGS JUNE 30

$ -1,189,468.67 $ 575,944.96 $ -613,523.71 $ -521,287.42

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

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

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS!

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 195,314,515.00 $ 208,144,821.29

33,000.00

693,819.36

250,947,485.00 253,771,794.60

Total Revenues

$ 446,295,000.00 $ 462,610,435.25

EXPENDITURES

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

$ 320,640,550.00 $ 325,111,719.88

17,416,848.00 2,708,159.00 12,012,476.00 2,044,402.00 25,009,584.00 4,148,424.00 42,300,364.00 20,015,061.00 10,822,054.00
40,000.00 147,066.00

17,673,983.56 3,021,299.24
11,728,282.93 2,077,567.61
25,751,815.31 4,244,336.48
41,721,707.80 20,225,430.62 10,657,334.80
54,495.84 151,012.17

40,000.00

Total Expenditures

$ 457,344,988.00 $ 462,418,986.24

Excess of Revenues over (under) Expenditures

$ -11,049,988.00 $

191,449.01

OTHER FINANCING SOURCES {USES)

Other Sources Other Uses

$

105,000.00

-3,055,012.00 $ -5, 726,055.17

Total Other Financing Sources (Uses)

$ -2,950,012.00 $ -5,726,055.17

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -14,000,000.00 $ -5,534,606.16

FUND BALANCE JULY 1, 1995

44,509,907.00

47,103,699.08

Unlocated Variance

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS!

$ 23,384,787.00 $ 23,967,807.72 24,161,222.00 29,032,013.03 15,189,973.00 13,831,697.49
$ 62,735,982.00 $ 66,831,518.24

$ 32,679,428.00 $ 35,414,809.92

2,917,664.00 33,000.00
239,164.00 145,189.00 278,304.00
27,343.00 1,628,627.00
1,000.00 467,401.00

2,685,952.16 166,297.44 247,188.68 162,475.11 238,120.55
1,814,420.20 35,583.12
441,669.89

23,873,395.00 3,187,158.00 41,000.00

26,350,747.42 591,765.79 902,277.78

$ 65,518,673.00 $ 69,051,308.06

$ -2,782,691.00 $ -2,219,789.82

$ 4,041,512.00 $ 2,626,055.17 -1,065,000.00
$ 2,976,512.00 $ 2,626,055.17

$ 193,821.00 $ 406,265.35

5,654,157.00

5,444,415.89

405.00

FUND BALANCE JUNE 30, 1996

$ 30,509,907.00 $ 41,569,092.92

$ 5,847,978.00 $ 5,851,086.24

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

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 301 1996

JUNE 30, 1995

$ 17,450,266.26

$ 249,562,895.27 $ 199,973,567.61

29,725,832.39

28,398,724.81

1,723,671.45 $ 10,857z786.43

280,184,949.97

273,124,769.58

$ 19,173,937.71 $ 10,857,786.43 $ 559,473,677.63 $ 501,497,062.00

$ 360,526,529.80 $ 329,032,886.86

$ 40,375,413.02

20,359,935.72 3,187,596.68
11,975,471.61 2,240,042.72 25,989,935.86 4,244,336.48 43,536,128.00 20,261,013.74 11,099,004.69
54,495.84 26,501,759.59
591,765.79 41,277,690.80

18,750,744.02 2,905,020.78 11,095,210.86 2,136,060.66 23,659,502.28 3,800,170.16 40,248,169.59 21,166,483.05 8,915,048.75
39,144.98 23,681,216.86
647,121.12 38,225,658.40

$ 7,385,000.00 5,520,087.50 6 237.70

7,385,000.00 5,520,087.50
6,237.70

7,105,000.00 5,844,718.75
5,872.07

$ 40,375,413.02 $ 12,911,325.20 $ 584,757,032.52 $ 537,258,029.19

$ -21,201 ,475.31 $ -2,053,538.77 $ -25,283,354.89 $ -35,760,967.19

$ 2,800,000.00 $ 2,800,000.00

$ 5,426,055.17 $ 10,332,542.21

-5,726,055.17

-10,332,542.21

$

-300,000.00 $

0.00

$ -18,401,475.31 $ -2,053,538.77 $ -25,583,354.89 $ -35,760,967.19

32,515,492.05

14,106,972.59

99,170,579.61

134,931,546.80

405.00

$ 14,114,016.74 $ 12,053,433.82 $ 73,587,629.72 $ 99,170,579.61

-5-

DEKALB COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
All GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Unlocated Variance

GENERAL FUND

SPECIAL REVENUE
FUND

$ 208,144,821.29 $ 23,967,807.72

693,819.36

29,032,013.03

253z771 z794.60

1318311697.49

$ 46216101435.25 $ 66,8311518.24

$ 325,111,719.88 $ 35,414,809.92

17,673,983.56 3,021,299.24
11,728,282.93 2,077,567.61
25,751,815.31 4,244,336.48
41,721,707.80 20,225,430.62 10,657,334.80
54,495.84 151,012.17

2,685,952.16 166,297.44 247,188.68 162,475.11 238,120.55
1,814,420.20 35,583.12
441,669.89
26,350,747.42 591,765.79 902,277.78

$ 462,418,986.24 $ 69,051,308.06

$

191,449.01 $ -2,219,789.82

$ 2,626,055.17 $ -5,726,055.17
$ -5,7261055.17 $ 2,626,055.17

$ -5,534,606.16 $

406,265.35

47,103,699.08

5,444,415.89

405.00

FUND BALANCE JUNE 30

$ 41,569,092.92 $

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

-4-

5,851,086.24

EXHIBIT"A"

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUNDS

FIDUCIARY FUND TYPE AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum On~

JUNE 30, 1996

JUNE 30, 1995

$

728,864.12

$ 22,913,018.60 $ 21,186,774.32

$

300,000.00

3, 100,000.oo

62,573,925.88

89,717,613.14

88.67

916.23

10,573,431.80

8,724,204.76

206,000.00

283,000.00

220,265.18

220,265.18

225,990.32

$

12,053,433.82

12,053,433.82

14,106,972.59

91,071,566.18 6,547,422.67

91,071,566.18 6,547,422.67

96,403,027.41 7,105,630.51

$

5201353.85 $

31829,780.35 $

10916721422.67 $ 20611591064.13 $ 237;7531213.05

$

434,119.10

$

434,119.10 $

439,227.33

2,494.46

10,008,384.27

8,612,786.10

2,551.32

4,036,256.03

3,256,520.74

$

15,338.13

139,681.66

40,737.13

694,712.68

694,712.68

670,637.53

2,201,081.19

3,537,732.41

2, 183,858.30

1,411,437.41

78,431.00

3,814,442.22

3,814,442.22

3,440,780.70

$

6,547,422.67

6,547,422.67

7,105,630.51

103,125,000.00 103,125,000.00 110,510,000.00

$

1,133,877.56 $

3,829,780.35 $

109,672,422.67 $ 133,184,958.12 $ 139,103,920.86

$

220,265.18

-1,189,468.67 355 679.78

$

-613,523.71

$

220,265.18 $

-1,189,468.67 355 679.78

$

-613,523.71 $

225,990.32
-982,857 .99 235,580.25
-521 287.42

$

-613 523.71

$ 1,219,654.00

$

87,084.71

12,053,433.82

14,106,972.59

296,547.28

272,008.16

196,128.16

243,667.63

4,079,600.15

9,612,123.63

5,761,263.16

20,590, 198.19

$ 23,606,626.57 $ 44,912,054.91

2,000,000.00 551,701.65
47,429,301.50

2,000,000.00 450,647.09
51,807,877.61

$ 73,587,629.72 $ 99,170,579.61

$ 72,974,106.01 $ 98,649,292.19

$

520,353.85 $

3,829,780.35 $

109,672,422.67 $ 206,159,064.13 $ 237,753,213.05

-3-

DEKAL ~QUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1996

ASSETS cash and Cash Equivalents Investments Accounts Receivable Notes Receivable Inventories Amount Available in Debt Service Fund Amount to be Provided in Future Years
For Payment of: Bond Debt Compensated Absences
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 16,606,826.42 $

650,898.81 $

419,262.06 $

30,998,453.81

2,950,000.00

17,827,535.29

3,076,124.13

7,301,814.04

46,158.88

206,000.00

DEBT SERVICE
FUND
4,507,167.19
7,397,936.78
148,329.85

$ 50,681,404.36 $ 10,902,712.85 $ 18,498,956.23 $ 12,053,433.82

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Compensated Absences General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Retained Earnings Reserved for Inventories Unreserved Deficit Undesignated
Total Retained Earnings
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Federal Capital Outlay For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Designated for Self-Insurance Insurance Reserve Fund Undesignated
Total Fund Balances
Total Fund Equity

$ 8,259,946.70 $ 1,745,943.11

845,082.48

3, 188,622.23

7,282.26

117,061.27

$ 2,201,081.19 2,183,858.30

$ 9,112,311.44 $ 5,051,626.61 $ 4,384,939.49

$ 1,219,654.00 243,938.16 $
$ 1,463,592.16 $

52,609.12 $

$ 12,053,433.82
196,128.16 4,079,600.15 5,761,263.16

52,609.12 $ 10,036,991.47 $ 12,053,433.82

2,000,000.00 551,701.65
37,553,799.11
$ 41,569,092.92 $
$ 41,569,092.92 $

5,798.477.12

4,077,025.27

0.00

5,851,086.24 $ 14,114,016.74 $ 12,053,433.82

5,851,086.24 $ 14 114 016.74 $ 12,053.433.82

Total Liabilities and Fund Equity

$ 50,681,404.36 $ 10,902,712.85 $ 18,498,956.23 $ 12,053,433.82

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

-2-

DEKALBCOUNTYBOARDOFEDUCATION
-I-

DEKALB COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $37,437,674.56. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Risk Category
1 2 3
Total
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Bank Balance
$ 821,623.60 30,449,217.70 6,166,833.26
$37,437,674.56

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

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

At June 30, 1996, the carrying amount of the Board's total investments was $62,573,925.88 and the market value ofthese investments, excluding investments in the amount of $10,027,535.29 in the State of Georgia, Local Government Investment Pool, was $52,546,390.59. The investments are classified as to risk categories as follows:

- 17 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 2: DEPOSITS AND INVESTMENTS

Type of Investment

U.S. Government

$

Repurchase Agreements

Total

Local Government Investment Pools

Total Investments

Undeterminable

Risk Categories

2

3

Carrying Amount

Market Value

0.00 $

0.00 $13,696,390.59 $13,696,390.59 $13,696,390.59

0.00 31,250,000.00 7,600,000.00 38,850,000.00 38,850,000.00

0.00 $31 .250 000 00 $21 296 390.59 $52,546,390.59 $52,546,390.59

10,027,535.29



$62 573,925 88 $52 546 390 59

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

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

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

The Board has established a limited risk management program for workers' 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. If applicable these losses include an estimate of claims that have been incurred but not reported. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit.

- 18 -

DEKALB COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 4: RISK MANAGEMENT

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

1995 1996

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.00 $ 1,263,566.64 $ 1,263,566.64 $

0.00

$

0.00 $ 1,256,509.27 $ 1,256,509.27 $

0.00

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 Liability

Claims and Changes in Estimates

$

0.00 $

58,216.26 $

$

0.00 $

38,849.89 $

Claims Paid

End ofYear Liability

58,216.26 $

0.00

38,849.89 $

0.00

The Board is self-insured with regard to dental claims. The Board accounts for claims within the Dental Reserve Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1995 1996

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.00 $ 2,954,320.03 $ 2,283,682.50 $ 670,637.53

$ 670,637.53 $ 2,334,131.75 $ 2,310,056.60 $ 694,712.68

Note 5: GENERAL LONG-TERM DEBT

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

- 19 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: GENERAL LONG-TERM DEBT

Purpose

Interest Rates

Amount

General Government- Series 1993-A General Government - Refunding - Series 1993 General Government - Refunding - Series 1992

2.80% - 6.25% $ 50,745,000.00

2.80% - 5.60%

41,585,000.00

3.20%- 5.375% 10,795,000.00

$103,125,000.00

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

Balance July 1, 1995
Deductions Annual Leave Earned and Utilized (Net) Payments
Balance June 30, 1996

Compensated Absences

General Obligation
Bonds

Total

$7,105,630.51 $110,510,000.00 $117,615,630.51

558,207.84

7,385,000.00

558,207.84 7,385,000.00

$ 6 547 422 67 $103,125 000.00 $109,672 422 67

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
1997 1998 1999 2000 2001 2002 and thereafter
Total Principal and Interest

General Obligation
Bonds
$ 13,169,025.00 13,476,093.13 8,363,598.75 8,494,643.75 8,875,330.63 96,388,973.18
$)48 767.664 44

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal years 1992 and 1993, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1996, $52,195,000.00 of bonds are outstanding and are considered defeased.

-20-

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note7: ON-BEHALFPAYMENTS

The Board has recognized revenues and expenditures in the amount of $9,425,437.48 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 of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of $7,427,168.22

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $1,243,574.26

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $754,695.00

Note 8: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

91-644-018 93/92S-644-033 95/94S-644-018 96-644-025 377 - Hawthorne Elementary 380 - Snapfinger Elementary 385 - Hooper Alexander Elementary

$ 628,205.15 827,356.34 88,958.10 802,737.88 2,753.00 14,758.08 50.99

$ 602,238.74 692,460.00 312,487.00 347,229.00

$ 2,364,812.54 $ 1,254,414,14

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

- 21 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could res.tlt in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.
Note 10: SUBSEQUENT EVENTS
On July 12, 1994, a "Memorandum of Understanding" was signed between DeKalb County Board of Education (Board) and the Department ofTechnical and Adult Education (DTAE) to transfer the operations ofthe DeKalb Technical Institute from the Board to DTAE. DTAE proposes to operate DeKalb Technical Institute as a unit of the Department of Technical and Adult Education. This transfer is effective as ofJuly 1, 1996.
On March 18, 1997, voters of DeKalb County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot of DeKalb County, is as follows:
"Shall a one percent sales and use tax for educational purposes be imposed in DeKalb County for not longer than twenty quarters to raise not more than $531,800,000.00 to repay DeKalb School District debt of $114,435,000.00; for new schools, land, additions, renovations, equipment and technology systems, not to exceed $381,733,800.00 for the DeKalb School District..."
Note 11: ACCUMULATED EMPLOYEES' LEAVE
Full-time twelve month employees earn annual leave ranging from ten to twenty days per year depending on the employees' length ofcontinuous service with a maximum accumulation ofsixty days. Employees are paid up to the maximum accumulation, for unused accumulated annual leave at their current rate of pay upon retirement or termination of employment.
Full-time employees earn one and one-quarter days of sick leave each month with a maximum accumulation of one hundred ninety days. Employees are paid between $3.00 and $9.00 per day for unused sick leave which may range from twenty-six days to one hundred ninety days upon retirement or termination of employment. See Note 1 - Compensated Absences

- 22 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 12: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $332,037,381.40; total payroll was $355,814,569.77.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $55,815,483.81, of which $39,213,614.74 was made by the Board and $16,601,869.07 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll.

- 23 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 12: RETIREMENT PLANS

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

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

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1,585.541.000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$39,213,614.74 was actuarially determined and represented 6.4573% 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.

- 24-

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 12: RETIREMENT PLANS
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A mf.mber is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between 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 of years 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 of employer contributions occurs, but the member's contributions are refunded with interest.
There were 2,016 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 of the Board made during fiscal year 1996 amounted to $67,004.00. 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 13: SURETY BONDS
The School Superintendent, Dr. James R. Hallford, is bonded in the amount of$100,000.00 with the Hartford Fire Insurance Company, Hartford, Connecticut, their Bond No. 20 SUN 338815, on which premium is paid through December 31, 1998.

- 25 -

DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1996

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ATHLETIC FUND

GEORGIA LEARNING RESOURCES
SYSTEM

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 709,713.93

$ 21,981.17

2,600,000.00

350,000.00

2,483,062.39 $ 1,555,803.38

103.44 $ 49,967.16 $

42,097.00

$ 5,792,776.32 $ 1,555,803.38 $ 372,084.61 $ 49,967.16 $

42,097.00

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs Unreserved Undesignated
Total Fund Equity

$ $ 689,256.07
1,225,910.60

709,889.38 286,418.34 $ 542,111.53
17,384.13

$ 1,915,166.67 $ 1,555,803.38 $

$ 735.00
735.00 $

$ 3,877,609.65 $ $ 3,877,609.65 $

0.00 $ 371,349.61 $ 0.00 $ 371,349.61 $

35,885.51 $ 3,686.69 675.21 9,719.75
49,967.16 $
0.00 $ 0.00 $

30,349.38 11,747.62 42,097.00
0.00 0.00

Total Liabilities and Fund Equity

$ 5,792,776.32 $ 1,555,803.38 $ 372,084.61 $ 49,967.16 $

42,097.00

See notes to the general purpose financial statements.

- 26-

EXHIBIT"G" Page 1

SEVERELY EMOTIONALLY
DISTURBED

ALTERNATIVE SCHOOLS

NEXT GENERATION
SCHOOLS

SAFE AND DRUG-FREE SCHOOLS

DRUG-FREE SCHOOLS AND COMMUNITIES
SCHOOL PERSONNEL
TRAINING

VOCATIONAL EDUCATION
FEDERAL

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTS

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$ 632,647.98 $ 170,089.66 $ 39,033.00 $ 44,504.61 $

69,050.00 $ 59,420.09 $ 419,453.59 $ _ _..;.9.;.1,"--60;;..1....6.._7

$ 632,647.98 $ 170,089.66 $ 39,033.00 $ 44,504.61 $

69,oso.oo s 59,420.09 s 419.453.59 s _ _ _s_1._60_1_.6_1

$

63,168.19 $

155,535.92

376,316.09

37,627.78

91,943.16 $ 1,549.66
70,446.85 6,149.99

11,056.38 $ 27,867.91
108.71

21,167.20 $ 7,077.23 16,260.18

$ 632,647.98 $ 170,089.66 $ 39,033.00 $ 44,504.61 $

36,647.19 $ 25,187.99 7,214.82

4,880.29 $ 5,512.16 15,724.26 33,303.38

10,848.95 $ 119,376.48 278,718.95
10,509.21

69,050.00 $ 59,420.09 $ 419,453.59 $

8,014.24 24,172.24 59,415.19
91,601.67

$

o.oo $ _ _ _ _o_.o_o $ _ _ _o_.o_o $ _ _ _0._00_$ _ _ _ _0._00_$

0.00 $

o.oo $ _ _ _ _o_.o_o

$

o.oo $ _ _ _ _o_.o_o $

o.oo $

o.oo $ _ _ _ _o._o_o $

0.00 $

o.oo $ _ _ _ _o_.o_o

$ 632,647.98 $ 170,089.66 $ 39,033.00 $ 44,504.61 $

ss,oso.oo $ 59,420.09 $ 419,453.59 $ _ _ _s_1._so_1_.s_1

-27 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEI

TITLE VI

EDUCATION OF GRANTS TO

TITLEII

INNOVATIVE

CHILDREN

LOCAL

EISENHOWER

FOREIGN

EDUCATION

WITH

EDUCATIONAL PROFESSIONAL LANGUAGES PROGRAM

DISABILITIES AGENCIES DEVELOPMENT ASSISTANCE STRATEGIES

$

29.71

_____ $ 854,000.57 $

38,239.09 $ 23,152.07 $ ____6,_3_8_6_.6_3

$

29.71 $ 854,000.57 $

s____ 38,239.09 $ 23,152.01

6._3a_6_.6_3

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Accounts Payable

Salaries Payable

Expired Grant Balances Payable

$

Deferred Revenue

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Expired Grant Balances/Questioned Costs

Unreserved

Undesignated

$

Total Fund Equity

$

Total Liabilities and Fund Equity

$

$ 29.71

41,179.91 $ 242,729.51 570,091.15

29.71 $ 854,000.57 $

38,239.09 $ 23,152.07 $

4,881.53 995.00
510.10

38,239.09 $ 23,152.07 $

6,386.63

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $

0.00 $

0.00

0.00 $

0.00 $

0.00

29.71 $ 854,000.57 $

38,239.09 $ 23,152.07 $

6,386.63

See notes to the general purpose financial statements.

- 28-

EXHIBIT"G" Page2

TITLE VII IMMIGRANT EDUCATION

STEWARTS. MCKINNEY HOMELESS ASSISTANCE
ACT

JOB TRAINING PARTNERSHIP
ACT

DEKALB TECHNICAL INSTITUTE

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

9,701.61

$ 1,091,144.56 $ 1,832,570.98 $ 1,673,781.56

2,950,000.00

4,700,000.00

$

10,739.39

$

56,072.17

656,390.15

7,301,814.04

4,022,875.93

$

10,739.39 $

9,701.61 $

56,072.17 $ 1,747,534.71 $ 12,084,385.02 $ 10,396,657.49

$

2,573.67

$

47,796.03

$ 1,181,672.17 $ 869,074.28

5,770.52 $

1,078.60

2,626.14 $ 134,620.03

1,745,943.11

1,394,546.22

2,395.20

6,904.50

5,650.00

10,787.70

3,188,622.23

2,569,992.47

1,718.51

117,061.27

40,197.63

78,431.00

$

10,739.39 $

9,701.61 $

56,072.17 $ 145,407.73 $ 6,233,298.78 $ 4,952,241.60

$ 52,609.12 $

$ 52,609.12

87,084.71

$

0.00 $

0.00 $

0.00 1,549,517.86

5,798,477.12

5,357,331.18

$

0.00 $

0.00 $

0.00 $ 1,602,126.98 $ 5,851,086.24 $ 5,444,415.89

$

10,739.39 $

9,701.61 $

56,072.17 $ 1,747,534.71 $ 12,084,385.02 $ 10,396,657.49

- 29-

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

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services Operation Enterprise Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Unlocated Variance

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ATHLETIC FUND

GEORGIA LEARNING RESOURCES
SYSTEM

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 1,681,942.00 $ 9,032,162.76

$

15,653,637.30

9,042,352.37

$ 884,753.93

$ 26,377,931.67 $ 9,032,162.76 $ 884,753.93 $

75,674.00 $ 188,137.41

849,097.00

263,811.41 $ 849,097.00

$ 8,469,512.74 332,140.36

$ 221,on.04 $ 849,097.00 43,309.37

$ 26,350,747.42

232,594.42 $

3,779.22

591,765.79

$ 26,350,747.42 $ 9,034,247.52 $ 595,545.01 $

$

27,184.25 $ -2,084.76 $ 289,208.92 $

264,386.41 $ -575.00 $

849,097.00 0.00

$

2,084.76

$

2,084.76

$

27,184.25 $

0.00 $ 289,208.92 $

-575.00 $

0.00

3,850,425.40

0.00 82,140.69

575.00

0.00

FUND BALANCE JUNE 30

$ 3,877,609.65 $

0.00 $ 371,349.61 $

0.00 $

0.00

See notes to the general purpose financial statements.

- 30-

EXHIBIT "H" Page 1

SEVERELY

EMOTIONALLY ALTERNATIVE

DISTURBED

SCHOOLS

NEXT GENERATION
SCHOOLS

SAFE AND DRUG-FREE SCHOOLS

DRUG-FREE SCHOOLS AND COMMUNITIES
SCHOOL PERSONNEL
TRAINING

VOCATIONAL EDUCATION
FEDERAL

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$ 2,842,505.00 $ 450,939.67 $ 468,189.20

38,924.29 $ 287,504.61 $

166,223.74 $ 565,356.41 $ 2,728,944.38 $

472,601.67

$ 3,310,694.20 $ 450,939.67 $ 38,924.29 $ 287,504.61 $ 166,223.74 $ 565,356.41 $ 2,728,944.38 $ 472,601.67

$ 2,562,671.09 $ 615,659.89
190,549.84

123,952.10 $ 224,682.00
15,633.80 43,875.00 13,789.87 29,006.90

38,924.29 $ 286,TT7.49 $ 727.12

86,806.21 $ 565,356.41 $ 2,380,928.30 $

79,417.53

340,595.47

7,420.61

383,719.42 88,882.25

$ 3,368,880.82 $ $ -58,186.62 $

450,939.67 $ 0.00 $

38,924.29 $ 287,504.61 $

0.00 $

0.00 $

166,223.74 $ 565,356.41 $ 2,728,944.38 $

0.00 $

0.00 $

0.00 $

472,601.67 0.00

$

58,186.62

$

58,186.62

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

$

0.00 $

o.oo $ ____o_.o_o $

0.00 $

0.00 $

0.00 $

0.00 $ _ _ _ _0._00_

- 31 -

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

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEI

TITLE VI

EDUCATION OF GRANTS TO

TITLE II

INNOVATIVE

CHILDREN

LOCAL

EISENHOWER

FOREIGN

EDUCATION

WITH

EDUCATIONAL PROFESSIONAL LANGUAGES PROGRAM

DISABILITIES AGENCIES DEVELOPMENT ASSISTANCE STRATEGIES

REVENUES

State Funds Federal Funds Taxes and Other Funds

$

8,305.29 $ 5,749,644.16 $

170,261.09 $ 26,128.96 $ 516,497.78

Total Revenues

$

8,305.29 $ 5,749,644.16 $

170,261.09 $ 26,128.96 $ 516,497.78

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 Food Services Operation Enterprise Operations
Capital Outlay

$

8,305.29 $ 5,776,189.62 $

12,893.27 3,695.71

89,939.72 $ 24,082.44 $ 515,349.64

86,879.91 1,012.22

1,148.14

2,046.52

Total Expenditures

$

8,305.29 $ 5,792,778.60 $

177,831.85 $ 26,128.96 $ 516,497.78

Excess of Revenues over (under) Expenditures

$

0.00 $ -43,134.44 $

-7,570.76 $

0.00 $

0.00

OTHER FINANCING SOURCES {USES)

Operating Transfers In Operating Transfers Out

$

381.55

Total Other Financing Sources (Uses)

$

381.55

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

0.00 $ -42,752.89 $

-7,570.76 $

0.00 $

0.00

FUND BALANCE JULY 1

0.00

42,752.89

7,570.76

0.00

0.00

Unlocated Variance

FUND BALANCE JUNE 30

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

- 32 -

EXHIBIT"H" Page2

TITLE VII IMMIGRANT EDUCATION

STEWART 8. MCKINNEY HOMELESS ASSISTANCE
ACT

JOB TRAINING PA~TNERSHIP
ACT

DEKALB TECHNICAL INSTITUTE

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 101,401.19 $ $ 101,401.19 $

30,561.49 $ 30,561.49 $

$ 8,996,563.00 $ 23,967,807.72 $ 16,790,643.17 312,324.98 1,586,293.37 29,032,013.03 27,299,927.51
3,904,591.19 13,831,697.49 12,861,042.72
312,324.98 $ 14,487,447.56 $ 66,831,518.24 $ 56,951,613.40

$ 102,183.94 $ 1,336.30 171.65 952.74
$ 104,644.63 $ $ -3,243.44 $

30,561.49 $
30,561.49 $ 0.00 $

294,233.65 $ 12,605,142.04 $ 35,414,809.92 $ 30,896,208.01

15,294.33 2,797.00

1,083,992.19 186,909.21 139,102.10
1,549,742.32 441,669.89
902,277.78

2,685,952.16 166,297.44 247,188.68 162,475.11 238,120.55
1,814,420.20 35,583.12
441,669.89 26,350,747.42
591,765.79 902,277.78

2,615,336.66 135,455.88 211,371.78 140,166.37 237,026.49 22,328.52
1,976,775.84 228,558.08 256,477.53
23,542,022.31 647,121.12 37,122.00

312,324.98 $ 16,908,835.53 $ 69,051,308.06 $ 60,945,970.59

0.00 $ -2,421,387.97 $ -2,219,789.82 $ -3,994,357.19

$ 2,567,487.00 $ -2,084.76
$ 2,565,402.24 $

2,628,139.93 $ -2,084.76
2,626,055.17 $

5,432,542.21 5,432,542.21

$ -3,243.44 $ 3,243.44

0.00 $ 0.00

0.00 $ 144,014.27 $ 0.00 1,457,707.71
405.00

406,265.35 $ 5,444,415.89
405.00

1,438,185.02 4,006,230.87

$

0.00 $

0.00 $

0.00 $ 1,602,126.98 $ 5,851,086.24 $ 5,444,415.89

- 33 -

DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1996

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Notes Receivable

REGULAR

1989 BOND ISSUE
FUND

1993-A BOND ISSUE
FUND

$ 8,913,767.65 $ 800,000.00 $ 8,113,767.64

23,079.45

236.44

22,842.99

206,000.00

Total Assets

$ 9,142,847.10 $ 800,236.44 $ 8,136,610.63

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Federal Capital Outlay For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$ 5,057,821.83 $ 8,000.00
$ 5,065,821.83 $

54,994.85 $ 4,782,252.07 20,000.00
54,994.85 $ 4,802,252.07

$ 745,241.59 $ 3,334,358.56

$ 745,241.59 $ 3,334,358.56

$ 4,077,025.27

0.00

0.00

$ 4,077,025.27 $ 745,241.59 $ 3,334,358.56

Total Liabilities and Fund Equity

$ 9,142,847.10 $ 800,236.44 $ 8,136,610.63

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

EXHIBIT"!"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECTS

LOTTERY PRO..'ECT 96/95S-644-029

INSTITUTIONAL CONSERVATION
PROGRAM

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

10,118,202.65 $

0.00 $

196,128.16 $ 10,314,330.81 $ 18,920,285.46

17,827,535.29 36,229,281.69

46,158.88

289,576.20

206,000.00

283,000.00

$

10,118,202.65 $

0.00 $

196,128.16 $ 28,394,024.98 $ 55,722,143.35

$

2,201,081.19

2, 155,858.30

$ _ _4-'-',_35;;..;6-'-',9;..;.3...;;..9._4.c....9

$ 9,895,068.75 $ 18,257,481.48

2,201,081.19

3,537,732.41

2,183,858.30

1,411,437.41

$ 14,280,008.24 $ 23,206,651.30

$

5,761,263.16

$

5,761,263.16

0.00 $

$

5,761,263.16 $

$

10,118,202.65 $

$
$ 0.00 0.00 $

196,128.16 $

196,128.16 $ 4,079,600.15 5,761,263.16

243,667.63 9,612,123.63 20,590,198.19

196,128.16 $ 10,036,991.47 $ 30,445,989.45

0.00

4,077,025.27

2,069,502.60

196,128.16 $ 14,114,016.74 $ 32,515,492.05

0.00 $

196,128.16 $ 28,394,024.98 $ 55,722,143.35

- 35 -

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

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

REGULAR

1989 BOND ISSUE
FUND

1993-A BOND ISSUE
FUND

$ 978,665.15 $ $ 978,665.15 $

76,430.55 $ 76,430.55 $

668,575.75 668,575.75

$

16,310.69 $

739,676.92

1,003, 154.87

866,315.10 $ 202,920.84
8,844.20

202,896.71 4,011,228.21
4,500.00

$ 1,759,142.48 $ 1,078,080.14 $ 4,218,624.92

$ "'.780,477.33 $ -1,001,649.59 $ -3,550,049.17

$ 2,800,000.00 -12,000.00 $
$ 2,788,000.00 $

-459,934.68 $ -459,934.68 $

-520,890.04 -520,890.04

$ 2,007,522.67 $ -1,461,584.27 $

2,069,502.60

2,206,825.86

-4,070,939.21 7,405,297.77

FUND BALANCE JUNE 30

$ 4,077,025.27 $

745,241.59 $

3,334,358.56

See notes to the general purpose financial statements. - 36 -

EXHIBIT"J"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECTS

LOTTERY PROJECT 96/95S-644-029

INSTITUTIONAL CONSERVATION
PROGRAM

TOTALS

YEAR ENDED

JUNE 30, 1996

JUNE 30, 1995

$

17,362,118.26 $

$

17,362,118.26 $

88,148.00 $

0.00 $

17,450,266.26 1,723,671.45 $

88,148.00 $ _ _ _ _ _0._00_ $ 19,173,937.71 $

1,643,202.18 1,643,202.18

$

540,004.99

32,462,398.10 $

171,680.92

$

33,174,084.01 $

$ -15,811,965.75 $

97,942.00 $
97,942.00 $ -9,794.00 $

$ 47,539.47

1,625,527.49 $ 37,561,705.54
1,188,179.99

26,923.03 34,286,710.76
3,738,582.90

47,539.47 $ 40,375,413.02 $ 38,052,216.69

-47,539.47 $ -21,201,475.31 $ -36,409,014.51

$

4,089,254.72

-3,096,430.00

$

992,824.72

$ -14,819,141.03 $ 20,580,404.19

-9,794.00 $ 9,794.00

$ 6,889,254.72 $ 12,209,794.00

-4,089,254.72

-7,309,794.00

$ 2,800,000.00 $ 4,900,000.00

-47,539.47 $ -18,401,475.31 $ -31,509,014.51

243,667.63

32,515,492.05

64,024,506.56

$

5,761,263.16 $

0.00 $

196,128.16 $ 14,114,016.74 $ 32,515,492.05

- 37 -

DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET
PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS JUNE 30, 1996

EXHIBIT "K''

ASSETS Cash and Cash Equivalents Investments Account Receivable Inventories
Total Assets

DENTAL RESERVE
FUND

WAREHOUSE SERVICE FUND

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

0.00 $

60,636.89 $

60,636.89 $ 242,319.93

. 300,000.00

300,000.00

88.67

88.67

220,265.18

220,265.18

2251990.32

$

0.00 $

580,990.74 $ 580,990.74 $ 468,310.25

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Claims Payable
Total Liabilities
FUND EQUITY
Retained Earnings Reserved for Inventories Unreserved Deficit Undesignated
Total Retained Earnings

$ 494,755.99 $
694,712.68 $ 1,189,468.67 $
$ $ -1, 189,468.67
$ -1, 189,468.67 $

$ 2,494.46 2,551.32

494,755.99 $ 2,494.46 2,551.32
694?12.68

5 045.78 $ 1,194,514.45 $

312,220.46 4,240.48 2,499.20
670,637.53
989,597.67

220,265.18 $ 220,265.18 $

355,679.78

-1, 189,468.67 355,679.78

575,944.96 $ -613,523. 71 $

225,990.32
-982,857.99 235,580.25
-521,287.42

Total Liabilities and Fund Equity

$

0.00 $

580,990.74 $

580,990.14 $ -===4.,.6=8.,3.._1o....2..s. =

See notes to the general purpose financial statements.

- 38-

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE -AGENCY FUNDS YEAR ENDED JUNE 30, 1996

EXHIBIT"L"

QDjfil!
ARMORED CAR SERVICE
ASSETS Cash and Cash Equivalents

BALANCE JULY 1, 1995

ADDITIONS

DEDUCTIONS

BALANCE JUNE 301 1996

$

0.00 $

681526.36 $

681526.36 $

0.00

LIABILITIES Funds Held for Others
EMPLOYEE'S ALTERNATIVE BENEFIT FUND ASSETS
Cash and Cash Equivalents Investments Account Receivable
Total Assets

$

0.00 $

681526.36 $ _ _ _ _o_.o_o

$

96,783.39 $ 26,234,446.78 $ 26,221,471.23 $

109,758.94

1,000,000.00

1,000,000.00

0.00

916.23

916.23

$

1110675.17

LIABILITIES Funds Held for Others
HEALTH SELF-INSURANCE TRUST FUND ASSETS
Cash and Cash Equivalents Investments
Total Assets

$ 11096?83.39 $ 26.2351363.01 $ 26,221i411.23 $ 1110515_11

$

73,479.80 $ 1,771,485.05 $

2,200,000.00 - - - - -

1,398,735.24 $ 100,000.00

446,229.61 2,100,000.00

$ 2,273,479.80 $ 1 771 485.05 $ 1,498,735.24 $ 2,546,229.61

LIABILITIES Funds Held for Others
RETIRED EMPLOYEE'S MEDICAL INSURANCE ASSETS
Cash and Cash Equivalents

$ 2,213,479.80 $ 11n1i485.o5 $ 1,498,735.24 s 2,546,229.61

$

1M84.62 $

54 655.13 $

73,223.99 $ _ _ _ _1..,5._.7_6

LIABILITIES Funds Held for Others

$

18 584.62 $

54,655.13 $

73,223.99 $ _ _ _ _1_5._.7_6

- 39-

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1996

EXHIBIT"L"

OTHER SALES TAX
ASSETS Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 11 1995

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30 1996
1

$

5 785.59 $

17 751.81 $

17 975.05 $

5 1562.35

$

5 785.59 $

17 751.81 $

11975.05 s _ _ _5,.,5,..6,_23..5..

ATHLETIC FUND
SALES TAX
ASSETS Cash and Cash Equivalents

$

-1 765.59 $

0.00 $

o.oo s _ _ _-1_1_6_5_.5_9

LIABILITIES Funds Held for Others

$

-1 765.59 $

0.00 $

o.oo s _ _ _-1_1_s_5._59_

STUDENT INSURANCE
ASSETS Cash and Cash Equivalents

$

-479.25 $

5 587.00 $

5 549.75 $ _ _ _-44...._2o..o..

LIABILITIES Funds Held for Others
DEKALB TECHNICAL INSTITUTE ADULT EDUCATION GRADUATION CEREMONY
ASSETS Cash and Cash Equivalents

$

-479.25 $

5 587.00 $

5 549.75 s _ _ _-4_4_2_.o_o

$

3,555.42 $

3 975.00 $

7,530.42 s_ _ _ _o...,oo._

LIABILITIES Funds Held for Others

$

3 555.42 $

3 975.00 $

7 530.42 $ _ _ __...oo..o..

-40-

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1996

EXHIBIT"L"

DEKALB TECHNICAL INTITUTE
CONCESSIONS
ASSETS Cash and Cash Equivalents

BALANCE JULY 11 1995

ADDITIONS

DEDUCTIONS

BALANCE JUNE 301 1996

$ 177 455.70 $

541528.18 $

241063.79 $

2071920.09

LIABILITIES Funds Held for Others

$

111i455_10 s

54,528.18 $

24,063.79 $

HOPE GRANT ASSETS
Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES Funds Held for Others
NEW CONNECTIONS ASSETS
Cash and Cash Equivalents

$ -771,769.87 $ 1,475,949.50 $ 610,107.50 - - - - -

746,358.79 $ 610,107.50

-42, 179.16

s -161 1662.37 s 1i415,949.5o s 1,356,466.29 s _ _-4_.2..1.1._9_.1_6

s -161,662.37 s 1,4751949.50 s 1,356,466.29 s _ _-4_.2..1.1..,.9,_.1.6..

$

0.00 $

900.00 $

1 112.92 s _ _ _-2_1_2_.9_2

LIABILITIES Funds Held for Others

$

0.00 $

900.00 $

1112.92 s ____-2_1_2._92_

PELL GRANT ASSETS
Cash and Cash Equivalents
LIABILITIES Expired Grant Balance Payable Funds Held for Others
Total Liabilities

$

12,288.96 $

684 553.37 $

100 090_00 s _ _ _-3_2_4..,7.,..6._7 1

$
$ _ _1_2_,2_8_8_.9_6

15,338.13 669,215.24 $

$
700,090.00

15,338.13 -18,585.80

$

12,288.96 $

684,553.37 $

100 090.00 s _ _ _-3_2_4_1_.6_1

-41 -

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE -AGENCY FUNDS YEAR ENDED JUNE 30. 1996

EXHIBIT"L"

DEKALB TECHNICAL INSTITUTE
SCHOLARSHIP FUND
ASSETS Cash and Cash Equivalents

BALANCE JULY1,1995

ADDITIONS

DEDUCTIONS

BALANCE
JUNE 30, 1996

$

231504.82 $

7750.00 $

131812.98 $

17 441.84

LIABILITIES Funds Held for Others
STUDENT CLUBS ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
STUDENT INSURANCE ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
SUNSHINE FUND ASSETS
Cash and Cash Equivalents

$

23i504.82 s

7 750.00 $

131812.98 s _ _ _11_44_1_.84_

$

2,737.06 $

10 014.22 $

12 833.92 s _ _ _ _-a_2_.64_ 1

$

2 737.06 $

10 014.22 $

121833.92 s _ _ _ _-8_2_.64_

$

3 193.00 $

9 126.45 $

101622.45 s _ _ _1..,6_9_1..,.o_o

$

31193.00 $

9 126.45 $

101622.45 s _ _ _1..,6_9_7_.o_o

$

1 201.51 $

3 535.00 $

6 505.51 s _ _ _-1..,1_6_9_.o_o

LIABILITIES Funds Held for Others

$

1 201.51 $

3 535.00 $

6 505.51 s _ _ _-1_1_6_9_.o_o

SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

$

-14 737.00 $

96 379.00 $

s_ _ 91 1991.00

-_10.I,3_4_9,_.o.o..

$

-14 737.00 $

961379.00 $

s_ _ 91,991.00

-_10,..34_9_.o_o

-42-

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE -AGENCY FUNDS YEAR ENDED JUNE 30. 1996

EXHIBIT"L"

DEKALB TECHNICAL INSTITUTE
VICA STATE CONFERENCE
ASSETS Cash and Cash Equivalents

BALANCE JULY 11 1995

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30. 1996

$

855.04 $

2 491.47 $

31000.00 $

346.51

LIABILITIES Funds Held for Others
TOTALS -AGENCY FUNDS ASSETS
Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES Expired Grant Balance Payable Funds Held for Others
Total Liabilites

$

855.04 $

2 491.47 $

s_ _ _ 31000.00

3_4_6,..5.1..

$ -369,326.80 $ 30,501,654.32 $ 29,403,463.40 $

728,864.12

3,200,000.00

100,000.00

3,100,000.00

610 107.50

916.23

610,107.50

916.23

s s s s 3A40,180.10

3015021510_55

30,113,570.90

$

15,338.13

$

15,338.13

$ 3,440,780.70 30,487,232.42 $ 30,113,570.90

3,814,442.22

$ 3,440,780.70 $ 3015021570.55 $ 30,113,570.90 $ 3,829,780.35

See notes to the general purpose financial statements.

-43-

DEKALB 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 Contract Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Nutrition Education and Training Program 1996 Contract Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U. S. Department of Direct Drug-Free Schools and Communities School Personnel Training 1994 Grant Federal Pell Grant Program 1995 Grant 1996 Grant Impact Aid 1996 Grant Federal Supplemental Educational Opportunity Grants 1995 Grant 1996 Grant Through Georgia Department of Education Elementary and Secondary Education Act Title I Education of Children with Disabilities 1996 Grant Grants to Local Educational Agencies 1995 Summer 1996 Grant 1996 Summer Title II Eisenhower Professional Development 1995 Regular 1996 Grant Foreign Languages Assistance 1995 Grant - Phase I 1995 Grant - Phase II Title VI Innovative Education Program Strategies 1996 Grant Title VII Immigrant Education 1995 Grant 1996 Grant Goals2000 State and Local Education Systemic Improvement Grants 1996 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.558 $

46,388.03

(2)

* 10.553

2,521,349.54

(2)

* 10.555

11,891,930.57 $ 25,161,778.26 (3)

10.564 * 10.550

5,000.00 1,188,969.16

(2) 1, 1881969.16

$ 15,653,637.30 $ 26,350,747.42

84.207 $
84.063 84.063
84.041
84.007 84.007

166,223.74 $
-5,561.00 690,114.37
22,145.65
-5,526.00 70,655.00

166,223.74
5,624.00 694,466.00
(5)
200.00 (3) 91,791.00 (3)

84.009 * 84.010 * 84.010 * 84.010
84.281 84.281 84.249 84.249
84.298
84.162 84.162

8,305.29 95,643.59 5,653, 178.90
821.67
45,022.00 125,239.09
2,976.89 23,152.07
516,497.78
23,518.80 77,882.39

8,305.29 138,396.48 5,653,560.45 (3)
821.67
52,592.76 125,239.09
2,976.89 23,152.07
516,497.78
26,762.24 77,882.39

84.276

9,600.00

9,600.00

- 44 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U.S. Department of Through Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Georgia Leaming Resources System 1996 Grant Severely Emotionally Disturbed 1996 Grant Part D - Special Education - Personnel Development and Parent Training Georgia Leaming Resources System 1995 Grant 1996 Grant Safe and Drug-Free Schools 1996 Grant Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant Through Georgia Department of Human Resources Safe and Drug-Free Schools 1996 Grant Through Georgia Department of Technical and Adult Education Adult Education 1996 Grant Job Opportunities and Basic Skills Training 1996 Grant Vocational Education Carl D. Perkins Vocational and Applied Technology Education Act Basic Grants to States Sex Equity 1996 Grant Single Parent 1996 Grant Title II 1996 Grant
Total U.S. Department of Education
Energy, U.S. Department of Through Office of the Governor State Energy Conservation Contract No. 87E433156

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 84.027 $
84.173 .. 84.027 .. 84.027

2,728,944.38 $ 472,601.67 182,867.41 468,189.20

2,728,944.38 472,601.67 182,867.41 468,191.81 (3)

84.029 84.029 84.186
84.196

5,270.00 281,504.61
30,561.49

575.00 5,270.00 281,504.61
30,561.49

* 84.048 84.243
84.186

540,568.09 24,788.32
6,000.00

540,568.09 24,788.32
6,000.00

84.002 93.561

479,782..00 82,338.00

523,565.65 (3) 82,818.93 (3)

. 84.048

6,618.00

6,619.44 (3)

* 84.048

48,227.00

60,516.70 (3)

* 84.048

438,901.00

618,262.81 (3)

$ 13,317,051.40 $ 131627z748.16

81.041

$

47 539.47 (3)

- 45 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Through Georgia Department of Human Resources Block Grants for Prevention and Treatment of Substance Abuse 1996 Grant Developmental Disabilities Basic Support and Advocacy Grants 1996 Grant Refugee and Entrant Assistance - Discretionary Grants Contract No. 427-93-51327 - Fiscal Year 1995
Total U. S. Department of Health and Human Services
Labor, U.S. Department of Through Atlanta Regional Commission Job Training Partnership Act Contract No. JT9545.1 Contract No. JT9617 Through Georgia Department ofTechnical and Adult Education Job Training Partnership Act 15-94-12-13-089 15-94-13-13-089 15-95-13-13-089 15-95-14-50-751 16-94-13-13-089 16-95-13-13-089 Through DeKalb County Private Industry Council Job Training Partnership Act Contract No. 95-6330 Contract No. 95-6331 Contract No. 95-6352 Contract No. 96-6537 Contract No. 96-6586
Total U.S. Department of Labor
OTHER FEDERAL ASSISTANCE
Defense, U.S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program Department of the Navy R.O.T.C. Program
Total Other Federal Assistance
Total Federal Financial Assistance

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.959 $

6,175.20 $

6,175.20

93.630 93.576

3,479.72 209,078.50

3,479.72 230,794.09 (3)

$

218,733.42 $

240,449.01

17.250 $

2,844.00

(4)

17.250

10,501.00

(4)

17.250 17.250 17.250 17.250 17.250 17.250

$
96,624.00 32,591.00
9,176.00

2,396.00 (3) 19,110.30 (3) 98,128.81 32,531.88
2,520.85 (3) 15,282.97

17.250 17.250 17.250 17.250 17.250
$

48,940.65 165,752.28 41,559.88
56,072.17 169,612.87
633,673.85 $

48,940.65 165,752.28
41,559.88 56,072.17 (4)
482,295.79

$

216,931.44

(4)

34,874.23

(4)

400,613.12

(4)

$

652,418.79

$ 30,475,514.76 $ 40,748,779.85

- 46 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
RECONCILIATION OF FEDERAL FINANCIAL ASSISTANCE TO FEDERAL FUNDS
Total Federal Financial Assistance Revenues in Period (Per Schedule}
Less: Fiduciary Fund Type - Agency Funds - Federal Funds (Not Reported as Federal Revenues in General Purpose Financial Statements) Pell Grant Supplemental Educational Opportunity Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ 30,475,514.76

$ 684,553.37 65,129.00

749,682.37

Total Federal Revenue (per General Purpose Financial Statements)

$ 29,725,832.39

Major Programs are identified by an asterisk (*) in front of the CFDA number.
(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, the School Breakfast Program and the Nutrition Education and Training 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. (5) Funds earned on this program do not require reporting of expenditures.

See notes to the general purpose financial statements.

- 47 -

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

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
First Union National Bank of Georgia, Atlanta, Georgia
Nations Bank of Georgia, N. A,
Atlanta, Georgia
South Trust Bank of Georgia, N. A,
Atlanta, Georgia
Sun Trust Bank, Atlanta, Georgia
Wachovia Bank of Georgia, N. A,
Atlanta, Georgia
INTEREST BEARING ACCOUNTS
Citizens Trust Bank, Atlanta, Georgia
Certificate of Deposit No. 12040930 (3.85%)
Fidelity National Bank, Atlanta, Georgia
Certificate of Deposit No. 1001585 (5.00%)
First Southern Bank, Atlanta, Georgia
Certificates of Deposit No. 010502018538 (5.05%) No. 010502473232 (5.20%) No. 010502641431 (5.27%)
OTHER
Petty Cash

$ 5,744,095.85
1,335,276.93 833,330.93
1,397,378.62 582,764.67
$ 9,892,847.00

$ 5,000,000.00 5,000,000.00

500,000.00 1,500,000.00
500,000.00

12,500,000.00

86,052.50 $ 22,478,899.50

See notes to the general purpose financial statements. - 48 -

DEKALB COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30. 1996

SCHEDULE "3"

U. S. GOVERNMENT OBLIGATIONS
South Trust Bank of Georgia, N. A., Atlanta, Georgia
Federal Home Loan Mortgage Corporation Note due July 5, 1996 (5.277%) Federal Home Loan Mortgage Corporation Note due July 5, 1996 (5.277%)
REPURCHASE AGREEMENTS
First Union National Bank of Georgia, Atlanta, Georgia
U.S. Treasury Note due July 2, 1996 (5.320%) U. S. Treasury Note due July 2, 1996 (5.320%) U.S. Treasury Note due July 2, 1996 (5.320%) U.S. Treasury Note due July 2, 1996 (5.320%) U.S. Treasury Note due July 2, 1996 (5.320%) U. S. Treasury Note due July 2, 1996 (5.320%) U.S. Treasury Note due July 2, 1996 (5.320%) U.S. Treasury Note due July 2, 1996 (5.320%) U. S. Treasury Note due July 2, 1996 (5.320%) U.S. Treasury Note due July 2, 1996 (5.320%) U.S. Treasury Note due August 26, 1996 (5.230%)
Sun Trust Bank, Atlanta, Georgia
U.S. Treasury Note due July 1, 1996 (5.000%)
Wachovia Bank of Georgia, N. A., Atlanta, Georgia
U.S. Treasury Note due July 1, 1996 (5.280%) U.S. Treasury Note due July 12, 1996 (5.270%)
State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (5.361%)

$ 12,998,453.81 697,936.78 $ 13,696,390.59

$ 13,000,000.00 1,000,000.00 350,000.00 3,900,000.00 800,000.00 3,100,000.00 1,000,000.00 1,600,000.00 2,100,000.00 300,000.00 4,100,000.00

31,250,000.00

1,600,000.00

$ 1,000,000.00 5,000,000.00

6,000,000.00

10,027,535.29

$ 62,573,925.88

See notes to the general purpose financial statements.

- 49 -

DEKALB COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

Atlanta Regional Commission Job Training Partnership Ad
City and County Governments Beverage Tax
DeKalb County Private Industry Council Job Training Partnership Ad
DeKalb County Tax Commissioner County Wide Bond Tax County Wide School Tax
Defense, U. S. Department of Department of the Army R.O.T.C. Program
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Other State Programs Alternative Programs Apprenticeship Program Georgia Leaming Resources System Part B - Special Education Part D - Special Education Innovative Programs Next Generation Schools Preschool Handicapped Program Severely Emotionally Disturbed State Funds Federal Funds Special Education Support Cost Tuition for the Multi-Handicapped Lottery Programs Alternative School Program lnstrudional Technology Model Technology Schools Next Generation Schools Postsecondary Options Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Foreign Languages Assistance Title VI Innovative Education Program Strategies Title VII Immigrant Education

- 50 -

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

614.00

$ 435,126.34

207,848.54

2,202,665.09

34,874.23

12,692.24 5,000.00
62,321.00 15,341.48

395,969.22 1,875,035.35
57,581.79
170,089.66
49,587.16 380.00
39,033.00 42,097.00
525,831.00 106,816.98
3,196.39 153,088.14
14,303.40 44,300.00
882.00

854,000.57 38,239.09 23,152.07 6,372.88 5,882.39

SCHEDULE "4" Page 1

DEBT SERVICE
FUND

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUNDS

FIDUCIARY FUND TYPE AGENCY FUNDS

TOTAL

$

614.00

435,126.34

207,848.54

$ 83,794.42

83,794.42 2,202,665.09

34,874.23

395,969.22 1,875,035.35
57,581.79
170,089.66 12,692.24
49,587.16 380.00
5,000.00 39,033.00 42,097.00
525,831.00 106,816.98 62,321.00
15,341.48
3,196.39 153,088.14 14,303.40 44,300.00
882.00

854,000.57
38,239.09 23,152.07
6,372.88
5,882.39 - 51 -

DEKALB COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

Education, Georgia Department of Federal Programs Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Safe and Drug-Free Schools
Contracts State Funds Georgia Challenge Program Implementation of Department's Elementary School Foreign Languages Model Program
Education, U. S. Department of Safe and Drug-Free Schools
Human Resources, Georgia Department of Block Grants for Prevention and Treatment of Substance Abuse Developmental Disabilities Basic Support and Advocacy Grants Refugee and Entrant Assistance
Office of School Readiness Pre-Kindergarten Program
Technical and Adult Education, Georgia Department of Job Opportunities and Basic Skills Training Job Training Partnership Act Vocational Education Carl D. Perkins Vocational and Applied Technology Education Act
Various Sources Interest Earned Nonsufficient Funds Checks Overpayment of Various Employee Withholding Accounts Registration, Supply and Tuition Fees Sales Breakfast and Lunches Vendor Credit Memos

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 419,453.59 91,601.67 44,504.61

$

705.67

38,854.26

69,050.00

6,755.00 3,479.72

37,458.03

1,340,033.45

21,792.00 47,829.00

7,347.00

253,836.80 4,472.30

103.44 $ 46,158.88 41,127.99
348,445.76 207,395.72
11,371.15

$ 3,076,124.13 $ 7,301,814.04 $ 46,158.88

See notes to the general purpose financial statements.

- 52 -

SCHEDULE "4" Page2

DEBT SERVICE
FUND

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUNDS

FIDUCIARY FUND TYPE AGENCY FUNDS

TOTAL

$ 64,535.43 $ $ 148,329.85 $

$

419,453.59

91,601.67

44,504.61

705.67 38,854.26
69,050.00

6,755.00 3,479.72 37,458.03
1,340,033.45

88.67 $

916.23

21,792.00 47,829.00
7,347.00
365,639.45 41,127.99
4,472.30 348,445.76
207,395.72 11,371.15

88.67 $

916.23 $ 10,573,431.80

=====

- 53 -

TJDS PAGE LEn BLAHK

DEKALB COUNTY BOARD OF EDUCATION NOTES RECEIVABLE JUNE 30, 1996

SCHEDULE "5"

Sale of School Assets Yeshiva High School, Incorporated

GOVERNMENTAL FUND TYPE CAPITAL
PROJECTS FUND
$====2=os='=oo=o=.o=o

See notes to the general purpose financial statements. - 55 -

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

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1997 1998 1999 2000 2001
2002 2003 2004 2005 2006
2007 2008 2009 2010 2011
2012

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$ 13,169,025.00 $ 13,476,093.13 8,363,598.75 8,494,643.75 8,875,330.63

5,179,025.00 $ 4,791,093.13 4,368,598.75 4,189,643.75 3,985,330.63

7,990,000.00 8,685,000.00 3,995,000.00 4,305,000.00 4,890,000.00

8,930,611.26 9,050,016.26 9,102,687.51 9,202,546.26 9,330,405.01

3,755,611.26 3,505,016.26 3,232,687.51 2,937,546.26 2,615,405.01

5,175,000.00 5,545,000.00 5,870,000.00 6,265,000.00 6,715,000.00

9,457,080.63 9,574,702.50 9,727,052.50 9,845,642.50 9,224,010.00

2,262,080.63 1,874,702.50 1,452,052.50
965,642.50 439,010.00

7,195,000.00 7,700,000.00 8,275,000.00 8,880,000.00 8, 785;000.00

2,944,218.75

89,218.75

2,855,000.00

$ 148,767,664.44 $ 45,642,664.44 $ 103,125,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired During Period
Bonds Payable at June 30, 1996
MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date

TOTAL

1993-A ISSUE

$ 110,510,000.00 $ 51,835,000.00

7,385,000.00

1,090,000.00

$ 103,125,000.00 $ 50,745,000.00

JAN 1 - JUL 1 JUL 1

See notes to the general purpose financial statements.

- 56 -

SCHEDULE "6"

1993-A ISSUE

INTEREST

PRINCIPAL

1993 REFUNDING ISSUE

INTEREST

PRINCIPAL

1992 REFUNDING ISSUE

INTEREST

PRINCIPAL

$ 2,540,760.00 $ 1,400,000.00 $ 2,087,747.50 $ 1,445,000.00 $ 550,517.50 $ 5,145,000.00

2,483,700.00

1,580,000.00

2,023,252.50

1,695,000.00 284,140.63

5,410,000.00

2,414,760.00

1,860,000.00

1,947,388.75

1,895,000.00

6,450.00

240,000.00

2,329,773.75

2,205,000.00

1,859,870.00

2,100,000.00

2,226,707.50

2,555,000.00

1,758,623.13

2,335,000.00

2,109,410.00 1,980,127.50 1,838,811.25 1,686,127.50 1,518,658.75

2,715,000.00 2,965,000.00 3,145,000.00 3,350,000.00 3,625,000.00

1,646,201.26 1,524,888.76 1,393,876.26 1,251,418.76 1,096,746.26

2,460,000.00 2,580,000.00 2,725,000.00 2,915,000.00 3,090,000.00

1,334,227.50 1,131,652.50
909,832.50 626,562.50 318,750.00

3,900,000.00 4,200,000.00 4,540,000.00 5,360,000.00 4,490,000.00

927,853.13 743,050.00 542,220.00 339,080.00 120,260.00

3,295,000.00 3,500,000.00 3,735,000.00 3,520,000.00 4,295,000.00

89,218.75

2,855,000.00

$ 25,539,080.00 $ 50,745,000.00 $ 19,262,476.31 $ 41,585,000.00 $ 841,108.13 $ 10,795,000.00

1993 REFUNDING
ISSUE

1992 REFUNDING
ISSUE

$ 42,940,000.00 $ 15,735,000.00

1,355,000.00

4,940,000.00

$ 41,585,000.00 $ 10,795,000.00

JAN 1 - JUL 1 JUL 1

JAN 1 - JUL 1 JUL 1

- 57 -

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

SCHEDULE '711

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Training Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Georgia Leaming Resources System Governor's Emergency Funds (1) Health Insurance Innovative Programs Mentor Teacher Program Mentoring Program Next Generation Schools Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Severely Emotionally Disturbed Special Education Support Cost Teachers' Retirement Tuition for the Multi-Handicapped Lottery Programs Alternative School Program Applied Technology Labs Equipment - Technical Institutes Exceptional Growth - Capital Outlay Instructional Technology Model Technology Schools Next Generation Schools Postsecondary Options Pre-Kindergarten Program Safe Schools Grant Technology Installation

$ 153,099,680.00
27,779,453.00 4,845,255.00 6,650,574.00 2,127,281.00
40,243,355.00
4,143,595.00 1,219,644.00 2,780,566.00 1,906,305.00 1,046,869.00
980,771.00 466,418.00 747,185.00 5,311,545.00 -56,092,284.00
56,986.00
$
1,200.00
108,692.24 426,187.72
1,497.85
3,993.90 7,427, 168.22
3,786.84 46,215.00 11,955.91
279,135.71
119,868.49
240,545.00 1,243,574.26
15,341.48

1,681,942.00
450,939.67
75,674.00
38,924.29 849,097.00 2,842,505.00
23,196.39 198,794.23
95,776.00
$
1,633,622.41 44,959.55 44,300.00 882.00
3,327,879.05 228,091.00
1,047,501.68

$ 153,099,680.00
27,779,453.00 4,845,255.00 6,650,574.00 2,127,281.00
40,243,355.00

4,143,595.00 1,219,644.00 2,780,566.00 1,906,305.00 1,046,869.00
980,771.00 466,418.00 747,185.00 5,311,545.00 -56,092,284.00
56,986.00 1,681,942.00
1,200.00

450,939.67 108,692.24 426,187.72
1,497.85 75,674.00
3,993.90 7,427,168.22
3,786.84 46,215.00 11,955.91 38,924.29 279,135.71 849,097.00 119,868.49 2,842,505.00 240,545.00 1,243,574.26 15,341.48

88,148.00

23,196.39 198,794.23
95,776.00 88,148.00 1,633,622.41 44,959.55 44,300.00
882.00 3,327,879.05
228,091.00 1,047,501.68

- 58 -

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

SCHEDULE '7"

AGENCY/FUNDING

GRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects

Office of School Readiness Pre-Kindergarten Program

Office of Treasury and Fiscal Services

Public School Employees Retirement

$

Technical and Adult Education, Georgia Department of Vocational - Technical School Operations

CONTRACTS Education, Georgia Department of Implementation of Department's Elementary School Foreign Languages Model Program Implementation of School-Based Leadership Development Activities in Those Schools Represented in the Governor's School Leadership Institute

OTHER Governor, Office of the Georgia Challenge Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 17,362,118.26 $ $ 2,387,160.45 754,695.00
8,996,563.00

99,060.00 3,000.00
45 705.67

TOTAL
17,362,118.26 2,387,160.45
754,695.00 8,996,563.00
99,060.00 3,000.00
45,705.67

$ 208,144,821.29 $ 23,967,807.72 $ 17,450,266.26 $ 249,562,895.27
(1) The purpose of the funds are for 1996 Georgia School of Excellence at Rainbow Elementary School and Cross Keys High School.

See notes to the general purpose financial statements.

- 59 -

DEKALB COUNlY BOARD OF EDUCATION SCHEDULE OFTAXES AND OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "8"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

Taxes Beverage Tax County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax

$ 4,570,216.11
240,582,579.29 36,783.65
1,098,899.97

$ 4,570,216.11

$ 10,102,814.80

10,102;814.80

240,582,57929

1,456.46

38,240.11

53,652.46

1, 152,552.43

Other Sources Administrative Allowance Advertising Broadcasting Commodity Hauling Compensation for Loss of Assets Graduation Fees Insurance Recovery Interest Earned Job Opportunities and Basic Skills Training Program Human Resources, Georgia Department of Family and Children Services Division Jury Duty Fees Lost and Damaged Books Lost and Damaged Identification Cards Registration Fees Reimbursement for Salaries Various Sources Rents Returned Check Fees Sales Admission Receipts Adult Meals Breakfast Brochures Concessions Contracted Meals Lunches Other School Assets Supplemental Sales Tax Commissions Testing Fees Tuition Vendor Refunds Other

$ 111,899.96 5,529,733.23

7,143.00 7,414.20 1,522.15

507.44 $ 9,614.00
243,911.39

8,818.00
63,946.86 1,516,654.44

699,862.71

5,716.50 107,416.61
6,885.72 8,865.00 39,300.00 760,717.02
37,253.33
75,858.05 493.78
38,372.50 636,996.90
95,786.83 28,020.15

199,053.83
409,513.11
59,337.50 2,800.00
571,997.21 846,814.37 328,694.00
56.00 241,020.08 730,833.10 5,156,841.61
805.15
1,781,896.08
80,748.50 3,138,147.58
13,027.19

24,897.50 109,354.65

7,143.00 7,414.20 1,522.15 111,899.96 9,325.44 9,614.00 63,946.86 7,990,161.77
199,053.83 5,716.50
107,416.61 6,885.72
418,378.11
39,300.00 820,054.52
2,800.00
609,250.54 846,814.37 328,694.00
56.00 241,020.08 730,833.10 5,156,841.61
805.15 100,755.55 1,781,896.08
493.78 119,121.00 3,775,144.48
95,786.83 150,401.99

$ 253,771,794.60 $ 13,831,697.49 $ 1,723,671.45 $ 10,857,786.43 $ 280,184,949.97

See notes to the general purpose financial statements.

- 60 -

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

SCHEDULE "9"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Tuition Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 320,235,392.48 $ 35,425,910.48 $ 355,661,302.96

96,124,986.39

8,710,463.99

104,835,450.38

391,509.22

177,807.22

569,316.44

7,007,648.11

2,363,698.99

9,371,347.10

116,026.31

713.00

116,739.31

1,219,039.54

14,649.80

1,233,689.34

2,030,262.98

322,059.17

2,352,322.15

1,991,971.63

9,968.03

2,001,939.66

1,516,460.95

26,900.50

1,543,361.45

1,205,282.51

128,287.71

1,333,570.22

882.00

882.00

94,258.98

102,918.76

197,177.74

7,679,745.33

3,770,893.87

11,450,639.20

11,084,666.54

335,480.84

11,420,147.38

12,280,635.71

12,280,635.71

5,418,286.21

141,897.70

5,560,183.91

8,613.00

12,533.80

21,146.80

5,467.12

5,467.12

6,294,836.06

5,220, 139.37

11,514,975.43

Total Expenditures

$ 462,418,986.24 $ 69,051,308.06 $ 531,470,294.30

See notes to the general purpose financial statements. - 61 -

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Communications Tuition Supplies
Nonoperating Costs Building and Building Improvements Equipment

ALTERNATIVE SCHOOL PROGRAM

APPLIED TECHNOLOGY
LABS

EQUIPMENTTECHNICAL INSTITUTES

EXCEPTIONAL GROWTHCAPITAL OUTLAY

INSTRUCTIONAL TECHNOLOGY

$

3,262.10

2,980.29

$

88,765.05

16,954.00 $ 198,794.23 $

$ 97,860.76

97,942.00

1,544,857.36

Total Expenditures

$ 23,196.39 $ 198,794.23 $

97,860.76 $

97,942.00 $ 1,6331622.41

See notes to the general purpose financial statements.

- 62 -

SCHEDULE "10"

MODEL TECHNOLOGY
SCHOOLS

NEXT GENERATION
SCHOOLS

POSTSECONDARY OPTIONS

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

$

7,040.76

848.00 $

37,918.79

43,452.00

$

44,959.55 $

44,300.00 $

$ 882.00
882.00 $

3,414,367.15 1,069,478.85
12,579.96 433,459.99
4,503.42
761,566.64

$ 3,414,367.15

1,069,478.85

12,579.96

$

97,415.00

534,985.09

4,503.42

882.00

860,352.74

19 083.49 $

228,091.00

950,086.68

97,942.00 3,137,098.31

5,715,039.50 $

228,091.00 $ 1,047,501.68 $ 9,132,189.52

- 63 -

THIS PAGE LEn BLAHK

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

SCHEDULE "11"

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

$ 197,686,507.00 $

6,255,019.00

$ 262,310,265.69

13,913,514.08 $

12,297,175.86

$ 276,223,779.77

-4,920,692.55 $ 271,303,087.22

$

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

See notes to the general purpose financial statements. - 65 -

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

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

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ....!2....

ORIGINAL

MID-TERM

$ 15,526,379.00 40,364,150.00
$ 55,890,529.00 20,875,908.00 35,122,330.00 27,378,5TT.OO 9,049,285.00 4,783,051.00
$ 153,099,680.00

$ 13,973,741.10 $

36,327,735.00

90 $ 50,301,476.10 $

90

18,788,317.20

90

31,610,097.00

90

24,640,719.30

90

8,144,356.50

90

4,304,745.90

$ 137,789,712.00 $

0.00 0.00 5,311,545.00
5,311,545.00

$ 25,393,827.00

$ 22,854,444.30 $

0.00

$ 25,393,827.00 2,385,626.00
$ 27,779,453.00 $ 4,845,255.00 $ 185,724,388.00

90 $ 22,854,444.30 $

90

2,147,063.40

$ 25,001,507.70 $

90 $ 4,360,729.50 $

$ 167.151,949.20 $

0.00
0.00 0.00 5,311,545.00

$ 5,318,046.00 90 $ 4,786,241.40 $

0.00

1,332,528.00 90

1. 199,275.20

$ 6,650,574.00

$ 5,985,516.60 $

0.00

$ 192,374,962.00

$ 173,137,465.80 $ 5,311,545.00

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

$

524,914.00

$

524,914.00 $

0.00

1,602,367.00

1,602,367.00

0.00

====== $ 2,127,281.00 100 $ 2,127,281.00 $

0.00

- 66 -

SCHEDULE "12"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 13,973,741.10 $ 18,m,830.82 $

583,122.41 $ 19,360,953.23

36,327,735.00

47,406,324.24

856,993.85

48,263,318.09

$ 50,301,476.10 $ 66,184,155.06 $ 1,440,116.26 $ 67,624,271.32 $

0.00

18,788,317.20

23,544,731.51

608,968.24

24,153,699.75

0.00

36,921,642.00

53,694,016.20

4,415,458.32

58,109,474.52

0.00

24,640,719.30

38,737,682.78

4,641,785.89

43,379,468.67

0.00

8,144,356.50

10,612,565.59

218,937.99

10,831,503.58

0.00

4,304,745.90

8,269,393.47

434,366.12

8,703,759.59

0.00

$ 143,101,257.00 $ 201,042,544.61 $ 11,759,632.82 $ 212,802,177.43

$ 22,854,444.30 $

14,328,004.73 $ 5,128,425.88 15,334,848.39 4,301,619.65

98,300.53 $ 63,888.59 123,350.05 136,912.44

14,426,305.26 5,192,314.47 15,458,198.44 4,438,532.09

$ 22,854,444.30 $ 39,092,898.65 $

422,451.61 $ 39,515,350.26

0.00

2,147,063.40

3,942,399.92

46,792.43

3,989,192.35

0.00

$ 25,001,507.70 $ 43,035,298.57 $

469,244.04 $ 43,504,542.61

$ 4,360,729.50 $ 8,277,494.18 $

68,299.00 $ 8,345,793.18

0.00

$ 172,463,494.20 $ 252,355,337.36 $ 12,297,175.86 $ 264,652,513.22

$ 4,786,241.40 $ 9,954,928.33

$ 9,954,928.33

0.00

1,199,275.20

$ 1,616,338.22

1,616,338.22

0.00

$ 5,985,516.60 $ 9,954,928.33 $ 1,616,338.22 $ 11,571,266.55

$ 178,449,010.80 $ 262,310,265.69 $ 13,913,514.08 $ 276,223,779.77 $

0.00

$

524,914.00

1,602,367.00

$ 2,127,281.00

$ 1,167,093.24 $ 1,167,093.24

1,279,374.10

1,279,374.10

$ 2,446,467.34 $ 2,446,467.34 $=======0.=00=

- 67 -

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

SCHEDULE "13"

BOARD MEMBER ADDRESS
Mr. William Bradley Bryant, Chairman (*)
2548 Leslie Drive, N. E., Atlanta, Georgia 30345
Mr. Phil McGregor, Vice Chairman (*)
3484 Spring Run Drive Decatur, Georgia 30032
Ms. Elizabeth Andrews (*)
2668 East McKinnon Drive Decatur, Georgia 30030
Ms. Frances Edwards (*)
2948 Chukar Trail Decatur, Georgia 30034
Ms. Lynn Cherry Grant (*)
1410 Willivee Drive Decatur, Georgia 30033
Ms. Donna Wagner (*)
1209 Sherrington Drive Stone Mountain, Georgia 30083
Mr. J. David Williamson (*)
5406 Leatherstocking Lane Stone Mountain, Georgia 30087
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

12,000.00 $

4,044.00

12,000.00

4,163.61

12,000.00

6,531.39

12,000.00

3,615.00

12,000.00

6,806.95

12,000.00

3,953.36

12,000.00

3,625.00

$

84,000.00 $ ====32=,7=39=.3=1

See notes to the general purpose financial statements.

- 68 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 1, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the DeKalb County Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the DeKalb County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 1, 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 DeKalb County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests 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.
Respectfully submitted,

CLV:cm 96CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 1, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the DeKalb County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 1, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the DeKalb County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

96CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the DeKalb County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:cm 96CRL-50

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 1, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the DeKalb County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 1, 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 DeKalb County Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the DeKalb County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

96CRL-90

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the DeKalb County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
The results of our audit procedures disclosed an immaterial instance ofnoncompliance with the requirements referred to above which is described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance ofnoncompliance in forming our opinion on compliance, which is expressed in the following paragraph.
In our opinion, the DeKalb County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~~
Claude L. Vickers
State Auditor
CLV:cm 96CRL-90

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 1, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members of the DeKalb County Board of Education
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the DeKalb County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 1, 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 DeKalb County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:
Types of Services Allowed or Unallowed
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the DeKalb County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the DeKalb County Board of Education had not complied, in all material respects, with those requirements.
96CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 96CRL-120

Claude L. Vickers State Auditor

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 1, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the DeKalb County Board of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the DeKalb County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 1, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management of the DeKalb County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because
of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
96ICL-3

In planning and performing our audit ofthe general purpose financial statements ofthe DeKalb County Board
ofEducation for the year ended June 30, 1996, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding ofthe design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose 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 ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) 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, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe DeKalb County Board of Education's financial statements and this report does not affect our report thereon dated July I, 1997.
96ICL-3

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
tr~~
Claude L. Vickers State Auditor
CLV:cm 96ICL-3

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 1, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe DeKalb County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the DeKalb County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated July 1, 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 Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 1, 1997.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the DeKalb 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 July 1, 1997.
96ICL-7

The management ofthe DeKalb County Board of Education is responsible for establishing and maintaining
an internal control structure. In fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose :financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation ofpolicies and procedures may deteriorate.

For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level of Effort, and/or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements

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

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

During the year ended June 30, 1996, the DeKalb County Board of Education expended 84% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which

96ICL-7

are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted 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 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 ofone 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 DeKalb County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated July 1, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 96ICL-7

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6441-93-03
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$28,070.00 for the StaffDevelopment - Professional Development Program. During the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $243,938.16 Audit Control Number 6441-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$243,938.16 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 of Education to refund this underexpenditure as required. The underexpenditure of $243,938.16 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.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6441-93-01
The audit report for the year ended June 30, 1995, noted that the management of the DeKalb County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory 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.
- 1-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 6441-95-01
The audit report for the year ended June 30, 1995, noted that the DeKalb Technical Institute had not provided for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. During the year under review, no improvements were noted. This condition was a result of management not assigning employee duties in a manner to adequately safeguard assets and/or promote efficiency and accuracy in key accounting functions. The DeKalb Technical Institute should formulate and implement changes in personnel to achieve an adequate system of internal control for key accounting functions.
Note: Federal financial assistance programs affected by this finding are as follows:
Job Training Partnership Act (CFDA 17.250) Vocational Education (CFDA 84.048) Refugee and Entrant Assistance - Discretionary Grant (CFDA 93.576)
ADMINISTRATIVE REQUIREMENTS Inadequate Financial Records Federal Financial Assistance Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 6441-95-02
The audit report for the year ended June 30, 1995, noted that accounting records applicable to the DeKalb Technical Institute for the Job Training Partnership Act program (CFDA 17.250) funded through the Atlanta Regional Commission, DeKalb Private Industry Council, Incorporated and the Georgia Department of Technical and Adult Education were not maintained on an individual contract basis. During the year under review, the DeKalb Technical Institute again failed to maintain accounting records on an individual contract basis as required. Accounting records should be adequately segregated to ensure identification of revenues and expenditures on a contract by contract basis as required by 34 CFR 80.20.
-2-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR
OTHER REQUIREMENT - CLAIMS FOR ADVANCES AND REIMBURSEMENTS Failure to Submit Monthly Request for Reimbursement on a Timely Basis Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6441-95-03
The audit report for the year ended June 30, 1995, noted that the DeKalb Technical Institute failed to submit monthly requests for reimbursement on a timely basis to the Atlanta Regional Commission and the DeKalb Private Industry Council, Incorporated from whom the Institute received Job Training Partnership Act (CFDA 17.250) program funds. During the year under review, the Institute again failed to submit monthly requests for reimbursement on a timely basis. Agreements with the aforementioned grantors require that monthly requests for reimbursement for expenditures/charges incurred be submitted by the fifth day of the following month. This condition occurred because management failed to ensure timely submission of request for reimbursement. The Institute should establish procedures to ensure that requests are submitted as required by the grant agreements.
CURRENT YEAR
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6441-96-01
For the year under review, the accounting procedures applicable to the DeKalb Technical Institute were inadequate to provide for adequate internal control over cash assets of the Board. Deficiencies are summarized as follows:
(1) The June 1996 bank reconciliation for the general operating account did not agree with the general ledger presented for audit.
(2) Deposits in transit on the bank reconciliation at fiscal year-end for the general operating account did not clear the bank statement in July and personnel at the DeKalb Technical Institute could not provide any supporting documentation concerning these deposits.
(3) Bank reconciliations were not prepared in a timely manner for all of fiscal year 1996. A review of bank reconciliations indicates a delay of thirteen (13) months between month end and reconciliation date.
-3-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CURRENT YEAR
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6441-96-01
(4) Numerous checks outstanding at June 30, 1995 were outstanding in excess of twelve (12) months and some checks were outstanding for as long as fifteen (15) months. This occurred even though DeKalb Technical Institute's policy is to void checks 90 days after issuance. As of June 30, 1996, the general operating account had fourteen (14) checks totaling $1,758.75 from the June 30, 1995 outstanding check list which were still outstanding.
(5) A review of checks issued for the general operating account disclosed that checks were not issued sequentially.
These deficiencies were a result of management's failure to adequately manage cash assets of the DeKalb Technical Institute. The Board should establish internal controls to ensure that monthly bank statements are reconciled with the accounting records on a timely basis, checks are voided according to the Institute's policy and checks are issued in sequential order.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Unearned Lottery Funds Financial Statements Nonmaterial Noncompliance Amount: $52,550.00 Audit Control Number 6441-96-02
For the year under review, it was noted that the DeKalb Technical Institute received $52,550.00 in Hope Financial Aid Program funds in excess ofthe amount needed to cover program expenditures. This situation occurred because of management's failure to properly void checks in the general operating cash account and lack of awareness of the program procedures and requirements concerning the Hope Financial Aid Program. The Institute should develop procedures to ensure Hope Financial Aid Program checks are properly voided. The Institute should refund unearned lottery funds in the amount of $52,550.00 to the Georgia Student Finance Commission.
-4-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996

CURRENT YEAR

GENERAL LEDGER Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6441-96-03

For the year under review, the general ledger as presented for audit by the DeKalb Technical Institute was out ofbalance. This condition occurred because management did not reconcile and correct the accounting records of the Institute in a timely manner. This condition first occurred in January 1996 and management waited until the June 1996 bank statement was reconciled in May 1997 to correct the general ledger for fiscal year 1996. The DeKalb Technical Institute should establish procedures to ensure that monthly general ledgers are analyzed and corrected in a timely manner.

GENERAL LEDGER Inadequate Accounting Procedures Financial Statements Reportable Condition - Material Weakness Audit Control Number 6441-96-04

The general ledger for the DeKalb Technical Institute as presented for audit was not closed out at the end of the fiscal year (June 30, 1996). This condition occurred because the management of the Institute disregarded proper accounting procedures. Procedures should be developed to ensure that general ledgers are closed out in a timely manner and records presented for audit are in correct order.

FEDERAL FINANCIAL REPORTS Failure to Submit Completion Reports by Due Date Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6441-96-05

A review of program project completion reports submitted by the Board to the Georgia Department of Education for the year under review showed that required reports were not submitted by the due dates as listed below:

REPORT SUBMITTED DE 0375 Project Completion Reports for Title I 1995 Summer 1996 Grant DE 1220 Final Report of Expenditures for Vocational Education 1996 Grant

DUE DATE

DATE SUBMITTED

August 14, 1995

October 25, 1995

September 30, 1996 January 14, 1997

September 30, 1996 October 11, 1996

-5-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR
FEDERAL FINANCIAL REPORTS Failure to Submit Completion Reports by Due Date Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6441-96-05
This situation occurred because the Board failed to establish procedures to ensure timely submission ofthe project completion reports as required by the Georgia Department of Education. Appropriate procedures should be implemented by the Board to ensure that each completion report is submitted by the required due date.
FEDERAL FINANCIAL REPORTS Expired Grant Balance/Questioned Cost Federal Financial Assistance Nonmaterial Noncompliance Amount $59.12 Audit Control Number 6441-96-06
An analysis ofthe Job Training Partnership Act (CFDA 17.250) projects funded by the Georgia Department of Technical and Adult Education for the DeKalb Technical Institute revealed an unexpended grant balance in the amount of$59.12. This situation occurred because the management ofthe DeKalb Technical Institute did not properly account for its Job Training Partnership Act funds on a contract-by-contract basis. As a result, revenues and expenditures were not correctly recorded and analyzed. The unexpended grant balance of$59.12 should be refunded to the Georgia Department of Technical and Adult Education.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 6441-96-07
Property management records maintained by the Board for the following programs were incomplete and failed to meet property management standards as set forth in Chapter 41, ofthe Financial Management for Georgia Local Units of Administration (FMGLUA).
National School Lunch Program (CFDA 10.555) Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies (CFDA 84.010)
-6-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CURRENT YEAR
ADMINISTRATIVE REQUIREMENTS
Inadequate Inventory Records Federal Financial Assistance Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 6441-96-07
The inventory records as presented for audit did not contain additions for certain purchases made in the period under review. This condition occurred because management did not ensure that all equipment purchases were included in property management records. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41, of the FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records.
REPORTING DE O106 not Supported by Accounting Records Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6441-96-08
A comparison of the Board's School Nutrition Claim Data Form (DE 0106) and the accounting records for the Food Distribution Program (CFDA 10.550) revealed that the Board could not support the amounts reported for the USDA Commodities ending inventory and the USDA Commodities received per month. This condition occurred due to management's failure to maintain documentation to support the accuracy of reports submitted to the Georgia Department of Education in accordance with the State Agency's School Nutrition Program record keeping guide. U.S. Department of Agriculture regulations included in 7 CFR 210.9, 3015 and 250.16 mandate that financial management systems provide for accurate, complete and current disclosure of the financial results of these U. S. Department of Agriculture programs. Procedures should be implemented to ensure that the DE 0106 Forms are accurate, verifiable to the accounting records and adequately documented.
-7-

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

DEKALB COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1996
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $243,938.16 Audit Control Number 6441-94-01
This finding has been resolved through the Georgia Department ofEducation with no loss of dollars to the DeKalb County School System.
Note: The DeKalb County Board of Education has elected not to provide comments for inclusion in this report other than the above.