Audit report, Fannin County Board of Education, Blue Ridge, Georgia, year ended June 30, 1995

GA. A'300 .R l
E:2<o
F2
1994-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT FANNIN COUNTY BOARD OF EDUCATION
BLUE RIDGE, GEORGIA YEAR ENDED JUNE 30, 1995

FANNIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

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

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

I

FIDUCIARY FUND TYPES

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

25

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 CASH AND CASH EQUIVALENTS

28

3 ACCOUNTS RECEIVABLE

29

FANNIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

4

STATE

30

5

LOCAL AND OTHER

31

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

32

7

LOTTERY PROGRAMS

33

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

35

9

BY PROGRAM

36

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

38

SECTION TI
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

FANNIN 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

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 3, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Fannin 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 Fannin 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 thes~ financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted
auditing standards, Government Auditing Standards, issued by the Comptroller General ofthe United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have
been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from
generally accepted accounting principles. These variances are described as follows:
95ARL-13*

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The 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 ofsuch adjustments, if any, on the Special Revenue Fund, as might have been detennined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Fannin County Board of Education as of June 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated May 3, 1996, on our consideration of the Board's internal control structure and a report dated May 3, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements of the Fannin County Board of Education taken as a whole. The combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Fannin County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt 95ARL-13*

FANNIN COUNTY BOARD OF EDUCATION - 1-

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

~
Cash and Cash Equivalents
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of: Capital Lease Agreements Compensated Absences

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 2,004,550.04 $ 364,396.16 $

3,000.00

1,184,091.06

137,699.41

3,058.07

19,042.26 12,334.55

Total Assets

$ 3,191,699.17 $ 533,472.38 $ _ _,..3._000....,..00,_

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Capital Lease Agreements Compensated Absences
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 442,371.85 $ 1,117,857.50 3,729.61

58,263.17 130,755.68
460.14 $
622.10

3,000.00

$ 1,563,958.96 $ 190,101.09 $

3,000.00

$

14,880.67

$

19,042.26

12,334.55

$

14,880.67 $

1,612,859.54

$ 1,627,740.21 $

31,376.81 311,994.48 $ 343,371.29 $

$ 3,191,699.17 $ 533,472.38 $

0.00 0.00
3,000.00

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

EXHIBIT"A"

FIDUCIARY FUND TYPE AGENCY FUND

$

0.00

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onl~ JUNE 30, 1995 JUNE 301 1994

$ 2,371,946.20 $ 2,187,186.31

1,321,790.47

1,298,174.32

3,058.07

19,042.26 12,334.55

16,465.24 10,787.54

$

397,547.05

397,547.05

396,701.35

236,491.87

236,491.87

233,205.19

$

0.00 $

634,038.92 $ 4,362,210.47 $ 4,1421519.95

$ 500,635.02 $ 543,615.25

1,248,613.18

1,166,205.64

4,189.75

3,801.51

3,000.00

26,080.97

132,050.07

622.10

27,141.48

$

397,547.05

397,547.05

396,701.35

236,491.87

236,491.87

233,205.19

$

634,038.92 $ 2,391,098.97 $ 2,528,801.46

$

0.00

$

0.00

$

14,880.67 $

14,880.67

19,042.26 12,334.55

16,465.24 10,787.54
201,050.73

$

46,257.48 $ 243,184.18

1,924,854.02

1,370,534.31

$ 1,971,111.50 $ 1,613,718.49

$

0.00 $

634,038.92 $ 4,362,210.47 $ 4,142,519.95

-3-

g o u m EANNIN

l.'!.QARD OF EDUQaTIQN

QQM~INEQ Ta~MENT QF R~NUES, !;;XPENDIT!,!RES AND QHANGI;; IN FUND BALANQ!;;S
~!. G~RNMENTAL FUND TYPES

YEAA ENDED J!,!NE 30, 1995

EXHIBIT"B"

REVEN!.!E
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDIT!.!RE
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
Total Expenditures
Excess of Revenues over (under) Expenditures
OTH!;;R FINANCING SO!,!RCES (!.!SES}
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 BALANC!;; J!,!LY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS
~emorandum On~} YEAR ENDED
JUNE 301 1995 JUNE30, 1994

$ 8,850,558.59 $ 245,484.57 $

87,438.75

1,283,331.68

4,137,887.66

295,450.27

$ 13,075,885.00 $ 1,824,266.52 $

502,565.96 $

9,598,609.12 $ 1,370,770.43 4,433,337.93

9,403,037.53 1,209,825.97 4,428,322.62

502,565.96 $ 15,402,717.48 $ 15,041,186.12

$ 7,667,376.73 $ 633,765.08

$ 8,301,141.81 $ 7,957,396.93

537,607.53 86,816.99
325,920.85 281,876.60 821,740.96
80,788.00 1,051,412.13
956,744.20 36,013.79 2,771.28 2,825.07 79,895.09 52,418.08

86,297.72 10,485.08 30,812.26
1,667.16 11,142.73 999,355.30
$ 1,273,374.12

623,905.25 86,816.99
336,405.93 312,688.86 821,740.96
80,788.00 1,051,412.13
958,411.36 47,156.52 2,771.28
1,002,180.37 79,895.09
1,325,792.20

369,432.94 275,127.78 404,564.98 196,n1.1s 752,964.33
92,596.20 955,222.69 908,088.47
42,693.14 2,107.89
928,640.00 71,984.62
1,516,885.00

189,421.30 26,647.12

189,421.30 26,647.12

191,541.52 24,880.27

$ 12,200,275.72 $ 1,773,525.33 $ 1,273,374.12 $ 15,247,175.17 $ 14,690,853.95

$

875,609.28 $

50,741.19 $ -770,808.16 $

155,542.31 $

350,332.17

$

190,267.00

$

190,267.00 $

230,234.00

142,016.41 $

71,977.96 $ 569,757.43

783,751.80

409,535.19

-641,735.39

-142,016.41

-783,751.80

-409,535.19

$

-309,451.98 $

-70,038.45 $

569,757.43 $

190,267.00 $

230,234.00

$

566,157.30 $

1,053,501.14

-19,297.26 $ 359,166.62

-201,050.73 $ 201,050.73

345,809.31 $ 1,613,718.49

580,566.17 1,044,801.23

2,577.02 1,547.01

2,577.02 1,547.01

-11,264.33 -384.58

FUND ~ C E JUNE 30

$ 1,619,658.44 $ 343,993.39 $

0.00 $ 1,963,651.83 $ 1,613,718.49

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

EAHHIN CQ!.!NTY E!QABP QE EP!.!CMIQH
UAIEMEHI QE BEVEH!.!E ~eENDII!.!BES ANP CHANGES IN E!.!NP E!A!.ANCES
E!!.!DGET AND ACTUJ\L - CNON-GAAP E!ASIS)
GENEBAL AND seECIAL BEVENUE FUNDS YEAB ENDED JUNE 30 1995

EXHIBITc

BEVEN!.!ES
State Funds Federal Funds Local and Other Funds
Total Revenues
~eENDII!.!BES
Current ln&truction Support Services Pupil Services Improvement of Instructional Services Educational Media Services GeneralAdministration 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
OTt:!EB EINANCING Q!.!BCES l!.!SES)
other Sources other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and other Financing Uses
E!.!ND E!ALANCE JULY 1 1994
Adjustments

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASISl

$ 8,754,143.00 $ 8,850,558.59

275,095.00

87,438.75

3,2861831.00 4,137,887.66

$ 12,316,069.00 $ 13,075,885.00

$ 8,100,533.27 $ 7,667,376.73

428,211.00 270,495.34 335,280.00 272,116.00 844,593.00 88,893.00 1,042,019.00 941,434.00 34,500.00
1,000.00 84,637.00 104,500.00

537,607.53 86,816.99
325,920.85 281,876.60 821,740.96 80,788.00 1,051,412.13 956,744.20 36,013.79
2,n1.2S 2,825.07 79,895.09 52,418.08 216,068.42

$ 12,548,211.61 $ 12,200,275.72

$ -232,142.61 $ 875,609.28

$ 332,283.41

$ -473,910.88

-641,735.39

$ -473,910.88 $ -309,451.98

$ -706,053.49 $ 566,157.30 1,394,107.02 1,053,501.14 1,288.79

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASISl

$ 87,9'Zl.OO $ 245,484.57

1,063,097.00 1,283,331.68

263,076.00

295,450.27

$ 1,414,100.00 $ 1,824,266.52

$ 531,247.39 $ 633,765.08

79,632.00 1,000.00
20,566.00

86,297.72
10,485.08 30,812.26

2,000.00 15,906.00
1,061,871.00

1,667.16 11,142.73
999,355.30

$ 1,712,222.39 $ 1?73,525.33 $ -298,122.39 $ 50,741.19

$ 74,305.00 $ 71,9n.96 -142,016.41
$ 74,305.00 $ -70,038.45

$ -223,817.39 $ 356,212.80 10,420.20

-19,297.26 331,913.84

F!.!NP BALANCE J!JNE 30, 1995

$ 689,342.32 $ 1,619,658.44

$ 142,815.61 $ 312,616.58

The notes to the general purpose financial statements are an integral part of this statement. -5-

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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

- 6-

FANNIN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are. as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services 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.
FIDUCIARY FUND TYPE - the agency fund used to account for assets held by a government unit as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the fund used to account for assets held for individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material accrued compensated absences and material capital lease obligations.

- 7-

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and
decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is
considered a measure of available spendable resources.
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.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
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 substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1994 and ending in early June 1995. Employment contracts for these employment periods typically 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 ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Fannin County Board of Education'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
- 8-

FANNIN 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 of budget 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 ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

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

Excess of Revenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses
Fund Balance July 1, 1994
Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods
Fund Balance June 30, 1995 (Budget Basis)

Special Revenue
Fund
$ -19,297.26 359,166.62
-16,465.24 -10 787.54 $ 312,616.58

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

- 9-

FANNIN COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES
. , The Fannin County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on October 20, 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 Fannin County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1994 tax year (calendar year) for the Fannin County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

12...iQmills

INVENTORIES

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

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 1995, are recorded as prepaid items.

- 10 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS
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 ofdeposit 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,
- 11 -

FANNIN COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

(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 of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1995, the banlc balances were $3,161,743.59. The amounts of the total banlc balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1995, as follows:
Risk Categ0ty 1 2 3 Total

Bank Balance
$ 100,062.28 3,017,583.00 44,098.31
$ 3 161,743.59

- 12 -

FANNIN COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note4: RISKMANAGEMENT
The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.
The Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.
The Board has obtained commercial insurance for errors and omissions, however, the policy excludes coverage for discrimination claims. In addition, the Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to these risks in the past three years.
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.
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 Fannin County Board ofEducation has entered into various lease agreements as lessee for school buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

- 13 -

FANNIN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

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

Balance July 1, 1994

Capital Leases

Compensated Absences

Total

$ 396,701.35 $ 239,270.40 $ 635,971.75

Retroactive Restatement of Prior Year Balances
Balance July 1, 1994 Restated
Additions

-6,065.21

-6,965.21

$ 396,701.35 $ 233,205.19 $ 629,906.54

190,267.00

3,286.68

193,553.68

Deductions Balance June 30, 1995

189,421.30

189,421.30

$ 32Z 54Z 05 $ 236 421 8Z $ 634 038 22

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

Capital Leases

1996 1997 1998 1999
Total Principal and Interest

$ 177,204.02 136,074.78 95,383.50 43,179.53
$ 451,841.83

Deduct: Imputed Interest

54,294.78

Net Present Value of Future Minimum Lease Payments

$ 327 54Z 05

Note 6: 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.

- 14 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: ACCUMULATED EMPLOYEES' LEAVE
The employees ofthe Fannin County School System earn 1 1/4 working days of sick leave for each completed school month ofservice up to a maximum accumulation of 60 days. At retirement, employees are paid for all unused sick leave, up to the maximum accumulation, at one-halfthe amount paid to substitute personnel. In the event the Superintendent leaves office, he may be paid at his daily rate for all unused sick leave up to a maximum of40 days. See Note 1 - Compensated Absences
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 highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
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 $7,679,679.76; total payroll was $8,790,996.99.
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
- 15 -

FANNIN COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS

1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contnbutions made during fiscal year 1995 amounted to $1,290,955.33, ofwhich $906,969.77 was made by the Board and $383,985.56 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 of June 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058,958.000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets 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 of $906,969.77 was actuarially determined and represented .1605% of total contributions made by all participating employers.

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

- 16 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution 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 if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 97 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $3,196.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. Morgan B. Arp, is bonded in the amount of $100,000.00 with the Allstate Insurance Company, Northbrook, Illinois, their Bond No. 074-013-432-SB, on which premium is paid through December 31, 1996.

- 17 -

Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities
Purchased Food
Total Assets

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

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1 EDUCATION OF CHILDREN IN STATE SCHOOLS

$ 383,138.72 $

622.10

19,414.49

$

4,287.22 $

2,783.50 $

4,134.00

19,042.26 12,334.55

$ 433,930.02 $

622.10 $

4,287.22 $

2,783.50 $ ____4..,1..3...4.._oo_

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 31,957.78 58,600.95
$
$ 90,558.73 $

$
622.10 622.10 $

$ 936.62 3,350.60
4,287.22 $

209.62 $ 462.94 1,973.88 137.06
2,783.50 $

4,134.00 4,134.00

$ 19,042.26 12,334.55
$ 31,376.81 311,994.48 $
$ 343,371.29 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$ 433,930.02 $

622.10 $

4,287.22 $

2,783.50 $

0.00 0.00
4,134.00

See notes to the general purpose financial statements.

- 18 -

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

EDUCATION OF

CHAPTER 2

DEPRIVED

BLOCK GRANT -

CHILDREN

FLOW THROUGH

TITLE IIEISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING

PARTNERSHIP

TOTALS

ACT

JUNE 30, 1995 JUNE 30, 1994

$

4,396.37

$

0.00 $

8,779.57

$ 396,936.76 $ 398,547.94

74,999.93 $

1,011.98

3,633.98 $

19,600.00 $

7,834.31

137,699.41

155,525.43

19,042.26 12,334.55

16,465.24 10,787.54

$

79,396.30 $

1,011.98 $

0.00 $

12,413.55 $

19,600.00 $

7,834.31 $ 566,012.98 $ 581,326.15

$

$

18,780.65

60,585.07

30.58

$

79,396.30 $

1,011.98 1,011.98

$

19,350.69 $

7,834.31 $

32,540.60 $

23,810.59

$

5,875.87

249.31

58,263.17

53,883.66

6,245.18

130,755.68

113,522.29

292.50

460.14

3,801.51

622.10

27,141.48

$

12,413.55 $

19,600.00 $

7,834.31 $ 222,641.69 $ 222,159.53

$

0.00 $

$

0.00 $

$

79,396.30 $

0.00 $ 0.00 $
1,011.98 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$
$ 0.00 0.00 $

19,042.26 $ 12,334.55 31,376.81 $ 311,994.48 343,371.29 $

16,465.24 10,787.54 27,252.78 331,913.84 359,166.62

0.00 $

12,413.55 $

19,600.00 $

7,834.31 $ 566,012.98 $ 581,326.15

- 19-

EANNIN CQ!.!tfil'.: l;!QARD QF EQUCATION
~Mli!ININ~ STATEMEt::!! QF REVEN!.!!;.S, EXPl;,NDII!.!R!;.S Ml!Q CHANGl;,S lt:i E!.!liQ BALANCES
SPECIAL BraN!.!E F!.!NQ
YEAB ENDED J!.!NE 3Q 1995

REVEN!,!ES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPEt:iPII!.!RES
Currant Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
QTl:IER FINANCIN~ SO!,!RCES (!.!SES}
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 J!.!LY 1
Food Inventory Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

ELEMENTARY

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

DRUG-FREE SCHOOLSAND COMMUNITIES
ACT

CHAPTER1 EDUCATION OF
CHILDREN IN STATE SCHOOLS

$ 63,292.00 $ 152,933.35 $ 548,715.71 295,450.27
$ 907,457.98 $ 152,933.35 $

29,259.22 $

19,398.44 $

29,259.22 $ 19,398.44 $

4,444.00 4,444.00

$ 10,028.65 $ 266.19

25,763.97 $ 3,495.25

2,917.44 $ 16,424.76

56.24

$ 999,355.30 $ 999,355.30 $ 10,294.84 $ $ -91,897.32 $ 142,638.51 $

29,259.22 $ 0.00 $

19,398.44 $ 0.00 $

$ 71,977.96 $ -142,016.41
$ 71,977.96 $ -142,016.41

$ -19,919.36 $ 359,166.62

622.10 $ 0.00

2,577.02 1,547.01

0.00 $ 0.00

0.00 $ 0.00

4,444.00
4,444.00 0.00
0.00 0.00

EUNP BALANCE J!,!NE 30

$ 343,371.29 $

622.10 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-20-

EXHIBIT"P

AND SECONDARY EDUCATION ACT

EDUCATION OF DEPRIVED CHILDREN

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE II EISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDMDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

516,886.91 $

$

516,886.91 $

18,892.69 $ 18,892.69 $

12,985.00 $ 110,789.35 $ 12,985.00 $ 110,789.35 $

36,774.00 $ 36,774.00 $

$ 245,484.57 $ 241,463.93

14,445.58 1,283,331.68 1,133,061.71

295,450.27

332,934.51

14,445.58 $ 1,824,266.52 $ 1,707,460.15

$

494,968.50 $

20,251.25 1,667.16

$

516,886.91 $

$

0.00 $

8,628.82 $
10,218.89 44.98
18,892.69 $ 0.00 $

12,961.73 $

66,070.31 $ 41,503.46

23.27

194.10

3,021.48

12,985.00 $ 0.00 $

110,789.35 $ 0.00 $

3,778.50 $ 24,874.25
8,121.25 36,774.00 $
0.00 $

4,203.16 $ 633,765.08 $ 608,823.73

10,242.42

86,297.72 0.00
10,485.08 30,812.26
0.00 1,667.16 11,142.73 999,355.30

40,694.85 6,669.09 15,039.95
27,408.36 50,284.00 36,096.61
8,824.23 897,308.29

14,445.58 $ 1,773,525.33 $ 1,691,149.11

0.00 $

50,741.19 $

16,311.04

$

0.00 $

0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

$ 71,977.96 $ -142,016.41
$ -70,038.45 $

60,043.70 60,043.70

0.00 $ 0.00

-19,297.26 $ 359,166.62

76,354.74 294,460.79

2,577.02 1,547.01

-11,264.33 -384.58

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 343,993.39 $ 359,166.62

21

~ Cash and Cash Equivalents Acc:ounts R-'vable
Total Assets
L!Aall.lIIES AND FUND EQUITY L!AalLffiES
Accounts Payable Contracts Payable
Retainages Payable Tolal Liabilities
FUND EQUITY Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

FANNIN COUNTY BOARD Of EDUCATION
COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE3Q 1995

EXHIBIT"G"

REGULAR

GEORGIA STATE FINANCING AND

INVESTMENT COMMISSION

PROJECT

PROJECT

93/94-655-040 93/94-655-041

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

0.00 $

3,000.00 $

3,000.00 $ 256,456.83

1121n4.94

$

0.00 $

0.00 $

3,000.00 $

3,000.00 $ 369,1s1.n

$

10,000.00

$

3,000.00 $

3,000.00

26,080.97

132,050.07

$

3,000.00 $

3,000.00 $ 168,131.04

$

0.00 $

$

0.00 $

$

0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$ 0.00 0.00 $

201,050.73 0.00
201,050.73

0.00 $

3,000.00 $

3,000.00 $ 369,181.n

See notes to the general purpose financial statements.

-22-

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

EXHIBIT"H"

REVENUES State Funds
EXPENQITURES Capital Outlay Building and Building Improvements
Excess ol Revenues over (under) Expenditures
QTH;R FINANClt::!G SOURCES (!.!SES} Operating Transfers In Operating Transfers Out Tolal Other Financing Sources (Uses)
Excess ol Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
fUt::!P BAl,At::!CE JULY 1

REGULAR

GEORGIA STATE FINANCING AND

INVESTMENT COMMISSION

PROJECT

PROJECT

93/94-655-040 93/94-655-041

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

$

0.00 $

0.00 $

502,565.96 $ 502,565.96 $ 853,688.99

$ 11,832.75 $ $ -11,832.75 $

320,975.59 $ -320,975.59 $

940,565.78 $ -437,999.82 $

1,273,374.12 $
s -no,808.1s

1,427,462.36 -573,773.37

$ 11,832.75 $ $ 11,832.75 $

200,184.59 $ 200,184.59 $

357,740.09 $ 357,740.09 $

569,757.43 $ 569,757.43 $

363,005.10 -13.513.61
349,491.49

$

0.00 $

-120,791.00 $

-80,259.73 $ -201,050.73 $ -224,281.88

0.00

120,791.00

80,259.73

201,050.73

425,332.61

FUND BALAf.lCE JUNE 30

$

0.00 $

0.00 $

0.00 $

0.00 $ 2011050.73

See notes to the general purpose financial statements.

-23-

RETIREE INSURANCE FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

FANNIN COUNTY BOARD OF EDUCATION STATEMENT Of CHANGES IN ASSETS AND LIABJLIDES
FIDUCIARY FUND TYPE -AGENCY FUND YEAR ENDED JUNE 30 1995

EXHIBIT"r

BALANCE JULY1.1994

ADDITIONS

BALANCE DEDUCTIONS JUNE 30. 1995

$

0.00 $

4,557.13 $

4,557.13 $ _____0.0..0...

$

0.00 $

4,557.13 $

4,557.13 $ _ _ _.,.o=-.oo=

See notes to the general purpose financial statements.

-25-

FANNIN 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 Office of Treasury and Fiscal Services

National Forest Reserve Funds

10.665 $

Ttvough Georgia Department of Education

Food and Nutrition Program

Child and Adult care Food Program

1994 Contract

10.558

1995 Contract

10.558

Food Services

School Breakfast Program

1994Grant

10.553

1995Grant

10.553

National School Lunch Program

1994Grant

* 10.555

1995Grant

* 10.555

Food Distribution Program (1)

10.550

41,084.79 $
2,683.92
127,124.07 352,270.80 661636.92

41,084.79 $ 41,084.79

(5)

23.92 2,659.70
1,184.14 127,124.07
3,548.28 348,441.07 N/A

2,683.92

(2)

127,124.07

(2)

352,270.80 $ 661636.92

932,718.38 (3) 661636.92

TotalU.S.OepartmentofAgriculture

$ 5891800.50 $

5241065.97 $ 5891800.50 $

9991355.30

Education,U.S.Departmentof Through Georgia Department of Education Drug-Free Schools and Communities Act 1994Grant 1994 carry-Over 1995 Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994 Carry-Over 1995 Regular Education of Deprived Children 1994 Regular 1994 carry-Over 1994Summer 1995 Regular Chapter2 Block Grant - Flow Through 1994 Regular 1994 carry-Over 1995 Regular Tltlell EisenhcMer Mathematics and Science
Education 1995 Regular
Individuals with Disabilities Education Act Title VI, B FlowTlvough
1993 carry-Over
1994 Regular 1994 carry-Over 1995 Regular Preschool Program 1994 Regular 1994 carry-Over 1995 Regular

84.186 84.186 $ 84.186
84.009 84.009
* 84.010 * 84.010 * 84.010 * 84.010
84.151 84.151 84.151
84.164
84.027 84.027 84.027 84.027
84.173 84.173 84.173

$ 6,072.00 15,791.00
310.00 4,134.00
113,797.00 18,500.00 390,096.00
569.00 18,599.00
12,985.00
51,579.00 100,206.00
17,174.00 19,600.00

2,908.24 6,072.00 $ 10,405.88

6,072.00 $ 13,326.44

6,072.00 13,326.44

310.00
69,749.86 113,797.00
14,389.47 313,669.93
-569.87 569.00 17,311.71

310.00 4,134.00
113,797.00 14,389.47 388,700.44
569.00 18,323.69

310.00 4,134.00
113,797.00 14,389.47
388,700.44
569.00 18,323.69

12,985.00

12,985.00

12,985.00

1,111.44 11,480.80 51,579.00 55,283.87
3,459.34 17,174.00

51,579.00 59,210.35
17,174.00 19,600.00

51,579.00 59,210.35
17,174.00 19,600.00

- 26 -

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

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of

Through Georgia Department of Education

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1995 Grant

84.048 $ 461353.96 $

371069.38 $ 461353.96

{4}

Total U.S. Department of Education

$ 815?65.96 $

738?56,05 $ 7661524.35 $

7201170.39

Labor, U. S. Department of
Through North Georgia Private Industry Council Job Training Partnership Act Contract Number 94012804 Contract Number 95040102

17.250 $ 17.250

93.23 $ 151329.60

14,333.23 $

6,611.27 $ 71834.31

6,611.27 71834.31

Total U. S. Department of Labor

$ 15,422.83 $

14,333.23 $ 14,445.58 $

141445.58

Total Federal Financial Assistance

$ 114201989.29 $

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

112n1155.25 $ 113701n0.43 $ 1?331971.27

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program and the Child and Adult Care Food Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds eamed on this program do not require reporting of expenditures.

See notes to the general purpose financial statements.

- 27 -

FANNIN COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995 .
INTEREST BEARING ACCOUNTS
Fannin County Bank, Blue Ridge, Georgia
N.O.W. Accounts (4.40%)
Peoples Bank of Fannin County, Blue Ridge, Georgia
N.O.W. Accounts (5.71%)

SCHEDULE "2"
$ 2,371,944.60 1.60
$ 2,371,946.20

See notes to the general purpose financial statements.

- 28 -

FANNIN COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE
JUNE 30. 1995

SCHEDULE "3"

Education, Georgia Department of Quality Basic Education
Deferred Summer Salaries-FY 1995
Food Services
State Funds - House Bill 782
Child and Adult Care Food Program National School Lunch Program Vocational Education Federal Funds Other State Programs At-Risk Summer School Program Preschool Handicapped Program Federal Programs Drug-Free Schools and Communities Act
ESEA - Chapter 1
Education of Children in Summer School Education of Deprived Children
ESEA - Chapter 2
Block Grant - Flow Through Individuals with Disabilities Education Act
Trtle VI, B - Flow Through Title VI, B - Preschool Program
Fannin County Recreation Department Reimbursement for Meals
Fannin County Tax Commissioner County Wide School Tax
North Georgia Private Industry Council Job Training Partnership Act

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 1,018,017.00 $
9,284.58 5,634.18

$ 1,018,017.00

10,132.00 24.22
3,829.73

10,132.00 24.22
3,829.73

9,284.58

4,287.22

5,634.18 4,287.22

2,783.50

2,783.50

4,134.00 74,999.93

4,134.00 74,999.93

1,011.98

1,011.98

3,633.98 19,600.00

3,633.98 19,600.00

5,428.54

5,428.54

151,155.30

151,155.30

7,834.31

7,834.31

$ 1,184,091.06 $ 137,699.41 $ 1,321,790.47

See notes to the general purpose financial statements.

- 29 -

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

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 School Counselors Grades 4 and 5 Superintendent's Base Salary Local Fair Share Deferred Summer Salaries - FY94 Deferred Summer Salaries - FY95 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Environmental Science Program Mentor Teacher Program Next Generation Schools Preschool Handicapped Program Teacher's Retirement Lottery Programs Algebra Classrooms Instructional Technology Distant Leaming Media Center and Library Equipment Safe Schools Grant
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 5,471,067.00 801,403.00 83,692.00 227,507.00 72,530.00
1,559,408.00
395,052.00 130,976.00 209,838.00 438,675.00 10,m.oo 19,971.00
2,881.00 -1,211,633.00
-962,484.00 1,018,017.00
466,737.00 $
14,788.00
9,534.04 1,500.00 3,450.00 2,000.00
24,872.55

63,292.00
29,259.22
1,061.73 29,893.75 7,468.52 84,840.45 29,668.90

$ 5,471,067.00 801,403.00 83,692.00 227,507.00 72,530.00
1,559,408.00
395,052.00
130,976.00
209,838.00 438,675.00
10,m.oo 19,971.00 2,881.00 -1,211,633.00
-962,484.00
1,018,017.00 466,737.00 63,292.00
14,788.00
9,534.04 1,500.00
3,450.00 2,000.00
29,259.22 24,872.55
1,061.73 29,893.75 7,468.52 84,840.45 29,668.90

- - - - - $ 502,565.96

502,565.96

$ 8,850,558.59 $ 245,484.57 $ 502,565.96 $ 9,598,609.12

See notes to the general purpose financial statements.

- 30 -

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

SCHEDULE "5"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Donations Indirect Cost Special Revenue Fund Interest Earned Revenue in Lieu of Taxes Tennessee Valley Authority Sales Lunches, Breakfast and Contracted Meals School Assets Shared Service Contributions Gilmer County Board of Education Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 3,485, 192.21 3,222.11
21,206.16

$ 3,485, 192.21 3,222.11
21,206.16

9,000.00

5,817.00 95,855.11 $

15,134.08

479,110.78

273,490.50 6,800.69

21,265.18 4,475.00
12,744.11

25.00

9,000.00
5,817.00 110,989.19
479,110.78
273,490.50 6,800.69
21,265.18 4,475.00
12,769.11

$ 4,137,887.66 $ 295,450.27 $ 4,433,337.93

See notes to the general purpose financial statements. - 31 -

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

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 7,942,187.05 $ 848,809.94 $ 8,790,996.99

2,237,792.39

242,906.68

2,480,699.07

24,752..93

2,841.04

27,593.97

23,279.15

72,843.07

96,122.22

14,556.34

14,556.34

36,980.06

5,629.05

42,609.11

96,021.88

1,986.00

98,007.88

2,653.70

247.85

2,901.55

56,818.68

56,818.68

28,555.08

46.30

28,601.38

28,769.56

28,769.56

4,446.12

4,446.12

36,013.79

11,142.73

47,156.52

40,719.00

40,719.00

457,153.70

110,751.99

567,905.69

421,772.40

421,772.40

432,136.06

432,136.06

131,411.91

4,645.43

136,057.34

15,428.00

2,705.11

18,133.11

5,817.00

5,817.00

20,864.99

20,864.99

216,068.42 47,907.50
320,569.19

26,570.96

216,068.42 47,907.50
347,140.15

$ 12,200,275.72 $ 1,773,525.33 $ 13,973,801.05

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

EXPENDITURES Operating Costs Supplies Nonoperating Costs Equipment
Total Expenditures

FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30. 1995

SCHEDULE'T

ALGEBRA INSTRUCTIONAL DISTANT CLASSROOMS TECHNOLOGY LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

TOTAL

$

368.23 $

819.90 $

6,450.52 $

2,390.00

$

368.23 $

31209.90 $

s:4so.s2 s

266.19 $

7,904.84 2,390.00

266.19 $

10,294.84

See notes to the general purpose financial statements.

- 33 -

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

SCHEDULE "8"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATmNS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 6,583,669.00 $

234,298.00

$ 6,589,038.22 322,426.38 $ _ _ _2_7.7..,._. 82_1_.8_4
$ 6,911,464.60

-63,532.42 $ 6,847,932.18

Amount of Underexpenditure for Total Allotment

$

Note: (1) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

0.00 $

0.00

=======

See notes to the general purpose financial statements. - 35 -

FANNIN COUNTY BOARD Of EQUCATION ANALYSIS Of MINIMUM EXPENPIIVRE REQUIREMENTS BY PROGRAM
GENERAL fUNP OUALJTY BASIC EOUCATION PBQGRAMS YEAR ENDED JUNE 3Q 1995

GENERAL !NP ~EER EDUCATION ffiOGRAMS Kindergarten M Glades 1 - 3 M
SUb-Total K-3
Glades 4 - 5 M
Grades 6 - eM
Grades 9 - 12 M High Sc:hool Labon11ories M Vocational Education Labolatorles M
Total General and career Education Programs SPECIAL EQUCATJQN PROGRAMS
Regular Programs
Category II M category Ill M
category rv M
SUb-Total Regular
category V (Gilled) M
Tota1 Special Education Programs REMEDIAL EDUCATION PROGRAM <1
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF OEVELOPMENT PROGRAMS Cost c:I Instruction Professional Dellelopment
Total Slaff Development C, Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1995 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL _.!,_

ORIGINAL

MID-TERM

$

510,746.00

$

~.671.<IO $

1,397,798.00

1,258,018.20

$ 1,908,544.00 90 $ 1,717,689.60 $

693,036.00 90

623,732.40

1,210,782.00 90

1,089,703.80

679,04'5.00 90

611, 140.50

478,971.00 90

"31,073.90

500,689.00 90

4'50,620.10

$ 5,471,067.00

$ 4,923,960.30 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

$

713,677.00

$

642,309.30 $

0.00

$

713,677.00 90 $

642,309.30 $

0.00

87,726.00 90

78,953.40

0.00

$

801,403.00

$

721,262.70 $

0.00

$

83,692.00 90 $

75,322.80 $

0.00

$ 6,356. 162.00

$ 5,720,545.80 $

0.00

$

179,139.00 90 $

161,225.10 $

0.00

48,368.00 90

43,531.20

0.00

$

227,507.00

$

204,756.30 $

0.00

$ 6,583,669.00

$ 5,925,302.10 $

0.00

$

17,079.00

$

17,079.00 $

0.00

55,451.00

55,451.00

0.00

$

72,530.00 100 $

72,530.00 $

0.00

(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

See notes to the general purpose financial statements.

36

SCHEDULE"S"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1 )(2) OPERATIONS

TOTAL

AMOUNT OF UNDER EXPENDITURE
FOR REQUIRED ALLOTMENT

$

459,671.40 $

1,258,018.20

$ 1,717,689.60 $

623,732.40

1,089,703.80

611,140.50

431,073.90

450,620.10

$ 4,923,960.30 $

527,816.34 $ 1,507,315.32 2,035,131.66 $
724,671.61 1,179,601.53
763,575.99 448,-454.94 401,202.17 5,552,637.90 $

16,389.05 $

544,205.39

62,846.88

1,570,162.20

79,235.93 $ 2,114,367.59 $

33,619.44

758,291.05

29,719.01

1,209,320.54

36,212.07

799,788.06

17,638.72

466,093.66

51,956.98

453,159.15

248,382.15 $ 5,801,020.05

0.00 0.00 0.00 0.00 0.00 0.00

$

&42,309.30

$

119,566.n 426,300.93 $
78,201.66

$ 25,662.61
222.11

119,566.n 451,963.54
78,423.77

$

&42,309.30 $

624,069.36 $

25,864.72 $

649,954.08

0.00

78,953.40

90,694.37

2,155.18

92,849.55

0.00

$

721,262.70 $

714,763.73 $

28,039.90 $

742,803.63

$

75,322.80 $

75,201.71 $

1,399.79 $

76,601.50

0.00

$ 5,720,545.80 $ 6,342,603.34 $

277,821.84 $ 6,620,425.18

$

161,225.10 $

246,434.88

$

246,434.88

0.00

43,531.20

$

44,604.54

44,604.54

0.00

$

204,756.30 $

246,434.88 $

44,604.54 $

291,039.42

$ 51925,302.10 $ 615891038.22 $

322,426.38 $ 6,91\464.60 $

0.00

$

17,079.00

55,451.00

s _ _ _1_2.530_,,.oo_,

$

33,038.61 $

33,038.61

39,494.95

39,494.95

$

72,533.56 $

12,533.56 s _ _ _ _ _ _o_.oo_

- 37 -

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

SCHEDULE N1 O"

BOARD MEMBER ADDRESS
Mr. Lewis Deweese, Chairman (*)
P. 0. Box395
Blue Ridge, Georgia 30513
Ms. Marcella K. Culpepper (*) P. 0. Box839 Copperhill, Tennessee 37317
Mr. Jim Sisson (i
P. 0. Box29
Blue Ridge, Georgia 30513
Ms. Isabell Staver
P. 0. Box 1837
Blue Ridge, Georgia 30513
Mr. Larry Sutton (*) 15512 Old Highway76 Morganton, Georgia 30560
Mr. C. Anthony Walden (*)
P. 0. Box 1596
Blue Ridge, Georgia 30513
(*) Denotes Board Members Serving as of June 30, 1995

COMPENSATION

TRAVEL

$

2,700.00 $

286.77

2,300.00

2,800.00

447.29

900.00

237.30

2,700.00

314.08

1,600.00

270.90

$

13,000.00 $ ======1=,5=5=6=.3=4=

See notes to the general purpose financial statements.

- 38 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 3, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Fannin 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 Fannin County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 3, 1996. Thiweport was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Fannin 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,
~
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
May 3, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Fannin 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 ofthe Fannin County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Fannin County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995:

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

95CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that Fannin County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,

CLV:dt 95CRL-40

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
May 3, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Fannin 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 Fannin County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

95CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance 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 Fannin County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph ofthis report.
In our opinion, the Fannin County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 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 ofthis report which is a matter of public record.
Respectfully submitted,
c:;L_~
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
May 3, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Fannin County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1995 general purpose financial statements of the Fannin 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 governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Fannin 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 Fannin 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,
~
Claude L. Vickers State Auditor
CLV:dt 95CRL-120

SECTION ID 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
May 3, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Fannin 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 ofthe Fannin County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph,.we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management ofthe Fannin County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and

95ICL-3

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.
In planning and performing our audit ofthe general purpose financial statements ofthe Fannin 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 ofthe design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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 descnbed 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 of the Fannin County Board ofEducation's financial statements and this report does not affect our report thereon dated May 3, 1996.
95ICL-3

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully 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
May 3, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Fannin 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 Fannin County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 3, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as
identified in the auditor's report on the general purpose financial statements. We have also audited the Fannin
County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 3, 1996.
Except as discussed in the following paragraph, we conducted c,ur audit in accordance with generally accepted
auditing standards; Government Auditing Standards, issued by the Comptroller General ofthe United States; and the provisions ofOffice 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 Fannin County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions 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
95ICL-7

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 ofthe general purpose
financial statements in a separate report dated May 3, 1996.

The management ofthe Fannin 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 of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation ofthe 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 ofEffort, and/or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

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

95ICL-7

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Fannin 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 May 3, 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 ofthis report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 95ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

FANNIN 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: $4,422.56 Audit Control Number 6551-93-04
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure ofQuality Basic Education (QBE) funds of$4,422.56 for the salaries portion ofthe High school Laboratories 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 $4,422.56 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 Failure to Meet Expenditure Requirements Financial Statements Amount: $10,387.99 Audit Control Number 6551-93-05
The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Program had an underexpenditure of Quality Basic Education (QBE) funds of$10,387.99 for the required minimum allotment. 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 $10,387.99 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $70.12 Audit Control Number 6551-94-01
The audit report for the year ended June 30, 1994, reported that the Board had underexpenditures of Quality Basic Education (QBE) funds of$30.52 for the operations portion ofthe Grades 4-5 Program, $1.26 for the operations portion ofthe Vocational Education Laboratories Program and $38.34 for the operations portion ofthe Remedial Education 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 these underexpenditures as required. The underexpenditure of$70.12 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.
- 1-

FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UPI/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 6551-94-02
The audit report for the year ended June 30, 1994, reported that the Board maintained inadequate property management records for the Elementary and Secondary Education Act - Chapter 1 Education of Deprived Children Program (CFDA 84.010). For the year under review, the property management records were complete and met the property management standards as set forth in Chapter 8 of Part I of the Georgia Financial Accounting Handbook for Local School Systems (GFAH).
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6551-93-02
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation ofemployee duties in the petformance ofaccounting functions and related procedures for all funds. For the year under review, some improvement in adequate separation of employee duties was noted. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: The Federal financial assistance program affected by this finding is the Chapter 1 Program (CFDA 84.010).
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6551-93-03
The audit report for the year ended June 30, 1994, noted that the management of the Fannin 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
-2-

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

CURRENT YEAR

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6551-93-03

Group. These subsidiaJy 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.

EXPENDITURES/1.IABILITIES/DISBURSEMENTS Unearned Per Diem Payments Financial Statements Nonmaterial Noncompliance Amount: $6,700.00 Audit Control Number 6551-95-01

Payments totaling $6,700.00 were made to Board members in excess of authorized limits. The Official Code of Georgia Annotated Section 20-2-55 provides, in part, as follows:

"members ofthe county board shall, when approved by the county board affected, receive a per diem of$50.00 for each day of attendance at meetings ofthe board..."

These questioned costs resulted from management making payments in the amount of $100.00 per meeting to each Board Member, however, local legislation providing for this amount was not enacted until March, 1996.

The following Board members received per diem payments in excess of amounts authorized:

Board Members

Excess Payments

Culpepper, Marcella K. DeWeese, Lewis Sisson, Jim Staver, Isabell Sutton, Larry Walden, C. Anthony

$

1,150.00

1,400.00

1,450.00

450.00

1,400.00

850.00

Reimbursement of $6,700.00 should be secured and deposited to the Board's General Fund. -3-

FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995 CURRENT YEAR CASH MANAGEMENT Excessive Lottery Cash Balance Financial Statements Nonmaterial Noncompliance Audit Control Number 6551-95-02 A review of cash management procedures for the Lottery - Instructional Technology and Distant Leaming programs disclosed that cash draws were made in excess of actual expenditures. At June 30, 1995 these reimbursement basis programs had a combined cash balance of $622.10. Procedures should be i~plemented to ensure that excess funds are not retained in these programs at year end. The Georgia Department of Education should review this matter to determine if a reclaim of funds is appropriate.
-4-

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

FANNIN COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
AUDIT FOLLOW-UP/RESOLUTION Fallure to Meet Expenditure Requirements Financial Statements Amount: $4,422.56 Audit Control Number 6551-93-04
We concur with this finding. This finding will be resolved by the Georgia Department ofEducation through a future increase in the Board's local fair share portion of QBE allotments.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $10,387.99 Audit Control Number 6551-93-05
We concur with this finding. This finding will be resolved by the Georgia Department of Education.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $70.12 Audit Control Number 6551-94-01
We concur with this finding. This finding will be resolved by the Georgia Department ofEducation through a future increase in the Board's local fair share portion of QBE allotments.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6551-93-02
We concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations, this finding cannot be totally resolved.
- 1-

FANNIN COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995 GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6551-93-03 We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. EXPENDITURES/LIABILITIES/DISBURSEMENTS Unearned Per Diem Payments Financial Statements Nonmaterial Noncompliance Amount: $6,700.00 Audit Control Number.6551-95-01 We concur with this finding.
Note: The Fannin County Board ofEducation has elected not to provide comments for inclusion in this report other than the above.
-2-