GA A800
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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334
AUDIT REPORT ECHOLS COUNTY BOARD OF EDUCATION
STATENVILLE, GEORGIA YEAR ENDED JUNE 30, 1994
ECHOLS 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
2
B
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES
3
C
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - ACTUAL AND BUDGET
GOVERNMENTAL FUND TYPES
4
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
5
ADDITIONAL FINANCIAL INFORMATION
COMBINING STATEMENTS
SPECIAL REVENUE FUND
E
COMBINING BALANCE SHEET
16
F
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
18
SCHEDULES
1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
20
2 ANALYSIS OF CASH AND CASH EQUNALENTS
21
3 INVESTMENTS
22
4 ACCOUNTS RECENABLE
23
SCHEDULE OF REVENUE
5
STATE FUNDS
24
6
LOCAL AND OTHER FUNDS
25
SCHEDULE OF EXPENDITURES BY OBJECT
7
GOVERNMENTAL FUND TYPES
26
8
LOTTERY PROGRAMS
27
ECHOLS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION I
FINANCIAL
ADDITIONAL FINANCIAL INFORMATION
SCHEDULES
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
9
OVERALL
29
10
BY PROGRAM
30
11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
32
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 REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS
SECTION III
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
ECHOLS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTIONN 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
CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174
DEPARTMENT OF AUDITS
254 Washington Street, S.W_, Suite 214 Atlanta, Georgia 30334-8400
February 17, 1995
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Echols County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) ofthe Echols County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement_ An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation_ We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* 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-13
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
* The Board did not record the revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Echols County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Echols County Board ofEducation taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 11 which includes the Schedule ofFederal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Echols County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94ARL-13
ECHOLS COUNTY BOARD OF EDUCATION - 1-
ECHOLS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30 1 1994
EXHIBIT "A"
ASSETS
GENERAL FUND
GOVERNMENTAL FUND TYPES
SPECIAL REVENUE
FUND
CAPITAL PROJECTS
FUND
DEBT SERVICE
FUND
TOTALS (Memorandun Only)
J-U-N-E--3--0-, --1-9-9-4---JU-N-E---3-0-,--1-9-9-3
Cash and Cash Equivalents Investments Accounts Receivable Inventories
Food Donated Comnodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years for Payment of Bond Debt
$ $ 255,203.71
28.04
43,473.84 $ 142,212.45$ 41,392.11 371,458.79 1,081.75 1,134.67
3,761.08 $
189,447.37 $ 255,203.71 412,878.94
198,738.74 109,355.91 25,219.82
1,081.75 1,134.67
1,112.71 538.61
3,175.19 36,824.81
Total Assets
$ 255,231.75$ 87,082.37
============ ============
$ 513,671.24$ 3,761.08
============ ============
$===8=59=,=7=46=.=4=4
$===37=4=,9=6=5=.7=9
LIABILITIES AND
---FU-N-D---E-Q-U-IT-Y---
LIABILITIES
Cash Overdraft
$
Accounts Payable
Salaries Payable
Expired Grant Balances Payable
Contracts Payable
Retainages Payable
General Obligation Bonds Payable
39,156.83 50,243.82$
19,318.49 33,202.63 26,502.30
$ 311,426.83 60,031.96
Total Liabilities
$ 89,400.65 $ 79,023.42 $ 371,458.79
FUND EQUITY
$ 39,156.83
69,562.31 $ 103,440.97
33,202.63
27,344.28
26,502.30
21.39
311,426.83
60,031.96
40,000.00
------------- -------------
$ 539,882.86$ 170,806.64
------------- -------------
Fund Balances Reserved For Bus Replacement Funds $ For Debt Service For Expired Grant Balances/ Questioned Costs For Inventories Food Donated Comnodities Purchased Food For State Capital Outlay Projects
19,466.77 1,311.62
$
Unreserved Undesignated
$ 20,778.39 $ 145,052.71
1,081.75 1,134.67
$ 142,212.45
2,216.42 $ 142,212.45
5,842.53
0.00 $
$ 19,466.77 $ 19,090.77 3,175.19
1,311.62
1,081.75 1,134.67
1,112.71 538.61
142,212.45
99,226.00
------------- -------------
$ 165,207.26$ 123,143.28
3,761.08 154,656.32
81,015.87
Total Fund Balances
$ 165,831.10 $ 8,058.95$ 142,212.45$ 3,761.08$ 319,863.58$ 204,159.15
Total Liabilities and
Fund Equity
$ 255,231.75
============
$ 87,082.37
============
$ 513,671.24
============
$ 3,761.08$ 859,746.44
============ =============
$===3=7=4=,=9=6=5=.7=9=
The notes to the general purpose financial statements are an integral part of this statement. - 2-
ECHOLS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994
EXHIBIT "B"
REVENUES
GENERAL FUND
SPECIAL REVENUE
FUND
CAPITAL PROJECTS
FUND
DEBT SERFUVNICDE
TOTALS (Memorandl.lTI Only)
YEAR ENDED J-U-N-E--3--0-, --1-99-4----JU-N-E--3--0-, --1-99-3-
State Funds Federal Funds Local and Other Funds
$1,631,313.00 $ 119,147.39 $ 663,919.61
$2,414,380.00$ 1,570,134.00
6,429.00 273,118.89
279,547.89 275,348.53
689,027.37 43,324.97
2,471.74$ 42,985.89 777,809.97 570,022.54
Total Revenues
$2,326,769.37 $ 435,591.25$ 666,391.35$ 42,985.89 $3,471,737.86$ 2,415,505.07
EXPENDITURES
Current
Instruction
$1,385,676.33 $ 241,415.91
$1,627,092.24 $1,501,440.73
Support Services
Pupil Services
44,483.94 14,416.29
58,900.23
50,670.21
Improv~nt of Instructional
Services
47,345.35 12,320.55
59,665.90
40,451.15
Educational Media Services
54,572.61
54,572.61
54,309.65
General Administration
135,434.28
975. 59
136,409.87 131,146.87
School Administration
120,561.99
7,984.Bl
128,546.80 133,231.52
Business Administration
1,471.00
1,471.00
4,596.40
Maintenance and Operation of
Plant
215,266.54
215,266.54 199,655.95
Student Transportation
Services
160,287.80
1,465.89
161,753.69 160,527.43
Central Support Services
3,363.45
3,363.45
1,651.17
Other Support Services
595.33
116.14
711.47
Food Services Operation
159,435.58
159,435.58 146,386.86
Other Operations of Non-
Instructional Services
24,134.99
24,134.99
20,066.06
Capital Outlay
$ 682,874.16
682,874.16
4,442.50
Debt Servi ce
Principal
$ 40,000.00
40,000.00
35,000.00
Interest
2,400.00
2,400.00
4,430.00
------------ ------------ ------------ ------------ ------------- -------------
Total Expenditures
$2,193,193.61 $ 438,130.76$ 682,874.16$ 42,400.00$ 3,356,598.53 $ 2,488,006.50
Excess of Revenues over (under)
Expenditures
$ 133,575.76$ -2,539.51 $ -16,482.81 $
585.89 $ 115,139.33 $ -72,501.43
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
$ $ -59,597.06
127.80 $ 59,469.26 $
0.00 $ 59,597.06$ 99,226.00 -59,597.06 -99,226.00
Total Other Financing
Sources (Uses)
$ -59,597.06 $
127.80 $ 59,469.26 $
0.00 $
0.00 $
0.00
Excess of Revenues and Other
Financing Sources over (under)
Expenditures and Other Financing
Uses
$
FUND BALANCE JULY 1
73,978.70$ 91,852.40
-2,411.71 $ 9,905.56
42,986.45$ 99,226.00
585.89 $ 115,139.33 $ -72,501.43 3,175.19 204,159.15 277,131.21
Food Inventory Donated Commodities July 1 June 30 Purchased Food July 1 June 30
-1,112.71 1,081.75
-1,112.71 1,081.75
-1,630.87 1,112.71
-538.61
-538.61
-491.08
1,134.67
1,134.67
538.61
------------ ------------ ------------ ------------ ------------- -------------
FUND BALANCE JUNE 30
$===1=6=5=,8==3=1=.1=0= $=====8=,0=5==8=.9=5= $===1=4=2=,2==1=2=.4=5= $=====3=,7==6=1=.=0=8$===3==1=9=,=8=6=3=.=5=8$====2=0=4=,1==5=9=.1=5=
The notes to the general purpose financial statements are an integral part of this statement.
-3-
ECHOLS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30. 1994
EXHIBIT "C"
ACTUAL
ACTUAL
PER
PER
EXHIBIT "B" ADJUSTMENTS BUDGET BASIS
BUDGET
VARIANCE FAVORABLE (UNFAVORABLE)
REVENUES
State Funds Federal Funds Local and Other Funds
$2,414,380.00$ 279,547.89 777,809.97
0.00 $2,414,380.00$ 2,540,384.00$ -126,004.00
279,547.89 261,629.21
17,918.68
777,809.97 736,418.00
41,391.97
Total Revenues
$3,471,737.86$
0.00 $3,471,737.86$ 3,538,431.21 $ -66,693.35
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Total Expenditures
$1,627,092.24$
0.00 $1,627,092.24 $1,639,215.04 $ 12,122.80
58,900.23 59,665.90 54,572.61 136,409.87 128,546.80 1,471.00 215,266.54 161,753.69 3,363.45
711.47 159,435.58
58,900.23 . 59,665.90
54,572.61 136,409.87 128,546.80
1,471.00 215,266.54 161,753.69
3,363.45 711.47
159,435.58
70,912.00 61,706.00 69,600.00 138,958.00 136,670.00 5,000.00 209,000.00 164,082.00
0.00 2,440.00 145,300.00
12,011.77 2,040.10 15,027.39 2,548.13 8,123.20 3,529.00 -6,266.54 2,328.31 -3,363.45 1,728.53 -14,135.58
24,134.99
24,134.99
19,500.00
-4,634.99
682,874.16
682,874.16 1,095,262.00 412,387.84
42,400.00
42,400.00
42,400.00
0.00
------------- ------------- ------------- ------------- -------------
$3,356,598.53$
0.00 $3,356,598.53 $3,800,045.04$ 443,446.51
Excess of Revenues over (under) Expenditures $ 115,139.33 $
o.oo $ 115,139.33 $ -261,613.83 $ 376,753.16
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
$ 59,597.06$ -59,597.06
0.00 $ 59,597.06$ 100,000.00$ -40,402.94
-59,597.06 -100,000.00
40,402.94
Total Other Financing Sources
(Uses)
$
0.00 $
0.00 $
0.00 $
0.00 $
0.00
Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other
Financing Uses
$ 115,139.33 $
0.00 $ 115,139.33 $ -261,613.83 $ 376,753.16
FUND BALANCE JULY 1, 1993
-------------------------
204,159.15
-1,651.32 202,507.83 298,984.90 -96,477.07
ADJUSTMENTS
-----------
Prior Year (Net)
-52,250.98
52,250.98
FOOD INVENTORY
--------------
Donated Commodities July 1 1993 June 36, 1994
Purchased Food July l 1993 June 36, 1994
-1, 112. 71
1,112.71
0.00
0.00
1,081.75
-1,081. 75
0.00
0.00
-538.61
538.61
0.00
0.00
1,134.67
-1,134.67
0.00
0.00
------------- ------------- ------------- ------------- -------------
FUND BALANCE JUNE 30, 1994
$ 319,863.58$ -2,216.42 $ 317,647.16$ -14,879.91 $ 332,527.07
============ ============= ============ ==~======== =============
The notes to the general purpose financial statements are an integral part of this statement.
- 4-
ECHOLS COUNTY BOARD OF EDUCATION
EXIIlBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS
JUNE 30, 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Echols County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception of the departures from generally aqcepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Echols County Board of Education.
Based upon the application of the above criteria, the Echols County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Echols 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, 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 to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
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.
- 5-
ECHOLS 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 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 of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities of GSFIC Project No. 95/94S-650-022.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
BASIS OF ACCOUNTING
The accounting and.financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
- 6-
ECHOLS COUNTY BOARD OF EDUCATION
EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants, and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
Echols County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
- 7-
ECHOLS COUNTY BOARD OF EDUCATION
EXl-llBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including N.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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(I) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued _by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose
- 8-
ECHOLS COUNTY BOARD OF EDUCATION
EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Echols County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year)
on September 24, 1993 (levy date). Taxes were due on December 23, 1993. 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 Echols County Tax Commissioner bills and collects the property taxes for the Board of
Education.
Tax millage rates levied for the 1993 tax year (calendar year) for the Echols County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):
School Operations School Bonds
11.557 mills .711 mills
12.268 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. The Board uses the purchases method to account for inventories of purchased foods whereby expenditures are recorded at the time of purchase. Both the donated food commodities inventory and the )mrchased foods inventory reported on the balance sheet are equally offset by reservations of fund balance which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. The Federally assigned value of donated commodity items received and consumed has not been reflected as revenues and expenditures in the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
- 9-
ECHOLS COUNTY BOARD OF EDUCATION
EXIIlBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS
JUNE 30, 1994
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS AND INVEST:MENTS
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 of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
- 10 -
ECHOLS COUNTY BOARD OF EDUCATION
EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994
Note 2: DEPOSITS AND INVESTMENTS
(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 $359,168.54. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category
Bank Balance
1
$ 186,452.90
2
172,715.64
3
0.00
Total
$ 359,168.54
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:
Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.
- 11 -
ECHOLS COUNTY BOARD OF EDUCATION
EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS
JUNE 30, 1994
Note 2: DEPOSITS AND INVEST:MENTS
Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.
At June 30, 1994, the carrying amount and market value of the Board's total investments was $255,203.71 and consisted entirely of funds in the Local Government Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. See Note 1 - Inventories
Note 4: RISK MANAGE:MENT
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. During fiscal year 1994, no claims were paid.
Note 5: GENERAL LONG-TERM DEBT
The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:
General Obligation
Bonds
Balance July 1, 1993
$ 40,000.00
Deletions
40,000.00
Balance June 30, 1994
$
Q 00
Note 6: SIGNIFICANT COMMIT:MENTS
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1994, together with funding available:
- 12 -
ECHOLS COUNTY BOARD OF EDUCATION
EXIIlBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994
Note 6: SIGNIFICANT COMMITMENTS
Project
Unearned Executed Contracts
Funding Available From State
95/94/S-650-022
$1,057,128.74 $ 786,581.32
The amounts described in this note are not reflected in the general purpose financial statements.
Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, 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 distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
- 13 -
ECHOLS COUNTY BOARD OF EDUCATION
EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994
Note 8: RETIREMENT PLANS
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $1,421,123.43; total payroll was $1,677,551.92.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $253,101.95, of which $167,834.08 was made by the Board and $85,267.87 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
Total unfunded pension benefit obligation ofTRS as of June 30, 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
$ 1,090 292,000.00
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements 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 $167,834.08 was actuarially determined and represented 0.032% of total contributions made by all participating employers.
- 14 -
ECHOLS COUNTY BOARD OF EDUCATION
EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1994
Note 8: RETIREMENT PLANS
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 of Georgia (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 IO years ofservice and attainment of age 65. A member applying for service retirement with IO years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. If there are less than ten years of service, a lump sum refund ofthe employee's contributi9ns and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 18 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 of the Board made during fiscal year 1994 amounted to $620.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. Donald R. Hicks, effective July 20, 1994, is bonded in the amount of $50,000.00 with the Utica Mutual Insurance Company, New Hartford, New York, their Bond No. SUI 735492, on which premium is paid through December 31, 1996.
- 15 -
ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated C01l1110dities Purchased Food
ECHOLS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1 1994
SCHOOL FOOD SERVICES FUND
STATE
PRESCHOOL HANDICAPPED
PROGRAM
LOTTERY PROGRAMS
ELEMENTARY AND
DRUG-FREE SCHOOLS AND COMMUNITIES
ACT
CHAPTER 1
------------------------EDUCATION OF
DEPRIVED MIGRANT
CHILDREN
PROGRAM
$ 17,107.52 $ 857.25
0.00 $ 23,754.01 $ 11,257.50
0.00
$ 645.64
$ 16,074.34 11,968.14
1,081.75 1,134.67
Total Assets
$ 20,181.19 $
O.OQ $ 35,011.51 $
0.00 $ 16,074.34$ 12,613.78
=========== ========== ========= ========== ======= =========
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
$ 4,087.96 8,034.28
-----------
$ 12,122.24
-----------
Fund Balances Reserved
For Inventories Food
Donated Comoodities Purchased Food
$ 1,081.75 1,134.67
Unreserved Undesignated
$ 2,216.42 5,842.53 $
Total Fund Equity
$ 8,058.95$
$ 8,965.40
26,046.11
-----------
$ 35,011.51
-----------
0.00 $ 0.00 $
0.00 $ 0.00 $
$
28.52
3,336.60$ 2,242.79
12,699.16 10,370.99
10.06
------------ -----------
$ 16,074.34$ 12,613.78
------------ -----------
0.00 $ 0.00 $
0.00 $
0.00
0.00 $
0.00
Total Liabilities and Fund Equity
$ 20,181.19 $
0.00 $ 35,011.51 $
0.00 $ 16,074.34 $ 12,613.78
=========== =========== ========== =========== ========== ========
See notes to the general purpose financial statements.
- 16 -
EXHIBIT "E"
SECONDARY EDUCATION ACT
CHAPTER 2
------------BLOCK GRANT FLOW THROUGH
TITLE II EISENHOWER
MATHEMATICS AND SCIENCE EDUCATION
INDIVIDUALS WITH
DISABILITIES EDUCATION ACT
TITLE VI, B
TOTALS
FLOW
PRESCHOOL
THROUGH
PROGRAM JUNE 30, 1994 JUNE 30, 1993
$
0.00 $
0.00 $ 1,549.06$
446.13 $ 43,502.36$ 19,376.66
1,234.88
41,392.11
24,221.82
1,081.75 1,134.67
1,112.71 538.61
$
0.00 $
0.00 $ 2,783.94$
446.13 $ 87,110.89 $ 45,249.80
============= ============ ============ ============ ============= ==========
$ 685.74 2,098.20 $
$ 2,783.94 $
$ 446.13
28. 52 19,318.49 $
33,202.63 26,502.30
7,978.57
27,344.28 21.39
446.13 $ 79,051.94 $ 35,344.24
$ 1,081.75 $ 1,112.71
1,134.67
538.61
$ 2,216.42 $ 1,651.32
$
0.00 $
0.00 $
0.00 $
0.00
5,842.53
8,254.24
$
0.00 $
0.00 $
0.00 $
0.00 $ 8,058.95$ 9,905.56
$
0.00 $
o.oo $ 2,783.94$
446.13 $ 87,110.89 $ 45,249.80
=========== =========== =========== ============ ============= =============
- 17 -
ECHOLS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 1994
SCHOOL FOOD SERVICES
FUND
STATE PRESCHOOL HANDICAPPED
PROGRAM
LOTTERY PROGRAMS
ELEMENTARY AND
DRUG-FREE SCHOOLS AND COMMUNITIES
ACT
CHAPTER 1
------------------------EDUCATION OF
DEPRIVED MIGRANT
CHILDREN
PROGRAM
REVENUES
State Funds Federal Funds
Local and Other Funds
$ 12,432.00$ 3,022.00$ 103,693.39
100,766.90
$ 5,829.00$ 97,931.01 $ 22,012.18
43,324.97
Total Revenues
$156,523.87$ 3,022.00$ 103,693.39 $ 5,829.00$ 97,931.01 $ 22,012.18
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Student Transportation Services Central Support Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
$ 3,022.00$ 94,987.64$ 5,815.83 $ 96,305.76$ 20,972.78
5,678.78
634.01
2,228.28
13 .17
875.10
426.49
1,039.40
116.14
$ 158,935.58
500.00
----------- ----------- ----------- ----------- ------------ -----------
$ 158,935.58$ 3,022.00$ 103,821.19 $ 5,829.00$ 97,931.01 $ 22,012.18
----------- ----------- ----------- ----------- ------------ -----------
$ -2,411.71 $
0.00 $ -127.80 $
0.00 $
0.00 $
0.00
Operating Transfers In
127.80
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
$ -2,411.71 $ 9,905.56
0.00 $ 0.00
0.00 $ 0.00
0.00 $ 0.00
0.00 $
0.00
0.00
0.00
Food Inventory Donated Commodities July 1
June 30 Purchased Food
July l June 30
-1,112.71 1,081.75
-538. 61 1,134.67
FUND BALANCE JUNE 30
$ 8,058.95 $
0.00 $
0.00 $
0.00 $
0.00 $
0.00
========== ========== =========== ========== =====:..=== ~====--~===
See notes to the general purpose financial statements.
- 18 -
EXHIBIT "F"
SECONDARY EDUCATION ACT
CHAPTER 2
------------BLOCK GRANT FLOW THROUGH
TITLE II EISENHOWER
MATHEMATICS AND SCIENCE EDUCATION
INDIVIDUALS WITH
DISABILITIES EDUCATION ACT TITLE VI, B
FLOW THROUGH
PRESCHOOL PROGRAM
TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993
$ 119,147.39 $ 15,145.00
$ 4,388.00 $ 7,000.00$ 22,504.93 $ 12,6B6.B7 273,11B.B9 274,350.53
43,324.97
45,560.10
$ 4,388.00$ 7,000.00$ 22,504.93 $ 12,6B6.B7 $ 435,591.25$ 335,055.63
$ 4,377.51
$ 9,598.20$ 6,336.19 $ 241,415.91 $ 169,104.04
2,530.00
5,573.50
14,416.29
9,486.00
$ 6,984.56
2,330.53
777 .1B
12,320.55
2,631.15
10.49
15.44
61.39
975.59
304.94
7,9B4.B1
7,9B4.B1
4,B55.32
1,465.B9
1B3.97
116.14
159,435.58 146,3B6.B6
------------- ------------ ------------ ------------ ------------- -------------
$ 4,388.00$ 7,000.00$ 22,504.93 $ 12,6B6.B7 $ 438,130.76$ 332,952.2B
$
0.00 $
0.00 $
0.00 $
0.00 $ -2,539.51 $ 2,103.35
127.B0
$
0.00 $
0.00 $
0.00 $
0.00 $ -2,411.71 $ 2,103.35
0.00
0.00
0.00
0.00
9,905.56
B,272.B4
-1, 112. 71 1,081.75
-53B.61 1,134.67
-1,630.B7 1,112.71
-491.0B 53B.61
$
0.00
===========
$
0.00
===========
$
0.00
============
$
0.00
===========
$ B,05B.95
=======-====
$ 9,905.56
--==----==--
- 19 -
ECHOLS COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1994
SCHEDULE "1"
FUNDING AGENCY PROGRAM/GRANT
CFDA NUMBER
AWARDS IN PERIOD
FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)
FEDERAL REVENUE IN PERIOD
EXPENDITIRES IN PERIOD
Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1994 Grant National School Lunch Program 1993 Grant 1994 Grant Food Distribution Program (1)
10.553 $ 24,216.59$ 24,216.59 $ 22,400.17
(2)
10.555
638.01
10.555
78,366.73
77,509.48
78i366.73 $ 158i935.58(3)
10.550
13,160.03
N/A
( )
( )
------------- ------------- ------------- -------------
Total U. S. Department of Agriculture
$ 115,743.35 $ 102,364.08$ 100,766.90$ 158,935.58
------------- ------------- ------------- -------------
Education, U. S. Department of
Through Berrien County Board of Education
d/b/a Southern Pine Migrant Education Agency
Elementary and Secondary Education Act
Chapter 1
Migratory Education Program
1993 Regular
84.011
$
-1.36
1994 Regular
84.011 $ 10,044.04
10,044.04$ 10,044.04 $ 10,044.04
1994 Summer
84.011
13,367.17
11,968.14
11,968.14
Through Georgia Department of Education
Drug-Free Schools and Communities Act
1994 Grant
84.186
5,829.00
5,829.00
5,829.00
5,829.00
Elementary and Secondary Education Act
Chapter 1
Education of Deprived Children
1993 Regular
84.010
20,619.71
1993 Carry-Over
84.010
1,227.00
1,227.00
1,227.00
1,227.00
1994 Regular Chapter 2
84.010
99,279.00
80,639.73
96,704.01
96,704.01
Block Grant - Flow Through
1994 Regular
84.151
4,388.00
4,388.00
4,388.00
4,388.00
Title II
Eisenhower Mathematics and Science
Education
1994 Regular
84.164
7,000.00
7,000.00
7,000.00
7,000.00
Individuals with Disabilities Education Act
Title VI, B
Flow Through
1993 Regular
84.027
2,559.07
1993 Carry-Over
84.027
2,712.00
2,712.00
2,712.00
2,712.00
1994 Regular
84. 027
19,886.00
18,558.05
19,792.93
19,792.93
Preschool Program
,1993 Regular
84.173
385.00
1993 Carry-Over
84.173
6,626.00
6,626.00
6,626.00
6,626.00
1994 Regular
84.173
6,507.00
6,507.00
6,060.87
6,060.87
Vocational Education - Basic Grants to States
High School Program
Basic Grant
1993 Grant
84.048
998.00
Supplementary State Grants for Facilities
1994 Contract
84.253
6,429.00
6,429.00
6,429.00
(4)
------------- ------------- ------------- -------------
Total U. S. Department of Education
$ 183,294.21 $ 174,520.24$ 178,780.99 $ 172,351.99
------------- ------------- ------------- -------------
Total Federal Financial Assistance
$====2=9=9=,=0=3=7=.=5=6$===2=7=6=,=8=8=4=.3=2= $===2=7=9=,5=4=7=.=8=9 $===3=3=1=,=2=8=7-.5=7~
The Board had no major programs as defined by the Single Audit Act of 1984.
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonnonetary assistance for donated commodities distributed to the system by the Georgia Department of Education. The value of these conmodities is not included in the system's financial statements.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.
See notes to the general purpose financial statements.
- 20 -
ECHOLS COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994
NONINTEREST BEARING ACCOUNTS
First State Bank and Trust Company, Valdosta, Georgia NationsBank of Georgia, N.A., Valdosta, Georgia
INTEREST BEARING ACCOUNTS
First State Bank and Trust Company, Valdosta, Georgia
N.O.W. Checking Account (3.00%)
SCHEDULE "2"
$ 63,786.27 3,761.08
$ 67,547.35
82,743.19 $ 150,290.54
==============
See notes to the general purpose financial statements. - 21 -
ECHOLS COUNTY BOARD OF EDUCATION INVESTMENTS
JUNE 30, 1994
INVESTMENT POOL
Office of Treasury and Fiscal Services Local Government Investment Pool (4.237%)
SCHEDULE "3"
$ 255,203.71
=============
See notes to the general purpose financial statements. - 22 -
ECHOLS COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1994
SCHEDULE "4"
GOVERNMENTAL FUND TYPES
GENERAL FUND
SPECIAL REVENUE
FUND
CAPITAL PROJECTS
FUND
TOTAL
Berrien County Board of Education Migratory Education Program
Education, Georgia Department of Food Services National School Lunch Program Lottery Programs Algebra Classrooms Computers in Classrooms Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act - Title VI, B Flow Through
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Hyatt Regency Hotel
Vendor Overpayment
$
$ 11,968.14
$ 11,968.14
857.25 2,316.00 8,941.50
16,074.34
1,234.88
857.25 2,316.00 8,941.50
16,074.34
1,234.88
28.04
$ 371,458.79
371,458.79
28.04
$
28.04 $ 41,392.11 $ 371,458.79 $ 412,878.94
============= ============= ============= =============
See notes to the general purpose financial statements. - 23 -
ECHOLS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1994
SCHEDULE "5"
AGENCY/FUNDING
GOVERNMENTAL FUND TYPES
GENERAL FUND
SPECIAL REVENUE
FUND
CAPITAL PROJECTS
FUND
TOTAL
GRANTS
Education, Georgia Department of
Quality Basic Education
General and Career Education Programs $ 999,023.00
Special Education Programs
lll,2B2.00
Remedial Education Program
31,835.00
Media Center Programs
42,610.00
Staff Development Programs
13,773.00
Indirect Cost
295,588.00
Pupil Transportation
Regular
112,949.00
Bus Replacement
35,725.00
Sparsity Grant
152,928.00
Special Instructional Assistance
38,686.00
In-School Suspension
32,597.00
Mid-term Adjustment
Fiscal Year
1993
1,230.00
1994
33,377.00
Local Fair Share
-313,571.00
Educational Equalization Funding Grant
39,984.00
Food Services
$
Vocational Education
2,577.00
Other State Programs
Mentor Teacher Program
720.00
Preschool Handicapped Program
Lottery Programs
Algebra Classrooms
Computers in Classrooms
Pre-Kindergirten Program
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
12,432.00
3,022.00 2,316.00 18,057.50 83,319.89
$ 999,023.00 111,282.00 31,835.00 42,610.00 13,773.00 295,588.00
112,949.00 35,725.00 152,928.00 38,686.00 32,597.00
1,230.00 33,377.00 -313,571.00 39,984.00 12,432.00
2,577.00
720.00 3,022.00
2,316.00 18,057.50 83,319.89
$ 663,919.61
663,919.61
$1,631,313.00$ 119,147.39$ 663,919.61 $ 2,414,380.00
============= ============= ============ =============
See notes to the general purpose financial statements. - 24 -
ECHOLS COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1994
SCHEDULE 611 11
Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Compensation for Loss of Assets Interest Earned Jury Duty Fees Sales Breakfast Lunches Other
GOVERNMENTAL FUND TYPES
----------------------------------------------------------
SPECIAL
CAPITAL
DEBT
GENERAL
REVENUE
PROJECTS
SERVICE
FUND
FUND
FUND
FUND
TOTAL
------------- ------------- ------------- ------------- -------------
$ 674,933.51 75.90 373.95
$ 42,957.17 $ 42,957.17
674,933.51
4.85
80.75
23.B7
397.82
7,358.71 5,847.80
437.50
$ 2,471.74
7,358.71 8,319.54
437 .50
$ 2,559.30
2,559.30
39,634.14
39,634.14
1,131.53
1,131.53
------------- ------------- ------------- ------------- -------------
$ 689,027.37 $ 43,324.97 $ 2,471.74 $ 42,985.89 $ 777,809.97
============ =======o..:.~==== ============= ========= ========
See notes to the general purpose financial statements. - 25 -
ECHOLS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994
SCHEDULE "7"
SPECIAL
CAPITAL
GENERAL
REVENUE
PROJECTS
FUND
FUND
FUND
TOTAL
------------- ------------- ------------- -------------
EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Commodity Hauling Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
$ 1,487,499.33 $ 406,947.11 10,521.56 3,476.35 6,657.91 1,241.94 36,311.93 8,023.19 15,696.00 8,135.47
3,258.45 38,668.48 93,322.58
24,547.13 4,114.54 2,140.44
190,052.59 54,430.72 4,106.51 9,771.88 $
3,531.29
1,167.68 3,854.73 31,657.59 1,289.40 76,194.90 1,951.97
636.00 2,267.44
$ 1,677,551.92
461,377 .83
14,628.07
63,600.00
76,848.23
6,657.91
1,241.94
39,843.22
8,023.19
15,696.00
8,135.47
1,167.68
7,113.18
70,326.07
94,611.98
76,194.90
26,499.10
4,750.54
96.00
4,503.88
Nonoperating Costs Building and Building Improvements Equipment
619,178.16 619,178.16
42,631.20
57,218.06
99,849.26
------------- ------------- ------------- -------------
Total Expenditures
$ 2,193,193.61 $ 438,130.76 $ 682,874.16$ 3,314,198.53
See notes to the general purpose financial statements. - 26 -
ECHOLS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1994
SCHEDULE "B"
EXPENDITURES
------------
Operating Costs Salaries Employee Benefits Travel Purchased Professional and Technical Services Supplies Energy Food Usage Books, Textbooks and Periodicals Other Expenditures
Nonoperating Costs Equipment
COMPUTERS
ALGEBRA
IN
PRE-KINDERGARTEN
CLASSROOMS
CLASSROOMS
PROGRAM
TOTAL
------------- ------------- ---------------- -------------
$
2,443.80
$
24,827.46$ 24,827.46
6,262.86
6,262.86
1,343.46
1,343.46
373.80 21,750.90
250.00 500.00 1,951.97
59.44
373.80 24,194.70
250.00 500.00 1,951.97 59.44
$ 18,057.50
26,000.00
44,057.50
------------- ------------- ---------------- -------------
Total Expenditures
$
2,443.80 $ 18,057.50 $
83,319.89 $ 103,821.19
============= ============= ================ =============
See notes to the general purpose financial statements. - 27 -
9:Z
~/Y)V\Q'
ECHOLS 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 Media Center Program in Excess of Total Media Allotment Expenditures for Staff Development Programs in Excess of Total Staff Development Allotment for: Cost of Instruction
Expenditures per Audit
Amount of Underexpenditure for Total Allotment
THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS
STAFF DEVELOPMENT
PROGRAM
$1,212,408.00$ 13,773.00
$1,200,456.75 52,721.96 $ 13,773.43
$1,253,178.71 $ 13,773.43 -11,898.77 -1,312.05
$1,241,279.94 $ 12,461.38
$
0.00 $ 1,311.62
============= =============
See notes to the general purpose financial statements. - 29 -
ECHOLS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION' PROGRAMS YEAR ENDED JUNE 30, 1994
GENERAL AND CAREER EDUCATION PROGRAMS
Kindergarten (*)
Grades 1 - 3 (*)
Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*)
High School Laboratories (*) Vocational Education Laboratories (*)
Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category I I (*) Category III (*) Category IV (*) Sub-Total - Regular Category V (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM(*)
MEDIA CENTER PROGRAMS
ORIGINAL
ALLOTMENTS FROM DEPARTMENT OF EDUCATION
REQUIRED
TOTAL
...!...
ORIGINAL
MID-TERM
REQUIRED
$ 98,465.00 257,980.00
$ 356,445.00 90 137,610.00 90 218,905.00 90 169,712.00 90 52,318.00 90 64,033.00 90
$ 88,618.50$ 232,182.00
$ 320,800.50$ 123,849.00 197,014.50 152,740.80 47,086.20 57,629.70
$ 999,023.00
$ 899,120.70$
0.00 $ 88,618.50
11,258.00 243,440.00
11,258.00$ 332,058.SQ
0.00 123,849.00
0.00 197,014.50
0.00 152,740.80
5,400.00
52,486.20
11,000.00 68,629.70
27,658.00$ 926,778.70
$ 108,491.00
$ 97,641.90$
0.00 $ 97,641.90
$ 108,491.00 90 2,791.00 90
$ 111,282.00 $ 31,835.00 90 $ 42,610.00 90
$ 97,641.90 $
0.00 $ 97,641.90
2,511.90
0.00
2 I 511. 90
$ 100,153.80 $._ _ _..;:0....0=0 $ 100,153.80
$ 28,651.50 $
0.00 $ 28,651.50
$ 38,349.00 $
0.00 $ 38,349.00
Total Thirteen Weighted and Media Center $1,184,750.00
$1,066,275.00$ 27,658.00$ 1,093,933.00
STAFF DEVELOPMENT PROGRAMS (1) Cost of Instruction Professional Development
$ 4,700.95 100 $ 4,700.95$
9,072.05 100
9,072.05
0.00 $ 0.00
4,700.95 9,072.05
Total Staff Development
$ 13,773.00
$ 13,773.00$
0.00 $
$ 1,198,523.00
(*) Identifies Thirteen Weighted Programs.
Note: (1) $1,600.95 of the allotment for Professional Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statements.
- 30 -
$ 1,080.048.00 $ 27,658.00$ 1,107,706.00
SCHEDULE "10"
REQUIRED ALLOTMENT
SALARIES ACTUAL
DISTRIBUTION BY RESPECTIVE PORTIONS
AMOUNT OF
UNDEREXPENDITURE FOR REQUIRED ALLOTMENT
REQUIRED ALLOTMENT
OPERATIONS ACTUAL
AMOUNT OF
UNDEREXPENDITURE FOR REQUIRED ALLOTMENT
$ 86,354.10 $
80,622.94
$ 2,264.40$
2,092.38
236,240.00
262,798.15
7,200.00
7,375.88
$ 322,594.10$ 343,421.09 $
0.00
$ 9,464.40 $
9,468.26$
0.00
120,112.20
150,901.28
0.00
3,736.80
3,896.08
0.00
191,259.90
212,469.11
0.00
5,754.60
5,760.14
0.00
146,115.90
164,074.46
0.00
6,624.90
9,668.11
0.00
50,452.20
56,790.57
0.00
2,034.00
2,035.32
0.00
61,250.60
79,582.84
0.00
7,379.10
7,639.65
0.00
$ 891,784.90$ 1,007,239.35$
0.00
$ 34,993.80$ 38,467.56 $
0.00
$
0.00 $
9,027.00
76,276.80
9,778.50
4,050.59 10,035.32
90,743.40 6,819.00
$
0.00 $
189. 90
2,041.20
328.50
0.00 808.77
3,509.69 684.80
$ 95,082.30$ 111,648.31 $
0.00
$ 2,559.60$
5,003.26$
0.00
2,443.50
5,228.12 $
0.00
68.40
77.63 $
0.00
$ 97,525.80 $ 116,876.43
$ 2,628.00$
5,080.89
$ 28,158.30 $
30,505.71 $
0.00
$
493.20 $
500.00 $
0.00
$ 29,690.10$
45,835.26 $
0.00
$ 8,658.90$
8,673.51 $
0.00
$1,047,159.10 $ 1,200,456.75$
0.00
$ 46,773.90$ 52,721.96 $
0.00
$ 4,700.95 $ 9,072.05
6,013.00$ 7 760.43
0.00 1,311.62
$1,047,159.10$ 1,200,456.75 $======0===00
$ 13,773.00 $ 13,773.43 $-=====1=3=1=1=.6=2 $ 60,546.90 $ 66,495.39 $_ _ _1,.,3..,1=1_6._2
- 31 -
ECHOLS COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1994
SCHEDULE "11"
BOARD MEMBER ADDRESS
Mr. Chandler Register, Chairman(*) Route 1 Fargo, Georgia 31631
Mr. James E. Fielding(*) Route 1, Box 1606 Lake Park, Georgia 31636
Mr. Lowell W. Herring(*) Route 2 Lake Park, Georgia 31636
Mrs. Earnestine S. Padgett (*) Route 1 Lake Park, Georgia 31636
Mr. Juhan L. Reid(*) Route 1 Lake Park, Georgia 31636
COMPENSATION
TRAVEL
$
1,500.00
1,150.00$
719 .83
800.00
31.92
1,000.00
556.16
900.00
$
5,350.00$
1,307.91
============= =============
(*) Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements. - 32 -
SECTION II COMPLIANCE
CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174
DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 17, 1995
Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Echols 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 Echols County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated February 17, 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 Echols 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 firiancial 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 of the misstatements
resulting from those failures or violations is material to the general purpose financial statements. The results
94CRL-20A
ofour tests ofcompliance disclosed a material instance of noncompliance, which is described in the Schedule ofFindings and Improper or Questioned Costs.
As also described in the Schedule of Findings and Improper or Questioned Costs, the material instance of noncompliance noted above has been corrected in the financial statements.
We considered this material instance ofnoncompliance informing 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 February 17, 1995 on those general purpose financial statements.
Except as described above, the results ofour tests of compliance indicate that with respect to the items tested the Echols County Board of Education complied, in all material respects, with the provisions referred to in the third paragraph of this report, and with respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
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,
~,k~-
Claude L. Vickers State Auditor
CLV:gp 94CRL-20A
CI.AUDE L. VICKERS
STATE AUDITOR (404) 656-2174
DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 17, 1995
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Echols 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 Echols County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 17, 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 Echols County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the 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 of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.
94CRL-40
With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Echols County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-40
CIAUDE L. VICKERS
STATE AUDITOR (404) 656-2174
DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 17, 1995
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Echols 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 Echols County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 17, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
In connection with our audit ofthe fiscal year 1994 general purpose financial statements of the Echols County
Board ofEducation 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 A-
128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor
Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governmg:
( 1) Types of Services Allowed or Unallowed
(2) Eligibility
Our procedures were substantially less in scope than an audit, the objective ofwhich is the expression of an opinion on the Echols County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.
94CRL-120
With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Echols County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-120
SECTION ID INTERNAL CONTROL
CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174
DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 17, 1995
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Echols 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 Echols County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 17, 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 Echols 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 ofthe Echols 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 ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-3
be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:
(1) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement
(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation
(8) General Ledger. (9) General Fixed Assets
For all ofthe internal control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Accounting Controls (Overall)
(2) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific
internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Echols County Board ofEducation's financial statements and this report does not affect our report thereon dated February 17, 1995.
94ICL-3
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
L~
Claude L. Vickers State Auditor
CLV:gp 94ICL-3
CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174
DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 17, 1995
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Echols 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 Echols County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 17, 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; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Echols County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a 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 to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated February 17, 1995.
94ICL-15
The management ofthe Echols County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:
GENERAL REQUIREMENTS
SPECIFIC REQUIREMENTS
(I) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports
(I) 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 Echols County Board ofEducation had no major Federal financial assistance programs and expended 63% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs:
94ICL-15
Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act - Chapter 1 Education ofDeprived Children
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 the aforementioned nonmajor programs. 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 of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, 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 report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respe~ submitted,
w~A~
Claude L. Vickers State Auditor
CLV:gp 94ICL-15
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS
ECHOLS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIORYEAR/CURRENTYEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6501-93-01
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance of accounting functions and related procedures for all funds. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: Federal financial assistance programs affected by this finding are as follows: Food and Nutrition Program Food Services School Breakfast Program (CFDA 10.553) National School Lunch Program (CFDA 10.555) Elementary and Secondary Education Act - Chapter 1 Education ofDeprived Children (CFDA 84.010)
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6501-93-02
The audit report for the year ended June 30, 1993, noted that the management ofthe Echols 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 principals. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ECHOLS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $1,311.62 Audit Control Number 6501-94-01
For the year under review, the Echols County Board of Education reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $6,013.00 for the Staff Development - Cost of Instruction Program. A review of the underlying source documentation for the Quality Basic Education (QBE) Program disclosed that the Board expended more than 15 percent ofits initial allotment offunds for Professional Development Stipends for StaffDevelopment Cost of Instruction Program purposes resulting in an underexpenditure of $1,311.62 for the minimum required allotment of $9,072.05 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent period.
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number 6501-94-02
For the year under review, the Echols County Board ofEducation received approval for State capital outlay project funding, through Georgia State Financing and Investment Commission, for the 1994 fiscal year. Both the instructions in Chapter 70 of the Georgia Financial Accounting Handbook for Local School Systems and the agreement signed by the Board to receive this funding require that the Board transfer required local matching funds to the Capital Projects Fund by June 30, 1994, and designate those funds by project name and number. The transfer was not made by the Board at June 30, 1994, and a correcting audit adjustment was necessary to transfer $59,469.26 from the General Fund to the Capital Projects Fund as required. This condition occurred because management disregarded the provisions of GFAH and followed instructions given by the State Facilities Office. Subsequent to June 30, 1994, the Board transferred the required local Matching Funds to the Capital Projects Fund and designated those funds by project name and number.
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
ECHOLS COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6501-93-01
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 ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding can not be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6501-93-02
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.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $1,311.62 Audit Control Number 6501-94-01
We do not concur with this finding. We had received written instructions from the Georgia Department of Education on transferring ofthe initial allotment for Professional Development Stipends for StaffDevelopment - Cost oflnstruction Program. We have talked with Mr. Fulton Stone and this finding will be resolved within the Department ofEducation.
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number 6501-94-02
We concur with this finding. It has been resolved as stated.