GA ABOo 
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STATE OF GEORGIA DEPARTMENT OF AUDITS 
254 WASHINGTON STREET ATLANTA. GEORGIA 30334 
 
 AUDIT REPORT EFFINGHAM COUNTY BOARD OF EDUCATION 
SPRINGFIELD, GEORGIA YEAR ENDED JUNE 30, 1994 
 
 EFFINGHAM 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 
 
ALLFUNDTYPESANDACCOUNTGROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - ACTUAL AND BUDGET 
 
GOVERNMENTAL FUND TYPES 
 
7 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
8 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
20 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
22 
 
SCHEDULES 
 
I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
24 
 
2 ANALYSIS OF CASH AND CASH EQUIVALENTS 
 
26 
 
3 INVESTMENTS 
 
27 
 
4 ACCOUNTS RECEIVABLE 
 
29 
 
5 DEBT SERVICE REQUIREMENTS TO MATURITY 
 
30 
 
SCHEDULE OF REVENUE 
 
6 
 
STATE FUNDS 
 
32 
 
7 
 
LOCAL AND OTHER FUNDS 
 
33 
 
SCHEDULE OF EXPENDITURES BY OBJECT 
 
8 
 
GOVERNMENTAL FUND TYPES 
 
34 
 
9 
 
LOTTERY PROGRAMS 
 
35 
 
 EFFINGHAM 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 
 
10 
 
OVERALL 
 
37 
 
11 
 
BY PROGRAM 
 
38 
 
12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
 
40 
 
SECTION II 
COMPLIANCE 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
SECTION III 
INTERNAL CONTROL 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
February 24, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Effingham County Board ofEducation 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
Ladies and Gentlemen: 
We have audited the general purpose financial statements (Exhibits A through D) of the Effingham 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 thegeneral 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: 
 
94ARL-13 
 
 * The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
* The Board did not recognize as expenditures, in the year ended June 30, 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 of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 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 inventories of purchased foods and Federal donated commodities in its general purpose financial statements. In addition, the Board did not record the related 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 Effingham 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 of the Effingham County Board of Education taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Effingham County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
94ARL-13 
 
 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:djf 94ARL-13 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION - 1- 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1994 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Amount Available in Debt Service Fund 
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements Sanitary Sewer Agreement 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 
 
196,168.59 $ 
 
478,817.20 
 
1,575,901.09 
 
$ 16,736,416.75 
 
22,481.62 
 
351,907.73 
 
148,275.63 
 
Total Assets 
 
$ 1,794,551.30 $ 
 
830,724.93 $ 16,884,692.38 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable Sanitary Sewer Agreement 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Debt Service For Expired Grant Balances/Questioned Costs For Purposes of Bond Issue 
Unreserved Undesignated 
Total Fund Equity 
 
$ 
 
49,728.49 
 
201,981.27 
 
2,316.00 
 
$ 
 
254,025.76 
 
$ 
 
4,454.83 
 
$ 
 
4,454.83 
 
1,790,096.47 $ 
 
$ 1,794,551.30 $ 
 
$ 16,884,692.38 
 
$ 16,884,692.38 
 
576,699.17 
 
0.00 
 
576,699.17 $ 16,884,692.38 
 
Total Liabilities and Fund Equity 
 
$ 1,794,551.30 $ 
 
830,724.93 $ 16,884,692.38 
 
The notes to the general purpose financial statements are an integral part of this statement. -2 - 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS {Memorandum Onl:t:} 
JUNE 30, 1994 JUNE 30, 1993 
 
$ 
 
1,116.16 
 
$ 
 
676,101.95 $ 1,016,984.05 
 
44,418.25 
 
18,356,736.09 
 
1,616,583.95 
 
522,664.98 
 
601,402.74 
 
$ 
 
45,534.41 
 
45,534.41 
 
623.29 
 
17,754,465.59 40,515.72 560,000.00 
 
17,754,465.59 40,515.72 560,000.00 
 
1,034,376.71 78,158.88 
605,000.00 
 
$ 
 
45,534.41 $ 
 
18,400,515.72 $ 37,956,018.74 $ 4,953,129.62 
 
$ 
 
49,728.49 $ 120,846.21 
 
201,981.27 
 
187,877.88 
 
41.14 
 
2,316.00 
 
$ 
 
40,515.72 
 
40,515.72 
 
78,158.88 
 
17,800,000.00 
 
17,800,000.00 
 
1,035,000.00 
 
560,000.00 
 
-s6o,ooo.oo 
 
605,000.00 
 
$ 
 
18,400,515.72 $ 18,654,541.48 $ 2,026,924.11 
 
$ 
 
45,534.41 
 
$ 
 
45,534.41 
 
0.00 
 
$ 
 
45,534.41 
 
$ 
 
45,534.41 $ 
 
$ 
 
45,534.41 $ 
 
4,454.83 
 
16,884,692.38 
 
623.29 
4,454.83 
 
$ 16,934,681.62 $ 
 
5,078.12 
 
2,366,795.64 
 
2,921,127.39 
 
$ 19,301,477.26 $ 2,926,205.51 
 
18,400,515.72 $ 37,956,018.74 $ 4,953,129.62 
 
-3- 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994 
 
REVENUES 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services 
Capital Outlay Debt Service 
Principal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES} 
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds 
Par Value Premium on Bonds Sold Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS 
FUND 
 
$ 
 
17,403,160.30 $ 786,857.06 
 
85,973.14 
 
1,830,614.59 
 
5,687,093.48 
 
853,624.64 $ 
 
$ 
 
23,176,226.92 $ 3,471,096.29 $ 
 
64,688.83 64,688.83 
 
$ 
 
15,013,223.12 $ 1,417,289.21 
 
656,099.77 189,756.18 743,676.33 543,278.89 1,413,609.30 135,655.76 2,056,800.75 1,482,607.48 
 
163,571.79 49,343.97 36,895.33 15,072.42 10,968.84 
$ 
8,599.36 
 
258,856.55 
 
27,823.16 
120,765.28 1,330,779.10 
 
45,223.47 1,571,191.06 
34,128.00 
 
82,643.16 52,653.23 
 
$ 
 
23,849,371.51 $ 3,352,283.45 $ 
 
258,856.55 
 
$ 
 
-673, 144.59 $ 
 
118,812.84 $ 
 
-194,167.72 
 
$ 17,000,000.00 
 
78,860.10 
 
$ 
 
16,270.00 
 
$ 
 
-16,270.00 
 
$ 
 
-16,270.00 $ 
 
16,270.00 $ 17,078,860.10 
 
$ 
 
-689,414.59 $ 135,082.84 $ 16,884,692.38 
 
2,483,965.89 
 
441,616.33 
 
0.00 
 
FUND BALANCE JUNE 30 
 
$ 
 
1 794,551.30 $ 
 
The notes to the general purpose financial statements are an integral part of this statement. -4- 
 
576,699.17 $ 16,884,692.38 
 
 EXHIBIT "B" 
 
DEBT SERVICE 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 1994 
 
JUNE 30, 1993 
 
$ 18,190,017.36 $ 16,470,335.69 
 
1,916,587.73 
 
1,923,422.98 
 
$ 
 
295,454.73 
 
6,900,861.68 
 
6,763,879.07 
 
$ 
 
295,454.73 $ 27,007,466.77 $ 25,157,637.74 
 
$ 16,430,512.33 $ 14,654,035.74 
 
819,671.56 239,100.15 780,571.66 558,351.31 1,424,578.14 394,512.31 2,056,800.75 1,491,206.84 
73,046.63 1,571,191.06 
120,765.28 1,364,907.10 
 
694,048.93 149,359.03 653,254.71 504,042.47 1,249,623.61 115,814.18 1,723,900.95 1,492,720.18 70,189.51 
1,342,357.04 101,241.30 873,690.40 
 
$ 
 
235,000.00 
 
59,195.00 
 
736.55 
 
317,643.16 111,848.23 
736.55 
 
220,000.00 73,080.00 692.68 
 
$ 
 
294,931.55 $ 27,755,443.06 $ 23,918,050.73 
 
$ 
 
523.18 $ 
 
-747,976.29 $ 
 
1,239,587.01 
 
$ 
 
44,387.94 $ 
 
44,387.94 
 
17,000,000.00 78,860.10 16,270.00 $ -16,270.00 
 
$ 
 
44,387.94 $ 17,123,248.04 $ 
 
2,735.89 -2,735.89 
0.00 
 
$ 
 
44,911.12 $ 16,375,271.75 $ 1,239,587.01 
 
623.29 
 
2,926,205.51 
 
1,686,618.50 
 
$ 
 
45,534.41 $ 19,301,477.26 $ 2,926,205.51 
 
-5- 
 
  EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "C" 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
 
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES 
 
YEAR ENDED JUNE 30, 1994 
 
REVENUES 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services 
Capital Outlay Debt Service 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Other Sources Other Uses 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1, 1993 
 
ACTUAL PER 
EXHIBIT"B" 
 
BUDGET 
 
VARIANCE FAVORABLE {UNFAVORABLE} 
 
$ 18,190,017.36 $ 16,920,478.00 $ 
 
1,916,587.73 
 
1,411,199.00 
 
6,900,861.68 
 
6,669,660.00 
 
$ 27,007,466.77 $ 25,001,337.00 $ 
 
1,269,539.36 505,388.73 231,201.68 
2,006,129.77 
 
$ 16,430,512.33 $ 15,510,509.00 $ 
 
819,671.56 239,100.15 780,571.66 558,351.31 1,424,578.14 394,512.31 2,056,800.75 1,491,206.84 
73,046.63 1,571,191.06 
120,765.28 1,364,907.10 
430,227.94 
 
639,583.00 192,398.00 738,903.00 532,619.00 1,356,213.00 146,134.00 1,891,457.00 1,578,233.00 21,247.00 
1,549,564.00 105,007.00 
1,373,270.00 295,045.00 
 
$ 27,755,443.06 $ 25,930,182.00 $ 
 
$ 
 
-747,976.29 $ -928,845.00 $ 
 
-920,003.33 
-180,088.56 -46,702.15 -41,668.66 -25,732.31 -68,365.14 
-248,378.31 -165,343.75 
87,026.16 21,247.00 -73,046.63 -21,627.06 -15,758.28 
8,362.90 -135, 182.94 
-1,825,261.06 
180,868.71 
 
$ 17,139,518.04 $ -16,270.00 
$ 17,123,248.04 $ 
 
0.00 $ 0.00 $ 
 
17,139,518.04 -16,270.00 
17,123,248.04 
 
$ 16,375,271.75 $ -928,845.00 $ 
 
2,926,205.51 
 
2,699,736.08 
 
17,304,116.75 226,469.43 
 
FUND BALANCE JUNE 30, 1994 
 
$ 19,301,477.26 $ 1,770,891.08 $ 17,530,586.18 
 
The notes to the general purpose financial statements are an integral part of this statement. -7- 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The Effingham County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. 
The more significant 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 Effingham County Board of Education. 
Based upon the application of the above criteria, the Effingham 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 Effingham County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards. 
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval. 
FUND ACCOUNTING 
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. 
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
- 8- 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. 
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa 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 purposes of the 1994 Bond Issue. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding, material capital lease obligations and sanitary sewer agreement. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. 
- 9- 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\ffiNTS 
 
JUNE 30, 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants, and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. 
Expenditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 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 of Education 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 ofthe 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 
Effingham 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. 
- 10 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXlllBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1994 
 
\ 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. 
The Board 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. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (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: 
(1) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
(4) Obligations of any corporation of the United States government, 
(5) Prime banker's acceptances, 
(6) The Local Government Investment Pool administered by the Office of Treasury and Fiscal Services, 
(7) Repurchase agreements, and 
(8) Obligations of other political subdivisions of the State of Georgia. 
 
- 11 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1994 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
RECEIVABLES 
 
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an .allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Effingham County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on September 21, 1993 (levy date). Taxes were due on December 20, 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 Effingham County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board. 
 
The tax millage rate was levied for the 1993 tax year (calendar year) for the Effingham County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
15.88 mills 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of purchased foods and donated food commodities used in the preparation of meals are not reported on the Combined Balance Sheet. In addition, the 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. 
 
GENERAL OBLIGATION BONDS 
 
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
 
INTERFUND TRANSACTIONS 
 
The Board has the following types of interfund transactions: 
 
- 12 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATErvfENTS 
 
JUNE 30, 1994 
 
Note 1: SillvfMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS AND INVESTrvIBNTS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral 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 of indebtedness or other obligations of the 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 of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
- 13 - 
 
 EFFINGHAM 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 $2,397,731.62 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 
1 2 
3 
Total 
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: 
 
Bank Balance $ 100,000.00 
2,297,731.62 0.00 
$2,397,731.62 
 
Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name. 
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name. 
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name. 
 
Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. 
 
- 14 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1994 
 
Note 2: DEPOSITS AND INVESTMENTS 
At June 30, 1994, the carrying amount ofthe Board's total investments was $18,356,736.09 and the market value ofthese investments were $16,736,738.93 excluding $1,575,901.09 in a Local Government Investment Pool. The investments are classified as to risk categories as follows: 
 
Type ofInvestment U. S. Government Securities Investment Portfolio Acoount Total Local Government Investment Pools Total Investments 
 
$16,714,796.89 66,038.11 
$16 780 835 00 
 
Risk C~ories 2 
 
s 
 
0.00 s 
 
s 
 
000 $ 
 
Carrying 
 
Market 
 
3 
 
Amount 
 
Value 
 
0.00 $16,714,796.89 $16,670,700.82 
 
66,038.11 
 
66,038.11 
 
000 $16,780,835.00 $16 736 738 93 
 
$ 1,575,901.09 
SIii 356 7.36 09 
 
The carrying amounts shown above includes amounts maintained in an investment pool by the Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. 
 
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 MANAGEMENT 
 
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, a total of $583.00 was paid in claims. 
 
Note 5: GENERAL LONG-TERM DEBT 
 
CAPITAL LEASES The Effingham County Board of Education has entered into a lease agreement as lessee for gymnasium equipment and an agreement with the City of Springfield to finance a sanitary sewer system to serve the schools. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date ofthe inception. 
 
- 15 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1994 
 
Note 5: GENERAL LONG-TERM DEBT 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows: 
 
Balance July 1, 1993 Additions Deletions Balance June 30, 1994 
 
Capital Lease 
 
Sanitary Sewer Agreement 
 
General Obligation 
Bonds 
 
$ 78,158.88 $ 
 
605,000.00 $ 
 
1,035,000.00 $ 
 
17,000,000.00 
 
37,643.16 
 
45,000.00 
 
235,000.00 
 
$ !IQ ~I~ 22 $ 
 
~fiQ QQQ QQ $ 12 l!QQ QQQQQ $ 
 
Total 1,718,158.88 17,000,000.00 
317,643.16 ll!!IQQ~l~22 
 
At June 30, 1994, payments due, by fiscal year which includes principal and interest for these items: 
 
Fiscal Year Ended June 30 
 
Capital Lease 
 
Sanitary Sewer Agreement 
 
General Obligation 
Bonds 
 
Total Debt 
 
1995 1996 1997 1998 1999 2000 and thereafter 
 
$ 43,661.39 
 
$ 88,395.00 $ 998,957.50 $ 
 
90,110.00 
 
1,587,402.50 
 
91,410.00 1,784,475.00 
 
87,285.00 1,935,210.00 
 
88,105.00 
 
1,927,082.50 
 
356,670.00 18,867,770.00 
 
1,131,013.89 1,677,512.50 1,875,885.00 2,022,495.00 2,015,187.50 19,224,440.00 
 
Total Principal and Interest $ 43,661.39 $ 80].975.00 $ 27 100 897 50 $ 27 946 533 89 
 
Deduct: Imputed Interest 
 
$ 3,145.67 $ 241,975.00 
 
Net Present Value ofFuture 
Minimum Lease Payments $ 40 515 72 $ 56000000 
 
Note 6: SIGNIFICANT COMMITMENTS 
 
At June 30,1994, the Board had encumbrances in the amount of $177,398.81 for the unperformed portion of purchase orders, contracts and other commitments for goods and services 'associated which lottery programs. Lottery funds in the amount of $169,591.02 are availabie to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by lottery program as follows: 
 
- 16 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXIDBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1994 
 
Note 6: SIGNIFICANT COMMITMENTS 
 
Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant 
 
$ 2,316.00 57,977.95 6,325.20 92,555.22 18,224.44 
 
$177 398 81 
 
Note 7: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
Note 8: 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, disabilityretirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
 
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death. 
 
- 17 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1994 
 
Note 8: RETIREMENT PLANS 
 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. 
 
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $14,307,573.83; total payroll was $16,696,135.77. 
 
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 $2,548,178.89, ofwhich $1,689,724.46 was made by the Board and $858,454.43 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 $1,689,724.46 was actuarially determined and represented .3239% of total contributions made by all participating employers. 
 
- 18 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS 
 
JUNE 30, 1994 
 
Note 8: RETIRE:MENT 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 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. 
There were 211 employees covered under PSERS for the year ended June 30, 1994. 
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $6,892.00. 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, Dr. J. Michael Moore, is bonded in the amount of $100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 68322916, on which premium was paid to January 1, 1995. 
- 19 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1994 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
 
ELEMENTARY 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
COMMUNITY EDUCATION 
 
STATE PRESCHOOL HANDICAPPED 
PROGRAM 
 
CHAPTER 1 EDUCATION OF 
DEPRIVED CHILDREN 
 
$ 651,264.55 
 
$ 
 
5,262.38 $ 
 
0.00 
 
22,313.11 $ 70,838.26 
 
$ 
 
135,462.81 
 
Total Assets 
 
$ 673,577.66 $ 70,838.26 $ 
 
5,262.38 $ 
 
0.00 $ 
 
135,462.81 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue 
Total Liabilities 
FUND EQUITY 
Fund Balances Unreserved Undesignated 
Total Liabilities and Fund Equity 
 
$ 68,522.26 
 
$ 
 
$ 18,149.70 
 
83,991.17 
 
2,316.00 
 
$ 102,140.87 $ 70,838.26 
 
$ 
 
571,436.79 
 
0.00 $ 
 
5,262.38 
 
$ 673,577.66 $ 70,838.26 $ 
 
5,262.38 $ 
 
0.00 $ 
 
41,283.52 19,564.65 74,614.64 
 
0.00 $ 
 
135,462.81 
 
0.00 
 
0.00 
 
0.00 $ 
 
135,462.81 
 
See notes to the general purpose financial statements. 
 
 20- 
 
 AND SECONDARY EDUCATION ACT TITLE 11- 
EISENHOWER CHAPTER 2 MATHEMATICS BLOCK GRANT - AND SCIENCE FLOW THROUGH EDUCATION 
 
$ 
 
6,748.00 $ 14,698.60 $ 
 
EVEN START 
 
INDIVIDUALS WITH 
 
DISABILmES EDUCATION ACT 
 
TITLEVI, B 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
TECH-PREP EDUCATION 
 
TOTALS JUNE 30, 1994 JUNE 30, 1993 
 
$ 2,350.20 
 
$ 
 
658,STT.13 $ 349,331.21 
 
34,862.95 
 
30,984.00 $ 12,000.00 $ 24,000.00 
 
351,907.73 
 
331,233.40 
 
$ 
 
6,748.00 $ 14,698.60 $ 34,862.95 $ 33,334.20 $ 12,000.00 $ 24,000.00 $ 1,010,784.86 $ 680,564.61 
 
$ 
 
73.62 $ 14,698.60 $ 27,548.13 
 
$ 3,933.80 $ 24,000.00 $ 
 
180,059.93 
 
1,399.22 
 
1,633.62 $ 
 
7,157.30 
 
1,824.00 
 
49,728.49$ 
 
51,029.26 
 
5,275.16 
 
5,681.20 
 
26,176.90 
 
6,242.20 
 
201,981.27 
 
187,877.88 
 
41.14 
 
2,316.00 
 
$ 
 
6,748.00 $ 14,698.60 $ 34,862.95 $ 33,334.20 $ 12,000.00 $ 24,000.00 $ 
 
434,085.69 $ 238,948.28 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
576,699.17 
 
441,616.33 
 
$ 
 
6,748.00 $ 14,698.60 $ 34,862.95 $ 33,334.20 $ 12,000.00 $ 24,000.00 $ 1,010,784.86 $ 680,564.61 
 
- 21 - 
 
 EFANG!:Wt1 COUtfil'. l:!Q~Q QE EDUCATl2t!! 
COM~NING TATEMEfil QE BEVEN!.!E, EXPENQ!I!.!BE ~Q QHANGE IN E!.!~Q BALANCE 
Se.EQW. BEVEN!.!E E!.!NQ YEAR ENQEQ J!,!NE 30, 1994 
 
BEVENUES 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCE 
Operating Transfers In 
Excess of Revenues and Other Financing Sources over (under) Expenditures 
FUND BALANQE J!,!LY 1 
FUND BALANCE JUNE 30 
 
SCHOOL FOOD 
SERVICES FUND 
 
ELEMENTARY 
 
LOTTERY PROGRAMS 
 
COMMUNITY EDUCATION 
 
STATE PRESCHOOL HANDICAPPED 
PROGRAM 
 
CHAPTER 1 EDUCATION OF 
DEPRIVED CHILDREN 
 
$ 131,112.00 $ 605,589.06 
 
734,30523 
 
841,538.64 
 
$ 
 
$ 1,706,955.87 $ 605,589.06 $ 
 
$ 12,086.00 12,086.00 $ 
 
50,156.00 $ 
50,156.00 $ 
 
675,653.81 675,653.81 
 
$ 478,805.54 $ 
 
68,784.69 1,263.79 
36,895.33 
 
10,968.84 
 
8,599.36 
 
$ 1,571,191.06 
 
271.51 
 
12,767.97 $ 
 
9,668.37 $ 40,487.63 
 
578,368.51 5,669.98 
31,590.94 15,072.42 
44,951.96 
 
$ 1,571,191.06 $ 605,589.06 $ 
 
$ 135,764.81 $ 
 
0.00 $ 
 
12,767.97 $ -681.97 $ 
 
50,156.00 $ 0.00 $ 
 
675,653.81 0.00 
 
$ 135,764.81 $ 435,671.98 
$ 571,436.79 $ 
 
0.00 $ 0.00 
0.00 $ 
 
-681.97 $ 5,944.35 
5,262.38 $ 
 
0.00 $ 0.00 
0.00 $ 
 
0.00 0.00 
0.00 
 
See notes to the general purpose financial statements. 
 
-22- 
 
 EXHIBIT"F" 
 
AND SECONDARY EDUCATION ACT TITLE II- 
EISENHOWER CHAPTER2 MATHEMATICS BLOCK GRANT - AND SCIENCE FLOW THROUGH EDUCATION 
 
EVEN START 
 
INDMDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
TITLE VI, B 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
TECH-PREP EDUCATION 
 
TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993 
 
$ 
 
786,857.06 $ 
 
162,246.00 
 
$ 
 
40,254.00 $ 
 
14,698.60 $ 105,847.95 $ 194,644.00 $ 41,211.00 $ 24,000.00 
 
1,830,614.59 
 
1,829,430.03 
 
853,624.64 
 
797,302.33 
 
$ 
 
40,254.00 $ 
 
14,698.60 $ 105,847.95 $ 194,644.00 $ 41,211.00 $ 24,000.00 $ 3,471,096.29 $ 2,788,978.36 
 
$ 
 
40,254.00 $ 
 
14,698.60 $ 56,429.34 $ 144,995.88 $ 41,211.00 $ 40,090.00 $ 1,417,289.21 $ 1,032,166.34 
 
7.50 15,463.11 
 
48,621.99 1,026.13 
 
34,128.00 
 
163,571.79 49,343.97 36,895.33 15,072.42 10,968.84 
8,599.36 
45,223.47 1,571,191.06 
34,128.00 
 
68,457.63 30,150.90 
44,887.16 236.23 74.19 
49,653.01 
1,342,357.04 
 
$ 
 
40,254.00 $ 
 
14,698.60 $ 106,027.95 $ 194,644.00 $ 41,211.00 $ 40,090.00 $ 3,352,283.45 $ 2,567,982.50 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
-180.00 $ 
 
0.00 $ 
 
0.00 $ -16,090.00 $ 
 
118,812.84 $ 
 
220,995.86 
 
180.00 
 
16,090.00 
 
16,270.00 
 
2,735.89 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
135,082.84 $ 
 
223,731.75 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
441,616.33 
 
217,884.58 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
576,699.17 $ 
 
441,616.33 
 
-23- 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANQ!;; 
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 
 
EXPENDITURES IN PERIOD 
 
Agriculture, U. S. Department of 
 
Through Effingham County Board of Commissioners 
 
Food and Nutrition Program 
 
Summer School Food Service Program 
 
for Children 
 
1993 Grant 
 
10.559 
 
Through Georgia Department of Education 
 
Food and Nutrition Program 
 
Child and Adult Care Food Program 
 
1994 Contract 
 
10.558 $ 
 
Food Services 
 
School Breakfast Program 
 
1993 Grant 
 
10.553 
 
1994 Grant National School Lunch Program 
1993 Grant 1994 Grant 
 
10.553 
. 10.555 . 10.555 
 
Food Distribution Program 
 
10.550 
 
$ 
17,024.03 
119,505.80 597,775.40 140 774.76 
 
5,460.00 
 
16,409.38 $ 
 
17,024.03 
 
(2) 
 
2,788.44 114,714.09 
4,588.73 592,016.05 NIA 
 
119,505.80 
 
(2) 
 
597,775.40 $ {1} 
 
1,571,191.06 (3) !1} 
 
Total U. S. Department of Agriculture 
 
$ 875,079.99 $ 
 
735,976.69 $ 734,305.23 $ 115711191.06 
 
Education, U. S. Department of Through Board of Public Education for the City of Savannah and the County of Chatham Adult Education 1994 Grant Tech-Prep Education 1993 Grant 1994 Grant Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1992 Carry-Over 1993 Regular 1993 Carry-Over 1994 Regular State Program Improvements 1993 Regular Chapter2 Block Grant - Flow Through 1993 Regular 1994 Regular Title II Eisenhower Mathematics and Science Education 1993 Regular 1994 Regular Even Start 1994 Grant Individuals with Disabilities Education Act Title VI, B Flow Through 1993 Regular 1993 Carry-Over 1994 Regular Preschool Program 1993 Regular 1994 Regular 
 
84.002 $ 84.243 84.243 
* 84.010 * 84.010 * 84.010 * 84.010 
84.218 
84.151 84.151 
84.164 84.164 84.213 
84.027 84.027 84.027 84.173 84.173 
 
16,493.40 $ 30,000.00 
51,732.00 634,199.00 
40,254.00 
20,006.00 135,222.00 
1,000.00 193,644.00 
41,211.00 
 
6,956.40 $ 32,235.00 
 
16,493.40 $ 24,000.00 
 
26,395.07 (3) 40,090.00 (3) 
 
95,563.00 108,130.09 
6,991.00 533,200.00 
47,500.00 
6,974.00 33,506.00 
 
51,732.00 623,921.81 
40,254.00 
 
51,732.00 623,921.81 
40,254.00 
 
24,633.00 70,985.00 
 
14,698.60 105,847.95 
 
14,698.60 106,027.95 (3) 
 
28,674.00 1,000.00 
162,660.00 
6,881.00 29,211.00 
 
1,000.00 193,644.00 
41,211.00 
 
1,000.00 193,644.00 
41,211.00 
 
- 24 - 
 
 EFFINGHAM 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 
 
EXPENDITURES IN PERIOD 
 
Education, U. S. Department of Through Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant 
 
84.048 $ 
 
46,453.00 $ 
 
Total U. S. Department of Education 
 
$ 1,210,214.40 $ 
 
Health and Human Services, U. S. Department of 
 
Through Concerted Services 
 
Job Opportunities and Basic Skills Training 
 
1994 Grant 
 
93.561 $ 
 
Through Georgia Department of Human Resources 
 
Job Opportunities and Basic Skills Training 
 
1993 Grant 
 
93.561 
 
1,450.00 $ 
 
Total U. S. Department of Health and Human Resources 
 
$ 
 
1,450.00 $ 
 
46,453.00 $ 
 
46,453.00 
 
1,241,552.49 $ 1,159,255.76 $ 
 
{4) 11138,974.43 
 
1,450.00 $ 
 
1,450.00 
 
(4) 
 
1,442.86 
 
2,892.86 $ 
 
1,450.00 
 
OTHER FEDERAL ASSISTANCE 
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program 
 
$ 
 
21,576.74 $ 
 
21,576.74 $_-=2'-'-1:.;;5.;..76;;.a.7.;_4.;.. 
 
(4) 
 
Total Federal Financial Assistance 
 
$ 211081321.13 $ 
 
2,0011998.78 $ 1,916,587.73 $ 2,710,165.49 
 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of donated commodities distributed to the system by the Georgia Department of Education. The value of these commodities is not included in the system's financial statements. 
(2) Expenditures for the Child and Adult Care Food Program and 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. 
 
- 25 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS 
JUNE 30, 1994 
INTEREST BEARING ACCOUNTS 
NationsBank of Georgia, N.A., Springfield, Georgia 
N.O.W. Accounts (4.19%) 
 
SCHEDULE "2" $ 676,101.95 
 
See notes to the general purpose financial statements. - 26 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1994 
U.S. GOVERNMENT OBLIGATIONS NationsBank of Georgia, N.A., Atlanta, Georgia Investment Portfolio 
INVESTMENT POOL Office of Treasury and Fiscal Services Local Government Investment Pool (4.237%) 
OTHER NationsBank of Georgia, N.A., Atlanta, Georgia Investment Portfolio Account 
 
SCHEDULE "3" 
$ 16,714,796.89 1,575,901.09 66,038.11 
$ 18,356,736.09 
 
See notes to the general purpose financial statements. - 27 - 
 
  EFFINGHAM COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1994 
 
SCHEDULE "4" 
 
Board of Public Education for the City of Savannah and the County of Chatham Adult Education State Funds Federal Funds Tech-Prep Education 
Education, Georgia Department of Food Services Child and Adult Care Food Program School Breakfast Program National School Lunch Program Lottery Programs Computers in Classrooms Distant Learning Media Center and library Equipment Safe Schools Grant Federal Programs Elementary and Secondary Education Act Chapter 1 Education of Deprived Children Chapter2 Block Grant - Flow Through Title II Eisenhower Mathematics and Science Education Even Start Individuals with Disabilities Education Act Title VI, B Flow Through Preschool Program Other State Program Innovative Program Project Ride 
Effingham County Board of Commissioners Reimbursement for Summer School Food Program Lunches 
Various Sources Interest Earned 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL REVENUE PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 4,913.00 9,537.00 $ 24,000.00 
 
$ 4,913.00 9,537.00 
24,000.00 
 
614.65 4,791.71 5,759.35 
22,974.09 920.00 
35,975.33 10,968.84 
 
614.65 4,791.71 5,759.35 
22,974.09 920.00 
35,975.33 10,968.84 
 
135,462.81 6,748.00 
14,698.60 34,862.95 
30,984.00 12,000.00 
1,300.00 
 
135,462.81 6,748.00 
14,698.60 34,862.95 
30,984.00 12,000.00 
1,300.00 
 
11,147.40 
 
11,147.40 
 
6,731.62 
 
$ 148,275.63 155,007.25 
 
$ 22,481.62 $ 351,907.73 $ 148,275.63 $ 522,664.98 
 
See notes to the general purpose financial statements. 
 
- 29 - 
 
 PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30 
1995 1996 1997 1998 1999 
2000 2001 2002 2003 2004 
2005 2006 2007 2008 2009 
 
EFFINGHAM COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY 
JUNE 30, 1994 
 
TOTAL DEBT SERVICE 
 
TOTAL INTEREST 
 
TOTAL PRINCIPAL 
 
$ 
 
998,957.50 $ 
 
1,587,402.50 
 
1,784,475.00 
 
1,935,210.00 
 
1,927,082.50 
 
748,957.50 $ 967,402.50 934,475.00 900,210.00 852,082.50 
 
250,000.00 620,000.00 850,000.00 1,035,000.00 1,075,000.00 
 
1,919,945.00 1,913,945.00 1,903,690.00 1,893,420.00 1,888,932.50 
 
799,945.00 743,945.00 683,690.00 618,420.00 548,932.50 
 
1,120,000.00 1,170,000.00 1,220,000.00 1,275,000.00 1,340,000.00 
 
1,874,562.50 1,865,462.50 1,880,937.50 1,872,812.50 1,854,062.50 
 
474,562.50 395,462.50 310,937.50 212,812.50 109,062.50 
 
1,400,000.00 1,470,000.00 1,570,000.00 1,660,000.00 1,745,000.00 
 
$ 27,100,897.50 $ 9,300,897.50 $ 17,800,000.00 
 
CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Issued During Period Bonds Retired During Period 
 
TOTAL 
 
1994 
 
$ 1,035,000.00 
 
17,000,000.00 $ 17,000,000.00 
 
235,000.00 
 
Bonds Payable at June 30, 1994 
 
$ 17,800,000.00 $ 17,000,000.00 
 
MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date 
 
FEB 1 - AUG 1 FEB 1 
 
See notes to the general purpose financial statements. 
 
- 30 - 
 
 SCHEDULE "5" 
 
1994 ISSUE 
 
INTEREST 
 
PRINCIPAL 
 
1986 ISSUE INTEREST PRINCIPAL 
 
$ 704,985.00 
 
$ 43,972.50 $ 250,000.00 
 
939,980.00 $ 
 
355,000.00 
 
27,422.50 
 
265,000.00 
 
925,070.00 
 
565,000.00 
 
9,405.00 
 
285,000.00 
 
900,210.00 
 
1,035,000.00 
 
852,082.50 
 
1,075,000.00 
 
799,945.00 743,945.00 683,690.00 618,420.00 548,932.50 
 
1,120,000.00 1,170,000.00 1,220,000.00 1,275,000.00 1,340,000.00 
 
474,562.50 395,462.50 310,937.50 212,812.50 109,062.50 
 
1,400,000.00 1,470,000.00 1,570,000.00 1,660,000.00 1,745,000.00 
 
$ 9,220,097.50 $ 17,000,000.00 $ 80,800.00 $ 800,000.00 
 
1986 $ 1,035,000.00 
 
235,000.00 
 
$ 800,000.00 
 
APR 1 - OCT 1 OCT 1 
 
- 31 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1994 
 
SCHEDULE "6" 
 
AGENCY/FUNDING 
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Innovative Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Lottery Programs Computers in Classrooms Distant Learning Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant 
Technical and Adult Education, Georgia Department of Through Board of Public Education for the City of Savannah and the County of Chatham Adult Education 
CONTRACT Human Resources, Georgia Department of Job Opportunities and Basic Skills Training 
OTHER Education, Georgia Department of Reimbursement for GENESIS Project 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 9,934,169.00 1,300,750.00 248,537.00 430,882.00 145,353.00 3,023,266.00 
 
$ 9,934,169.00 1,300,750.00 248,537.00 430,882.00 145,353.00 3,023,266.00 
 
824,878.00 242,990.00 405,326.00 278,772.00 61,786.00 614,652.00 -1,707,420.00 1,491,333.00 
$ 42,731.00 
 
131,112.00 
 
824,878.00 242,990.00 405,326.00 278,772.00 61,786.00 614,652.00 -1,707,420.00 1,491,333.00 131,112.00 42,731.00 
 
1,300.00 9,600.00 
 
50,156.00 
 
1,300.00 9,600.00 50,156.00 
 
9,500.00 29,006.56 
 
68,554.09 920.00 
35,975.33 489,170.80 
10,968.84 
 
9,500.00 29,006.56 
68,554.09 920.00 
35,975.33 489,170.80 
10,968.84 
 
8,496.60 5,752.14 1,500.00 
 
8,496.60 5,752.14 1,500.00 
 
See notes to the general purpose financial statements. 
 
$ 17,403,160.30 $ 786,857.06 $ 18,190,017.36 - 32 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE 
YEAR ENDED JUNE 30, 1994 
 
SCHEDULE "7" 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE PROJECTS 
 
FUND 
 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTAL 
 
Taxes County Wide Bond Tax City Wide School Tax Railroad Car Tax Real Estate Transfer Tax 
 
$ 5,365,302.86 354.07 
23,774.82 
 
$ 
 
54.36 $ 
 
54.36 
 
5,365,302.86 
 
354.07 
 
23,774.82 
 
Other Antitrust Milk Settlement Donations Interest Earned Jury Duty Fees Lost and Damaged Books Rents Revenue in Lieu of Taxes Fort Howard Corporation Royalties Sales Breakfast Lunches School Assets Shared Service Contributions First District Regional Educational Service Agency Georgia Southern University Laurens County Board of Education Testing Fees Tuition Other 
 
$ 1,710.00 96,975.87 1,950.00 
218.07 2,560.00 
 
660.26 15,109.83 $ 
 
64,688.83 
 
136,832.80 7,500.00 
 
15,529.00 
 
23,444.55 798,794.65 
1,410.00 
 
1,925.00 2,750.00 4,046.62 
18,477.00 7,187.37 
 
1,780.00 10,306.00 
2,119.35 
 
355.37 295,045.00 
 
660.26 1,710.00 177,129.90 1,950.00 
218.07 2,560.00 
431,877.80 7,500.00 
23,444.55 798,794.65 
16,939.00 
1,925.00 2,750.00 4,046.62 1,780.00 28,783.00 9,306.72 
 
$ 5,687,093.48 $ 853,624.64 $ 64,688.83 $ 295,454.73 $ 6,900,861.68 
 
See notes to the general purpose financial statements. 
 
- 33 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994 
 
SCHEDULE "8" 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS 
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 
 
Other Purchased Property Services 
 
Repair and Maintenance Services 
 
Insurance 
 
Communications 
 
Commodity Hauling 
 
Shared Services 
 
Other Purchased Services 
 
Supplies 
 
Energy 
 
Food Usage 
 
Books, Textbooks and Periodicals 
 
Dues and Fees 
 
Interest Expense 
 
Other Expenditures 
 
15,185,109.49 $ 4,002,518.59 
39,175.73 31,182.15 15,293.29 34,299.89 
222,619.77 85,171.43 75,281.64 
27,719.90 202,640.83 887,667.98 619,148.93 
304,081.59 39,386.92 17,780.00 4,320.75 
 
1,511,026.28 359,206.35 11,239.51 18,929.32 $ 
34,128.00 10,798.79 
10,499.05 
4,450.78 239,726.99 
2,564.17 763,020.58 
1,930.00 
378.27 
 
$ 258,856.55 
 
16,696,135.77 4,361,724.94 
50,415.24 308,968.02 
15,293.29 34,299.89 34,128.00 233,418.56 85,171.43 75,281.64 10,499.05 27,719.90 207,091.61 1,127,394.97 621,713.10 763,020.58 304,081.59 41,316.92 17,780.00 4,699.02 
 
Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment 
 
135,296.39 346,330.28 734,777.06  839,568.90 
 
384,385.36 
 
135,296.39 346,330.28 734,777.06 1,223,954.26 
 
Total Expenditures 
 
$ 23,849,371.51 $ 3,352,283.45 $ 258,856.55 $ 27,460,511.51 
 
See notes to the general purpose financial statements. 
 
- 34 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT 
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994 
 
SCHEDULE "9" 
 
COMPUTERS IN 
CLASSROOMS 
 
DISTANT LEARNING 
 
MEDIA CENTER AND 
LIBRARY EQUIPMENT 
 
PRE-KINDERGARTEN PROGRAM 
 
SAFE SCHOOLS 
GRANT 
 
EXPENDITURES 
 
Operating Costs 
 
Salaries 
 
$ 
 
187,758.39 
 
$ 
 
Employee Benefits 
 
50,219.28 
 
Professional and Technical 
 
Services 
 
1,075.00 
 
Travel of Employees 
 
2,152.28 
 
Supplies 
 
$ 
 
1,670.09 
 
$ 
 
3,103.48 
 
110,981.45 
 
Other Purchased Services 
 
425.29 
 
Energy 
 
2,564.17 
 
Other 
 
271.51 
 
Nonoperating Costs Equipment 
 
66,884.oo $ _ _ _9_2_0~.o~o 
 
32.871.85 
 
133,723.43 $ 
 
10,968.84 
 
TOTAL 
187,758.39 50,219.28 
1,075.00 2,152.28 115,755.02 
425.29 2,564.17 
271.51 
245,368.12 
 
Total Expenditures $ 
 
68,554.09 $ ===9=2=0.=00= 
 
35,975.33 $ ====4=89=,1=70=.8=0 $ 
 
10,968.84 $ 
 
605,589.06 
 
See notes to the general purpose financial statements. 
 
- 35 - 
 
  EFFINGHAM COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1994 
 
SCHEDULE "1 O" 
 
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 Professional Development 
Expenditures per Audit 
Amount of Underexpenditure for Total Allotment 
 
THIRTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
STAFF DEVELOPMENT 
PROGRAM 
 
$ 12,527,251.00 $ 
 
147,092.00 
 
$ 13,983,848.92 987,329.90 $, 
$ 14,971,178.82 $ 
 
167,944.94 167,944.94 
 
-143,013.76 
 
$ 14,828,165.06 $ 
 
-114.56 -20,738.38 
147,092.00 
 
$ 
 
0.00 $ =====0.0=0 
 
See notes to the general purpose financial statements. - 37 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS  BY PROGRAM 
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1994 
 
ORIGINAL 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
TOTAL 
 
% 
 
ORIGINAL 
 
MID-TERM 
 
REQUIRED 
 
GENERAL AND CAREER EDUCATION PROGRAMS 
 
Kindergarten (*) 
 
$ 1,017,400.00 
 
$ 
 
915,660.00 $ 
 
0.00 $ 
 
915,660.00 
 
Grades 1  3 (*) 
 
2,629,426.00 
 
2,366,483.40 
 
612,913.00 
 
2,979,396.40 
 
Sub-Total - K-3 
 
$ 3,646,826.00 90 $ 3,282,143.40 $ 
 
612,913.00 $ 3,895,056.40 
 
Grades 4 - 5 (*) 
 
1,302,858.00 90 
 
1,172,572.20 
 
0.00 
 
1,172,572.20 
 
Grades 6  8 (*) 
 
2,362,005.00 90 
 
2,125,804.50 
 
0.00 
 
2,125,804.50 
 
Grades 9 - 12 (*) 
 
1,595,541.00 90 
 
1,435,986.90 
 
0.00 
 
1,435,986.90 
 
High School Laboratories (*) 
 
405,259.00 90 
 
364,733.10 
 
0.00 
 
364,733.10 
 
Vocational Education Laboratories (*) 
 
621,680.00 90 
 
559,512.00 
 
0.00 
 
559,512.00 
 
Total General and Career Education Programs $ 9,934,169.00 
 
$ 8,940,752.10 $ 
 
612,913.00 $ 9,553,665.10 
 
SPECIAL EDUCATION PROGRAMS 
 
Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Itinerant Supplemental Speech 
 
$ 1,192,083.00 
 
$ 1,072,874.70 $ 
 
0.00 $ 1,072,874.70 
 
Sub-Total - Regular 
 
$ 1,192,083.00 90 $ 1,072,874.70 $ 
 
0.00 $ 1,072,874.70 
 
Category V (Gifted) (*) 
 
108,667.00 90 
 
97,800.30 
 
0.00 
 
97,800.30 
 
Total Special Education Programs 
 
$ -1,300.750.00 
 
$ 1,170,675.00 $ 
 
0.00 $ 1,170,675.00 
 
REMEDIAL EDUCATION PROGRAM(*) 
 
$ 
 
248,537.00 90 $ 
 
223,683.30 $ 
 
0.00 $ 
 
223,683.30 
 
MEDIA CENTER PROGRAMS 
 
$ 
 
430,882.00 90 $ 
 
387,793.80 $ 
 
0.00 $ 
 
387,793.80 
 
Total Thirteen Weighted and Media Center 
 
$ 11,914.338.00 
 
$ 10,722,904.20 $ 
 
612,913.00 $ 11,335,817.20 
 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
Total Staff Development 
(*) Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements. 
 
$ 
 
32,701.00 100 $ 
 
32,701.00 $ 
 
112,652.00 100 
 
112,652.00 
 
1,739.00 $ 0.00 
 
34,440.00 112,652.00 
 
$ ==1=4=5,=35=3=.o=o 
 
$ 
 
145,353.00 $ 
 
s 1,739.00 ==1=47..,,09=2=.oo= 
 
$ 12.059.691.00 
 
$ 10.868.257.20 $ 
 
614,652.00 $ 11,482,909.20 
 
- 38 - 
 
 SCHEDULE 11 
 
REQUIRED ALLOTMENT 
 
DISTRIBUTION BY RESPECTIVE PORTIONS 
 
SALARIES 
 
AMOUNT OF 
 
UNDEREXPENDITURE 
 
FOR REQUIRED 
 
REQUIRED 
 
ACTUAL 
 
ALLOTMENT 
 
ALLOTMENT 
 
OPERATIONS ACTUAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
891,296.10 $ 1,136,530.23 
 
$ 
 
24,363.90 $ 
 
39,971.12 
 
2,790,484.20 
 
2,808,421.52 
 
188,912.20 
 
188,997.27 
 
$ 3,681,780.30 $ 3,944,951.75 $ 
 
0.00 
 
$ 
 
213,276.10 $ 
 
228,968.39 $ 
 
0.00 
 
1,135,336.50 
 
1,697,733.23 
 
0.00 
 
37,235.70 
 
65,032.00 
 
0.00 
 
2,060,437.50 
 
2,940,865.97 
 
0.00 
 
65,367.00 
 
189,106.96 
 
0.00 
 
1,370,428.20 
 
1,745,723.87 
 
0.00 
 
65,558.70 
 
118,716.21 
 
0.00 
 
348,147.00 
 
437,965.26 
 
0.00 
 
16,586.10 
 
26,063.28 
 
0.00 
 
484,450.20 
 
933,665.44 
 
0.00 
 
75,061.80 
 
165,824.18 
 
0.00 
 
$ 9,080,579.70 $ 11,700,905.52 $ 
 
0.00 
 
$ 
 
473,085.40 $ 
 
793,711.02 $ 
 
0.00 
 
$ 
 
41,706.00 $ 
 
84,334.52 
 
337,924.80 
 
370,602.24 
 
595,003.50 
 
842,125.30 
 
64,875.60 
 
94,562.51 
 
$ 
 
2,216.70 $ 
 
3,528.42 
 
7,500.60 
 
15,823.97 
 
16,798.50 
 
32,718.53 
 
2,302.20 
 
18,750.95 
 
1,515.60 
 
3,031.20 
 
$ 1,039,509.90 $ 1,391,624.57 $ 
 
0.00 
 
$ 
 
33,364.80 $ 
 
70,821.87 $ 
 
0.00 
 
94,996.80 
 
165,722.63 $ 
 
0.00 
 
2,803.50 
 
7,127.09 $ 
 
0.00 
 
$ 1,134,506.70 $ 1,557,347.20 
 
$ 
 
36,168.30 $ 
 
77,948.96 
 
$ 
 
219,672.00 $ 
 
262,164.03 $ 
 
0.00 
 
$ 
 
4,011.30 $ 
 
5,206.33 $ 
 
0.00 
 
$ 
 
296,966.70 $ 
 
463,432.17 $ 
 
0.00 
 
$ 
 
90,827.10 $ 
 
110,463.59 $ 
 
0.00 
 
$ 10,731,725.10 $ 13,983,848.92 $ 
 
0.00 
 
$ 
 
604,092.10 $ 
 
987,329.90 $ 
 
0.00 
 
$ 
 
34,440.00 $ 
 
34,554.56 $ 
 
0.00 
 
112,652.00 
 
133,390.38 
 
0.00 
 
$ 
 
147,092.00 $ 
 
167,944.94 $ 
 
0.00 
 
======= 
 
$ 10,731,725.10 $ 13,983,848.92 $======0=.0=0 
 
$ 
 
751,184.10 $ 1,155,274.84 $ ======0=.00= 
 
- 39 - 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
YEAR ENDED JUNE 30, 1994 
 
SCHEDULE "12'' 
 
BOARD MEMBER ADDRESS 
Mr. Charles J. Heidt, Chairman ("') 251 Heidt Road Guyton, Georgia 31312 
Mr. Daniel M. Beard ("') 2254 Shawnee Egypt Road Guyton, Georgia 31312 
Mr. Donald H. Brant ("') 116 Frontage Road Rincon, Georgia 31326 
Mr. Preston G. Exley("') 702 Old Tusculum Road Springfield, Georgia 31329 
Mr. William Fredrick Long ("') P.O. Box759 Guyton, Georgia 31312 
 
COMPENSATION 
 
TRAVEL 
 
$ 
 
2,900.00 
 
2,900.00 $ 
 
165.00 
 
2,900.00 
 
2,900.00 
 
663.29 
 
2,700.00 
 
165.00 
 
("') Denotes Board Members Serving as of June 30, 1994 
 
$ 
 
14,300.00 $ ===9=9=3=.2=9 
 
See notes to the general purpose financial statements. - 40 - 
 
 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 24, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Effingham County Board ofEducation. 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the Effingham County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated February 24, 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 Effingham County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 
The results of our tests indicate that, with respect to the items tested, the Effingham County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. 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. 
 
94CRL-10 
 
 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~~ 
Claude L. Vickers State Auditor 
CLV:djf 94CRL-10 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
February 24, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education 
and Superintendent and Members of the Effingham County Board of Education 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the Effingham County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated February 24, 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 Effingham County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 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 ofwhich is the expression of an opinion on the Effingham County Board of Education'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 Effingham County Board of Education had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
tL-~ 
Claude L. Vickers State Auditor 
CLV:djf 94CRL-40 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
February 24, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Effingham County Board ofEducation 
 
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the Effingham County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 24, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
We have also audited the Effingham County .Board of Education's compliance with the requirements govemmg: 
 
(I) Types of Services Allowed or Unallowed 
 
(5) Applicable Special Tests and Provisions 
 
(2) Eligibility 
(3) Matching, Level ofEffort and/or Earmarking 
 
(6) Other Requirement Claims for Advances and Reimbursements 
 
(4) Reporting 
 
These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994. The management of the Effingham County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. 
 
94CRL-80 
 
 We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Effingham County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. 
In our opinion, the Effingham County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~~ 
Claude L. Vickers State Auditor 
CLV:djf 94CRL-80 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
February 24, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Effingham County Board of Education 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the Effingham County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated February 24, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
In connection with our audit of the fiscal year 1994 general purpose financial statements of the Effingham County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management 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 governing: 
 
(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 Effingham County Board of Education'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 Effingham County Board of Education had not complied, in all material respects, with those requirements. 
 
This report is intended for the information of management, the Federal cognizant audit agency and other 
 
Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a 
 
matter of public record. 
 
Rr~ 
 
CLV:djf 94CRL-120 
 
Claude L. Vickers State Auditor 
 
 SECTION III 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 24, 1995 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation 
and Superintendent and Members ofthe Effingham County Board of Education 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the Effingham County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated February 24, 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 Effingham 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 Effingham County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because 
94ICL-3 
 
 ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
 
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 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 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, a reportable condition was noted in the following control category: 
 
General Fixed Assets 
 
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 
 
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness. 
 
94ICL-3 
 
 This condition was considered in detennining the nature, timing, and extent of the procedures to be performed in our audit ofthe Effingham County Board ofEducation's financial statements and this report does not affect our report thereon dated February 24, 1995. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~~A 
Claude L. Vickers State Auditor 
CLV:djf 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 24, 1995 
 
Honorable Zeal Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Effingham County Board of Education 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the Effingham County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated February 24, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Effingham County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated February 24, 1995. 
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Effingham County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. 
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated February 24, 1995. 
94ICL-5 
 
 The management ofthe Effingham 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 
 
ofinherent 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 purposes of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: 
 
GENERAL REQUIREMENTS 
 
SPECIFIC REQUIREMENTS 
 
(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports 
 
(1) Types of Services Allowed or Unallowed 
(2) Eligibility 
(3) Matching, Level ofEffort, and/or Earmarking 
 
(5) Allowable Costs/Cost Principles 
 
(4) Reporting 
 
(6) Audit Follow-Up/Resolution (7) Administrative Requirements 
 
(5) Applicable Special Tests and Provisions 
(6) Other Requirement Claims for Advances and Reimbursements 
 
For all of the internal control structure categories listed above, we obtained an understanding ofthe design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk. 
 
During the year ended June 30, 1994, the Effingham County Board of Education expended 66% ofits total Federal financial assistance under major Federal financial assistance programs. 
 
We performed tests of controls, as required by O:MB 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 
 
94ICL-5 
 
 described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. 
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 constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe 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. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. 
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. 
t t ~ / ~ Respectfully submitted, 
Claude L. Vickers State Auditor 
CLV:djf 94ICL-5 
 
 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1994 
PRIOR YEAR 
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Financial Statements Finding Resolved Audit Control Number 6511-93-02 
The audit report for the year ended June 30, 1994, disclosed that the Board did not have its bank balances fully collateralized as required by the Official Code of Georgia Annotated Section 45-8-12. For the year under review, audit tests of the Board's bank balances indicated that the Board complied with the State laws governing collateralization of cash deposits. 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $4,454.83 Audit Control Number 6511-93-03 
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of $4,454.83 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
PRIOR YEAR/CURRENT YEAR 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6511-93-01 
The audit report for the year ended June 30, 1993, noted that the management of the Effingham County Board ofEducation had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
 
 EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1994 
CURRENT YEAR 
INVESTMENTS Funds Not Invested in Accordance with State Laws Financial Statements Nonrnaterial Noncompliance Audit Control Number 6511-94-01 
As ofJune 30, 1994, the Board had invested $66,037.04 in a NationsBank Investment Portfolio Fund, and it could not be verified that these funds were being invested in accordance with the Official Code of Georgia Annotated Section 36-83-4 which places limits on the type of securities a board of education may acquire. 
This noncompliance occurred because neither NationsBank nor the Board were able to provide adequate information to determine if the funds were properly invested. The Board should implement procedures to ensure that its funds are invested in accordance with State laws. 
Note: The Effingham County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.