Audit report, Douglas County Board of Education, Douglasville, Georgia, year ended June 30, 1995

GA Aioo . RI
E ~C:, Dl3
1994-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT DOUGLAS COUNTY BOARD OF EDUCATION
DOUGLASVILLE, GEORGIA YEAR ENDED JUNE 30, 1995

DOUGLAS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

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

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

30

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

32

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

34

2 CASH AND CASH EQUIVALENTS

36

3 INVESTMENTS

37

4 ACCOUNTS RECEIVABLE

39

5 DEBT SERVICE REQUIREMENTS TO MATURITY

40

DOUGLAS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

6

STATE

42

7

LOCAL AND OTHER

43

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

45

9

LOTTERY PROGRAMS

46

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

49

11

BY PROGRAM

50

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

52

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable ZeU Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Douglas County Board ofEducation
INDEPENDENT AUDITOR'S CO:MBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Douglas County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General ofthe 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.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
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:
95ARL-13*

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the General Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and 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 Douglas County Board ofEducation as of June 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated August 7, 1996, on our consideration of the Board's internal control structure and a report dated August 7, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Douglas County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements ofthe Douglas County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect ofadjustments, ifany, on the General Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
95ARL-13*

A copy ofthis report has been filed as a pennanent 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 subg!ted,
/4~~
Claude L. Vickers State Auditor
CLV:dt 95ARL-13*

DOUGLAS COUNTY BOARD OF EDUCATION - 1-

QQU~~SCOUNTYBOARDOFEDUCATION QOMBINEQ BALANCE SHEET
&.L EUND TYPES AND ACCOUNT GROUP
JUNE 30. 1995

~
Cash and Cash Equivalents
Investments
Accounts Receivable
Due from Other Funds
Inventories Consumable Supplies Food Donated Commodities Purchased Food
Amount Available In Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 952,737.80 $

770,497.83

$ 9,588,149.45

18,636,027.44

352,212.68

840,357.48

336,043.50

136,147.47 68,731.12

Total Assets

$ 10,276,405.63 $ 1,997,973.87 $ 19,406,525.27

L!A!;!ILmE AND E!.,!NQ L;QUITY
L!Al;!ILITII;;
Cash Overdraft Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Due to Other Funds Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
E!.!NPEQUITY
Fund Balances Reseived For Bus Replacement Funds For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Consumable Supplies Food Donated Commodities Purchased Food For Purposes of Bond Issue For State Capital Outlay Projects
Unreseived Designated For Equipment Purposes For Self-Insurance Undesignated
Total Fund Equity

$

367,808.27

8,208.13 $

31,534.66

4,955,296.50

101,110.52 402,286.08
37,787.85 $

26,214.46 108,245.01 89,296.03

$ 5,362,847.56 $ 541,184.45 $

223,755.50

$

188,941.74

30,035.47

336,043.50

$ 136,147.47 68,731.12 $ 18,867,323.77 315,446.00

$

555,020.71 $ 204,878.59 $ 19,182,769.77

142,608.68

168,781.04

4,189,756.32

1,109,302.15

0.00

$ 4,913,558.07 $ 1,456,789.42 $ 19,182,769.77

Total Liabilities and Fund Equity

$ 10,276,405.63 $ 1,9971973.87 $ 19,406,525.27

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

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onl~ JUNE 301 1995 JUNE 301 1994

$ 241,689.60

$ 1,964,925.23 $ 3,361,098.83

937,05327

29,161,230.16

6,384,545.94

5,690.72

1,198,260.88

1,374,575.67

89,296.03

89,296.03

336,043.50

479,916.57

136,147.47 68,731.12

121,320.01 40,863.74

$

1,184,433.59

1,184,433.59

1,005,266.51

67,530,566.41

67,530,566.41

49,324,733.49 135,334.16

$ 1a73,729.62 s

68,715,000.00 $ 101,669,634.39 $ 62,227,654.92

$

367,808.27

109,318.65 $

155,045.84

433,820.74

393,842.21

4,955,296.50

4,950,000.00

37,787.85

1,475.20

26,214.46

2,640.54

108,245.01

29,000.34

89,296.03

135,334.16

$

68,715,000.00

68,715,000.00 50,330,000.00

$

68,715,000.00 $ 74,842,787.51 $ 55,997,338.29

$ 1,273,n9.62
$ 1,273,729.62 0.00
$ 1,273,729.62

$

188,941.74 $

228,266.43

1,273,n9.62

1,005,266.51

30,035.47

30,035.47

336,043.50

479,916.57

136,147.47 68,731.12 18,867,323.77 315,446.00

121,320.01 40,863.74
1,115,966.46

$ 21,216,398.69 $ 3,021,635.19

142,608.68 168,781.04 5,299,058.47

125,102.65
218,832.28 2,864,746.51.

$ 26,826,846.88 $ 6,230,316.63

$ 11273.729.62 $

ss111s1000.oo $ 1011669,634.39 $ 62,227,654.92

-3-

DOUGLAS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1995

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
QI!::IER E!~C!NG SOURCES {USES}
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Refunding Bond Issuance Cost Reimbursement for Refunding Bond Issuance Cost 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 (Restated - See Note 1)
Adjustments For Change in Costing Method Donated Commodities Inventory
For Prior Year Payables Food Inventory- Net Change in Period
Purchased Food
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

$ 40,736,353.96 $ 1,360,111.39 149,872.22 3,504,552.31
24,641,194.13 2,103,595.60 $
$ 65,527,420.31 $ 6,968,259.30 $

18,207.53 18,207.53

$ 40,547,022.60 $ 2,135,347.12

2,276,852.99 512,782.64
1,783,321.36 696,787.01
4,822,814.55 808,024.38
5,929,277.47 2,792,884.34 1,803,181.80
329,508.65 159.17

243,828.43 115,239.17
2,139.70 123,528.15
2,389.20 597.30 $
133,406.33
19,447.85 4,163,799.95

614,551.13

363,972.56 1,992,823.53

$ 62,917,168.09 $ 6,939,723.20 $ 2,356,796.09

$ 2,610,252.22 $

28,536.10 $ -2,338,588.56

$ 20,000,000.00

$ $ -481,405.98
$ -481,405.98 $

76,014.11

405,391.87

76 014.11 $ 20,405,391.87

$ 2,128,846.24 $ 104,550.21 $ 18,066,803.31

2,784,711.83 1,324,371.83

1,115,966.46

27,867.38 $ 4,913,558.07 $ 1,456,789.42 $ 191182,769.77

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

EXHIBIT"B"

DEBT SERVICE
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 301 1995 JUNE 301 1994

$ 42,096,465.35 $ 40,469,525.35

3,654,424.53

3,2n,541.75

$ 4,675,345.91 31.438.343.17 27.555.044.66

$ 4,675,345.91 $ 77.189.233.05 $ 71.297.111.76

$ 42,682,369.72 $ 39,142,453.02

2,520,681.42 628,021.81
1,785,461.06 820,315.16
4,825,203.75 1,172,59424 5,929,277.47 2,926,290.67 1,803,181.80
348,956.50 4,163,959.12
2,607,374.66

2,262,413.75 1,553,209.58 1,678,613.99 1,007,763.78 4,493,940.78
935,659.59 5,701,141.71 2,598,943.97
641,881.90 256,105.98 3,639,090.42
776.02 533,252.62

$ 1,615,000.00 2,871,628.76 9,550.07

1,615,000.00 2,871,628.76
9,550.07

1,620,658.45 3,010,642.69
6,006.07

$ 4,496,178.83 $ 76.709,86621 $ 69,082,554.32

$ 179,167.08 $ 479,366.84 $ 2,214,557.44

$ 89,296.03 $

89,296.03

20,000,000.00 $
481,405.98 -481.405.98

-8,534.00 15,257.91 260,277.42 -260.277.42

$

89,296.03 $ 20.089.296.03 $

a,n3.91

$ 268,463.11 $ 20,568,662.87 $

1,005,266.51

6,230,316.63

2,221,281.35 4,103,183.35

27,867.38

-151,057.41 50,01626
6,893.08

$ 1a73i729.62 s 26,826,846.88 $ 6,230,316.63

-5-

rr~ \a.l,,le
\) (~

DOUGLAS 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, 1995

EXHIBITc

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Local and Other Funds

$ 39,420,500.18 $ 40,736,353.96 149,872.22
21,557,153.41 24,641,194.13

Total Revenues

$ so,9n,653.59 $ 65,527,420.31

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
Capital Outlay

$ 39,202,528.45 $ 40,547,022.60

2,256,155.13 412,279.26
1,868,870.22 704,651.71
4,784,916.04 1, 101,076.39 6,260,649.75 2,599,473.82 1,860,359.76
3,600.00
136,000.00

2,276,852.99 512,782.64
1,783,321.36 696,787.01
4,822,814.55 808,024.38
5,929,2n.47 2,792,884.34 1,803,181.80
329,508.65 159.17
614,551.13

Total Expenditures

$ 61,190,560.53 $ 62,917,168.09

Excess of Revenues over (under) Expenditures

$ -212,906.94 $ 2,610,252.22

OTHER FINANCING SOURCES (USES}

Other Sources Other Uses

$ -72,681.33 $ -481,405.98

Total Other Financing Sources (Uses)

$ -72,681.33 $ -481,405.98

Excess of Revenues and Other Financing Sources
over (under} Expenditures and Other Financing Uses $ -285,588.27 $ 2,128,846.24

FUND BALANCE JULY 1, 1994

2,438,433.40 2,784,711.83

Adjustments

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 765,783.00 $ 1,360,111.39 3,304,no.25 3,504,552.31 2,069,186.00 2,103,595.60
$ 6,139,739.25 $ 6,968,259.30

$ 1,m,515.os $ 2,135,347.12

213,120.20 136,881.50
400.00 162,941.25
2,168.20 597.30

243,828.43 115,239.17
2,139.70 123,528.15
2,389.20 597.30

40,049.25

133,406.33

24,894.00

19,447.85

3,888,553.00 4,163,799.95

$ 6,247,119.78 $ 6,939,723.20 $ -107,380.53 $ 28,536.10

$ 72,681.33 $ 76,014.11
$ 72,681.33 $ 76,014.11
$ -34,699.20 $ 104,550.21 1,313,711.35 1,283,508.09 4,929.00

FUND BALANCE JUNE 30, 1995

$ 2,152,845.13 $ 4,913,558.07

$ 1,283,941.15 $ 1,388,058.30

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

DOUGLAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\1ENTS

JUNE 30, 1995

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

- 8-

DOUGLAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.
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.
- 9-

DOUGLAS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese.contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. 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.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prior years, the risk financing activities for the Board's worker's compensation liabilities were reported as
an expendable trust fund. This fund had a fund balance of$218,832.28 at June 30, 1994. For fiscal year 1995, this fund has been reported as a part ofthe General Fund. The fund balance at July 1, 1994 has been restated as appropriate.
- 10 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Douglas County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the function level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting 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 ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

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

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
Fund Balance July 1, I994
Adjustment: Inventories July I, 1994 Purchased Foods
Fund Balance June 30, 1995 (Budget Basis)

Special Revenue
Fund
$ 104,550.21 1,324,371.83
-40,863.74 $ 1,388,058.30

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including certificates of deposit, savings and N.0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and

- 11 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
INVESTMENTS
COMPOSffiON OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(I) 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.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Douglas County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on September 9, 1994 (levy date). Taxes were due on November 15, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section
- 12 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: Sl.Th1MARY OF SIGNIFICANT ACCOUNTING POLICIES

P70.103. The Douglas County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2% oftaxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

Tax millage rates levied for the 1994 tax year (calendar year) for the Douglas County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

18.50 mills 3.68 mills

22.18 mills

INVENTORIES

CONSUMABLE SUPPLIES Consumable supplies are reported on the Combined Balance Sheet at cost (First-in, First-out). The Board uses the consumption method to account for the consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenditures are recorded at the same time the supplies are consumed. The consumable supplies inventory reported on the balance sheet is equally offset by a reservation offund balance which indicates that it is not available for discretionary expenditure even though it is a component of net current assets.

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. The Board uses the consumption method to account for donated food commodities whereby commodity items are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used. The Board uses the purchases method to account for purchased foods inventories whereby expenditures are recorded at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

- 13 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
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 ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
- 14 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $7,276,989.35. The amounts of the total bank balances are classified into three categories of credit risk:

Category I - 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, 1995, as follows:
Risk Category I 2 3 Total
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Bank Balance $ 407,614.92
1,599,335.47 5,270,038.96 $ 7,276,989.35

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

- 15 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

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, 1995, the carrying amount ofthe Board's total investments was $29,161,230.16 and the market value ofthese investments, excluding investments in the amount of$27,224,893.78 in the State of Georgia, Local Government Investment PooL were $1,992,546.80. The investments are classified as to risk categories as follows:

Type ofInvestment U. S. Government Local Government
Investment Pools Total Investments
Undcterminable

Risk Categories

2

3

Carrying
Amount

Market Value

S I 936336 38 S

ooo s===o!!ae!og!,o s 1,936,336.38 s 1 222 546 80

27 224,893.78



$ 29 161230.16

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 ofloss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.

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

The Board has established a limited risk management program for workers' compensation claims. A premium is charged by the General Fund to each user fund on the basis ofthe percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit.

- 16 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXHIBIT D 11 11

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1994 1995

$

0.00 $ 172,230.98 $ 172,230.98 $

0.00

$

0.00 $ 176,861.65 $ 176,861.65 $

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

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994 1995

$

0.00 $ 17,851.00 $ 17,851.00 $

0.00

$

0.00 $ 13,010.00 $ 13,010.00 $

0.00

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year _ended June 30, 1995, were as follows:

Balance July 1, 1994 Additions Deductions Balance June 30, 1995

Capital Leases

General Obligation
Bonds

Total

$ 135,334.16 $ 50,330,000.00 $ 50,465,334.16

0.00 20,000,000.00 20,000,000.00

135,334.16 1,615,000.00 1,750,334.16

$

Q,QQ $ 68,:ZlS QQQ,QQ S 68,:ZIS QQQ oo

At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows:

- 17 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

General Obligation
Bonds

1996 1997 1998 1999 2000 2001 and thereafter

$ 4,123,601.05 6,153,326.26 6,216,286.26 6,291,116.26 6,370,200.58
78,904,187.60

Total Principal and Interest

$108,058.718 01

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal years 1986 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 riot included in the Board's general purpose financial statements. During fiscal year 1995, the balance of bonds defeased in fiscal year 1986 were retired. At June 30, 1995, $44,270,000.00 of bonds are outstanding and are considered defeased.

Note 7: CONTINGENT LIABILITIES

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

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

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical 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).

- 18 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is 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 ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $39,239,224.24; total payroll was $45,147,869.49.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 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 1995 amounted to $6,596,114.24, ofwhich $4,634,152.40 was made by the Board and $1,961,961.84 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.
TRS FUNDINGSTATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable

- 19 -

DOUGLAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS

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, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058,958,000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate m~asurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TR.S for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $4,634,152.40 was actuarially determined and represented .82% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to .pay pension benefits as they become due.

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are

- 20 -

DOUGLAS COUNTY BOARD OF EDUCATION

ExmBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS
dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 430 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $13,696.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 9: SURETY BONDS
Ms. Kathryn Shehane, the School Superintendent through June 30, 1996, was bonded in the amount of $200,000.00 with the Hartford Fire Insurance Company, Hartford, Connecticut, their Bond No. 4668515.
The School Superintendent, Mr. Randy Brittain, effective July 1, 1996, is bonded in the amount of $200,000.00 with the Reliance Insurance Company, Philadelphia, Pennsylvania, their Bond No. B2725914, on which premium is paid through January 1, 1997.

- 21 -

DOUGLAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food
Unreserved Designated for Equipment Purchases Undesignated Total Fund Equity
Total Liabilities and Fund Equity

See notes to the general purpose financial statements.

-22-

SCHOOL FOOD
SERVICES FUND

EDUCATION OF CHILDREN IN
STATE SCHOOLS

$ 1,507,695.35 $

0.00

11,745.96

136,147.47 68,731.12

- - - - - - $ 1,724,319.90 $

0.00

$ 48,759.28 218,771.20
$ 267,530.48

$ 136,147.47 68,731.12
$ 204,878.59
142,608.68 1,109,302.15 $
$ 1,456,789.42 $

0.00 0.00

- - - - - - $ 1,724,319.90 $

0.00

EXHIBIT"E" Page 1

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEII

CHAPTER 1

EISENHOWER

EDUCATION OF

STATE

CHAPTER 2 MATHEMATICS FOREIGN

DEPRIVED

PROGRAM BLOCK GRANT - AND SCIENCE LANGUAGE

CHILDREN IMPROVEMENT FLOW THROUGH EDUCATION ASSISTANCE

$

0.00

$ 184,nB.27 $

15,460.00

$

9,338.06 $ 48,402.00

$ 184,nB.27 $

15,460.00 $ _ _ _ _o_.o_o $

9,338.06 $ 48,402.00

$

97,832.31 $

17,513.36

65,400.16

4,032.44

$ 184,778.27 $

4,395.23 764.77
10,300.00
15,460.00

$

9,338.06 $ 48,402.00

$

9,338.06 $ 48,402.00

$

o.oo $ _ _ _ _o_.o_o $ _ _ _ _o_.o_o $ _ _ _ _o_.o_o $

o.oo

$

0.00 $ _ _ _ _0._00_$

0.00 $ _ _ _ _o._oo_ $

0.00

$ 184,778.27 $ 1s,4so.oo s_ _ _ _o_.o_o $

9,338.06 $ 48,402.00

-23-

DOUGLAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

ASSETS Cash and Cash Equivalents
Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food
Unreserved Designated for Equipment Purchases Undesignated Total Fund Equity
Total Liabilities and Fund Equity

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

$

25,490.45

$ 422,319.50

$

25,490.45 $ 422,319.50

$ 378,011.08

$

5,414.46

10,579.00

20,067.30

8.69

33,729.42

$

25,490.45 $ 422,319.50

$

0.00 $

0.00

$

0.00 $

0.00

$

25,490.45 $ 422,319.50

See notes to the general purpose financial statements.

-24-

EXHIBIT"E" Page2

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, 8

FLOW

PRESCHOOL

THROUGH

PROGRAM

SERVE AMERICA

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

3,485.38

$

6,618.85

$ 1,543,290.03 $ 1,421,694.14

9,293.88 $ 123,363.50

8,970.27 $

6,686.04

840,357.48

674,099.19

136,147.47 68,731.12

121,320.01 40,863.74

$

12,779.26 $ 123,363.50 $

15,589.12 $

6,686.04 $ 2,588,526.10 $ 2,257,977.08

$

46,724.39

$

5,849.16 $ 590,552.23 $ 438,962.35

$

2,056.70

13,300.65 $

2,588.26

134.04

101,110.52

99,325.49

10,705.26

63,338.46

13,000.86

702.84

402,286.08

393,842.21

17.30

37,787.85

1,475.20

$

12,779.26 $ 123,363.50 $

15,589.12 $

6,686.04 $ 1,131,736.68 $ 933,605.25

$ 136,147.47 $ 68,731.12

121,320.01 40,863.74

$ 204,878.59 $ 162,183.75

142,608.68

125,102.65

$

0.00 $

0.00 $

0.00 $

0.00 1,109,302.15 1,037,085.43

$

0.00 $

0.00 $

0.00 $

0.00 $ 1,456,789.42 $ 1,324,371.83

$ . 12,779.26 $ 123,363.50 $

15,'589.12 $

6,686.04 $ 2,588,526.10 $ 2,257,977.08

-25-

DOUGLAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995

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

See notes to the general purpose financial statements.

-26-

SCHOOL FOOD
SERVICES FUND

EDUCATION OF CHILDREN IN
STATE SCHOOLS

$ 303,196.00 1,861,558.56 $ 2,103,595.60
$ 4,268,350.16 $

5,933.00 5,933.00

$

5,933.00

$ 4,163,799.95 $ 4,163,799.95 $ $ 104,550.21 $

5,933.00 0.00

$ 104,550.21 $ 1,324,371.83

0.00 0.00

27,867.38

- - - - - - $ 1,456,789.42 $

0.00

EXHIBIT"F" Page 1

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLEII

CHAPTER 1

EISENHOWER

EDUCATION OF

STATE

CHAPTER 2

MATHEMATICS

FOREIGN

DEPRIVED

PROGRAM

BLOCK GRANT - AND SCIENCE LANGUAGE

CHILDREN IMPROVEMENT FLOW THROUGH EDUCATION ASSISTANCE

$

723,299.69 $

15,460.00 $

$

723,299.69 $

15,460.00 $

"

$ 540,682.46

$

7,900.69 55,823.08 $

14,764.77

101,593.28

68,390.00 $

44,898.91 $

57,246.00

68,390.00 $

44,898.91 $

57,246.00

68,244.12

$ 117,004.46

$ 170.98

40,680.20 4,218.71

3,360.08

17,300.18

2,147.67

$

723,299.69 $

16,912.44 $

$

0.00 $

-1,452.44 $

68,415.10 $ -25.10 $

44,898.91 $ 0.00 $

120,364.54 -63,118.54

1,452.44

$

0.00 $

0.00 $

0.00

0.00

25.10
0.00 $ 0.00

63,118.54

0.00 $

0.00

0.00

0.00

$

0.00 $

0.00 $

0.00 $

----- 0.00 $

0.00

-27 -

DOUGLAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPEC~LREVENUEFUND YEAR ENDED JUNE 30, 1995

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

See notes to the general purpose financial statements.

-28-

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

$

165,025.31 $ 891,890.08

$

165,025.31 $ 891,890.08

$

165,025.31 $ 742,597.36

51,767.85

1,801.39 2,180.00

102,084.25

$

165,025.31 $ 900,430.85

$

0.00 $ -8,540.77

8,540.77

$

0.00 $

0.00

0.00

0.00

$

----- 0.00 $

0.00

EXHIBIT"F" Page2

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, 8

FLOW

PRESCHOOL

THROUGH

PROGRAM

SERVE AMERICA

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 76,896.83 $ 558,496.42 $

83,566.45 $

$ 76,896.83 $ 558,496.42 $

83,566.45 $

$ 1,360,111.39 $ 1,509,164.00 8,806.45 3,504,552.31 3,142,290.09
2,103,595.60 2,343,922.70
8,806.45 $ 6,968,259.30 $ 6,995,376.79

$ 426,626.06 $

$ 70,091.20

108,135.69

338.31 6,467.32

1,264.48

22,569.92

$ 76,896.83 $ 558,596.15 $

$

0.00 $

-99.73 $

74,986.83 $
8,752.16 83,738.99 $
-172.54 $

180.52 $ 2,135,347.12 $ 2,483,509.80

611.04
7,633.38 2,389.20
597.30

243,828.43 115,239.17
2,139.70 123,528.15
2,389.20 597.30
133,406.33 19,447.85
4,163,799.95

183,280.32 91,691.77 460.07
114,627.85
263,386.05 38,394.56 9,885.45
3,599,328.59

11,411.44 $ 6,939,723.20 $ 6,784,564.46

-2,604.99 $

28,536.10 $ 210,812.33

99.73

172.54

2,604.99

76,014.11

80,719.58

$

0.00 $

0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 104,550.21 $ 291,531.91 0.00 1,324,371.83 1,177,004.25

$

0.00 $ _ _ _ _0._00_$

27,867.38

-151,057.41 6,893.08

----- 0.00 $

0.00 $ 1,456,789.42 $ 1,324,371.83

- 29 -

ASSETS Cash and Cash Equivalents Investments
Accounts Receivable
Total Assets

DOUGLAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1995

1995 BOND ISSUE
FUND

GEORGIA STATE FINANCING AND INVESTMENT

PROJECT

PROJECT

PROJECT

90-648-024

91-648-021

94-648-033

$

320,592.36 $

0.00 $

0.00 $

91,445.42

18,636,027.44

$ 18,956,619.80 $

0.00 $

0.00 $ _ _ _9_1,_44_5_.4_2

LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retainages Payable Due to Other Funds
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

$

89,296.03

$

89,296.03

$ 18,867,323.77 $ 18,867,323.77
0.00 $ $ 18,867,323.77 $
$ 18,956,619.80 $

$

26,214.46

65,230.96

$

91 445.42

0.00 $ 0.00 $
0.00 $

0.00 $

0.00

0.00 $

0.00

0.00 $ _ _ _9_1,44__,5_.4_2

See notes to the general purpose financial statements.

-30-

EXHIBIT"G"

COMMISSION PROJECT 96-648-027

PROJECT 96-648-028

LOTTERY PROJECT 96/95S-648-030

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

43,014.05 $

227,108.00 $

88,338.00 $

TT0,497.83 $ 960,402.56

18,636,027.44

187,204.78

$

43,014.05 $

227,108.00 $

88,338.00 $ 19.406,525.27 $ 1,147,607.34

$

43,014.05

$

43,014.05

$

26,214.46 $

108,245.01

89,296.03

$

223,755.50 $

2,640.54 29,000.34
31 640.88

$

227,108.00 $

$

227,108.00 $

$ 1a,867,323.n

88,338.00

315,446.00 $ 1,115,966.46

88,338.00 $ 19,182,769.n s 1,115,966.46

$

.0.00

0.00

0.00

0.00

0.00

$

0.00 $

227,108.00 $

s 88,338.00 $ 1911a21769.n

1,115,966.46

$

43p14.05 $

227,108.00 $

88,338.00 $ 19,406,525.27 $ 1,147,607.34

- 31 -

DOUGLAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1995

REVENUES
State Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration Bond Issuance Cost
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obligation Bonds Par Value
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
For Prior Year Payable (Net)
FUND BALANCE JUNE 30

1995 BOND ISSUE
FUND

GEORGIA STATE FINANCING AND INVESTMENT

PROJECT

PROJECT

PROJECT

90-648-024

91-648-021

94-648-033

$

0.00 $

0.00 $

0.00 $

18,207.53

$

0.00 $

0.00 $

0.00 $

18,207.53

$ 363,972.56 $ 3,000.00
$ 366,972.56 $ $ -366,972.56 $

0.00

$
0.00 $ 0.00 $

9,925.66 $ 1,363,983.32 2,116.80
9,925.66 $ 1,366,100.12
-9,925.66 $ -1,347,892.59

$ 20,000,000.00 -765?03.67 $
$ 19,234,296.33 $

$ -117,376.40
-117,376.40 $

11,986.20 $ -132,619.66
-120,633.46 $

479,861.65 479861.65

$ 18,867,323.n s 0.00

-117,376.40 $ -130,559.12 $

117,376.40

130,559.12

-868,030.94 868,030.94

s s 1s,867,323.n

0.00 $

----- 0.00 $

0.00

See notes to the general purpose financial statements.

-32-

EXHIBIT"H"

COMMISSION PROJECT 94-648-027

PROJECT 96-648-028

LOTTERY PROJECT 96/95S-648-030

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

$

0.00 $

$ _____0._0_0_ $

0.00 $ 0.00 $

$ 1,106,904.78

0.00 $ _____18"-",20=-'-7;;..;..53~

5J12.65

0.00 $

18,207.53 $ 1,112,017.43

$ $ 613,797.75 $ 613,797.75 $ $ -613,797.75 $

0.00 $-
0.00 $ 0.00 $

0.00 $

363,972.56

$ 1,990,706.73
2,116.80

1,945.00 102,335.26

0.00 $ 2,356,796.09 $ 104,280.26

0.00 $ -2,338,588.56 $ 1,007,737.17

$ 613,797.75 $ 227,108.00 $

$ 613,797.75 $ 227,108.00 $

$

0.00 $ 227,108.00 $

0.00

0.00

$ 88,338.00

20,000,000.00 1,421,091.60 $ -1,015,699.73

88,338.00 $ 20,405,391.87 $

5,528.57 -185,086.41
-179,557.84

88,338.00 $ 18,066,803.31 $

0.00

1, 115,966.46

828,179.33 237,770.87
50,016.26

$

. 0.00 $ 227,108.00 $

88,338.00 $ 19,182,769.77 $ 1,115,966.46

-33-

DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1995

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Agriculture. U.S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1995Grant National School Lunch Program 1994Grant 1995 Grant Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U.S. Department of Direct P. L. 81-874 1995 Grant Through Georgia Department of Education Drug-Free Schools and Communities Act 1994 Grant 1994 Carry-Over 1995 Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994 Regular 1995 Regular Education of Deprived Children 1993 Regular 1993 Carry-Over 1994 Regular 1994 Carry-Over 1995 Regular State Program Improvement 1994 Regular 1995 Regular Chapter 2 Block Grant - Flow Through 1992 Regular 1995 Regular Title II Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Foreign Language Assistance Middle School Exploratory Program 1995 Regular Total Service Area Russian 1993 Regular 1995 Regular Individuals with Disabilities Education Act TltleVI, B Flow Through 1994 Regular 1994 Carry-Over 1995 Regular

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553 $ . 10.555 . 10.555 . 10.550

307,562.68 $
1,191,724.35 362,271.53

$ 1,861,558.56 $

307,562.68 $ 307,562.68

9,331.35 1, 179,978.39
NIA

1,191,724.35 $ 362,271.53

1,496.872.42 $ 1,861,558.56 $

(2)
3,816,953.88 (3) 346,846.07
4,163,799.95

84.041 $

530.00 $

84.186 84.186 84.186

19,471.00 63,017.00

530.00 $

530.00

20,624.22 19,471.00 48,149.25

19,471.00 $ 57,425.83

(5)
19,471.00 57,425.83

84.009 84.009
. 84.010 . 84.010 . 84.010 . 84.010
84.010
84.218 84.218
84.151 84.151

527.00 5,406.00
103,797.00
646,on.oo
15,460.00
68,390.00

527.00 5,406.00
-2,000.08 102,501.00 46,Sn.58 61,644.00 480,909.86
34,199.80
-83.40 68,390.00

527.00 5,406.00
103,797.00 619,502.69
15,460.00
68,390.00

527.00 5,406.00
103,797.00 619,502.69
16,912.44 (3)
68,415.10 (3)

84.164 84.164
84.249 84.249 84.249

34,795.00 9,511.25 60,000.00

14,096.00 24,501.55
8,844.00 32,854.00

11,059.30 33,839.61
8,844.00 44,896.00
3,506.00

11,059.30 33,839.61
18,990.01 (3) 93,5n.86 (3)
7,796.67 (3)

. 84.027 84.027 84.027

63,549.00 606,366.00

122,095.19 63,549.00 371,583.92

63,549.00 494,947.42

63,549.00 495,047.15 (3)

- 34 -

DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1995

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education. U. S. Department of Through Georgia Department of Education Individuals with Disabilities Education Act Trtle VI, B Preschool Program 1993 Carry-Over 1994 Regular 1994 Carry-Over 1995 Regular Vocational Education Basic Grants to States High School Program Basic Grant 1994Grant 1995 Grant Community Based Organizations Vocational Educational Support Program 1994 Contract Consumer and Homemaking Education 1995 Contract Tech-Prep Education 1994 Grant 1995Grant Through Southem Regional Educational Board High Schools That Work Advanced Integration Model (AIM} Grant 1994 Grant 1995 Grant
Total U.S. Department of Education
Energy, U. S. Department of Through Office of the Governor Energy Conservation for Institutional Buildings 1995 Grant 94E435784
National and Community Service Through Georgia Department of Education Serve America School Based Community Based Program Contract No. 940717 Contract No. 950599
Total National and Community Service

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.173 84.173 84.173 $ 84.173

$
18,379.00 n,100.00

2,938.00 17,615.65 18,379.00 $ 56,217.18

18,379.00 $ 65,187.45

18,379.00 65,359.99 (3)

84.048 84.048
84.174 84.049 84.243 84.243

90,092.40
15,022.41 10,033.45

59,705.07

81,945.50

90,092.40

(4)

1,800.00

1,228.41

15,022.41

(4}

2,296.62

6,711.44

10,033.45

(4)

84.248A 84.248A

15,000.00

$ 1,925,123.51 $

13,703.41 5,057.87

12,376.96 10,170.00

1,792,068.04 $ 1,TT2,412.52 $

14,884.22 (3) 10,975.63 (3)
1,724,915.50

81.052 $

11,647.00

$

11 647.00 $

25,318.08 (3)

94.004 94.004 $
$

$ 22,800.00
22,800.00 $

4,975.16 $ 4,975.16 $

2,120.41 $ 6,686.04
8,806.45 $

3,889.12 (3) 7,522.32 (3)
11,411.44

Total Federal Financi_al Assistance

$ 3,821,129.07 $

Major Programs are Identified by an asterisk ("} in front of the CFDA number.

3,293,915.62 $ 3,654,424.53 $ 5,925,444.97

(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 School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. . (5) Funds eamed on this program do not require reporting of expenditures.

See notes to the general purpose financial statements.

35

DOUGLAS COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30. 1995

SCHEDULE ''2''

INTEREST BEARING ACCOUNTS
Citizens and Merchants State Bank, Douglasville, Georgia
Commercial Checking Account (2.25%)
Commercial Bank, Douglasville, Georgia
Premier Checking Account (2.50%) N.O.W. Accounts (2.50%)
South Trust Bank, Atlanta, Georgia
Money Market Account (5.52%) N.O.W. Accounts (5.52%) Certificates of Deposit
No. 8789867 (5.80%) No. 9831407 (5.90%) No. 9831428 (5.55%)
Trust Company Bank, Atlanta, Georgia
N.O.W. Accounts (1.98%)

$

3,664.92

$ 216,530.60 621,645.74

838,176.34

$ 699,169.68 87,544.75
300,000.00 300,000.00 300,000.00

1,686,714.43

-931,438.73

$ 1,597,116.96

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

DOUGLAS COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1995

SCHEDULE "3"

U. S. GOVERNMENT OBLIGATIONS
Wachovia Bank of North Carolina, Winston-Salem, North Carolina
U. S. Treasury Bill No. 376006345 due July 6, 1995 (6.374383%) No. 376007125 due August 17, 1995 (6.15509%) No. 384008110 due December 14, 1995 (5.4148%)
INVESTMENT POOL
State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (6.032%)

$ 999,283.11 436,600.25 500,453.02 $

1,936,336.38

27,224,893.78

$ 29,161,230.16

See notes to the general purpose financial statements. - 37 -

LAJ
cA

--LI,.i.....V.._,
()
5 r

DOUGLAS COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1995

Cobb County Board of Education Severely Emotionally Disturbed
Douglas County Tax Commissioner County Wide Bond Tax County Wide School Tax
Education, Georgia Department of Food Services
National School Lunch Program Vocational Education
State Funds Federal Funds Other State Programs Apprenticeship Program Tuition for the Multi-Handicapped Lottery Program Instructional Technology Safe Schools Grant Federal Programs Drug-Free Schools and Communities Act. Elementary and Secondary Education Act.
Chapter 1 Education of Deprived Children State Program Improvement
Title II Eisenhower Mathematics and Science Education Foreign Languages Assistance
Individuals with Disabilities Education Act. TrtleVI. B Flow Through Preschool Program
Serve America
Office of the Governor Energy Conservation for Institutional Buildings
Southern Regional Educational Board High Schools That Work Advanced Integration Model (AIM) Grant
Various Sources Other

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 67,268.18

$ 67,268.18

196,516.62

$

5,690.72

5,690.72

196,516.62

$ 11,745.96 16,133.07 25,262.91 23,847.00 5,343.00
320,446.50 101,873.00
9,293.88
184,TTS.27 15,460.00
9,338.06 48,402.00
123,363.50 8,970.27 6,686.04
11,647.00

11,745.96 16,133.07 25,262.91 23,847.00 5,343.00 320,446.50 101,873.00 9,293.88
184,TTS.27 15,460.00
9,338.06 48,402.00
123,363.50 8,970.27 6,686.04
11,647.00

5,112.13 1,082.TT

5,112.13 1,082.TT

$ 352,212.68 $ 840,357.48 $

5,690.72 $ 1,198,260.88

See notes to the general purpose financial statements.

- 39 -

DOUGLAS COUNTY BOARD OF EDUCATION !;!EBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30 1995

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1996 1997 1998 1999 2000
2001 2002 2003 2004 2005
2006
2007
2008 2009
2010
2011 2012 2013 2014 2015

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

1995ISSUE

INTEREsTn

PRINCIPAL

$

4,123,601.05 $ 2,143,601.05 $ 1,980,000.00 $

739,001.67

6,153,326.26

3,778,326.26

2,375,000.00

1,108,502.50 $

6,216,286.26

3,671,286.26

2,545,000.00

1,102,195.00

6,291,116.26

3,526.116.26

2,765,000.00

1,092,295.00

6,370,200.58

3,365,200.58

3,005,000.00

1,078,495.00

145,000.00 220,000.00 300,000.00 390,000.00

6,462,786.26 6,552,246.26 6,651,941,26 6,761,113.76 6,873,256.26

3,187,786.26 2,992,246.26 2,776,941.26 2,541,113.76 2,283,256.26

3,275.000.00 3,560,000.00 3,875,000.00 4,220,000.00 4,590,000.00

1,060, 165.00 1,036,400.00 1,006,700.00
970,340.00 926,307.50

490,000.00 600,000.00 720,000.00 855,000.00 1,000,000.00

6,909,076.26 6,937,85126 6,974,903.76 7,013,433.76 7,056,288.76

2,044,076.26 1,782,851.26 1,504,903.76 1,203,433.76
876,288.76

4,865,000.00 5,155,000.00 5,470,000.00 5,810,000.00 6,180,000.00

873,807.50 816,295.00 753,347.50 684,527.50 609,382.50

1,075,000.00 1,155,000.00 1,240,000.00 1,330,000.00 1,435,000.00

2,072,587.50 2,103,750.00 2,141,347.50 2,176,047.50 2,217,557.50

527,587.50 438,750.00 341,347.50 236,047.50 122,557.50

1,545,000.00 1,665,000.00 1,800,000.00 1,940,000.00 2,095,000.00

527,587.50 438,750.00 341,347.50 236,047.50 122,557.50

1,545,000.00 1,665,000.00 1,800,000.00 1,940,000.00 2,095,000.00

$ 108,058,718.01 $ 39,343,718.01 $ 68,715,000.00 $ 15,524,051.67 $ 20,000,000.00

(") Interest due July 1, 1995, was paid prior to June 30, 1995, and has been excluded from this schedule.

CHANGES IN GENERAL LONG-TERM DEBT
Bonds Payable at July 1, 1994

TOTAL $ 50,330,000.00

1995 ISSUE

1993ISSUE

1990ISSUE

$ 32,880,000.00 $

290,000.00

Bonds Issued During Period

20,000,000.00 $ 20,000,000.00

Bonds Retired During Period

1,615,000.00

290,000.00

Bonds Payable at June 30, 1995

$ 68,715,000.00 $ 20,000,000.00 $ 32,880,000.00 $

0.00

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

JAN 1-JUL 1 JAN 1

JAN 1 -JUL 1 JAN 1

JAN 1-JUL 1 JAN 1

See notes to the general purpose financial statements.

- 40 -

SCHEDULE 5

19931SSUE

INTEREST Cl

PRINCIPAL

1986 ISSUE

INTEREST (*2

PRINCIPAL

1985 ISSUE

INTEREST(*)

PRINCIPAL

$

864,164.38 $

555,000.00 $

1,706,128.76

1,885,000.00

1,626,958.76

660,000.00

1,598,248.76

690,000.00

1,566,508.08

730,000.00

491,760.00 $ 963,695.00 942,132.50 835,572.50 720,197.50

325,000.00 $ 345,000.00 1,665,000.00 1,775,000.00 1,885,000.00

48,675.00 $

1,100,000.00

1,531,833.76 1,494,393.76 1,453,968.76 1,408,968.76 1,356,948.76

780,000.00 825,000.00 900,000.00 1,020,000.00 3,590,000.00

595,787.50 461,452.50 316,272.50 161,805.00

2,005,000.00 2,135,000.00 2,255,000.00 2,345,000.00

1,170,268.76 966,55626 751,556.26 518,906.26 266,90626

3,790,000.00 4,000,000.00 4,230,000.00 4,480,000.00 4,745,000.00

$ 18,282,316.34 $ 32,880,000.00 $ 5,488,675.00 $ 14,735,000.00 $ 48,675.00 $ 1,100,000.00

19861SSUE

19851SSUE

$ 15,040,000.00 $ 2,120,000.00

305,000.00

1,020,000.00

$ 14,735,000.00 $ 1,100,000.00

JAN 1-JUL 1 JAN 1

JAN 1-JUL 1 JAN 1

41

DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1995

SCHEDULE "6"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Special Instructional Assistance In-School Suspension School Counselors Grades 4 and 5 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 Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Tuition for the Multi-Handicapped Lottery Programs Alternative Programs Applied Technology Instructional Technology Pre-Kindergarten Program Safe Schools Grant
Georgia Public Telecommunication Commission Lottery Program Distant Leaming
CONTRACTS Administrative Services, Georgia Department of Georgia Statewide Academic and Medical System Speakers Bureau
Education, Georgia Department of Implementation of School-Based Leadership Development Activities in Those Schools Represented in the 1993-1994 Governor's School Leadership Institute (GSLI)

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 24,876,900.00 4,762,614.00 971,211.00 1,088, 101.00 361,348.00 7,486,904.00
1,229,457.00 372,369.00 3,066.00 991,786.00 285,799.00 272,766.00 61,440.00 892,588.00
-5,928,102.00 2,496,889.00
$ 111,144.00
35,000.00 69,221.33 47,646.47 3,500.00 3,100.00 42,090.00
19,083.20 102,931.31 65,006.50

$ 24,876,900.00 4,762,614.00 971,211.00 1,088,101.00 361,348.00 7,486,904.00

303,196.00

1,229,457.00 372,369.00 3,066.00 991,786.00 285,799.00 272,766.00 61,440.00 892,588.00
-5,928, 102.00 2,496,889.00
303,196.00 111,144.00

165,025.31

35,000.00 69,221.33 47,646.47
3,500.00 3,100.00 42,090.00 165,025.31 19,083.20 102,931.31 65,006.50

117,927.38 100,000.00 320,446.50 247,645.20 101,873.00

117,927.38 100,000.00 320,446.50 247,645.20 101,873.00

3,998.00

3,998.00

8,495.15

8,495.15

4,000.00

4,000.00

See notes to the general purpose financial statements.

$ 40,736,353.96 $ 1,360,111.39 $ 42,096,465.35 - 42 -

DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "7"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other After School Program Compensation for Loss of Assets Interest Eamed Jury Duty Fees Lost and Damaged Books Rents Sales Adult Meals Breakfast Contracted Meals Lunches Supplemental Shared Service Contributions Cobb County Board of Education Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 22,608,923.61 4,978.12
97,625.11

$ 4,571,560.87 $ 4,571,560.87

22,608,923.61

1,019.61

5,997.73

19,995.51

117,620.62

37,890.00 629,356.90 494,190.81 $
4,597.50 15,558.41 7,110.00

56,338.16 $ 18,207.53

219,530.40 163,919.35
110.45 1,518,329.45
138,540.39

292,759.88 54,110.22
394,093.57

6,827.40

82,769.92

37,890.00 629,356.90 651,506.42
4,597.50 15,558.41
7,110.00
219,530.40 163,919.35
110.45 1,518,329.45
138,540.39
292,759.88 54,110.22
400,920.97

$ 24,641,194.13 $ 2,103,595.60 $ 18,207.53 $ 4,675,345.91 $ 31,438,343.17

See notes to the general purpose financial statements.

- 43 -

DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULE "8"

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 Interest Expense Other Expenditures
Nonoperating Costs Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 42,210,732.86 $ 12,359,718.37 121,189.24 802,740.54 16,376.79 334,357.54 112,949.33 102,764.34 195,504.38 249,654.74 127,561.44 156,039.04 1,914,425.67 1,757,347.32
454,148.87 95,311.18 74,314.25 3,145.28

2,937,136.63 $ 633,541.05 33,878.44 109,058.52
37,121.74
4,219.39
7,423.28 232,747.98
211.25 1,925,234.05
3,972.34 7,995.50
156,803.59

45,147,869.49 12,993,259.42
155,067.68 911,799.06
16,376.79 334,357.54 150,071.07 102,764.34 195,504.38 253,874.13 127,561.44 163,462.32 2,147,173.65 1,757,558.57 1,925,234.05 458,121.21 103,306.68 74,314.25 159,948.87

179,544.60 380,449.70 1,268,892.61

850,379.44

179,544.60 380,449.70 2,119,272.05

Total Expenditures

$ 62,917,168.09 $ 6,939,723.20 $ 69,856,891.29

See notes to the general purpose financial statements. - 45 -

DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Repair and Maintenance Services Communications Supplies Energy Books, Textbooks and Periodicals Dues and Fees other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALTERNATIVE SCHOOL PROGRAM

APPLIED TECHNOLOGY
LABS

INSTRUCTIONAL TECHNOLOGY

$

60,702.78

$

594.00

57,224.60 $ 100,000.00

3281367.37

$ 117,927.38 $ 100,000.00 $ -======3=2=8=9,=6=1.==37==

See notes to the general purpose financial statements.

- 46 -

SCHEDULE "9"

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

G.P.T.C. DISTANT LEARNING

TOTAL

$

136,657.84

31,804.50

1,954.11

333.00

189.04 37,049.77
211.25 465.69 835.00 2,131.00

$ 136,657.84

31,804.50

1,954.11

333.00

$

4,023.90

4,023.90

189.04

98,346.55

211.25

465.69

835.00

2,131.00

36 014.00 $ 101,873.00

623,478.97

$

247,645.20 $ 101,873.00 $

4,023.90 $ 900,430.85

- 47 -

e1,q it
1:J "f'6

DOUGLAS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1995

SCHEDULE "1 O"

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

$ 32,591,414.00 $

1,069,898.00

$ 38,446,003.04 1,738,679.28 $ _ _~1~46;;..;;9;_.i.:,2::.;;3;.::2.:..;;.8~6
$ 40,184,682.32

-697,021.75 $ 39,487,660.57

$

0.00 $ ==========0=00=

See notes to the general purpose financial statements. - 49 -

DOUGLAS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1995

~ENERAL AND CAREER EDUCATION PROGRAMS
Kindergarten (i Grades 1 - 3 (i
Sub-Total - K-3
Grades 4 - 5 (i Grades 6 8 i)
Grades 9 - 12 (*)
High School Laboratories (i
Vocational Education Laboratories (*) Total General and career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs category I (i category II (i
Category Ill (i
category IV (*) Sub-Total - Regular
category V (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (j Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEI/ELOPMENT PROGRAMS Cost of Instruction Professional Development
Total staff Development
(i Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 2,472,467.00

$ 2,225,220.30 $

6,524,272.00

5,871,844.80

$ 8,996,739.00 90 $ 8,097,065.10

3,170,381.00 90

2,853,342.90

5,730,633.00 90

5,157,569.70 $

2,945,200.00 90

2,650,680.00

2,451,610.00 90

2,206,449.00

1,582,337.00 90

1,424,103.30

$ 24,876,900.00

$ 22,389,210.00 $

0.00
446,294.00 446,294.00 892,588.00

$ 3,849,503.00

$ 3,464,552.70 $

0.00

$ 3,849,503.00 90 $ 3,464,552.70 $

913,111.00 90

821,799.90

$ 4,762,614.00

$ 4,286,352.60 $

$

971,211.00 90 $

874,089.90 $

$ 30,610,725.00

$ 27,549,652.50 $

0.00
000 0.00 892,588.00

$

851,179.00 90 $

236,922.00 90

$ 1,088,101.00

$

766,061.10 $ 213,229.80
979,290.90 $

0.00 0.00

$ 31,698,826.00

$ 28,528,943.40 $

892,588.00

$

85,016.00

276,332.00

$

85,016.00 $

276,332.00

$

361,348.00 100 $

361,348.00 $

0.00 0.00
0.00

See notes to the general purpose financial statements.

- 50 -

SCHEDULE 11

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 2,225,220.30 $ 2,874,835.90 $

102,153.88 $ 2,976,989.78

5,871,844.80

6,958,593.56

225,475.91

7,184,069.47

$ 8,097,065.10 $ 9,833,429.46 $

327,629.79 $ 10,161,059.25 $

0.00

2,853,342.90

3,835,924.99

114,333.71

3,950,258.70

0.00

5,603,863.70

6,908,196.45

207,658.35

7,115,854.80

0.00

2,650,680.00

3,980,753.20

162,734.05

4,143,487.25

0.00

2,206,449.00

2,639,160.00

100,114.86

2,739,274.86

0.00

1,870,397.30

2,344,000.94

367,901.91

2,711,902.85

0.00

$ 23,281,798.00 $ 29,541,465.04 $ 1,280,372.67 $ 30,821,837.71

$ 3,464,552.70 $

253,073.07 $ 664,315.41 3,737,852.58 231,679.50

6,948.06 $ 11,623.27 118,939.97 5,478.21

260,021.13 675,938.68 3,856,792.55 237,157.71

$ 3,464,552.70 $ 4,886,920.56 $

142,989.51 $ 5,029,910.07

0.00

821,799.90

1,246,712.00

24,319.03

1,271,031.03

0.00

$ 4,286,352.60 $ 6,133,632.56 $

167,308.54 $ 6,300,941.10

$

874,089.90 $ 1,255,229.11 $

21,551.65 $ 1,276,780.76

0.00

$ 28,442,240.50 $ 36,930,326.71 $ 1,469,232.86 $ 38,399,559.57

$

766,061.10 $ 1,515,676.33

$ 1,515,676.33

0.00

213,229.80

$

269,446.42

269,446.42

0.00

$

979,290.90 $ 1,515,676.33 $

269,446.42 $ 1,785,122.75

$ 29,421,531.40 $ 38,446,003.04 $ 1,738,679.28 $ 40,184,682.32 $

0.00

$

85,016.00

276,332.00

s_ _36_1,_348_.oo_

$

144,830.23 $

144,830.23

261,572.99

261,572.99

$

406,403.22 $

406,403.22 s______o_.oo_

- 51 -

DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1995

SCHEDULE "12''

BOARD MEMBER ADDRESS
Mr. Ronald S. Couch, Chairman (*) 239 Hazel Street Lithia Springs, Georgia 30057
Mr. Lawrence Barker, Jr. (*) 9026 East Carroll Road Winston, Georgia 30187
Mrs. Cynthia J. Richards (*) 5464 Steeple Chase Drive Douglasville, Georgia 30135
Mr. Russell Roper(*) 3180 Highway 166 Douglasville, Georgia 30135
Mrs. Barbara G. Sanders (*) 2885 Campground Road Winston. Georgia 30187

COMPENSATION

TRAVEL

$

2,550.00 $

1,083.38

2,950.00

1,075.77

2,550.00

696.50

2,300.00

110.00

2,550.00

511.14

(*) Denotes Board Members Serving as of June 30, 1995

$

12,900.00 $ ===3=4==7==6==7.::::::::9

See notes to the general purpose financial statements.

- 52 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Douglas County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Douglas County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, 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.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventorie~ through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Douglas County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
95CRL-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 ofpublic record.
Respectfully submitted,

CLV:dt 95CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Douglas County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. This report was qualified for a scope limitation and 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 Douglas County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995:

(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 ofan opinion on the Douglas County Board ofEducation's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

95CRL-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 Douglas County Board of Education
had not complied, in all material respects, with those requirements. However, the results of our procedures
disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully _submitted,
~=~
Claude L. Vickers State Auditor
CLV:dt 95CRL-50

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

DEPARTMENT OF AUDITS
254 WashiQgton Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Douglas County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. This report was qualified for a scope limitation and 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 Douglas County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Douglas County Board ofEducation 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

95CRL-90

Except as discussed in the following paragraph, we conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Douglas County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
The results ofour audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above which is described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph.
In our opinion, the Douglas 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, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
4'~ ~
Claude L. Vickers State Auditor
CLV:dt 95CRL-90

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Douglas County Board ofEducation

SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REOUIRE:MENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Douglas County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. This report was qualified for a scope limitation and 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 1995 general purpose financial statements of the Douglas 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 ofManagement and Budget (01\ffi) 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, 1995. As required by 01\ffi Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:

(I) Types of Services Allowed or Unallowed

(2) Eligibility

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

95CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Douglas County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
ay4.,;r. ~,,..) Respect~Ily submitted,
Claude L. Vickers State Auditor
CLV:dt 95CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Douglas County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Douglas County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, 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.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management of the Douglas 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 ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
95ICL-3

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and perfonning our audit ofthe general purpose financial statements of the Douglas County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(I) Accounting Controls (Overall)
(2) General Ledger
(3) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that 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 Douglas County Board ofEducation's financial statements and this report does not affect our report thereon dated August 7, 1996.
95ICL-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 su~mitted,
4'4-,;r.~
Claude L. Vickers State Auditor
CLV:dt 95ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 7, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Douglas County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Douglas County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 7, 1996. This report was qualified for a scope limitation and 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 Douglas County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated August 7, 1996.
Except as discussed in the following paragraph, 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 ofOffice ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Douglas County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions

95ICL-7

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 August 7, 1996.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4J Reporting

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

(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.

95ICL-7

During the year ended June 30, 1995, the Douglas County Board of Education expended 86% 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 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 ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
( 1) Allowable Costs/Cost Principles
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Douglas County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated August 7, 1996.
95ICL-7

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:dt 95ICL-7

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $8,608.82 Audit Control Number 6481-93-01
The audit report for the year ended June 30, 1992, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$8,608.82 for the Staff Development - Professional Development 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 $8,608.82 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal year.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Controls over Consumable Supplies Inventory Financial Statements Finding Resolved Audit Control Number 6481-93-03
The audit report for year ended June 30, 1994, noted the Board was unable to provide a reconciliation between the consumable supplies inventory count and the amounts recorded for consumable supplies inventory in the Board's general ledger. For the year under review, the Board performed a physical count of the consumable supplies inventory and was able to provide a reconciliation between the consumable supplies inventory count and the amounts recorded for the consumable supplies inventory in the Board's general ledger.
AUDIT FOLLOW-UP/RESOLUTION Incorrect Financial Report to Georgia Department ofEducation Financial Statements Finding Resolved Audit Control Number 6481-93-06
The audit report for the year ended June 30, 1994, reported that a comparison of the Board's financial report submitted to the Georgia Department of Education (DE Form 0046) to the accounting reports, revealed that the revenues, expenditures and the changes in fund balance reported on the DE Form 0046 for the General Fund and the Special Revenue Fund were not supported by the accounting records. For the year under review, the DE Form 0046 report was accurate and supported by the accounting records as required.
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DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 6481-93-08
The audit report for the year ended June 30, 1994, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter 2 program (CFOA 84. 151) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures and Estimated Requirements for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations by the Board.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $4,168.15 Audit Control Number 6481-93-09
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$4,168.15 for the operations portion of the Category V Gifted 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$4, 168.15 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $17,258.50 Audit Control Number 6481-93-10
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $17,258.50 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 $17,258.50 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal year.
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DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Separate Accountability Financial Statements Finding Resolved Audit Control Number 6481-93-11
The audit report for the year ended June 30, 1994, stated that separate ledgers for each capital outlay project funded in part by the Georgia State Financing and Investment Commission were not maintained and designated by project name and number as required by Chapter 70 of the Geor~ia Financial Accounting Handbook for Local School Systems (GFAH). During the year under review, the Board implemented procedures which provide for separate accountability of the capital outlay projects as required.
AUDIT FOLLOW-UP/RESOLUTION Accounting Procedures Financial Statements Federal Financial Assistance Finding Resolved Audit Control Number 6481-94-01
The audit report for year ended June 30, 1994, stated that the general ledgers for the General Fund and Special Revenue Fund-Elementary and Secondary Education Act-Chapter 1, Education ofDeprived Children program (CFDA 84.010) were not in balance. For the year under review, the general ledgers for all funds as presented for audit were in balance.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Financial Records Federal Financial Assistance Finding Resolved Audit Control Number 6481-94-03
The audit report for the year ended June 30, 1994, stated that accounting records applicable to the Elementary and Secondary Education Act- Chapter 1, Education ofDeprived Children program (CFDA 84.010) funded through the Georgia Department ofEducation were not maintained on an individual project basis as required. During the year under review, the Board implemented procedures to ensure that accounting records were maintained on a project by project basis as required.
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DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Incorrect Report to Georgia Department ofEducation Federal Financial Assistance Finding Resolved Audit Control Number 6481-94-05
The audit report for year ended June 30, 1994, stated that a comparison of the Board's report to the Georgia Department ofEducation, DE Form 0106 - "Food Inventory School System Summary", to the accounting records revealed that the revenues and expenditures reported on the DE Form 0106 were not supported by the accounting records for the following programs:
National School Lunch Program (CFDA 10.555) School Breakfast Program (CFDA 10.553) Food Distribution Program (CFDA 10.550)
For the year under review, information provided on the DE Form 0106 was accurate and verifiable to the accounting records as required.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6481-93-02
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for Capital Projects Fund, the Expendable Trust Funds and School Food Services Fund(CFDA 10.550, 10.553 and 10.555). For the year under review, the Board implemented changes in the separation of employee duties such that appropriate internal controls were in effect for the Capital Projects and Expendable Trust Funds (now reported in the General Fund). However, our audit noted no improvement regarding adequate separation of employee duties for the School Food Services Fund. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff.
Note: Federal financial assistance programs affected by this finding are as follows:
School Food Services Fund (CFDA 10.550, 10.553 and 10.555)
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DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
GENERAL LEDGER - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Lack of Control over Journal Entries Reportable Condition - Material Weakness Audit Control Number 6481-93-05
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate internal control over the journal entry process. However, for the year under review, the following deficiencies continued to exist:
{l) Journal entries were not supported by either adequate documentation and/or descriptions.
(2) Journal entry documentation did not indicate that an adequate review by supervisory personnel was performed prior to input of the journal entry data in the accounting system.
These conditions were a result of management's failure to adequately monitor the preparation and postings ofjournal entries to the accounting system. The deficiencies in accounting procedures were discussed with the Superintendent. In addition, the accounting personnel of the Board were given instructions in the proper accounting procedures for journal entries which include the necessity of all journal entries being properly approved and documented prior to entry into the accounting system.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6481-93-07
The audit report for the year ended June 30, 1994, noted that the management of the Douglas County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
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DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
FEDERAL FINANCIAL REPORTS Delinquent Completion Report Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6481-94-02
The audit report for year ended June 30, 1994, stated that the Board failed to file the final completion reports by the required dates for the Elementary and Secondary Education Act - Chapter 1 Program (CFDA 84.010)fiscal year 1993 Carry-Over Project and fiscal year 1994 Regular Project, in accordance with regulations established by the Georgia Department ofEducation. For the year under review, the Board again failed to file the final completion report for the Elementary and Secondary Education Act - Chapter 1 - fiscal year 1994 Carry-Over Project by the required due date. This noncompliance occurred because management failed to adequately monitor the filing offinal completion reports. Procedures should be implemented to ensure that final completion reports are filed in a timely manner as required.
ADl\flNISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 6481-94-04
The audit report for year ended June 30, 1994, stated that property management records maintained by the Board for the Elementary and Secondary Education Act - Chapter 1 Program (CFDA 84.010) were incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). In the year under review, the Board again failed to meet property management standards. Inventory records did not contain the acquisition date, acquisition cost, percentage of Federal participation in the cost of the item, location and disposition, when applicable. In addition, current year purchases were not added to the inventory records. This condition occurred because management failed to follow the requirements as set forth in Chapter 41 ofthe FMGLUA. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41, ofthe 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.
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DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Nonmaterial Noncompliance Audit Control Number 6481-95-01
For the year under review, the Board failed to transfer local matching funds from the 1995 Bond Issue Fund to the Capital Projects Fund as required for approved State Capital Outlay Projects for the 1995 fiscal year. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA) and the agreement signed by the Board to receive the funding through Georgia State Financing and Investment Commission and Georgia Department of Education respectively, require that the Board transfer local matching funds by year end and designate those funds by project name and number. This condition occurred because management failed to follow provisions of FMGLUA. Correcting audit adjustments were necessary to transfer $227,108.00 and $88,338.00 from the 1995 Bond Issue Fund to GSFIC Project No. 96-648-028 and Lottery Project No. 96/95S-648-030, respectively, as required.
ALLOWABLE COSTS/COST PRINCIPLES
Time and Attendance Records Not Utilized Federal Financial Assistance Reportable Condition - Material Weakness Nonmaterial Noncompliance Amount: $3,567.21 Audit Control Number 6481-95-02
A review of salaries and related benefits charged to the Elementary and Secondary Education Act - Chapter 1 - Education ofDeprived Children program (CFDA 84.010) revealed that $3,567.21 in expenditures were not supported by time and attendance records as required by Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). Salary and related charges to Federal programs should be based on actual time worked by employees. These improper expenditures occurred because management failed to update the payroll distribution from the previous year. Appropriate internal controls should be established by the Board to ensure that all salary charges for employees involved in Federal and/or State projects be based on actual hours worked. This amount should be refunded to the Georgia Department of Education.
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DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

CURRENT YEAR

ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Federal Financial Assistance Reportable Condition - Material Weakness Nonmaterial Noncompliance Amount: $12,084.96 Audit Control Number 6481-95-03

A review of salaries charged to the following Federal financial assistance programs revealed that salary expenditures were not supported by time and attendance records as required by Chapter 41, ofthe Financial Management for Georgia Local Units of Administration (FMGLUA). Salary charges to Federal programs should be based on actual time worked by employees.

Program

Amount

Individuals with Disabilities Education Act Title VI, B Flow Through (CFDA 84.027)

$6,042.48

Individuals with Disabilities Education Act Title VI, B Preschool Program (CFDA 84.173)

$6,042.48

These improper expenditures occurred because management stated that they were not aware of the specific Federal regulations regarding split-funded personnel. Appropriate internal controls should be established by the Board to ensure that all salary charges ofemployees involved in Federal projects be based on actual hours worked. The Georgia Department ofEducation should review this matter to determine if a reclaim of funds is appropriate.

AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6481-95-04

The Board failed to submit a copy ofthe 1994 audit report to the Southern Regional Education Board from whom the Board received Advanced Integration Model Grant (CFDA 84.248A) funds. Paragraph 13f of 0MB Circular A-128 requires that recipients of Federal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing of the audit report distribution responsibilities by the Department of Audits, management failed to perform the distribution requirement. Procedures should be implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements.

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DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

CURRENT YEAR

APPLICABLE SPECIAL TESTS AND PROVISIONS Failure to Record USDA Food Rebates on the DE Fonn 0106 Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6481-95-05

In the year under review, the Board failed to record USDA Rebates on the DE Form OI06 as required by

Georgia Department ofEducation (GDOE) Memorandum Number 95-001. This condition occurred because

management claimed not to be aware of the GDOE requirements. Appropriate action should be taken by the

Board to ensure that all rebates are entered on the DE Form 0106 as required.

'

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

School Food Services Fund (CFDA 10.553 and 10.555).

Note: The Douglas County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.

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