Audit report, Effingham County Board of Education, Springfield, Georgia, year ended June 30, 1995

GA
A<3oo -RI E ;).fo
EJ.
1qq4_95
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, 1995

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

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

28

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

30

2 CASH AND CASH EQUIVALENTS

32

3 INVESTMENTS

33

4 ACCOUNTS RECEIVABLE

35

5 DEBT SERVICE REQUIREMENTS TO MATURITY

36

EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

6

STATE

38

7

LOCAL AND OTHER

39

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

41

9

LOTTERY PROGRAMS

42

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

45

11

BY PROGRAM

46

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

48

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 15, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
- and Superintendent and Members ofthe Effingham County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Effingham County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perfonn the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
95ARL-13*

School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The 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, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated August 15, 1996, on our consideration ofthe Board's internal control structure and a report dated August 15, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Effingham County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements ofthe Effingham County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the 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.
95ARL-13*

A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~ .;r: ~-.J
Claude L. Vickers State Auditor
CLV:dt 95ARL-13*

EFFINGHAM COUNTY BOARD OF EDUCATION - 1-

EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1995

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
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 582,548.59 $ 411,605.33 $

5,613.84

913,040.11

11,083,534.96

168,421.09

297,2TT.20

2,882,046.93

$ 1,664,009.79 $ 708,882.53 $ 13,971,195.73

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue General Obligation Bonds Payable Capital Lease Agreements Sanitary Sewer Agreement
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Debt Service For Expired Grant Balances/Questioned Costs For Purposes of Bond Issue For Purposes of GSBA Lease For State Capital Outlay Project
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

48,559.46 $

260,460.40

196,884.71

23,529.22

1,127,196.24

532,917.58

$ 268,973.39 $ 1,920,574.22

$

4,454.83

$

4,454.83

1,659,554.96 $

$ 1,664,009.79 $

$
$ 439,909.14 439,909.14 $

9,684,855.38 2,110,425.13
255,341.00
12,050,621.51
0.00
12,050,621.51

$ 1,664,009.79 $ 708,882.53 $ 13,971,195.73

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 Onll} JUNE 30, 1995 JUNE 30, 1994

$

16,948.23

$ 1,016,715.99 $

676,101.95

241.95

11,996,817.02

18,356,736.09

21,4n.72

3,369,222.94

522,664.98

$

38,667.90

38,667.90

45,534.41

17,511,332.10 6,180,000.00 515,000.00

17,511,332.10 6,180,000.00
515,000.00

17,754,465.59 40,515.72
560,000.00

$

38,667.90 $

24,245,000.00 $ 40,627,755.95 $ 37,956,018.74

$

309,019.86 $

49,728.49

196,884.71

201,981.27

23,529.22

1,127,196.24

532,917.58

2,316.00

$

17,550,000.00

17,550,000.00

17,800,000.00

6,180,000.00

6,180,000.00

40,515.72

515,000.00

515,000.00

560,000.00

$

24,245,000.00 $ 26,434,547.61 $ 18,654,541.48

$

38,667.90

$

38,667.90

0.00

$

38,667.90

$

38,667.90 $

45,534.41

4,454.83

4,454.83

9,684,855.38

16,884,692.38

2,110,425.13

255,341.00

$ 12,093,744.24 $ 16,934,681.62

2,099,464.10

2,366,795.64

$ 14,193,208.34 $ 19,301,4n.26

$

38,667.90 $

24,245,000.00 $ 40,627,755.95 $ 37,956,018.74

-3-

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

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
QTHER FINANCING SOURCES (!JSES}
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Premium on Bonds Sold Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY .1
Residual Equity Transfer
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

$ 18,712,448.28 $ 824,771.02

94,446.57

1,801,303.02

7,193,610.00

899,106.85 $

$ 26,000,504.85 $ 3,525,180.89 $

785,161.04 785,161.04

$ 16,666,341.96 $ 1,260,030.73

775,142.49 196,305.87 795,346.55 662,762.94 1,619,510.63 188,342.04 2,088,867.85 1,688, 120.36 29,357.20
148,423.98 1,097,294.64

181,439.96 33,771.54 113,067.84 43,627.81 26,382.68
$ 3,730.59 4,355.03

284,605.48

29,133.37 1,974,266.76

1,950.00

11,437,062.00

85,515.72 46,540.67

110,452.50 500.00

$ 26,087,872.90 $ 3,671,756.31 $ 11,832,619.98

$

-87,368.05 $ -146,575.42 $ -11,047,458.94

$ 6,180,000.00

$

15,047.77

33,388.07

$

-48435.84

$

-48435.84 $

15047.77 $ 6,213,388.07

$ -135,803.89 $ -131,527.65 $ -4,834,070.87

1,794,551.30

576,699.17

16,884,692.38

5,262.38

-5,262.38

$ 1,664,009.79 $ 439,909.14 $ 12,050,621.51

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

EXHIBIT "B"

DEBT SERVICE
FUND

TOTALS (Memorandum Only)
YEAR ENDED
JUNE 301 1995 JUNE 30.1994

$ 19,537,219.30 $ 18,190,017.36

1,895,749.59

1,916,587.73

$ 997,896.99

e,s1s1n4.88

6,900,861.88

s s $ 997,896.99

31.308.743.n 27JXJ7.466.n

$ 17,926,372.69 $ 16,430,512.33

956,582.45 230,0n.41 908,414.39 706,390.75 1,645,893.31 472,947.52 2,092,598.44 1,692,475.39
29,357.20 29,133.37 1,974,266.76 148,423.98 12,536,306.64

819,671.56 239,100.15 780,571.86 558,351.31 1,424,578.14 394,512.31 2,056,800.75 1,491,206.84
73,046.63 1,571,191.06
120,76528 1,364,907.10

$ 250,000.00 748,957.50 5,806.00

335,515.72 905,950.67
6,306.00

317,643.16 111,84823
736.55

$ 1,004,763.50 $ 42.597.012.69 $ 27,755,443.06

$

-6.886.51 $ -11,288,268.92 $ -747,976.29

$

44,367.94

17,000,000.00

78,860.10

$ 6,180,000.00

48,435.84

16,270.00

-48,435.84

-16,270.00

$ 6,180,000.00 $ 17.123,248.04

$

-6,886.51 $ -5,108,268.92 $ 16,375,271.75

45,534.41

1e,301,4n26

2,926,205.51

0.00

$

381667.90 $ 1411931208.34 $ 1e1301 14n26

-5-

EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services lmprovemeot 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 aver (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1994
Residual Equity Transfer

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 19,840,354.00 $ 18,712,448.28 94,446.57
5,597,172.00 7,193,610.00
$ 25,437,526.00 $ 26,000,504.85

$ 16,772,109.00 $ 16,666,341.96

853,906.00 162,577.00 826,407.00 657,822.00 1,579,782.00 178,456.00 2,053,194.00 1,669,670.00 23,000.00

775,142.49 196,305.87 795,346.55 662,762.94 1,619,510.63 188,342.04 2,088,867.85 1,688,120.36 29,357.20

1,208,090.00

148,423.98 1,097,294.64
132,056.39

$ 25,985,013.00 $ 26,087,872.90

$ -547,487.00 $ -87,368.05

s

0.00 $ -48,435.84

s

0.00 $ -48,435.84

$ -547,487.00 $ -135,803.89 1,978,870.31 1,794,551.30 5,262.38.

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 328,692.00 $ 824,771.02

1,531,544.00 1,801,303.02

869,307.00

899,106.85

$ 2,729,543.00 $ 3,525,180.89

$ 873,576.00 $ 1,260,030.73

89,336.00 20,967.00
44,752.00

181,439.96 33,771.54 113,067.84 43,627.81 26,382.68

2,000.00

3,730.59 4,355.03

13,901.00

29,133.37

1,649,086.00 1,974,266.76

35,000.00

1,950.00

$ 2,728,618.00 $ 3,671,756.31

$

925.00 $ -146,575.42

$

0.00 $ 15,047.77

$

0.00 $ 15,047.77

$

925.00 $ -131,527.65

576,247.99

576,699.17

-5,262.38

FUND BALANCE JUNE 30, 1995

$ 1,431,383.31 $ 1,664,009.79

$ 577,172.99 $ 439,909.14

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

EFFINGHAM COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Effingham County Board ofEducation (Board) was established under the laws of the State ofGeorgia and operates under the guidance ofa school board and Superintendent, both elected by the voters. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial. Reporting Entity". The primary government consists of all the organizations that compose the legal entity ofthe Effingham County Board ofEducation.
Based upon the application ofthe above criteria, the Effingham County Board ofEducation is determined to be the lowest level ofgovernment 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set ofaccounts. 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, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding, 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 11 11

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion ofthe compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Effingham County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is

- 10 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board; such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including N. 0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and 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 State of Georgia, Office of Treasury and Fiscal Services,

- 11 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from infonnation 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 1994 tax year (calendar year) on October 6, 1994 (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section 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.

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

School Operations School Bonds

15.88 mills 2.50 mills

18.38 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 ofdonated 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.

- 12 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction 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,
- 13 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

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

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

(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State ofGeorgia,

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $2,634,987.67. The amounts of the total bank balances are classified into three categories ofcredit 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, 1995, as follows:
Risk Categ01y 1 2 3 Total

Bank Balance
$ 100,000.00 2,534,987.67 0.00
$2,634,987.67

- 14 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

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

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

At June 30, 1995, the carrying amount ofthe Board's total investments was $11,996,817.02 and the market value ofthese investments, excluding investments in the State of Georgia, Local Government Investment Pool, were $11,273,336.51. The investments are classified as to risk categories as follows:

Type ofInvestment

Risk Categories

I

2

3

Carrying Amount

Market Value

U. S. Government Securities Investment Portfolio Account

$ 10,096,268.32 $ 987,508.59

0.00 $

0.00 $ 10,096,268.32 $10,285,827.92

987,508.59

987,508.59

Total

$ 11 083 776 91 $

000 $

000 $ ll,083,776.91 $11273 336 51

Local Government Investment Pools

913,040.11



Total Investments

$ 11996817 02

Undetenninable

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

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. See Note 1 - Inventories

- 15 -

EFFINGHAM COUNTY BOARD OF EDUCATION

. EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions

and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses

(settlements) which exceeded the Board's insurance coverage in any of the past three years.



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

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

Beginning of Year Liabilicy

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1994 1995

$

0.00 $

583.00 $

583.00 $

0.00

$

0.00 $

3 862.67 $

3,862.67 $

0.00

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public

entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers'

compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund

for its general insurance coverage. Additional insurance coverage is provided through an agreement by the

Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the

Fund in excess of $250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the

retained limit of$250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience

rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next

$1,000,000.00 ofloss.



Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Effingham County Board ofEducation entered into an agreement on October 1, 1994, with the Georgia School Boards Association, (GSBA), Incorporated for the construction and subsequent lease of various school facilities. Under the terms of the lease agreement, the Board will make semi-annual payments through January 15, 2005. The lease includes an annual renewal clause.

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.

- 16 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT D 11 11

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

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 of the date of the inception.

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

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

CaQital Leases

GSBA

Other

Sanitary Sewer Agreement

General Obligation
Bonds

Total

$

0.00 $ 40,515.72 $ 560,000.00 $17,800,000.00 $ 18,400,515.72

6,180,000.00

6,180,000.00

40,515.72

45,000.00

250,000.00

335,515.72

$ 6 ]8Q QQQ QQ $

QQQ $ 515 QQQ QQ $ 11 550 QQQ QQ $ 24~45 QQQ,QQ

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

Fiscal Year Ended June 30
1996 1997 1998 1999 2000 2001 and thereafter
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

CaQital Leases GSBA

Sanitary Sewer Agreement

General Obligation
Bonds

Total Debt

$ 821,357.50 $ 90,110.00 $ 1,587,402.50 $ 2,498,870.00

818,817.50

91,410.00 1,784,475.00 2,694,702.50

819,337.50

87,285.00 1,935,210.00 2,841,832.50

822,587.50

88,105.00 1,927,082.50 2,837,775.00

818,207.50

88,485.00 1,919,945.00 2,826,637:50

4,110,337.52

268,185.00 16,947,825.00 21,326.347.52

$ 8,210,645.02 $ 713,580.00 $ 26 ]Q] 94Q QQ $ 35 Q26 165 Q2

2,030,645.02

198,580.00

$ 6 ]8Q QQQ QQ $ 515QQQQQ

- 17 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction contracts executed by the Board as of June 30, 1995:

Project

Unearned
Executed Contracts

GSBA Lease/Ebenezer Elementary School
South Effing!iam High School South Effingham Micldle School
Sandhill Elementary School

$ 719,360.60
7,282,607.74 3,950,112.32
475,305.75

$ 12,427,386.41

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

Note 7: CONTINGENT LIABILITIES

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

The Board is a defendant in a legal proceeding pertaining to a matter incidental to the performance of routine Board operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general purpose financial statements.

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 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 highe$t paid y~ars of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 18 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS

Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $15,913,398.00~ total payroll was $18,556,313.90.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $2,675,042.20, ofwhich $1,879,372.30 was made by the Board and $795,669.90 was made by employees. These contributions represented 11.81% (Board) and 5% (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 ofJune 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058.958.000.00

- 19 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\ffiNTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.
Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 ofSI,879,372.30 was actuarially determined and represented .3326% oftotal contributions made by all participating employers.
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and .lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State ofGeorgia in accordance with State statute.
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after IO years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer contnbutions occurs, but the member's contributions are refunded with interest.
There were 217 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State ofGeorgia is required by statute to make

- 20 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS
employer contnbutions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contnbutions from employees ofthe Board made during fiscal year 1995 amounted to $7,380.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 9: SURETY BOND
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, 1996.

- 21 -

~
Cash and Cash EquiYalenta Accounts Receivable

~EEIN!:zt:l!M COUlfiY DQABC! QE ~C!!.!~IIQt!! COMalNIN~ aAL.ANQE 1:!EEI seEQI&, BE~NUE E!.!NC! JUNE 30, 1995

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

COMMUNITY EDUCATION

STATE PRESCHOOL HANDICAPPED
PROGRAM

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 537,765.90

$

0.00 $

0.00 $

6,547.01

18,907.62 $

7,700.00

90,000.00

TotalAsllta

$ 556,673.52 $

7,700.00 $

0.00 $

0.00 $

96,547.01

LIABILIIIE ANl2 E!.!Nl2 EgU(!Y
LIAalLIIIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Unearned Revenue
Total Liabilities
E!.!NC! EO!.!!IY
Fund Balances Unra.ved Undesignated
Total Liabilities and Fund Equity

$ $ 20,936.33
95,828.05

7,700.00

$ 116,764.38 $

7,700.00

$

15,302.95

57,714.84

23,529.22

$

96,547.01

"39,909.1 <t

0.00 $

$ 556,673.52 $

7,700.00 $

0.00 $ 0.00 $

0.00

0.00

0.00 $

96,547.01

See notes to the general purp0M financial statements.

-22-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

STATE

CHAPTER2

PROGRAM

BLOCK GRANT -

IMPROVEMENT FLOW THROUGH

TITLE IIEISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

$

0.00

$

14,643.00 $

6,899.58 $

EVEN START

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1995 JUNE 30, 1994

$ 544,312.91 $ 658,8TT.13

56,329.00 $

86,172.00 $

16,626.00

297,2TT.20

351,907.73

$

0.00 $

14,643.00 $

6,899.56 $ 56,329.00 $

86,172.00 $

16,626.00 $ 841,590.11 $ 1,010,784.86

$

8,783.60 $

6,899.58 $ 46,064.20 $

53,217.88 $

10,042.32 $ 132,707.58 $ 180,059.93

1,257.64

2,375.90

7,330.58

1,356.06

48,559.46

49,728.49

4,601.76

7,888.90

25,623.54

5,227.62

196,884.71

201,981.27

23,529.22

2,316.00

$

14,643.00 $

6,899.58 $ 56,329.00 $

86,172.00 $

16,626.00 $ 401,680.97 $ 434,085.69

s ____..;;;o=.oo~

0.00 ____o~c=-oo~

o.oo

0.00 _ _ __.:;coc=-oo~ 439,909.14

576,699.17

$====0=.00=$

14,643.00 $

6,899.58 $ 56,329.00 $

86,172.00 $

16,626.00 $ 841,590.11 $ 1,010,784.86

-23-

EFFl~GHAM COUNTY BOARD OF EDUCATION COMBINING STA~MENT OF REVENU5S, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
VEAR END5D JUNE 30 1995

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Residual Equity Transfer

SCHOOL FOOD
SERVICES FUND

ELEMENTARY

LOTTERY PROGRAMS

COMMUNITY EDUCATION

STATE PRESCHOOL HANDICAPPED
PROGRAM

CHAPTER 1
EDUCATION OF DEPRIVED CHILDREN

s 142,488.00 S 627,628.02

801,144.26

899,106.85

s

s 1,842,739.11 $ 627,628.02 S

s
0.00
0.00 S

54,655.00
s
54,655.00 $

569,747.78 569,747.78

s 390,37126 $
109,023.42 113,067.84 26,382.68
3,730.59
$ 1,974,266.76
$ 1,974,266.76 $ 642,575.79 $ $ -131,527.65 $ -14,947.77 $

0.00 $

12,014.72 $ 42,640.28

502,916.39
9,956.28 1,983.93
43,627.81

11,263.37

0.00 $ 0.00 $

54,655.00 $ 0.00 $

569,747.78 0.00

14,947.77

$ -131,527.65 $

0.00 $

0.00 $

0.00 $

0.00

571,436.79

0.00

5,262.38

0.00

0.00

-5,262.38

FUND BALANCE JUNE 30

$ 439,909.14 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-24-

EXHIBIT"P

ANO SECONDARY EDUCATION M;T

STATE

CHAPTER2

PROGRAM BLOCK GRANT

IMPROVEMENT FLOW THROUGH

TITLE IIEISENHOWER MATHEMATICS AND SCIENCE EDUCATION

EVEN START

INDIVIDUALS WITH

DISABILITIES EOUCATION M;T

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 301 1994

s

3,700.00 S

s

3,700.00 $

35,148.00 $ 35,148.00 $

12,206.98 S 135,222.00 S 203,634.00 S 12,206.98 S 135,222.00 S 203,634.00 S

s
'40,500.00

824,n1.02 s 1,801,303.02
899,106.85

786,857.06 1,830,614.59
853,624.84

'40,500.00 S 3,525,180.89 S 3,471,096.29

s

s

3,700.00

s

3,700.00$

s

0.00 S

35,148.00 $
35.148.00 $ 0.00 S

4.214.n s 7,992.26

71,131.84 S
19,819.98 20,095.35

203,634.00 $

4,355.03 17,870.00

1,950.00

12,206.98 $ 135,222.00 S

0.00 S

0.00 S

203,634.00 $
0.00 S

'40,600.00 $ 1,260,030.73 $ 1,417,289.21

181,439.96 33,n1.54 113,067.84 43,627.81 26,382.68 3,730.59 4,355.03 29,133.37 1,974,266.76
1,950.00

163,571.79 49,343.97 36,895.33 15,on.42 10,968.64
8,599.36 45,223.47 1,571,191.06 34,128.00

'40,600.00 $ 3,671,756.31 $ 3,352,283.45

-100.00 S -1-46,575.42 $ 118,812.84

s

0.00 S

0.00

0.00 $ 0.00

o.oos 0.00

0.00 S
0.00

0.00 $ 0.00

100.00

15,047.n

16,270.00

0.00 S
0.00

-131,527.85 $ 576,699.17
-5,262.38

135,082.84 441,616.33

s

0.00 S

0.00 S

0.00 $

0.00 S

0.00 S

0.00 S 439,909.14 $ 576,699.17

-25-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For Purposes of GSBA Lease For State Capital Outlay Projects
Unreserved Undesignated Total Fund Equity

1994 BOND ISSUE
FUND

GSBA LEASE FUND

LOTTERY PROJECT 96/95$-651-081

$

5,613.84

9,553,716.35

$

255,341.00

125,525.19 $ 2,756,521.74

------ $ 9,684,855.38 $ 2,756,521.74 $

255,341.00

$ 507,245.34 138,851.27
$ 646,096.61

$ 9,684,855.38 $ 2,110,425.13 $
$ 9,684,855.38 $ 2,110,425.13 $

255,341.00 255,341.00

0.00

0.00

$ 9,684,855.38 $ 2,110,425.13 $

0.00 255,341.00

Total Liabilities and Fund Equity

$ 9,684,855.38 $ 2.1ss.s21.14 $ _ _ _2_ss_,34......,1_.oo_

See notes to the general purpose financial statements.

-26-

EXHIBIT"G"

SOUTH EFFINGHAM HIGH SCHOOL

SOUTH EFFINGHAM MIDDLE SCHOOL

SANDHILL ELEMENTARY
SCHOOL

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

5,613.84 $ 16,736,416.75

$

302,794.94 $

392,904.75 $

578,777.92

11,083,534.96

148,275.63

2,882,046.93

$

302,794.94 $

392,904.75 $

578,777.92 $ 13,971,195.73 $ 16,884,692.38

$

164,352.42 $

138,442.52

$

302,794.94 $

78,684.98 $ 211,462.16 102,757.61
392,904.75 $

17,423.00 $ 408,488.74 152,866.18
578,777.92 $

260,460.40 1,127,196.24
532,917.58
1,920,574.22

$

0.00 $

$

0.00 $

0.00 $ 0.00 $

$ 9,684,855.38 $ 16,884,692.38 2,110,425.13 255,341.00
$ 12,050,621.51 $ 16,884,692.38

0.00

0.00

0.00

0.00 $ 12,050,621.51 $ 16,884,692.38

$

302,794.94 $

392,904.75 $

578,777.92 $ 13,971,195.73 $ 16,884,692.38

- 27 -

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

REVENUES
Local and Other Funds
EXPENDITURES
Current Support Services Business Administration Bond Issuance Cost Professional and Technical Services
Debt Service Interest Paying Agent Fees
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obligation Bonds Par Value Premium on Bonds Sold
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

1994 BOND ISSUE
FUND

GSBA LEASE FUND

LOTTERY PROJECT 96/95S-651-031

$

661,329.74 $

123,831.30 $

0.00

$

97.27 $

284,508.21

110,452.50 500.00

3,723;554.66 146,308.87 $

$

97.27 $ 4,265,324.24 $

$

661,232.47 $ -4,141,492.94 $

0.00 0.00 0.00

$ 6,180,000.00 71,918.07 $
$ -7,861,069.47
$ -7,861,069.47 $ 6,251,918.07 $

$ -7, 199,837.00 $ 2,110,425.13 $

16,884,692.38

0.00

255,341.00 255,341.00 255,341.00
0.00

- - - - - - $ 9,684,855.38 $ 2,110,425.13 $

255,341.00

See notes to the general purpose financial statements.

-28-

EXHIBIT "H"

SOUTH EFFINGHAM HIGH SCHOOL

SOUTH EFFINGHAM MIDDLE SCHOOL

SANDHILL ELEMENTARY
SCHOOL

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

0.00 $ _ _ _ _0_.00_ $

785,161.04 $

64,688.83

$ 202,800.11 $ 2,036,256.22
$ 2,239,056.33 $ $ -2,239,056.33 $

$

$

284,605.48

110,452.50 500.00

199,358.57 1,448,692.56 $ 3,680,091.01

402,158.68 10,888,594.45
146,308.87

1,648,051.1.3 $ 3,680,091.01 $ 11,832,619.98 $

-1,648,051.13 $ -3,680,091.01 $ -11,047,458.94 $

258,856.55
258,856.55 -194,167.72

$ 2,239,056.33 $ $ 2,239,056.33 $

$ 1,648,051.13 $ 3,680,091.01
1,648,051.13 $ 3,680,091.01 $

$
6,180,000.00 7,894,457.54 -7,861,069.47

17,000,000.00 78,860.10

6,213,388.07 $ 17,078,860.10

$

0.00 $

0.00

0.00 $ 0.00

0.00 $ -4,834,070.87 $ 16,884,692.38

0.00

16,884,692.38

0.00

$

0.00 $

o.oo s _ _ _ _o_.oo_ s 12,oso,621.s1 s 16,884,692.38

-29-

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

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 Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1994 Contract 1995 Contract Food Services School Breakfast Program 1994 Grant 1995 Grant National School Lunch Program 1994 Grant 1995 Grant Food Distribution Program
Total U.S. Department of Agriculture

10.558 10.558 $

$ 22,746.81

10.553 10.553
. 10.555 . 10.555
10.550
$

131,4n.so
646,919.95 155,488.88 956,633.14 $

614.65

21,983.54 $

22,746.81

(2)

4,791.71 124,240.16
5,759.35 640,459.34 !1l
797,848.75 $

131,4n.so
646,919.95 $ !1l
801,144.26 $

(2)
1,974,266.76 (3) !1l
1,974,266.76

Education, U. S. Department of

Through Board of Public Education for the City

of Savannah and the County of Chatham

Adult Education

1994 Grant

84.002

1995Granl

84.002 $

Tech-Prep Education

1994 Grant

84.243

Through Georgia Department of Education

Elementary and Secondary Education Act

Chapter 1 Education of Deprived Children 1993 Carry-Over 1994 Regular

.. 84.010 84.010

1994 Carry-Over

84.010

1995 Regular

* 84.010

1995 Summer

* 84.010

State Program Improvement

1995 Regular

84.218

Chapter 2

Block Grant Flow Through

1994 Regular

84.151

1995 Regular

84.151

Title II

Eisenhower Mathematics and Science

Education

1994 Regular

84.164

1995 Regular

84.164

Total Expenditures Undistributed by Project 84.164

Even Start

1994 Grant

84.213

1995Grant

84.213

Total Expenditures Undistributed by Project

84.213

Individuals with Disabilities Education Act

Title VI, B

Flow Through

1994 Regular

84.027

1994 Carry-Over

84.027

1995 Regular

84.027

Preschool Program

1994 Regular

84.173

1995 Regular

84.173

$ 22,573.00
10,2n.oo 606,019.00
37,621.00 3,700.00
35,148.00
23,851.00 156,722.00
3,564.00 200,070.00
40,600.00

9,537.00 17,000.00 $
24,000.00

22,573.00 $

22,573.00

44,741.00 90,721.81 10,2n.oo 493,000.00

10,2n.oo 559,470.78

3,700.00

3,700.00

6,748.00 20,505.00

35,148.00

10,2n.oo 559,470.78
3,700.00
35,148.00

20,006.00
64,057.45 49,698.50

5,307.40 6,899.58
29,194.50 106,027.50

12,206.98 (5) 135,222.00 (5)

30,984.00
117,462.00
12,000.00 23,874.00

3,564.00 200,070.00
40,500.00

3,564.00 200,070.00
40,600.00 (3)

30

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

SCHEDULE 1

FUNDING AGENCY
PROGRAM/GRANT
E~ucation, U. S. Department d Through Georgia Department of Education Vocational Education Basic Grants to States High School Program Basic Grant 1995Grant
Total U. S. Department of Education
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department d
Direct
Department of the Air Force
R.O.T.C. Program

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.048 $

47,799.00 $

$ 1,187,944.00 $

s_ _ 47,799.oo

4;.;.7.1.:.,7..;.99""'.""oo;a.

1,086,110.76 $ 1,070,530.76 $

(4)
1,022,831.76

$

24,074.57 $

24,074.57 $_......::;.24_.,0.;;.;7_4=.5"'--7

(4)

Total Federal Financial Assistance

$ 2,168,651.71 $

Major Programs are identified by an asterisk (") in front of the CFDA number.

1,908,034.08 $ 1,895,749.59 $ 2,997,098.52

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for 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 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Expenditures on this program were not maintained on a program/project basis.

See notes to the general purpose financial statements.

31

EFFINGHAM COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30. 1995
INTEREST BEARING ACCOUNTS
Nations Bank of Georgia, N.A., Springfield, Georgia
N.O.W. Accounts (Variable)

SCHEDULE "2" $ 1,016,715.99

See notes to the general purpose financial statements.
- 32 -

EFFINGHAM COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1995
U. S. GOVERNMENT SECURITIES
Nations Bank of Georgia, N.A., Atlanta, Georgia
Investment Portfolio Account
INVESTMENT POOL
State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (6.032%)
OTHER.
Nations Bank of Georgia, N.A., Atlanta, Georgia
Investment Portfolio Account

SCHEDULE "3"
$ 10,096,268.32 913,040.11 987,508.59
$ 11,996,817.02

See notes to the general purpose financial statements. - 33 -

EFFINGHAM COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE
JUNE30 1995

SCHEDULE,:-

Board of Public Education for the City of Savarv,ah and the County of Chatham Adult Education Federal Funds
Education, Georgia Department of Food Services
Child and Adult care Food Program
School Breakfast Program National School Lunch Program Lottery Program Distant Learning Federal Programs ESEA - Chapter 1
Education of Deprived Children ESEA - Chapter 2
Block Grant - Flow Through ESEA-Tltle II
Eisenhower Mathematics and Science Education
ESEA - Even Start Individuals with Disabilities Education Act
Title VI, B - Flow Through Title VI, B - Preschool Program
Effingham County Board of Commissioners
Reimbursement for Summer School Food Service Program Lunches
Effingham County Tax Commissioner County Wide Bond Tax County Wide School Tax
Georgia School Boards Association Leasing Program
Various Sources Interest Earned

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 5,573.00

$

5,573.00

$

763.'ZT

7,237.34

6,460.61

7,700.00

90,000.00 14,643.00

6,899.58 56,329.00
86,172.00 16,626.00

763.'ZT 7,237.34 6,460.61 7,700.00
90,000.00 14,643.00
6,899.58 56,329.00 86,172.00 16,626.00

156,403.81 6,444.28

4,446.40

4,446.40

$ 21,4n.72

21,477.72 156,403.81

$ 2,756,521.74

2,756,521.74

125,525.19

131,969.47

$ 168,421.09 $ 297,277.20 $ 2,882,046.93 $ 21,477.72 $ 3,369,222.94

See notes to the general purpose financial statements.

- 35 -

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
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, 1995

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$ 1,587,402.50 $ 1,784,475.00 1,935,210.00 1,927,082.50 1,919,945.00 1,913,945.00 1,903,690.00 1,893,420.00 1,888,932.50 1,874,562.50 1,865,462.50 1,880,937.50 1,872,812.50 1,854,062.50

967,402.50 $ 934,475.00 900,210.00 852,082.50 799,945.00 743,945.00 683,690.00 618,420.00 548,932.50 474,562.50 395,462.50 310,937.50 212,812.50 109,062.50

620,000.00 850,000.00 1,035,000.00 1,075,000.00 1,120,000.00 1,170,000.00 1,220,000.00 1,275,000.00 1,340,000.00 1,400,000.00 1,470,000.00 1,570,000.00 1,660,000.00 1,745,000.00

$ 26,101,940.00 $ 8,551,940.00 $ 17,550,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1994 Bonds Retired During Period
Bonds Payable at June 30, 1995

TOTAL

1994

$ 17,800,000.00 $ 17,000,000.00

250,000.00

0.00

$ 17,550,000.00 $ 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.

- 36 -

SCHEDULE "5"

1994 ISSUE

INTEREST

PRINCIPAL

1986 ISSUE

INTEREST

PRINCIPAL

$ 939,980.00 $

355,000.00 $

925,070.00

565,000.00

900,210.00

1,035,000.00

852,082.50

1,075,000.00

799,945.00

1,120,000.00

743,945.00

1,170,000.00

683,690.00

1,220,000.00

618,420.00

1,275,000.00

548,932.50

1,340,000.00

474,562.50

1,400,000.00

395,462.50

1,470,000.00

310,937.50

1,570,000.00

212,812.50

1,660,000.00

109,062.50

1,745,000.00

27,422.50 $ 9,405.00

265,000.00 285,000.00

$ 8,515,112.50 $ 17,000,000.00 $

- - - - - 36,827.50 $

550,000.00

1986 $ 800,000.00
250,000.00

$ 550,000.00

APR 1-0CT 1 OCT1

- 37 -

EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment School Counselors Grades 4 and 5 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education other State Programs At-Risk Summer School Program Environmental Science Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Algebra Classrooms Distant Learning Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant
OTHER Education, Georgia Department of Reimbursement for Operations Reimbursement for Registration Fees

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 10,794,999.00 1,482,393.00 239,440.00 464,706.00 155,257.00 3,222,439.00
904,012.00 245,147.00 421,846.00 301,084.00
64,313.00 324,218.00
30,176.00 -1,702,627.00 1,625,439.00
$ 44,278.00
23,106.91 500.00
26,910.00
9,407.21 31,354.16

$ 10,794,999.00 1,482,393.00 239,440.00 464,706.00 155,257.00 3,222,439.00

142,488.00

904,012.00 245,147.00 421,846.00 301,084.00
64,313.00 324,218.00
30,176.00 -1,702,627.00 1,625,439.00
142,488.00 44,278.00

54,655.00

23,106.91 500.00
26,910.00 54,655.00
9,407.21 31,354.16

2,316.00 13,780.00 56,445.91 86,524.67 450,337.00 18,224.44

2,316.00 13,780.00 56,445.91 86,524.67 450,337.00 18,224.44

4,000.00 50.00

4,000.00 50.00

$ 18,712,448.28 $

824,771.02 $ 19,537,219.30

See notes to the general purpose financial statements.

- 38 -

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

SCHEDULE '7"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Contract Georgia Department of Human Resources PEACH Project Interest Earned Jury Duty Fees Lost and Damaged Books Revenue in Lieu of Taxes Fort Howard Corporation Sales Adult Meals Breakfast Contracted Meals Lunches School Assets Supplemental Sales Rents Shared Service Contributions Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 6,612,074.76 14,932.31 27,712.26

$ 979,710.49 $ 979,710.49 6,612,074.76 14,932.31 27,712.26

8,347.86 93,364.80 $
3,260.00 252.87

32,386.78 $ 785,161.04

372,507.46

20,630.37
10,790.00 9,550.00
13,080.82 7,106.49

91,151.64 27,384.10
2,TT1.60 715,610.80
28,173.65
1,628.28

10,220.19 7,966.31

8,347.86 921,132.81
3,260.00 252.87
372,507.46
91,151.64 27,384.10
2,TT1.60 715,610.80
20,630.37 28,173.65 10,790.00
9,550.00 13,080.82 16,701.08

$ 7,193,610.00 $ 899,106.85 $ 785,161.04 $ 997,896.99 $ 9,875,TT4.88

See notes to the general purpose financial statements.

- 39 -

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

SCHEDULE "8"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Insurance Communications Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Interest Expense Other Expenditures
Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 16,920,520.09 $ 1,635,793.81 $ 18,556,313.90

4,468,210.21

389,327.52

4,857,537.73

51,044.55

16,318.42

67,362.97

35,374.86

35,591.04

70,965.90

13,411.25

13,411.25

30,241.39

30,241.39

197,809.33

12,743.74

210,553.07

42,618.28

42,618.28

85,438.54

517.94

85,956.48

10,784.00

10,784.00

29,357.20

29,357.20

210,508.84

10,104.89

220,613.73

952,991.73

279,062.17

1,232,053.90

638,390.54

638,390.54

809,595.56

809,595.56

302,118.43

302,118.43

69,016.11

7,530.34

76,546.45

24,605.00

24,605.00

46,989.57

9,088.00

56,077.57

132,056.39 22,456.76
877,340.92 937,372.91

455,298.88

132,056.39 22,456.76 877,340.92 1,392,671.79

Total Expenditures

$ 26,087,872.90 $ 3,671,756.31 $ 29,759,629.21

See notes to the general purpose financial statements. - 41 -

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Communications Other Purchased Services Supplies Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

$

2,316.04 $

9,577.01 $

474.95

4,202.99

57,503.00

$

2,316.04 $

13,780.00 $ ===5=7=,9=7=7.=95=

See notes to the general purpose financial statements.

- 42 -

SCHEDULE "9"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$

30,099.49

691188.35

$

99,287.84 $

293,449.31 76,579.63 6,474.48 1,545.00 41.00 1,451.67 65,313.43 1,075.00 1,820.00

$ 293,449.31 76,579.63 6,474.48 1,545.00 41.00 1,451.67
107,780.92 1,075.00 1,820.00

3 240.00 $

18,224.44

152,358.78

450,989.52 $

18,224.44 $ 642,575.79

- 43 -

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

SCHEDULE "1 O"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 13,304,689.00 $

519,319.00

$ 15,323,041.48

1,196,552.86 $

1,089,613.09

---'---'---

$ 16,519,594.34

-151,835.34 $ 16,367,759.00

$

o.oo $ ========o=.o=o

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

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

GENERAL AND ~R~ l;QUCATION PROGRAMS Kindergarten (") Grades 1 - 3 (") Sub-Total - K-3 Grades 4 - 5 (") Grades 6-8 (") Grades 9 - 12 (") High Sehool Laboratories (") Vocational Education Laboratories (") Total General and career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (") Category II (") category Ill(") Category IV (") Sub-Total Regular Category V (Gifted) (") Total Special Education Programs
REMEDIAL EOU~TION PROGRAM,, Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost cl Instruction Professional Dellelopment
Total Staff Development (") Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$ . 1,093,153.00 2,794,726.00
$ 3,887,879.00 1,472,314.00 2,436,526.00 1,785,844.00 472,726.00 739,710.00
$ 10,794,999.00

$
90 $ 90 90 90 90 90
$

963,837.70 2,515,253.40 $ 3,499,091.10 $ 1,325,082.60 2,192,873.40 1,607,259.60
425,453.40 665,739.00 9,715,499.10 $

323,151.00 323,151.00
323,151.00

$ 1,344,608.00

$ 1,210,147.20 $

0.00

$ 1,344,608.00 90 $ 1,210,147.20 $

137,785.00 90

124,006.50

$ 1,482,393.00

$ 1,334,153.70 $

$

239,440.00 90 $

215,496.00 $

$ 12,516,832.00

$ 11,265,148.80 $

0.00
0.00 0.00 323,151.00

$

358,919.00 90 $

323,027.10 $

0.00

105,787.00 90

95,208.30

$

464,706.00

$

418,235.40 $

0.00

$ 12,981,538.00

$ 11,683,384.20 $

323,151.00

$

36,593.00

118,664.00

$

36,593.00 $

118,664.00

1,067.00 0.00

$

155,257.00 100 $

155,257.00 $

1,067.00

See notes to the general purpose financial statements.

46 -

SCHEDULE "11"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPEND!TURE
FOR REQUIRED ALLOTMENT

$

983,837.70 $ 1,281,922.51 $

60,918.11 $ 1,342,840.62

2,838,404.40

3,029,168.38

132,093.24

3,161,261.62

$ 3,822,242.10 $ 4,311,090.89 $

193,011.35 $ 4,504,102.24 $

0.00

1,325,082.60

1,799,051.82

59,170.12

1,858,221.94

0.00

2,192,873.40

3,067,054.28

176,718.01

3,243,772.29

0.00

1,607,259.60

2,010,242.72

244,458.64

2,254,701.36

0.00

425,453.40

497,385.62

45,415.76

542,801.38

0.00

665,739.00

1,037,866.27

196,640.12

1,234,506.39

0.00

$ 10,038,650.10 $ 12,722,691.60 $

915,414.00 $ 13,638,105.60

$ 1,210,147.20 $

137,512.79 $ 398,522.66 1,023,010.46
99,024.53

4,835.04 $ 19,224.81 118,406.58 20,158.18

142,347.83 417,747.47 1,141,417.04 119,182.71

$ 1,210,147.20 $ 1,658,070.44 $

162,624.61 $ 1,820,695.05

0.00

124,006.50

178,838.90

7,587.85

186,426.75

0.00

$ 1,334,153.70 $ 1,836,909.34 $

170,212.46 $ 2,007,121.80

$

215,496.00 $

253,838.97 $

3,986.63 $

257,825.60

0.00

$ 11,588,299.80 $ 14,813,439.91 $ 1,089,613.09 $ 15,903,053.00

$

323,027.10 $

509,601.57

$

509,601.57

0.00

95,208.30

$

106,939.77

106,939.77

0.00

$

418,235.40 $

509,601.57 $

106,939.77 $

616,541.34

$ 12,006,535.20 S 15,323,041.48 $ 1,196,552.86 S 16,519,594.34 S

0.00

$

37,660.00

118,664.00

s_ _1_56_.,3_2_4_.oo_

$

88,249.27 S

88,249.27

68,714.35

68,714.35

$ 156,963.62 S 156,963.62 s_______o_.oo_

- 47 -

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

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. 0. Box759
Guyton, Georgia 31312
Mr. Jimmy 0. Seckinger{*)
393 Benjamin Gnann Road Springfield, Georgia 31329

COMPENSATION

TRAVEL

$

2,600.00 $

98.25

2,600.00

27.88

2,600.00

160.61

1,200.00

95.44

2,500.00

1,400.00

129.07

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

$

12,900.00 $===5=1==1=.2=5

See notes to the general purpose financial statements.

- 48 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WashingtoQ Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 15, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe 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 ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 15, 1996. 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 ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

95CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~;C;,,.;
Claude L. Vickers State Auditor
CLV:dt 95CRL-10

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 15, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Effingham County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 15, 1996. 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 ofits Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression 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.

95CRL-70

Material instances of noncompliance consist of failures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed a material instance of noncompliance that is described in the Schedule ofFindings and Improper or Questioned Costs.
We considered this material instance of noncompliance in forming our opinion on whether the Effingham County Board ofEducation general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated August 15, 1996, on those financial statements.
Except as descnbed above, the results of our procedures to determine compliance indicate that, with respect to the items tested, the Effingham County Board of Education, complied, in all material respects, with the requirements listed in the second paragraph ofthis report, and with respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects with those requirements. Additionally, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements which is also described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

Respectfully submitted,

CLV:dt 95CRL-70

~..,,.-;r:~~
Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 15, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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 of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 15, 1996. 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 governing:

(I) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Effingham County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

95CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board'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, 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,
/4:.. , ; r : ~ ~
Claude L. Vickers State Auditor
CLV:dt 95CRL-80

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 15, 1996

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 REPORT ON COMPLIANCE WITH SPECIFIC REOUIRE1\1ENTS 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, 1995, and have issued our report thereon dated August 15, 1996. 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 1995 general purpose financial statements of the Effingham County Board ofEducation and with our consideration of the Board's control structure used to administer Federal.financial assistance programs, as required by Office of Management and Budget (0MB) Circular 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, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:

(I) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Effingham County Board of Education had not complied, in all material respects, with those requirements.

95CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
/4.~,;r:~-~
Claude L. Vickers State Auditor
CLV:dt 95CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 15, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Effingham County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Effingham County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 15, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management ofthe Effingham County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not 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.

95ICL-3

In planning and performing our audit of the general purpose financial statements of the Effingham County Board ofEducation for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.

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

(1) Accounting Controls (Overall)

(2) General Fixed Assets

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

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

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Effingham County Board ofEducation's financial statements and this report does not affect our report thereon dated August 15, 1996.

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

CLV:dt 95ICL-3

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 15, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Effingham County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Effingham County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated August 15, 1996. 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 requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated August 15, 1996.
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, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated August 15, 1996.
95ICL-7

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1995, the Effingham County Board of Education expended 64% ofits total Federal financial assistance under major Federal financial assistance programs.

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

95ICL-7

are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(1) Federal Financial Reports
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Effingham County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated August 15, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~---.n:~
Claude L. Vickers State Auditor
CLV:dt 95ICL-7

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, 1995
PRIOR YEAR
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, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $4,454.83 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$4,454.83 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Funds Not Invested in Accordance with State Laws Financial Statements Finding Resolved Audit Control Number 6511-94-01
The audit report for the year ended June 30, 1994, disclosed that the Board had invested $66,037.04 in a Nations Bank Investment Portfolio Fund. It could not be verified that these funds were invested in accordance with the Official Code ofGeorgia Annotated Section 36-83-4. For the year under review, Nations Bank and the Board provided adequate information to certify the funds were properly invested in accordance with State laws.
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, 1994, 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
- 1-

EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
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
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.
CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6511-95-01
Our audit disclosed that the Board had not provided for adequate separation of employee duties in the performance of accounting functions and related procedures. Separation of employee duties involving key accounting functions is the basis for achieving an adequate system ofintemal control. This deficiency occurred because management failed to adequately separate employee duties involving key accounting functions. Management should reassign employee duties in order to achieve a higher degree of internal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule "l" of this report are affected by this finding, except for the Food and Nutrition Program.
FEDERAL FINANCIAL REPORTS Inadequate Accounting Records Federal Financial Assistance Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6511-95-02
Accounting records of the Elementary and Secondary Education Act - Even Start Program (CFDA 84.213) and Title II - Eisenhower Mathematics and Science Education Program (CFDA 84.164) funded through the Georgia Department of Education were not maintained on an individual project basis. Each project in these programs requires a separate budget and project completion report. Accounting records should be
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EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
FEDERAL FINANCIAL REPORTS Inadequate Accounting Records Federal Financial Assistance Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6511-95-02
adequately segregated to ensure identification ofrevenues and expenditures by specific project. For reporting purposes, extensive audit work was necessary to separate revenues and receipts on a project-by-project basis as reflected on the Schedule ofFederal Financial Assistance, Schedule "l ", of this report.
This condition occurred because management failed to meet the financial management standards as set forth in 34 CFR 80.20(2). Management should take appropriate action to adequately segregate accounting records to ensure identification of revenues and expenditures by specific project, as required.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6511-95-03
Property management records maintained by the Board for the National School Lunch Program (CFDA 10.555) failed to meet the property management standards as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA) or as outlined in 7 CFR 3015.169. A periodic physical inventory count was not performed and reconciled to the property records to ensure the accuracy of the Board's inventory records.
This condition occurred because the Board disregarded the requirements ofFMGLUA and 7 CFR 3015.169. Management should implement procedures to ensure that a periodic physical inventory count is performed and reconciled to the property records.
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SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

EFFINGHAM COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
FEDERAL FINANCIAL REPORTS Inadequate Accounting Records Federal Financial Assistance Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6511-95-02
Current years are now separated by individual project basis.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Nonmaterial Noncompliance Audit Control Number 6511-95-03
Inventory lists are being prepared at each location and a physical inventory count will be done on a periodic basis.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6511-93-01
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prolnbiting the hiring ofadditional administrative staffthe Board has decided not to pursue the recording of general fixed assets on the financial statements.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6511-95-01
We disagree with this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions.