A800 .Rl [_Z.(p /21qq3-l),f
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT EARLY COUNTY BOARD OF EDUCATION
BLAKELY, GEORGIA YEAR ENDED JUNE 30, 1994

EARLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

FIDUCIARY FUND TYPE

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

27

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

28

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

30

3 ACCOUNTSRECENABLE

31

EARLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

4

STATE FUNDS

32

5

LOCAL AND OTHER FUNDS

33

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

35

7

LOTTERY PROGRAMS

36

8

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUNDS

38

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

39

10

BY PROGRAM

40

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

42

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

EARLY 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
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 3, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Early County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Early County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perfonn the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
94ARL-14

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Early County Board ofEducation as ofJune 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board changed its method ofaccounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Early County Board of Education taken as a whole. The combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements of the Early County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
?~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-14

EARLY COUNTY BOARD OF EDUCATION - 1-

ASSETS
Cash and Cash Equivalerns
Accourns Receivable
Inventories Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Capital Lease Agreemerns

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 491,621.28 $ 103,060.77 $ 104,439.15

946,291.33

228,032.45

14,183.93 8,783.41

Total Assets

$ 1,437,912.61 $

354,060.56 $

104 439.15

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Capital Lease Agreemerns
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$ 500,285.64 $ 106,198.67

808,969.13

95,288.44

7,120.07

$

187.44

$ 1,309,254.77 $ 208,794.62 $

21,052.95 5,100.00
26,152.95

$

1,976.81

$

14,183.93

8,783.41

$

1,976.81 $

22,967.34

126,681.03

122,298.60 $

$ 128,657.84 $ 145,265.94 $

78,286.20 78,286.20

Total Liabilities and Fund Equity

$ 1,437,912.61 $ 354,060.56 $ 104 439.15

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

EXHIBIT"A"

FIDUCIARY FUND TYPES TRUST FUNDS

$

11,316.63

290.32

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum On~

JUNE 301 1994

JUNE 301 1993

$

710,437.83 $ 1,894,132.12

1,174,614.10

1,369,325.44

14,183.93 8,783.41

18,285.06 5,000.21

$

352,568.78

352,568.78

386,170.94

$

11,606.95 $

352,568.78 $ 2,260,588.05 $ 3,672,913.77

$

606,484.31 $

323,455.73

904,257.57

905,195.67

7,120.07

21,052.95

323,125.88

5,100.00

323,146.87

187.44

$

352,568.78

352,568.78

386,170.94

$

352,568.78 $ 1,896,771.12 $ 2,261,095.09

$

11,606.95

$

11,606.95

$

11 606.95 $

$

8,909.12

1,257.46

$

1,976.81

144,111.56

14,183.93 8,783.41

18,285.06 5,000.21 359,918.38

$

24,944.15 $

537,481.79

338,872.78

874,336.89

$

363,816.93 $ 1,411,818.68

352,568.78 $ 2,260,588.05 $ 3,672,913.77

-3-

EARLY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support 5aMces PupilSaMces Improvement of Instructional Services Educational Madia 5aMces General Administration School Administration Business Administration Maintenance and Operation of Plant Student Tranaportation 5aMces Central Support Services Community Sarvice Operations other Support Services Food 5e<vic:es Operation other Operations of Non-Instructional Services
Capital Outlay Debt Sarvice
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Adjustments For Prior Yaar Questionad Costs
Food Inventory Net Change In Period Donatad Commodities Purcha&ad Food

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 7,033,787.76 $ 294,843.14 $

149,866.64

1,542,478.15

3113147.84

133842.24

10 296 802.24 $ 1 971 163.53 $

134,445.13 4877.89
139323.02

$ 6,551,780.86 $ 938,603.05

237,752.85 316,557.39 196,155.95 202,566.65 574,133.43 114,043.61 873,851.91 558,314.84
8,400.00 68,463.84
4,354.66

48,765.06 n,698.69 24,289.94 66,414.01
27,071.04 7,739.30
31,989.09 768,310.69

245,511.94

8,400.00 $ 1,298,067.10

33,602.16 29505.n

$ 10 014 995.81 $ 1 994 280.87 $ 1,298067.10

$

281 806.43 $

-23117.34 $ -1158 744.08

$ $ -741662.90
$ -741 662.90 $

5,662.90 $

736,000.00

5662.90 $

736000.00

-459,856.47 $ 730,046.85

-17,454.44 $ 163,640.52

-422,744.08 501,030.28

-141,532.54

-602.21
-4,101.13 3783.20

FUND BALANCE JUNE 30

$

128,657.84 $

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

145,265.94 $

78286.20

EXHIBIT"B"

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS (Memorandum Only)
YEAR ENDED JUNE30 1994 JUNE30 1993

$ 7,463,076.03 1,692,344.79 3 251 867.97 $
$ 12407288.79 $

$ 1011.92

7,463,076.03 $ 1,692,344.79 3252879.89

10,787,309.04 1,804,910.09 2905590.97

1 011.92 $ 12 408 300.71 $ 15497810.10

$ 7,490,383.91
286,517.91 389,256.08 220,445.89 268,980.66 574,133.43 114,043.61 $ 900,922.95 566,054.14
8,400.00 68,463.84 36,343.75 768,310.69
1,551,979.04
33,602.16 29505.72
$ 13307343.78 $
$ -900 054.99 S

$ 7,490,383.91 $ 7,261,162.88

3,022.00 2,984.00
500.00

286,517.91 389,256.08 220,445.89
268,980.66 574,133.43 117,065.61 900,922.95 566,054.14
8,400.00 71,447.84 36,343.75 768,310.69
500.00 1,551,979.04

229,845.67 298,270.08 204,399.49 273,970.21 523,051.85 95,508.72 1,172,417.69 516,606.81 41,027.50 69,284.45
718,767.77 4,548,762.15

33,602.16 29505.72

16,897.42 14002.95

6506.00 $ 13313849.78 $ 15 983 975.64

-5494.08 $ -905549.07 $ -486165.54

s 741,662.90 -741662.90

$

0.00

$ -900,054.99 $ 1,394,717.65

-142,134.75
-4,101.13 3783.20

$

386,109.96

$

741,662.90

500,000.00

-741 662.90

-500000.00

$

0.00 $

386109.96

-5,494.08 $ 17,101.03

-905,549.07 $ 1,411,818.68

-100,055.58 1,512,202.73

-142,134.75
-4,101.13 3783.20

-1,683.03 1354.56

$ 352209.98 $

11606.95 $

363816.93 $ 1411818.68

-5-

~LY ~Hr( ~C! QE EDUCATION ~alNEC! !AIEME(':{[ QE BE~N!.!E E~PENC!II!.!BE ~C! ~~~E lt::j B~t::jQ ~I !!iN~E
ACI!JAI ~C! aUL1GEI ~Q!lfBNMEt:m.1 E!.~NC! MES
VEAR ENPEP JUNE 30 1994

EXHIBIT"C"

~
Stats Funds Fedanll Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction SupportServieos Pupil Services lmprovemem of Instructional Services Educational Media Services -Administration Sehool Administration Business Administration Maintenance and Operation of Plant Student Transpo,tation Services Central Support Services Community Srvk:e Operations Other Support Services Food Services Operation
Capital Outlay
Dei>ISrvk:e
Tolal "-"<Jitures
Excess ofRownues..., (undr) ~
Qil::IEB El~~I~ Q!.!~ES MESl
Other Sources OtherUseo
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources ..,., (under) "-"<Jitures and Other Financing Uses
BJNP BALANCI; J!JLY1 l!m
ADJUSTMENTS
Prior y.., (Net)
FQQP l~f:ilQBY ~ET ~~E IJj eER!QQ
Donalod Commodities PurchaMd Food

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE
FAVORABLE (l!NFAVORABLE)

7,463,076.03 $ 1,692,344.79 3,251,867.97
12,407,288.79 $

0.00 $ 0.00 $

7,463,076.03 $ 1,692,344.79 3,251 867.97

7,523,275.00 $ 1,550,187.00 3,163 801.00

12407~88.79 $ 12,237,263.00 $

-60,198.97 142,157.78 88,066.97
170,025.79

7,490,383.81 $
286,517.91 389,256.08 220,445.89 268,980.66 574,133.43 114,043.61 900,922.95 586,054.14
8,400.00 68,463.84 36,343.75 768,310.69 1,551,979.04 63,107.68
13,307,343.78 $
-900,054.99 $

0.00 $
0.00 $ 0.00 $

7,490,383.91 $ 7,288,115.00 $

286,517.91 389,256.08 220,445.89 268,980.66 574,133.43 114,043.61 900,922.95 586,054.14
8,400.00 88,463.84 36,343.75 768,310.69 1,551,979.04 63,107.88

315,464.00 303,023.48 223,594.00
270,785.00 617,510.00 101,252.00 812,368.00 592,140.00
6,400.00 64,760.00 32,249.00 745,058.00 1,551,916.00

13,307,343.78 $ 12,926,635.48 $

-900,054.99 $ -889,3n.4B s

-202,268.91
28,948.09 -86,232.62
3,148.11 1,904.34 43,376.57 -12,791.61 -88,554.95 26,085.86
0.00 -3,703.84 -4,094.75 -23,251.69
-63.04 -63,107.68
-380,708.32
-210,682.53

741,662.90 $ 741,662.90
0.00 $

0.00 $ 0.00 $

741,662.90 $ -741,662.90
0.00 $

736,000.00 $ -736,000.00
0.00 $

5,662.90 --5,662.90
0.00

-900,054.99 $ 1,394,717.65

0.00 $ -165,420.02

s -900,054.99 $ -889.3n.4B
1,229,297.63 1,568,792.41

-210,682.53 -339,494.78

-142,134.75

142,134.75

0.00

2,104.00

2,104.00

-4,101.13

4,101.13

0.00

0.00

3,783.20

-3,783.20

0.00

0.00

BJNQBALANCE ~NI;;~ 1994

352,209.98 $

-22,967.34 $

329,242.64 $ 681.523.95 $

--552,281.31

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

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Early 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 of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Early County Board ofEducation.
Based upon the application ofthe above criteria, the Early County Board ofEducation is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Early County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 8-

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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

- 9-

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Early County Learning Center Endowment Fund - the fund used to account for the principal and earnings which may be expended to provide financial assistance to Adults Leaming Center graduates in their pursuit toward long-tenn employment and financial independence.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1993 and ending in early June 1994. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
- 10 -

EARLY COUNTY BOARD OF EDUCATION

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Early County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis 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 prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B":
(1) Donated and purchased food inventories have been eliminated from fund balance, and
(2) Refunding ofprior year Chapter 1 program funds, Audit Control Numbers 6491-93-05, 6491-93-06 and 6491-93-07 reflected as adjustments for prior year expenditures have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (mcluding certificates of deposit, savings and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from 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.
- 11 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

RJNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Early County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on November 16, 1993 (levy date). Taxes were due on February 15, 1994. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The Early County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1993 tax year (calendar year) for the Early County Board of Education was as follows (a mill equals $1 per thousand dollars ofassessed value):

School Operations

11.26 mills

INVENTORIES

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

For fiscal year 1994, the Board began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the Board. The reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles.

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.

- 12 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total colwnns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analy~s. 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
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 in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one 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 ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

- 13 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\1ENTS

ruNE 30 1994

Note 2: DEPOSITS

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $1,216,417.61. 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, 1994, as follows:
Risk Category
I
2 3
Total
Note 3: NON-MONETARY TRANSACTIONS

Bank Balance $ 104,008.64
I, 112,408.97 0.00
$ I 21641761

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

Note 4: RISK MANAGE1\1ENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Each fund contributes their pro rata share to the Unemployment Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, a total of$3,022.00 was paid in claims.

- 14 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Early County Board ofEducation has entered into various lease agreements as lessee for energy retrofit equipment and copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date of their inception. The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

Capital Leases

Balance July 1, 1993

$ 386,170.94

Additions

0.00

Deletions

33 602.16

Balance June 30, 1994

$ 352 Still 78

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

Fiscal Year Ended June 30

Capital Leases

1995 1996 1997 1998 1999 2000 and thereafter

$ 63,107.88 60,056.92 55,577.76 54,737.40 54,737.40 196 142.35

Total Principal and Interest

$ 484 359.71

Deduct: Imputed Interest

$ 131 790.93

Net Present Value ofFuture Minimum Lease Payments

$ 352 568 28

- 15 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$42,360.94 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with lottery programs. Lottery funds in the amount of$34,776.86 are available to fund these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

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

$ 9,505.94 1,400.00
31,035.00 420.00

$ 42 360 94

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.

Note 8: SUBSEQUENT EVENTS

In the subsequent fiscal year, the Board issued general obligation bonds in the amount of $2,950,000.00 dated May 18, 1995. The proceeds from these bonds will be applied toward meeting the Board's obligation to provide matching funds on Georgia State Financing and Investment Commission Projects 94/94S - 649.021 and for the purpose ofproviding additional funds for the cost of acquiring, constructing and equipping school buildings and renovating, repairing, improving and equipping existing school buildings.

Note 9: 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).

- 16 -

EARLY COUNTY BOARD OF EDlJCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 9: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless ofage, or after 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 ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distnbution ofthe members 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 members 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 IO 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 members contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $6,372,637.15; total payroll was $7,495,561.80.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actumy. For fiscal year 1994 that rate for employer contributions was I 1.81%. The interest rate assumption (rate ofretum on investments) was 7.50"/o.
Total contributions made during fiscal year 1994 amounted to $1,134,%8.52, ofwhich $752,607.88 was made by the Board and $382,360.64 was made by employees. These contributions represented 11.81 % (Board) and 6% (employees) ofcovered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
- 17 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ I 090 292 000 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$752,607.88 was actuarially determined and represented .1443% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

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

Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.

Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

- 18 -

EARLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS
There were 83 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no 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 1994 amounted to $2,788.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 10: SURETY BONDS
The School Superintendent, Mr. Richard D. Hall, is bonded in the amount of$20,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60199850, on which premium is paid through January 1, 1997.

- 19 -

EARLY COUNIY BOABP OE EDUCATION COMBININ~ BA~NCE Sl::tEEI seE~IIIL BEllENL!E EL!ml JUNf 30 1994

Ml>Ell
C8shand C8sh E ~
Accounts Receivable
lmMnlarias Food ~ Commodities Purcha&ed Food

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 128,716.72 $

0.00 $ 14,006.02

14,549.06

64,794.58 $

99,339.82

14,183.93 8783.41

TolalAssets

$ 166,233.12 $

0.00 $ 78,800.60 $

99,339.82

LIAE:MLIIIES ANC FUNC EQUITY
~
C8sh C>verdrall Accounts Payable Salaries Payable Expired Grant Balances Payable 0.femid R"""""8
Total LlabllHies
fL!NPEOL!IJY
Fund Balances Re&aMld For Continuation of Federal Programs For Expired Grant Balances/Questioned Coals
ForlFood ~Commodities Purcha&ed Food
Unreserved Undesignated
Total Fund Equity

$ 3,363.58 17,603.60
$ 20,967.18

$ $ 78,613.16
187.44 $ 78800.60 $

239.98 21,099.28 72,323.77 5,676.79
99,339.87

$ 14,183.93 8,783.41

$ 22,967.34

122,298.60 $

0.00 $

0.00 $

0.00

$ 145,265.94 $

0.00 $

0.00 $

0.00

Total Liabilities and Fund Equity

$ 166,233.12 $

0.00 $ 78,800.60 $

99,339.82

See notes to the general purpose financial statements.

-20-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

TITLE 11-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

0.00

$

142,722.74 $

117,766.62

$

14,107.34 $

17,369.24$

13,958.58 $

3,913.83

228,032.45

163,102.09

14,183.93 8,783.41

18,285.06 5,000.21

0.00 $

14,107.34 $

17,369.24 $

13,958.58 $

3,913.83 $

393,722.53 $

304,153.98

$

13,383.83 $

14,022.87 $

9,001.46 $

723.51

425.36

1,073.78

1,477.73

3,883.34

1,443.28

$

14,107.34 $

17369.24 $

13,958.58 $

3,013.83 $ 900.00
3,913.83 $

39,661.97 106,198.67 $
95,288.44 7,120.07 187.44
248,458.59 $

39,036.13 101,477.33
140,513.46

$

1,257.46

602.21

$

14,183.93

8,783.41

18,285.06 5,000.21

$

22,967.34$

25,144.94

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

122,298.60

138,495.58

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

145,265.94 $

163,640.52

$

0.00 $

14,107.34 $

17,369.24 $

13,958.58 $

3,913.83 $

393,722.53 $

304,153.98

-21-

EARLY COUNTY BOARD OF EPUCAJ!ON COMBINING STATEMENT OF REVENUES EXPENDITURES ANO CHANGES IN FUND BALANCES
SPECIAL BEVfNUE FUND VEAR ENPEP JUNE 30 1994

~
state Funds Federal Funds Local and Other Funds
Total Revenues
EXPENPIILJRES
Cumint Instruction
SUPpupopritlS- eMces lmprow,menlofl-lSeMces Educational Media Services General Administration Maintenance and Operation of Plant student Transportation SeMces Central SUpport SeMces Other Support Services
Food SeMces Oporation capital outlay
Total~
Excess of Revenues owr (under) E>cpendilures
OJHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and other Financing Sources owr (under) E>cpendltures
FUND BALANCE JULY 1
Adjustments ForPriorYaarQ.-Cost
Food lrwenloly- Net Change In Period Donated Commodities Purchased Food
FUND BALANCE JUNE 3Q

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

ELEMENTARY
CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 63,330.00 $ 553,565.98 133,842.24
$ 750 738.22 $

28,207.00 $ 203,306.14 $

810,471.03

28207.00 $ 203,306.14 $ _ _.::;8e;10:,;4e.:7..:.1,:.03:.

s 28,207.00 $ 126,m.49
13,315.78
24,289.94
27,071.04 7,7'39.'JO

$ 766,935.20

1,375.49 8 400.00

$ 766,935.20 $ - - - =28= ,207.00 $ 206,969.04 $

$ -16,196.98 $

0.00 $ -5,662.90 $

723,343.57 1,575.00 9,618.89
43,944.48
31,989.09
810,471.03 0.00

$ -16,196.98 $ 161,780.85
-4,101.13 3,783.20

5,662.90

0.00 $ 0.00

0.00 $ 0.00

0.00 602.21
-602.21

$ 145,265.94 $ _ _ _....:o~.oo~s _ _....::;o.~oo~s _ _ _...,::o~.oo~

See notes to the general purpose financial statements.

-22-

EXHIBIT"F"

ANO SECONDARY EDUCATION ACT

TITLEII

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

294,843.14 $

86,109.00

$

28,845.00 $

17,105.34 $ 86,559.96 $ 28,537.58 $

17,393.26

1,542,478.15

1,728,314.79

133,842.24

137,996.50

$

28,845.00 $

17,105.34 $ 86,559.96 $ 28,537.58 $

17,393.26 $ 1,971 163.53 $ 1,952,420.29

$

1,786.27

$ 38,873.28 $

7,132.38 $

12,483.06 $

938,603.05 $ 1,025,810.07

26,991.28 $ 67.45

18,323.58 39.22

12,469.08 12,920.69
22,296.91

21,405.20

4,844.25 65.95

48,765.06 72,698.69 24,289.94 66,414.01 27,071.04
7,739.30
31,989.09 768,310.69
8,400.00

20,241.85 105,110.68 72,968.14
32,627.50 718,767.n

$

28,845.00 $

18,382.80 $ 86,559.96 $ 28,537.58 $

17393.26 $ 1 ,994,280.87 $ 1,!!75 526.01

$

0.00 $

-1,257.46 $

0.00 $

0.00 $

0.00 $

-23,117.34 $

-23,105.72

5,662.90

$

0.00 $

-1,257.46 $

0.00 $

0.00 $

0.00 $

-17,454.44 $

-23,105.72

0.00

1,257.46

0.00

0.00

0.00

163,640.52

187,074.71

-60221
-4,101.13 3,783.20

-1,683.03 1,354.56

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

145,265.94 $

163,640.52

-23-

~ bY !;OUNTY BOARQ OF EDUCATIQN
QOMINING BALANCE SHEET CAPITAL PROJECTS F!,!ND JUNE30 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Accoun1& Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 92-649-013 94-649-034

TOTALS

JUNE 30 1994

JUNE30 1993

$ 78,286.20 $

26,152.95 $

104,439.15 $

824,156.16

323,146.87

TotalAssets

$ 78286.20 $

26152.95 $

104439.15 $ 1147303.03

LIABILITIES AND FUND EQUITY
LIABILITIES
Conlracl& Payable Retainages Payable
Total Liabilities
FUNDEOUITY
Fund Balances Re&eMld For State Capital Outlay Projects Unre&eMld Undesigna18d
Total Fund Equity

$ $
$ 78,286.20 $ $ 78,286.20 $

21,052.95 $ 5100.00
26,152.95 $

21,052.95 $ 5100.00
26,152.95 $

323,125.88 323,146.87
646,272.75

0.00 $ 0.00 $

$ 78,286.20 78,286.20 $

359,918.38 141,111.90 501,030.28

Total Liabilities and Fund Equity

$ 78,286.20 $

26,152.95 $

104439.15 $

1147303.03

See .-10 the general purpose financial-

-24-

EARLY COUNTY BOARD OF EDUCATION COMBINING STATEMFNT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1994

EXHIBIT"H"

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 92-649-013 94-649-034

TOTALS YEAR ENDED JUNE30 1994 JUNE30 1993

REVENUES
S-Funds Local and OU- Funds
Total Revenues

s
$ 4877.89
s 4877.89 $

134,445.13 $ 134445.13 $

134,445.13 $ 4877.89
139323.02 $

3,941,031.83 25019.79
3966051.62

EXPENDITURES

Capital Outlay Professional and Technical Services Land and Land Improvements Building and Building Improvements
Total Expenditures

s

1,500.00

$

0.00 $

8,485.75 $

8,485.75

1289581.35

1289581.35

4547262.15

$

0.00 $

1298067.10 $ 1298067.10 $ 4548762.15

Excess of R ~ over (under) Expenditures

$ 4877.89 $

-1163621.97 $ -1 158 744.08 $ -582710.53

OTHER FINANCING SOURCES {USES)

Operating Transfers In Operating Transfers Out
Total OU- Financing Sources (Uses)

$
s -67703.59 s -67703.59 $

803,703.59 $ 803703.59 $

803,703.59 $ -67703.59
736000.00 $

500,000.00 500000.00

Excess of Revenues and OU- Financing Sources over (under) Expenditures and Other Financing Uses $ -62,825.70 $

-359,918.38 $ -422,744.08 $

-82,710.53

FUND BALANCE JULY 1

141111.90

359918.38

501 030.28

583740.81

FUND BALANCE JUNE 30

s 78286.20 $

0.00 $

78,286.20 $

501,030.28

See notes to the general purpose financial statements.

-25-

~
Caoh and Caoh E q u -
Tolal-
FUNPEOUIIY
Fund Balances
un.-
Undeoignaled

EARLY COUNTY BOARP OE EDUCATION CQMBINING RAI ANCE SHEfT
FIDUCIARY EUNP TYPE~ liXPENDABLli TRUST FUNM JUNE 3Q 1"4

EXHIBIT"r

ENDOWMENT FUND
EARLY COUNTY LEARNING CENTER FUND

ROBERTL STEELE, M. D.
OCT SCHOLARSHIP
FUND

SELF-INSURED EMPLOYEE
BENEFIT FUND UNEMPLOYMENT COMPENSATION
FUND

TOTALS

JUNE 30 1994

JUNE 30 1993

5,,425,43 $

5,033.S $

851.n $

11,316.83 $

16,700.41

153.n

136.60

290.32

400.62

$

5579.15 $

5170.08 $

851.n $

11 606.95 $

17101.03

5 579.15 s _ _ _ _5_1_10_._os_ s _ _ _ _8_5_7._n_ $

11606.95 $ _ _ _11..,1_0_1._03_

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

EARLY COUNTY BQARP OF EDUCATION lfQMBfMOO STATFUFNT OF BEYl=NVflS EXfFNPITVBES ANP CHANGES lN RJNQ RA.LANCES
FIQlKWrr FtJNQ IYPE - EXPENPMI ETRUST FUNDS VEAR ENPJ;P JUNE 3Q 1&1

EXHIBIT"J'

~ Local and 011- Funds
EXPENQIDJRES
Current Suppo,tSerw::ea Bueinesa Administration Community Services Operation 011- Operations of Non-ln&lnACtional Services
Total Expenditures
EX0866 d Revenues over (under) Expenditures
FUNP BAl ANCE JULv 1
FUNQ BALANCE JUNE 30

ENDOWMENT
FUND EARLY COUNTY
LEARNING CENTER
FUND

ROBERTL. STEELE, M. D.
OCT SCHOI.ARSHIP
FUND

SELF-INSURED EMPLOYEE
BENEATFUND UNEMPLOYMENT COMPENSATION
FUND

TOT YEAR JUNE30 1994

803.30 $

208.62 $

0.00 $

1 011.92 $

7 951.33

2,984.00
2 984.00 $ -2,180.70 $ 7 759.85
sa79.15 $

500.00 500.00 $ -291.38 $ 5 461.46
5170.08 $

3,022.00 $
3 022.00 $ -3,022.00 $ 3 879.72

3,022.00 2,984.00 $
500.00 6 506.00 $
-s.-.08 $ 17101.03

1,542.58 1 000.00 2 542.58 5,-408.75 1169228

857.72 $

11 606.95 $

17101.03

See notes to the general purpose financial statements.

-27-

EABl Y COUNTY BOARD OE EDUCATION
li!.!:!E12ULE QF EE12EB.!.I E!!iA!i!.1.!.L .!.lilill!Ie.!i!.E
YEAR E@fl2 Jl,!!,IE 3Q 1994

SCHEDULE 1

FUNDING AGENCY PBQGR.!,M{GBA!iI
Agriculture, u. s. Department of
Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994Grant National School Lunch Program 1993Grant 1994Grant Food Distribiltion Program (1)

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

2,072.88 $
491,285.77 63253.66

1,294.32 $
4,562.60 477,515.27 NIA

2,072.88
491,285.77 $ 60207.33

(2)
706,727.87 60207.33

Total U.S. Department of Agriculture

$ 558612.31 $

483372.19 $ 553565.98 $

766935.20

Education, U. S. Department of

Through Georgia Department of Education

Elementary and Secondary Education Act

Chapter 1

Education of Deprived Children

1993Regular

84.010

1993 carry-Over

84.010 $

1994Regular

84.010

Chapler2

Block Grant Flow Through

1994 Regular

84.151

Titlell

Eisenhower Mathematics and Science

Ed<lcalion

1993 Regular

84.184

1994 Regular

84.184

Individuals with Disabilities Ed<lcalion Act

r111ev1,B

Flow Through

1992 Corry-Over

84.027

1993 Regular

84.027

1993 carry-Over

84.027

1994Regular

84.027

Preschool Program

1992 Corry-Over

84.173

1993Regular

84.173

1993 Corry-Over

84.173

1994 Regular

84.173

Vocational Education Basic Grants to States

High School Program

Basic Grant

1993 Grant

84.048

1994Grant

84.048

Community Basad Organizations

Vocational Educational Support Program

1994 Contract

84.174

Tech-Prep Education

1994 Grant

84.243

Supplementary Grant

1994 Grant

84.253

$ 109,964.00 711,386.00 28,845.00
15,231.00
44,214.00 80,522.00
14,579.00 37,596.00
42,550.00 9,185.34
60,000.00 2104.00

143,042.00 109,964.00 $ 606,844.00

109,964.00 $ 700,507.03

109,964.00 700,507.03

28,845.00

28,845.00

28,845.00

2,998.00

2,998.00 14,107.34

4,255.48 14,107.34

1,005.00 3,222.88 44,214.00 26,420.00
3,400.00 4,175.65 14,579.00

44,214.00 42,345.96
14,579.00 13,958.58

44,214.00 42,345.96
14,579.00 13,958.58

18,742.00 19,630.00
5,250.00 23,000.00
2104.00

42,550.00
9,185.34 60,000.00 2104.00

(4)
9,185.34 60,228.22 (3) (41

Total U. S. Department of Education

$ 1158176.34 $

1 057 435.53 $ 1 085 358.25 $ 1 042189.93

28.

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Health and Human Resources, U. S. Department of Through Georgia Department of Human Resources Adult/Remedial Education Peach Program 1993 Grant 1994Grant

93.021 93.021 $

$ 36496.92

3,923.05 $ 30334.12

-469.62 36496.92 $

58 866.00 (3)

Tolal U. S. Department of Health and Human Resour<:es
Labor, u. s. Department of
Through Southwest Georgia Regional Development Cen1er Job Training Partnership Ar:J. Contract No. 92-8-63 Conlrar:J. No. 93-8-TT

$
17.250 17.250 $

36,496.92
$ 44136.00

34257.17 $ 36027.30 $

58866.00

17,112.34 $

13,479.43 $ 3913.83

13,479.43 3913.83

Tolal U. S. Department of Labor

$ 44136.00 $

17112.34 $ 17393.26 $

17393.26

Total Fedenll Financial Assistance

$ 1 793 421.57 $

1 592 1TT.23 $ 1 692 344.79 $

Major Programs are Identified by an asterisk (') in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities receivad and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program _., not maintained separa1ely and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program Include State, and/or Local and Other Funds. (4) Expenditures on this program_., not maintained by fund source.

1 885384.39

See notes to the general purpose financial slalements.

29.

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

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Bank of Early, Blakely, Georgia
Money Market Account (3.25%)
First State Bank of Blakely, Blakely, Georgia
Certificates of Deposit No. 31506 (4.00%) No. 31626 (4.00%)
N.O.W. Account (3.00%) Money Market Accounts (3.25%)

$ 4,008.64

$ 5,000.00 5,000.00
586,254.33 110,174.86

706,429.19

$ 710,437.83

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

EARLY COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3"

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE TRUST FUNDS

TOTAL

Early County Tax Commissioner County Wide School Tax

$

15,666.99

$

15,666.99

Education, Georgia Department of Quality Basic Education Deferred Summer Salaries Food Services School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Funds Lotteiy Programs Computers In Classrooms Distant Leaming Media Center and Libraiy Equipment Federal Programs ESEA- Chapter 1 Education of Deprived ChUdren ESEA-Trtlell Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act TrtleVl,B Flow Through Preschool Program
Human Resources, Georgia Department of Division of Family and Children Services Adult Education State Funds Federal Funds

853,035.00 $
3,794.00 63,855.34

778.56 13,770.50
38,311.00 2,438.00
24,045.58

99,339.82

14,107.34

17,369.24 13,958.58

3,777.20 6,162.80

853,035.00 778.56
13,770.50 3,794.00
63,855.34 38,311.00
2,438.00 24,045.58
99,339.82
14,107.34
17,369.24 13,958.58
3,777.20 6,162.80

Southwest Georgia Regional Development Center Job Training Partnership Act

3,913.83

3,913.83

Various Sources Interest Earned

$

290.32

290.32

$

946,291.33 $ 228,032.45 $

290.32 $ 1,174,614.10

See notes to the general purpose financial statements.

- 31 -

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

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Qualfty Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension 1993 Mid-term Adjustment Local Fair Share Deferred Summer Salaries - FY 1993 Defemed Summer Salaries FY 1994 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Governor's Emergency Funds (1) Mentor Teacher Program Preschool Handicapped Program Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
Georgia Public Tek!communications Commission Lottery Program Distant Leaming
CONTRACTS Education, Georgia Department of Student Information Systems Project
OTHER Human Resources, Georgia Department of Adult Education

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 4,356,424.00 724,185.00 287,059.00 192,212.00 62,297.00
1,322,305.00
293,504.00 90,625.00
179,588.00 110,475.00 67,950.00
12,550.00 -1, 180,045.00
-828,376.85 853,035.00 374,480.00
$ 73,821.00
15,000.00 1,440.00
2,178.36

63,330.00
28,207.00
2,316.00 47,427.00
2,438.00 24,045.58 93,287.00 29,057.56

$ 4,356,424.00 n4,185.oo 287,059.00 192,212.00 62,297.00
1,322,305.00
293,504.00 90,625.00 179,588.00 110,475.00 67,950.00 12,550.00 -1, 180,045.00 -828,376.85 853,035.00 374,480.00 63,330.00 73,821.00
15,000.00 1,440.00
28,207.00 2,178.36
2,316.00 47,427.00
2,438.00 24,045.58 93,287.00 29,057.56

$ 134,445.13

134,445.13

4,735.00

4,735.00

1,000.00

1,000.00

22,081.25

22,081.25

(1) To partially fund an Agricultural Center in Early County. See notes to the general purpose financial statements.

7,033,787.76 $ 294,843.14 $ 134,445.13 $ 7 463,076.03 32

EARLY COUNTY BOARD OF EDUCATION
SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30 1994

SCHEDULE "5"

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTAL

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

$ 3,047,372.08 325.42
4,464.65

$ 3,047,372.08 325.42
4,464.65

Other Compensation for Loss of Assets Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books MBk Court Settlement Rents Sales Lunches School Assets Tuition Other

283.47

10,944.00 15,816.47 $
1,278.38
901.25

4,127.00 $ 496.07

8,277.00 22,687.62
797.50

129,219.17

4,877.89 $

451.92 560.00

283.47
10,944.00 25,273.28
1,278.38 496.07 901.25
129,219.17 8,277.00
22,687.62 1,357.50

$ 3,113,147.84 $ 133,842.24 $ 4,877.89 $

1,011.92 $ 3,252,879.89

See notes to the general purpose financial statements.

- 33 -

!it.BLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENT& FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE "6"

GENERAL FUND

SPECIAL REVENUE
FUND

EXPENDITURES

Operating Costs

Salaries

$

Employee Benefits

Travel of Employees

Professional and Technical Services

Compensation and Travel of Board Members

Water, Sewer and Cleaning Services

Repair and Maintenance Services

Rents

Insurance

Communications

Commodity Hauling

Shared Services

Other Purchased Services

Supplies

Energy

Food Usage

Books, Textbooks and Periodicals

Dues and Fees

Interest Expense

Federal Indirect Costs

Other Expenditures

6,605,010.06 $ 1,737,545.28
39,104.04 56,830.46
6,543.26 25,513.32 152,947.59
1,643.57 26,922.95 34,160.30
8,400.00 4,000.00 287,193.64 379,146.21
134,964.53 21,383.22 13,472.03
9,433.10

890,551.74 $ 242,989.33
13,087.71 60,163.30
18,644.38
1,072.92 4,542.78
166,322.33 2,947.47
393,637.81 14,368.75 4,387.53
10,944.00 4,754.79

Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment

63,107.88 202,801.82
23,899.50 180,973.05

8,400.00 157,466.03

TOTAL
7,495,561.80 1,980,534.61
52,191.75 116,993.76
6,543.26 25,513.32 171,591.97
1,643.57 26,922.95 35,233.22
4,542.78 8,400.00 4,000.00 453,515.97 382,093.68 393,637.81 149,333.28 25,770.75 13,472.03 10,944.00 14,187.89
63,107.88 202,801.82
32,299.50 338,439.08

Total Expenditures

$ 10,014,995.81 $ 1,994,280.87 $ 12,009,276.68

See notes to the general purpose financial statements. 35

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Supplies Energy Food Usage Books, Textbooks and Periodicals other Expenditures
Nonoperaling Costs Land and Land Improvements Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

1,993.64 $

12,899.73 $

3,357.25

538.75

38,444.05

$

2,532.39 $

51,343.78 $

3,357.25

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

SCHEDULE'7"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

G.P.T.C. DISTANT LEARNING

TOTAL

$

$

13,421.08

10,624.50

$

24 045.58 $

11,249.18 854.13
1,800.92 2,757.55 43,959.35 $ 2,947.47 1,375.49 8,780.31
155.00
8,400.00 11,007.60

11,704.00 $ 17,964.04

$ 4,735.00

11,249.18 854.13
1,800.92 2,757.55 92,070.05 2,947.47 1,375.49 9,319.06
155.00
8,400.00 78,040.19

93 287.00 $

29 668.04 $

4 735.00 $

208,969.04

- 37 -

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30 1994

SCHEDULE "8"

EXPENDITURES
Operating Costs Awards Unemployment Claims Other Expenditures

$ . . 500.00 3,022.00 2,984.00

Total Expenditures

$

6,506.00

See notes to the general purpose financial statements. - 38 -

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$

5,559,880.00 $

62,297.00

$

5,944,024.29

367,271.10 $

$

6,311,295.39 $

67,178.01 67,178.01

$

6,311,295.39 $

-4,881.01 62,297.00

Amount of Underexpenditure for Total Allotment

$

Note: (1) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

0.00 $

0.00

See notes to the general purpose financial statements. - 39 -

EARi YCQl INJY RQABQ Qf fQlJCATIQN
ANAi YSIS PE MINIMUM EXPFNPIBJBE Bfgt IIBfMENTS - BY PBOC.JUM
GENERAL fUNP - QUALITY BASIC EDUCATION ffiOGBAMS YEAR ENPsP JUNE i! 199.t

GENERAi ANO CAREER EDUCATION PBQGBAU
loodergarten(") G..-1-3(")
Su~Total - K-3 0..-4-5(") G..-6-8(") Grades 9 -12 (")

High -

Laboralones (")

V-IEd.-..iL.a-(")

Total General and career Education Programs

SPECIAi EQlJCATIQN PROGRAMS

Regular Programs
~II(") ~Ill(") ~IV(") Itinerant

SIJb..Total - Regular

~V(GHted)(")

Total Special Education Programs

REMfQIAI EQl JCATION PROGRAM Ci MEQIA CENTER PROGRAMS

Total Thirteen Weighted and Media Center

STAFF REVEi QPMENT PROGRAM (1) Cost cl Instruction
_ , DeYelopment

TotalstatfDeYelopment

C, ldentifie6 Thirteen Weighted Programs. Note (1) $3,806.94 c:I the allotment for Profe&sional
Dwelopmenl: has been tranarerred to Cost c:I Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statement&.

ALLOTMENTS FROM DEPARTMEl'IT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL ~

ORIGINAL

MID-TERM

REQUIRED

422,007.00 1126423.00 1,548,430.00 90
516,738.00 90 1,024,953.00 90
736,297.00 90 159,118.00 90 370 888.00 90 4 356424.00

379,806.30 $

0.00 S 379,806.30

1 013 780.70

1013780.70

1,393,587.00 $

0.00 $ 1,393,587.00

485,064.20

485,064.20

922,457.70

922,457.70

662,867.30

662,667.30

143,206.20

143,206.20

333 799.20

333 799.20

3920781.60 $ _ __,o"'.oo"- s 3 920 181.so

668,946.00

602,051.40 $

602,051.40

668,946.00 55 239.00
724185.00 287 059.00 192212.00

90 $ 90
90 $ 90 $

602,051.40 $ 49715.10 651 766.50 $ 258353.10 S 172 990.80 $

$ 5 559,880.00

$ 5 003,892.00 $

0.00 $
0.00 $ 0.00 $ 0.00 $

602,051.40 49 71510
651 766 50 258,35310 172 990 60

0.00 S 5 003,892 00

17,806.94 100 S 44 490.06 100

17,806.94 S 44 490.06

62,297.00

62297.00 S

0.00 S

17,806.94 44 490.06

o.oo s _ ___.6_2.2.9._1_.oo_

se22,1n.oo

5,066189.oo s _ _ __.o_.oo.., s 5066189.oo

(2) SalaJy accruals (July and August 1994 Deferrad Salaries) reported as expenditures in the General
Purpoae Financial Statement& are not included on this anaJyaia in order to comply with program gu;deline&.

- 40 -

SCHEDULE "10''

REQUIRED ALLOTMENT

SALARIES
ACTUAL (2)13)

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNOEREXPENDllURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNOEREXPENDITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

370,404.90 $

451,468.08

983 331.00

1025082.38

1,353,735.90 S 1,476,550.46 $

451,578.60

645,913.44

896,560.20

1,309,367.61

635,044.50

646,475.43

137,259.90

240,871.83

292 578.30

469 352.37

$ 3 766 757.40 $ 4788531.14 $

9,401.40 $

11,669.35

30449.70

45 638.84

0.00

39,851.10 s

57,308.19 $

0.00

13,485.60

30,923."'9

0.00

25,897.50

47,373.65

0.00

27,622.80

76,764.99

0.00

5,946.30

16,445.81

0.00

41 220.90

n51e.94

0.00

154 024.20 $

306 335.07 S

0.00 0.00 0.00 0.00 0.00 0.00 0.00

315,188.10 s
262,970.10 10,191.60
0.00

281,728.55 331,072.11
15,504.64

6,362.10 S 6,750.90
328.50 260.10

8,875.56 4,775.89
18.40

588,34$.80 S

628,305.30 $

0.00

13,701.60 $

13,669.85 S

0.00

48 415.50

85178.00 $

0.00

1 299.60

1951.61 s

0.00

636 765.30 s

713 483.30

15001.20 $

15 621.46

254 046.60 S

291 937.81 $

0.00

4 306.50 $

4 722.93 $

0.00

134851.50 $

150 072.04 $

0.00

38139.30 $

40591.64 $

0.00

4 792,420.80 $ 5,944 024.29 $

0.00

211 471.20 S

367,271.10 s

0.00

17,806.94 S

22,687.95 s

0.00

44490.06

44 490.06

0.00

62,297.00 $

67,178.01 s

0.00

s 4,792 420.80 $ 5 944 024.29

0.00

273 768.20 $

434,449.11 s

0.00

(3) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the priof year General Purpo&e Financial statements are included on this analysis as required by program guidelines.

- 41 -

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Bishop F. Hunter, Chairman i) Route 1, Box 1195 Jakin, Georgia 31761
Mr. Thomas H. Bell (") Route 4, P. 0. Box 591 Blakely, Georgia 31723
Mr. Joe A. Cannon Routes Blakely, Georgia 31723
Mr. Harry R. Clifton 124 Westview Drive P. 0. Box322 Blakely, Georgia 31723
Ms. Gwendolyn S. Harris (") 423 North Avenue Blakely, Georgia 31723
Mrs. Faye G. Lewis(") Box82 Damascus, Georgia 31741
Mr. James G. Whitehead (") Route 5, Box 3395 Blakely, Georgia 31723

COMPENSATION

TRAVEL

$

900.00 $

145.98

900.00

303.75

350.00

400.00 500.00 1,000.00 450.00

467.04 712.99 413.50

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

$

4,500.00 $ _ _..;2;,:.,04_,;;,3;,;;;.2_6

See notes to the general purpose financial statements. - 42 -

SECTION IT COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR {404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 3, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Early 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 ofthe Early County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August 3, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Early County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
Material instances ofnoncompliance are failures to follow requirements or violations of prohibitions, contained in laws, regulations, contracts, or grants, that cause us to conclude that the aggregation ofthe misstatements resulting from those failures or violations is material to the general purpose financial statements. The results ofour tests of compliance disclosed a material instance of noncompliance, which is described in the Schedule ofFindings and Improper or Questioned Costs.
94CRL-20A

We considered the material instance ofnoncompliance in forming our opinion on whether the fiscal year 1994 general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated August 3, 1995, on those general purpose financial statements.
Except as descnbed above, the results of our tests of compliance indicate that with respect to the items tested
the Early County Board ofEducation complied, in all material respects, with the provisions referred to in the third paragraph ofthis report, and with respect to items not tested, nothing came to our attention that caused us to believe that the Early County Board ofEducation had not complied, in all material respects, with those provisions.
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,
ff~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-20A

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 3, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Early 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 Early County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August 3, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Early County Board of Education's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that Early 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.

Ro~:~~

CLV:cm 94CRL-40

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 3, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Early 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 ofthe Early County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August 3, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Early County Board ofEducation's compliance with the requirements governing:

{I) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994. The management of the Early County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Early County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Early County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 3, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Early County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated August 3, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1994 general purpose financial statements of the Early County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, I994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing

94CRL-120

came to our attention that caused us to believe that the Early 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 grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION III INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 3, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Early 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 Early County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August 3, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of the Early County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Early 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, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-4

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

(I) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

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

(1) Accounting Controls (Overall)

(2) Expenditures/Liabilities/Disbursements

(3) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above.

94ICL-4

However, as described in the Schedule ofFindings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses:
(I} Accounting Controls (Overall)
(2) General Fixed Assets
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Early County Board ofEducation's financial statements and this report does not affect our report thereon dated August 3, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-4

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 3, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Early 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 Early County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated August 3, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated August 3, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement and about whether the Early County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have
94ICL-7

addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated August 3, 1995.

The management ofthe Early 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 ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Early County Board ofEducation expended 77% ofits total Federal financial assistance under major Federal financial assistance programs.

94ICL-7

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute ofCertified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable Jaws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Early County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated August 3, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-7

SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED RINE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Legal Requirements Financial Statements Finding Resolved Audit Control Number 6491-93-03
The audit report for the year ended June 30, 1993, reported multi-year lease purchase agreement that did not contain a provision for termination and renewal as required by the Official Code of Georgia Annotated Section 20-2-506. In the year under review, the lease purchase agreement was amended to include the required termination and renewal provisions.
AUDIT FOLLOW-UP/RESOLUTION Expired Grant Balance/Questioned Cost Federal Financial Assistance Finding Resolved Audit Control Number 6491-93-05
The audit report for the year ended June 30, 1993, stated that the Board submitted a completion report for the Elementary and Secondary Education Act - Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) that included expenditures which were subsequently reimbursed by the vendor and deposited in the Board's General Fund. During the year under review, this questioned cost was not resolved. However, subsequent to June 30, 1994, refund of$602.21 was made to the Georgia Department of Education and this amount is included in Accounts Payable on Exhibit "A:' of this report.
AUDIT FOLLOW-UP/RESOLUTION Unallowable Expenditures Federal Financial Assistance Finding Resolved Audit Control Number 6491-93-06
The audit report for the year ended June 30, 1993, stated that the Board used ESEA- Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) funds to purchase furnishings for the Early County Elementary School that were not associated with the program. During the year under review, this questioned cost was not resolved. However, subsequent to June 30, 1994, refund of $140,797.54 was made to the Georgia Department ofEducation and this amount is included in Accounts Payable on Exhibit "A" of this report.

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Expenditure After Grant Period Federal Financial Assistance Finding Resolved Audit Control Number 6491-93-07
The audit report for the year ended June 30, 1993, stated that the Board expended $735.00 subsequent to the expiration ofthe grant period for the Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children Program (CFDA 84.010), 1993 project. During the year under review, this questioned cost was not resolved. However, subsequent to June 30, 1994, refund of $735.00 was made to the Georgia Department ofEducation and this amount is included in Accounts Payable on Exhibit "A" of this report.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 6491-93-08
The audit report for the year ended June 30, 1993, disclosed that the property management records maintained by the Board for the Elementary and Secondary Education Act, Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) were incomplete and failed to meet property management standards as set forth in Chapter 8 of Part 1 of the Georgia Financial Accounting Handbook for Local School Systems (GFAH) Property management records failed to identify all equipment purchased and historical information regarding additions and deletions. During the year under review, the Board implemented procedures which provide for both the identification of all equipment purchased as outlined in the GFAH and the historical information regarding additions and deletions made to the equipment inventory.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,976.81 Audit Control Number 6491-93-04
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $1,976.81 for the StaffDevelopment Programs - Cost oflnstruction Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6491-93-01
The audit report for the year ended June 30, 1993, noted that the management of the Early County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6491-93-02
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit noted no improvements regarding adequate separation of employee duties. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule "1 " of this report are affected by this finding.

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Identify Travel Expenditures by Employee Financial Statements Reportable Condition Audit Control Number 6491-94-01
During the year under review, the Board incurred $521.50 in travel expenditures which could not be identified by individual employee. This deficiency was a result of management's lack of control over expenditures utilizing the Board's credit card. Management should implement procedures to ensure that all individuals complete a travel reimbursement form and attach credit card receipts for any expenditures paid on behalf of the individual with the Board's credit card.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Financial Statements Nonmaterial Noncompliance Amount: $90.50 Audit Control Number 6491-94-02
In the year under review, expenditures of$90.50 were made from the Board's General Fund for corsages and boutonnieres. The Official Code of Georgia Annotated Section 20-2-411 provides, in part, as follows:
"...school funds shall be used for educational purposes and may be used to pay the salaries of personnel and to pay for the utilization of school facilities, including school buses; for extracurricular and interscholastic activities, including literary events, music and athletic programs within individual schools and between schools in the same or different school systems when such activities are sponsored by local boards of education as an integral part of the total school program; and for no other purpose ... ".
An expenditure ofthis nature is considered to be beyond the customary scope of expenditures for "educational purposes". These improper expenditures were a result of management's failure to adhere to requirements set forth above. Appropriate action should be taken by the Board to secure reimbursement of the $90.50 for deposit to the Board's General Fund.

EARLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EMPLOYEE COMPENSATION Employee Overpayment Financial Statements Nonmaterial Noncompliance Amount: $100.85 Audit Control Number 6491-94-03
In the year under review, the Board overpaid sick and personal leave in the amount of$100.85 to an employee who was ineligible for this compensation due to having used all sick and personal leave time available. This overpayment was a result of a miscalculation by payroll personnel.
Appropriate action should be taken by the Board to secure reimbursement of the $100.85 for deposit to the General Fund.
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number 6491-94-04 Fmding Resolved
The Early County Board of Education received approval for State capital outlay project funding, through Georgia State Financing and Investment Commission (GSFIC), for the 1994 fiscal year. Both the instructions in Chapter 70 of the Georgia Financial Accounting Handbook for Local School Systems (GFAH) and the agreement signed by the Board to receive this fimding require that the Board transfer required local matching funds of $279,254.00 to the Capital Projects Fund by June 30, 1994, and designate those funds by project name and number. This transfer was not made by the Board at June 30, 1994. In the subsequent fiscal period, the Board sold a bond issue in the amount of$2,950,000.00 which provided funds to satisfy this commitment.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

EARLY COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEARENDEDJUNE30 1994
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,976.81 Audit Control Number 6491-93-04
We concur with this finding. This finding will be resolved by the Georgia Department of Education through a future increase in the Board's local fair share portion of QBE Allotments. However, the Georgia
Department ofEducation has indicated that they will refund this amount to us through a mid-term adjustment
in FY 1996.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6491-93-01
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff the Board has decided not to pursue the recording of general fixed assets on the financial statements.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6491-93-02
We concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations, this finding can not be totally resolved.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Identify Travel Expenditures by Employee Financial Statements Reportable Condition Audit Control Number 6491-94-01
We concur with this finding. Procedures have been in place since FY 1994 to ensure that all travel expenditures using the credit card are properly identified by individual employee.

EARLY COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Financial Statements Nonmaterial Noncompliance Amount: $90.50 Audit Control Number 6491-94-02
We concur with this finding. A check in the amount of $90.50 was secured from Early County High School funds as reimbursement for this finding.
EMPLOYEE COMPENSATION Employee Overpayment Financial Statements Nonmaterial Noncompliance Amount: $100.85 Audit Control Number 6491-94-03
We concur with this finding. A check in the amount of$100.85 was secured from Early County Elementary School funds as reimbursement for this finding.
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number6491-94-04
We concur with this finding. The voters ofEarly County passed a $2,950,000 Bond Issue in FY 1995 to cover the local match to GSFIC Project 94/94S-649-02l.