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1995-9" 
 
AUDIT REPORT FLOYD COUNTY BOARD OF EDUCATION 
ROME, GEORGIA YEAR ENDED JUNE 30, 1996 
 
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 
 
 FLOYD COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
6 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
7 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING AND INDIVIDUAL FUND STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
22 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
24 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
26 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
27 
 
I 
 
FIDUCIARY FUND TYPE 
 
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
 
AGENCY FUND 
 
28 
 
SCHEDULES 
 
I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
29 
 
2 CASH AND CASH EQUIVALENTS 
 
31 
 
3 ACCOUNTS RECEIVABLE 
 
33 
 
4 DEBT SERVICE REQUIREMENTS TO MATURITY 
 
34 
 
 FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
SCHEDULE OF REVENUE 
 
5 
 
STATE 
 
35 
 
6 
 
TAXES AND OTHER 
 
36 
 
SCHEDULE OF EXPENDITURES BY OBJECT 
 
7 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
37 
 
8 
 
LOTTERY PROGRAMS 
 
38 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
9 
 
OVERALL 
 
39 
 
10 
 
BY PROGRAM 
 
40 
 
11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
 
42 
 
SECTION IT 
COMPLIANCE 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
SECTION ill 
INTERNAL CONTROL 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
 
 FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
SECTION ill INTERNAL CONTROL 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 
 
 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 
August 8, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education 
and Superintendent and Members of the Floyd County Board of Education 
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 fmancial statements (Exhibits A through D) ofthe Floyd County Board of Education, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. 
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 of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, 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: 
96ARL-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. 
* The Board did not report compensated absences within the general purpose financial statements as 
required by generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
* The Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were improperly recorded in the year ended June 30, 1996. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general purpose financial statements ofthese variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects of such 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 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 Floyd County Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated August 8, 1997, on our consideration of the Board's internal control structure and a report dated August 8, 1997, on its compliance with laws and regulations. 
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Floyd 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 11 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 of the Floyd County Board of Education. 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. 
96ARL-13 
 
 A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully submitted, 
~ 
Claude L. Vickers State Auditor 
CLV:cm 96ARL-13 
 
 FLOYD COUNTY BOARD OF EDUCATION - 1- 
 
 FLOYD COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1996 
 
ASSETS 
Cash and Cash Equivalents 
Investments Held by Trustee 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Amount Available in Debt Service Fund 
Amount to be Provided in Future Years For Payment of Bond Debt 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 5,899,057.54 $ 
 
779,477.50 $ 2,980,125.29 
 
763,494.80 
 
276,182.20 
 
59,734.52 46,716.40 
 
Total Assets 
 
$ 6,662,552.34 $ 1,162,110.62 $ 2,980,125.29 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Deferred Compensation Plan General Obligation Bonds Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Program For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects 
Unreserved Designated for Self-Insurance Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
 
$ 
 
393.50 $ 
 
96,567.94 
 
321,746.46 
 
854.17 
 
71,809.45 
 
$ 
 
1 247.67 $ 
 
490,123.85 
 
$ 
 
$ 
 
24,426.16 
 
6,719.99 
 
$ 
 
24,426.16 $ 
 
279,161.06 6,357,717.45 
 
$ 6,661,304.67 $ 
 
59,734.52 46,716.40 
$ 
113,170.91 $ 
 
44 324.00 44,324.00 
 
558,815.86 
 
2,935,801.29 
 
671,986.77 $ 2,980,125.29 
 
$ 6,662,552.34 $ 1,162,110.62 $ 2,980,125.29 
 
The notes to the general purpose financial statements are an integral part of this statement. -2 - 
 
 EXHIBIT"A" 
 
DEBT SERVICE 
FUND 
 
$ 
 
352,689.38 
 
FIDUCIARY FUND TYPE AGENCY FUND 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS (Memorandum Onl~ JUNE 301 1996 JUNE 30, 1995 
 
$ 10,011,349.71 $ 9,346,612.90 
 
$ 
 
906,579.12 
 
906,579.12 
 
721,669.43 
 
25,077.67 
 
1,064,754.67 
 
1,378,119.87 
 
59,734.52 46,716.40 
 
75,564.72 38,011.03 
 
$ 
 
377,767.05 
 
377,767.05 
 
321,145.26 
 
432,232.95 
 
432,232.95 
 
1,043,854.74 
 
$ 
 
377,767.05 $ 
 
906,579.12 $ 
 
810,000.00 $ 12,899,134.42 $ 12,924,977.95 
 
$ 
 
906,579.12 
 
$ 
 
$ 
 
906,579.12 $ 
 
$ 
810,000.00 810,000.00 $ 
 
96,961.44 $ 321,746.46 
72,663.62 
906,579.12 810,000.00 
2,207,950.64 $ 
 
96,357.80 255,222.87 128,628.41 
679.68 721,669.43 1,365,000.00 
2,567,558.19 
 
$ 
 
377,767.05 
 
$ 
 
377,767.05 
 
0.00 
 
$ 
 
377,767.05 
 
$ 
 
377,767.05 $ 
 
906,579.12 $ 
 
$ 
 
6,719.99 $ 
 
8,579.72 
 
377,767.05 
 
321,145.26 
 
24,426.16 
 
62,656.38 
 
59,734.52 46,716.40 44,324.00 
 
75,564.72 38,011.03 299,342.81 
 
$ 
 
559,688.12 $ 
 
805,299.92 
 
279,161.06 9,852,334.60 
 
313,195.58 9,238,924.26 
 
$ 10,691,183.78 $ 10,357,419.76 
 
810,000.00 $ 12,899,134.42 $ 12,924,977.95 
 
-3- 
 
 FLOYD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996 
 
REVENUES 
State Funds Federal Funds Taxes and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services 
Capital Outlay Debt Service 
Principal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES} 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
Residual Equity Transfer 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 28,367,331.83 $ 91,136.45 
19,953,252.91 
 
1,550,202.09 2,470,931.76 1,326,421.44 
 
$ 48,411,721.19 $ 5,347,555.29 
 
$ 29,376,057.67 $ 1,959,763.24 
 
1,596,076.79 998,384.00 
1,330,146.24 992,720.11 
3,795,734.71 288,876.12 
4,939,382.62 1,944,496.59 
513,973.92 117,856.15 
58,984.05 226,650.47 210,203.37 598,596.65 
 
145,519.76 161,037.02 
25,250.57 66,569.45 
60,686.04 73,915.52 33,679.24 70,685.04 2,871,682.07 
4,500.00 
 
$ 46,988,139.46 $ 5,473,287.95 $ 1,423,581.73 $ -125,732.66 
 
$ $ -1,791,869.54 
$ -1,791,869.54 $ 
 
47,545.54 47,545.54 
 
$ -368,287.81 $ 6,731,459.17 
 
-78,187.12 757,298.72 
 
298,133.31 
 
-15,830.20 8,705.37 
 
FUND BALANCE JUNE 30 
The notes to the general purpose financial statements are an integral part of this statement. -4- 
 
$ 6,661,304.67 $ 
 
671,986.77 
 
 EXHIBIT"B" 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS (Memorandum Only) 
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 
 
$ 
 
0.00 
 
_____ $ 
 
$ 
 
0.00 $ 
 
$ 29,917,533.92 $ 27,338,832.95 
 
2,562,068.21 
 
2,637,304.50 
 
671,061.79 21,950,736.14 20,936,269.51 
 
671,061.79 $ 54,430,338.27 $ 50,912,406.96 
 
$ 1,013,582.01 $ 
$ 1,013,582.01 $ $ -1,013,582.01 $ 
 
$ 31,335,820.91 $ 27,761,213.86 
 
1,741,596.55 1,159,421.02 1,355,396.81 1,059,289.56 3,795,734.71 
288,876.12 5,000,068.66 2,018,412.11 
547,653.16 188,541.19 2,930,666.12 226,650.47 210,203.37 1,616,678.66 
 
1,722,182.78 981,917.06 
1,247,433.78 965,663.50 
3,450,836.48 203,309.72 
4,713,085.86 2,170,825.38 
545,960.10 474,336.55 2,754,319.51 223,484.86 199,916.23 1,876,034.51 
 
555,000.00 58,455.00 985.00 
 
555,000.00 58,455.00 985.00 
 
520,000.00 78,475.00 1,013.85 
 
614,440.00 $ 54,089,449.42 $ 49,890,009.03 
 
56,621.79 $ 340,888.85 $ 1,022,397.93 
 
$ 1,744,324.00 $ 1,744,324.00 
 
$ 1,791,869.54 $ 1,702,414.34 -1,791,869.54 -1,702,414.34 
 
$ 
 
0.00 $ 
 
0.00 
 
$ 730,741.99 $ 2,547,516.61 
 
56,621.79 $ 340,888.85 $ 321,145.26 10,357,419.76 
 
1,022,397.93 9,330,094.73 
 
-298,133.31 
 
-15,830.20 8,705.37 0.00 
 
4,299.62 627.48 
 
$ 2,980,125.29 $ 377,767.05 $ 10,691,183.78 $ 10,357,419.76 
 
-5- 
 
 FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1996 
 
EXHIBIT"C" 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS} 
 
REVENUES 
 
State Funds Federal Funds Taxes and Other Funds 
 
$ 26,813,332.00 $ 28,367,331.83 91,136.45 
18,175,000.00 19,953,252.91 
 
Total Revenues 
 
$ 44,988,332.00 $ 48,411,721.19 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School .A.dministration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services 
Capital Outlay 
 
$ 29,421,000.00 $ 29,376,057.67 
 
1,882,450.00 988,713.00 
1,393,260.00 972,950.00 
3,774,600.00 238,960.00 
5,750,425.00 2,243,750.00 
502,100.00 102,850.00 35,800.00 250,840.00 
200,000.00 
 
1,596,076.79 998,384.00 
1,330,146.24 992,720.11 
3,795,734.71 288,876.12 
4,939,382.62 1,944,496.59 
513,973.92 117,856.15 58,984.05 226,650.47 210,203.37 598,596.65 
 
Total Expenditures 
 
$ 47,757,698.00 $ 46,988,139.46 
 
Excess of Revenues over (under) Expenditures 
 
$ -2,769,366.00 $ 1,423,581.73 
 
OTHER FINANCING SOURCES (USES) 
 
Other Sources Other Uses 
 
$ -880,000.00 $ -1,791,869.54 
 
Total Other Financing Sources (Uses) 
 
$ -880,000.00 $ -1,791,869.54 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -3,649,366.00 $ 
 
-368,287.81 
 
FUND BALANCE JULY 1, 1995 
 
5,454,599.41 6,731,459.17 
 
Adjustments 
 
298,133.31 
 
FUND BALANCE JUNE 30, 1996 
 
$ 1,805,233.41 $ 6,661,304.67 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS} 
 
$ 1,504,633.00 $ 1,550,202.09 2,263,885.00 2,470,931.76 1,308,432.00 1,326,421.44 
$ 5,076,950.00 $ 5,347,555.29 
 
$ 1,856,902.28 $ 1,959,763.24 
 
149,765.72 197,031.00 23,425.00 86,087.00 
 
145,519.76 161,037.02 25,250.57 66,569.45 
 
57,395.00 73,350.00 34,318.00 95,438.00 2,572,220.00 
 
60,686.04 73,915.52 33,679.24 70,685.04 2,871,682.07 
 
4,500.00 $ 5,145,932.00 $ 5,473,287.95 $ -68,982.00 $ -125,732.66 
 
$ 47,545.54 
 
$ 47,545.54 
 
$ -68,982.00 $ 1,034,345.12 
 
-78,187.12 643,722.97 
 
$ 965,363.12 $ 565,535.85 
 
The notes to the general purpose financial statements are an integral part of this statement. -6- 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The Floyd County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception 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 governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. 
The more significant of the Board's accounting policies are described below. 
REPORTING ENTITY 
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity ofthe Floyd County Board of Education. 
Based upon the application of the above criteria, the Floyd County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Floyd County, Georgia, excluding that area encompassed by the City ofRome. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards. 
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval. 
FUND ACCOUNTING 
The Board uses funds 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. 
-7- 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. 
The general purpose financial statements account for all State, Federal, Taxes 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 educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources ofthe 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 ofspecific 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. 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. 
FIDUCIARY FUND TYPE - the agency fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: 
AGENCY FUND - the fund used to account for assets held for other funds, governments, or individuals. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding. 
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 
-8- 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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 ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. 
Expenditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1996, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. 
-9- 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
BUDGET 
 
The Floyd 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 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 of general 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: 
 
FUND BALANCE JULY 1, 1995 
Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods 
Fund Balance July 1, 1995 (Budget Basis) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JUNE 30, 1996 (Budget Basis) 
CASH AND CASH EQUIVALENTS 
 
Special Revenue 
Fund $ 757,298.72 
-75,564.72 -38.011.03 $ 643,722.97 
-78.187.12 $ 565,535.85 
 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits 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, 
 
- 10 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State. 
 
INVESTMENTS HELD BY TRUSTEE 
 
Investments held by trustee consist of contributions from employees who have elected to participate in the Board's deferred compensation plan. See Note 9 - Deferred Compensation Plan 
 
RECEIVABLES 
 
Receivables consist of grant reimbursements due from 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 Floyd County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on August 23, 1995 (levy date). Taxes were due on November 15, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The Floyd County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. 
 
Tax millage rates levied for the 1995 tax year (calendar year) for the Floyd County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations School Bonds 
 
17.00 mills ~mills 
 
17.55 mills 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and 
 
- 11 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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. 
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 of this obligation as this amount is deemed immaterial to the general purpose financial statements. 
However, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources is material to the general purpose financial statements and has not been recorded in the General Long-Term Debt Account Group as required by generally accepted accounting principles. 
GENERAL OBLIGATION BONDS 
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized during the year bonds are issued. Issuance costs, whether or not withheld from actual net proceeds, are reported as capital project expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
INTERFUND TRANSACTIONS 
The Board has the following types of interfund transactions: 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity. 
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements. 
 
- 12 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
MEMORANDUM ONLY -TOTAL COLUMNS 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
(5) Bonds of any 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 
 
- 13 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $13,401,758.34. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1996, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 453,992.18 
 
2 
 
12,947,766.16 
 
3 
 
0.00 
 
Total 
 
$13,401,758.34 
 
CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount of the Board's total investments was $906,579.12 and consisted entirely of funds invested in an investment pool by the deferred compensation plan's administrator. These investments are not required to be categorized since the Board did not own any specific identifiable securities in the pool. 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
- 14 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 4: RISK MANAGEMENT 
 
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. 
 
The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. 
 
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to natural disaster in the past three years. 
 
The Board has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. 
 
Changes in the workers' compensation claims liability during the last two fiscal years are as follows: 
 
1995 1996 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
$ 
 
0.00 $ 
 
73,551.44 $ 
 
$ 
 
0.00 $ 195,592.84 $ 
 
Claims Paid 
 
End ofYear Liability 
 
73 551.44 $ 
 
0.00 
 
195,592.84 $ 
 
0.00 
 
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
1995 1996 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
$ 
 
0.00 $ 
 
6,376.00 $ 
 
$ 
 
0.00 $ 
 
1,531.00 $ 
 
Claims Paid 
 
End of Year Liability 
 
6 376.00 $ 
 
0.00 
 
1,531.00 $ 
 
0.00 
 
- 15 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 5: GENERAL LONG-TERM DEBT 
 
GENERAL OBLIGATION BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
General Government - Refunding - Series 1993 
 
4.30% - 4.45% $ 810,000.00 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows: 
 
General Obligation 
Bonds 
 
Balance July 1, 1995 
 
$ 1,365,000.00 
 
Deductions Payments 
 
555,000.00 
 
Balance June 30, 1996 
 
$ 810,000.00 
 
At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
 
General Obligation 
Bonds 
 
1997 1998 
 
$ 635,145.00 219,345.00 
 
Total Principal and Interest 
 
$ 854,490.00 
 
Note 6: ON-BEHALF PAYMENTS 
 
The Board has recognized revenues and expenditures in the amount of$812,974.00 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. 
 
Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $645,311.34 
 
- 16 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 6: ON-BEHALF PAYMENTS 
 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $55,108.66 
 
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $112,554.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996. 
 
Project 
 
Unearned Executed Contracts 
 
Midway Elementary School 
 
$ 240.108.00 
 
The amount described in this note is not reflected in the general purpose financial statements. 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. 
 
Note 9: DEFERRED COMPENSATION PLAN 
 
The Board offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Board employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. 
 
- 17 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 9: DEFERRED COMPENSATION PLAN 
All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Board subject only to the claims ofthe Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant. 
It is the opinion of the Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 
Investments are managed by the plan's trustee, Hartford Life Insurance Company. Under this plan, participants select from an investment option, or combination ofinvestment options, determined by the Board. 
Note I 0: ACCUMULATED EMPLOYEES' LEAVE 
The Board's professional personnel earn one and one-quarter days ofsick and personal leave each month with a maximum accumulation of 60 days. Sick and personal leave vest with the employee after five years of continuous service and an amount based on unused sick and personal leave, up to the maximum accumulation, is paid to employees at their current rate ofpay upon retirement or termination of employment. 
The Board's administrative staff and certain other full-time employees earn .833 days per month of annual leave. Annual leave may be accumulated to a maximum of 15 days, and an amount based on unused leave, up to the maximum accumulation, is paid to employees at their current rate of pay upon retirement or termination of employment. See Note 1 - Compensated Absences 
Note 11: 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 of age, or after 1Oyears 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 of the member's monthly pension at a reduqed rate to a designated beneficiary on the member's death. 
- 18 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 11: RETIREMENT PLANS 
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date ofdeath 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 of employer contributions occurs, but the member's contributions are refunded with interest. 
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $28,273,616.18; total payroll was $32,640,559.41. 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the 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 1996 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%. 
Total contributions made during fiscal year 1996 amounted to $4,752,795.12, of which $3,339,114.31 was made by the Board and $1,413,680.81 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 of the 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 pror,~ss made in accumulating sufficient assets to pay benefits when due, and make comparisons among otb DERS and among other employers. 
 
- 19 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1996 
 
Note 11: RETIREMENT PLANS 
 
Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows: 
 
Total pension benefit obligation 
 
$17,442,607,000.00 
 
Net assets available for benefits, at cost 
 
15.857.066.000.00 
 
Unfunded pension benefit obligation 
 
$ 1.585,541,000.00 
 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. 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, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $3,339,114.31 was actuarially determined and represented .55% of total contributions made by all participating employers. 
 
Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. 
 
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) 
 
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia 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 of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
 
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. 
 
-20 - 
 
 FLOYD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 11: RETIREMENT PLANS 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. 
There were 275 employees covered under PSERS for the year ended June 30, 1996. 
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 1996 amounted to $9,164.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80. 
Note 12: SURETY BONDS 
The School Superintendent, Dr. Jackie R. Collins, is bonded in the amount of $25,000.00 with the Hartford Fire Insurance Company, Hartford, Connecticut, their Bond No. RN665413, on which premium was paid through June 30, 1997. 
 
- 21 - 
 
 FLOYD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
EDUCATION OF CHILDREN 
WITH DISABILITIES 
 
ELEMENTARY AND SECONDARY 
 
TITLE! 
 
GRANTS TO 
 
STATE 
 
LOCAL 
 
PROGRAM 
 
EDUCATIONAL IMPROVEMENT 
 
AGENCIES 
 
GRANTS 
 
$ 739,913.08 $ 41,845.01 $ 
 
0.00 
 
$ 
 
1,111.53 
 
13,230.32 
 
60,924.00 
 
$ 152,204.00 
 
59,734.52 46,716.40 
 
Total Assets 
 
$ 859,594.32 $ 102,769.01 $ 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable 
 
$ 45,315.24 $ 22,650.37 
 
149,012.30 
 
80,118.64 
 
Total Liabilities 
 
$ 194,327.54 $ 102,769.01 
 
FUND EQUITY 
 
Fund Balances Reserved For Continuation of Federal Program For Inventories Food Donated Commodities Purchased Food 
 
$ 59,734.52 46,716.40 
 
Unreserved Undesignated 
 
$ 106,450.92 558,815.86 $ 
 
0.00 $ 
 
Total Fund Equity 
 
$ 665,266.78 $ 
 
0.00 $ 
 
0.00 $ 152,204.00 $ ====1=,1=11=.5=3 
 
$ 
 
23,688.08 
 
12,573.10 $ 
 
44,923.30 
 
71,019.52 
 
$ 152,204.00 $ 
 
321.60 789.93 1,111.53 
 
0.00 $ 0.00 $ 
 
0.00 $ 0.00 $ 
 
0.00 0.00 
 
Total Liabilities and Fund Equity $ 859,594.32 $ 102,769.01 $ 
 
0.00 $ 152,204.00 $ ====1=,1=11=.5=3 
 
See notes to the general purpose financial statements. 
 
-22- 
 
 EXHIBIT"E" 
 
EDUCATION ACT 
TITLEII EISENHOWER PROFESSIONAL DEVELOPMENT 
 
TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
PARTB 
 
SPECIAL EDUCATION 
 
FLOW 
 
THROUGH 
 
PRESCHOOL 
 
JOB TRAINING PARTNERSHIP 
ACT 
 
TOTALS JUNE 30, 1996 JUNE 30, 1995 
 
$ 
 
6,719.99 
 
$ 15,915.18 
 
$ 
 
0.00 $ 805,504.79 $ 997,: i.69 
 
$ 
 
1,300.94 
 
35,620.78 $ 
 
12,902.16 
 
276,182.20 
 
149,698.55 
 
59,734.52 46,716.40 
 
75,564.72 38,011.03 
 
$ 
 
6,719.99 $ 
 
1,300.94 $ 51,535.96 $ 
 
12,902.16 $====o=.o=o $ 1,188,137.91 $ 1,260,785.99 
 
$ 
 
142.83 
 
$ 
 
2,196.38 
 
778.11 $ 12,533.56 
 
2,395.96 
 
380.00 
 
39,002.40 
 
8,309.82 
 
$ 
 
1,300.94 $ 51,535.96 $ 
 
12,902.16 
 
$ 
 
26,027.29 $ 
 
96,567.94 
 
321,746.46 
 
71,809.45 
 
$ 516,151.14 $ 
 
30,172.82 89,528.37 255,222.87 128,563.21 
503,487.27 
 
$ 
 
6,719.99 
 
$ 
 
6,719.99 
 
0.00 $ 
 
$ 
 
6,719.99 $ 
 
0.00 $ 0.00 $ 
 
0.00 $ 0.00 $ 
 
0.00 $ 0.00 $ 
 
$ 
 
6,719.99 
 
8,579.72 
 
$ 0.00 0.00 $ 
 
59,734.52 46,716.40 
113,170.91 $ 
558,815.86 
671,986.77 $ 
 
75,564.72 38,011.03 
122,155.47 
635,143.25 
757,298.72 
 
$ 
 
6,719.99 $===1==2":Q.94 $ 51,535.96 $ 
 
12,902.16 $====0=.0=0 $ 1,188,137.91 $ 1,260,785.99 
 
- 23 - 
 
 FLOYD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
ELEMENTARY AND SECONDARY 
 
TITLEI 
 
EDUCATION 
 
GRANTS TO 
 
STATE 
 
OF CHILDREN 
 
LOCAL 
 
PROGRAM 
 
WITH 
 
EDUCATIONAL IMPROVEMENT 
 
DISABILITIES 
 
AGENCIES 
 
GRANTS 
 
REVENUES 
 
State Funds Federal Funds Taxes and Other Funds 
 
$ 216,464.00 $ 1,333,738.09 
 
1,248,288.04 
 
$ 
 
1,326,421.44 
 
108.00 $ 602,184.48 $ 
 
24,210.07 
 
Total Revenues 
 
$ 2,791, 173.48 $ 1,333,738.09 $ 
 
108.00 $ 602,184.48 $ 
 
24,210.07 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation 
Capital Outlay 
 
$ 1,070,994.40 $ 
 
113,561.31 3,372.55 
17,565.95 12,906.06 
 
60,686.04 60,127.04 
 
$ 2,867,500.87 
 
22,343.42 4,181.20 4,500.00 
 
108.00 $ 
 
457,710.97 $ 
18,063.86 31,433.66 
52,312.21 
 
13,776.68 4,605.40 
 
150.15 42,513.63 
 
5,827.99 
 
Total Expenditures 
 
$ 2,867,500.87 $ 1,370,237.97 $ 
 
108.00 $ 602,184.48 $ 
 
24,210.07 
 
Excess of Revenues over (under) Expenditures $ -76,327.39 $ -36,499.88 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
OTHER FINANCING SOURCES 
 
Operating Transfers In 
 
36,499.88 
 
Excess of Revenues and Other Financing Sources 
 
over (under) Expenditures 
 
$ 
 
-76,327.39 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
FUND BALANCE JULY 1 
 
748,719.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
-15,830.20 8,705.37 
 
FUND BALANCE JUNE 30 
 
$ 665,266.78 $ 
 
0.00 $ 
 
0.00 $ 
 
o.oo $====o=.o==o 
 
See notes to the general purpose financial statements. 
 
-24 - 
 
 EXHIBIT"F" 
 
EDUCATION ACT 
TITLE II EISENHOWER PROFESSIONAL DEVELOPMENT 
 
TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
PARTB 
 
SPECIAL EDUCATION 
 
FLOW 
 
THROUGH 
 
PRESCHOOL 
 
JOB TRAINING PARTNERSHIP 
ACT 
 
TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 
 
$ 1,550,202.09 $ 1,373,517.00 
 
$ 
 
27,774.00 $ 
 
91,580.94 $ 349,962.95 $ 
 
90,877.00 $ 
 
35,946.28 
 
2,470,931.76 
 
2,417,618.74 
 
1,326,421.44 
 
1,303,799.55 
 
$ 
 
27,774.00 $ 
 
91,580.94 $ 349,962.95 $ 
 
90,877.00 $ 
 
35,946.28 $ 5,347,555.29 $ 5,094,935.29 
 
$ 
 
39,324.65 $ 319,684.60 $ 
 
22,048.95 $ 
 
36,114.99 $ 1,959,763.24 $ 1,764,231.92 
 
$ 
 
29,578.93 
 
54.80 
 
44,494.50 7,684.62 308.87 
 
13,894.59 10,575.01 
987.51 
13,638.33 
 
36,976.97 33,679.24 
 
145,519.76 161,037.02 25,250.57 
66,569.45 
60,686.04 73,915.52 33,679.24 70,685.04 2,871,682.07 
4,500.00 
 
137,523.52 96,071.54 16,335.44 76,144.74 2,703.00 3,600.00 18,904.01 31,937.77 
235,739.37 2,724,664.06 
12,385.00 
 
$ 
 
29,633.73 $ 
 
91,812.64 $ 358,780.04 $ 
 
92,705.16 $ 
 
36,114.99 $ 5,473,287.95 $ 5, 120,240.37 
 
$ 
 
-1,859.73 $ 
 
-231.70 $ -8,817.09 $ 
 
-1,828.16 $ 
 
-168.71 $ -125,732.66 $ 
 
-25,305.08 
 
$ 
 
-1,859.73 $ 
 
8,579.72 
 
231.70 
 
8,817.09 
 
0.00 $ 0.00 
 
0.00 $ 0.00 
 
1,828.16 
0.00 $ 0.00 
 
168.71 
 
47,545.54 
 
2,414.34 
 
0.00 $ 0.00 
 
-78,187.12 $ 757,298.72 
 
-22,890.74 775,262.36 
 
-15,830.20 8,705.37 
 
4,299.62 627.48 
 
$ 
 
6,719.99 $ 
 
0.00 $ 
 
===== 
 
0.00 $ 
 
0.00 $ 
 
====== 
 
0.00 $ 671,986.77 $ 757,298.72 
 
- 25- 
 
 FLOYD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1996 
 
EXHIBIT"G" 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
 
REGULAR 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
PROJECT 94-657-042 
 
LOTTERY PROJECT 97-657-019 
 
TOTALS JUNE 30, 1996 JUNE 301 1995 
 
$ 2,935,801.29 $ 
 
0.00 $ 44,324.00 $ 2,980,125.29 $ 2,375,860.34 
 
172,335.95 
 
Total Assets 
 
$ 2,935,801.29 $ 
 
0.00 $ 44,324.00 $ 2,980,125.29 $ 2,548,196.29 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
 
Contracts Payable 
 
$ _ _ _6_7-'-9-'--.6_8 
 
FUND EQUITY 
 
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated 
Total Fund Equity 
 
$ 44,324.00 $ 
 
44,324.00 $ 
 
$ 2,935 801.29 $ _ _ _ _o_.o_o _ _ _ _o_.o_o 2,935,801.29 1 
 
$ 2,935,801.29 $ 
 
0.00 $ 44,324.00 $ 2,980,125.29 $ 
 
299,342.81 2,248,173.80 2,547,516.61 
 
Total Liabilities and Fund Equity 
 
0.00 $ 44,324.00 $ 2,980,125.29 $ 2,548,196.29 
 
See notes to the general purpose financial statements. 
 
- 26- 
 
 FLOYD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 1996 
 
EXHIBIT"H" 
 
REGULAR 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
PROJECT 94-657-042 
 
LOTTERY PROJECT 97-657-019 
 
TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 
 
REVENUES 
 
State Funds 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
172,335.95 
 
EXPENDITURES 
 
Capital Outlay Building and Building Improvements $ Equipment 
 
875,880.51 $ 136,492.00 
 
1,209.50 $ 
 
0.00 $ 
 
877,090.01 $ 136,492.00 
 
1,330,012.66 224,114.09 
 
Total Expenditures 
 
$ 1,012,372.51 $ 
 
1,209.50 $ 
 
0.00 $ 1,013,582.01 $ 1,554,126.75 
 
Excess of Revenues over (under) Expenditures 
 
$ -1,012,372.51 $ 
 
-1,209.50 $ 
 
0.00 $ -1,013,582.01 $ -1,381,790.80 
 
OTHER FINANCING SOURCES 
 
Operating Transfers In 
 
1,700,000.00 
 
44,324.00 
 
1,744,324.00 
 
1,700,000.00 
 
Excess of Revenues and Other Financing 
 
Sources over (under) Expenditures 
 
$ 
 
687,627.49 $ 
 
-1,209.50 $ 
 
44,324.00 $ 730,741.99 $ 
 
318,209.20 
 
FUND BALANCE JULY 1 
 
2,248,173.80 
 
299,342.81 
 
0.00 
 
2,547,516.61 
 
2,229,307.41 
 
Residual Equity Transfer 
 
-298, 133.31 
 
-298, 133.31 
 
FUND BALANCE JUNE 30 
 
$ 2,935,801.29 $ 
 
0.00 $ 
 
44,324.00 $ 2,980,125.29 $ 2,547,516.61 
 
See notes to the general purpose financial statements. 
 
- 27 - 
 
 FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1996 
 
EXHIBIT"!" 
 
BALANCE JULY 1, 1995 
 
ADDITIONS 
 
DEDUCTIONS 
 
BALANCE JUNE 30, 1996 
 
DEFERRED COMPENSATION PLAN 
 
ASSETS 
Investments Held by Trustee 
 
$ 721,669.43 $ 211,506.62 $ 
 
26,596.93 $ ===9=06=,5=79=.1=2 
 
LIABILITIES Deferred Compensation Plan 
 
$ 721,669.43 $ 211,506.62 $ 
 
26,596.93 $ 
 
906,579.12 
 
See notes to the general purpose financial statements. 
- 28- 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
YEAR ENDED JUNE 30. 1996 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Agriculture, U.S. Department of Through Office of Treasury and Fiscal Services National Forest Reserve Funds Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1) 
Total U.S. Department of Agriculture 
Education, U.S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Education of Children with Disabilities in State Operated or Supported Schools 1996 Grant Grants to Local Educational Agencies 1996 Grant State School Improvement Grants 1996 Grant Title II Eisenhower Professional Development 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Consumer and Homemaker Education 1996 Grant Tech-Prep Education 1996 Grant 
Total U.S. Department of Education 
 
CFDA NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
10.665 $ 
 
3,146.98 
 
(5) 
 
10.553 
 
185,025.92 
 
* 10.555 10.550 
 
839,876.95 $ 223,385.17 
 
$ 1,251,435.02 $ 
 
(2) 
2,644,115.70 (3) 223,385.17 
2,867,500.87 
 
84.009 $ * 84.010 
84.218 
 
108.00 $ 602,184.48 
24,210.07 
 
108.00 602,184.48 
24,210.07 
 
84.281 
 
27,774.00 
 
29,633.73 (3) 
 
84.298 
 
91,580.94 
 
91,812.64 (3) 
 
* 84.027 84.173 
 
349,962.95 90,877.00 
 
358,780.04 (3) 92,705.16 (3) 
 
84.048 
 
51,417.50 
 
84.049 
 
4,854.00 
 
84.243 
 
9,253.00 
 
$ 1,252,221.94 $ 
 
(4) (4) (4) 1,199,434.12 
 
- 29 - 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Labor, U. S. Department of Through Coosa Valley Regional Development Center Job Training Partnership Act 17-94-20-006 
Corporation on National and Community Service Through Georgia Department of Education Learn and Serve America Schools and Community Based Programs 1996 Grant 
 
CFDA NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
17.250 $ 
 
35,946.28 $ 
 
36, 114.99 (3) 
 
94.004 $ 
 
22,464.97 $ 
 
24,971.29 (3) 
 
Total Federal Financial Assistance 
 
$ 2,562,068.21 $ 4,128,021.27 
 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program. 
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source. 
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures. 
 
See notes to the general purpose financial statements. - 30 - 
 
 FLOYD COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1996 
INTEREST BEARING ACCOUNTS 
AmSouth Bank of Georgia, Rome, Georgia 
Commercial Checking Accounts (4.91%) 
SunTrust Bank, Rome, Georgia Commercial Checking Accounts (3.71%) 
 
SCHEDULE "2" 
$ 9,658,660.33 352,689.38 
$ 10,011,349.71 
 
See notes to the general purpose financial statements. - 31 - 
 
 THIS PAGE LEFT BLANK 
 
 FLOYD COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996 
 
SCHEDULE "3" 
 
Education, Georgia Department of Food Services National School Lunch Program Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title VI Innovative Education Program Strategies Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool 
Floyd County Tax Commissioner County Wide Bond Tax County Wide School Tax 
Office of School Readiness Pre-Kindergarten Program 
Various Sources Contracted Meals 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
DEBT 
 
GENERAL 
 
REVENUE 
 
SERVICE 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 13,087.32 
 
$ 
 
13,087.32 
 
152,204.00 1,300.94 
 
35,620.78 12,902.16 
 
$ 763,494.80 
 
$ 25,077.67 
 
60,924.00 
 
143.00 
 
152,204.00 1,300.94 
35,620.78 12,902.16 
25,077.67 763,494.80 
60,924.00 
143.00 
 
$ 763,494.80 $ 276,182.20 $ 25,077.67 $ 1,064,754.67 
 
See notes to the general purpose financial statements. 
 
- 33 - 
 
 FLOYD COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY 
JUNE 30, 1996 
 
SCHEDULE "4" 
 
PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30 
1997 1998 
 
TOTAL DEBT SERVICE 
 
1993 REFUNDING ISSUE 
 
INTEREST 
 
PRINCIPAL 
 
$ 635,145.00 $ 35,145.00 $ 
 
219,345.00 
 
9,345.00 
 
600,000.00 210,000.00 
 
$ 854,490.00 $ 44,490.00 $ 
 
810,000.00 
 
CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired During Period 
 
1993 REFUNDING ISSUE 
 
$ 
 
1,365,000.00 
 
555,000.00 
 
Bonds Payable at June 30, 1996 
MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date 
 
$===8=1=0,=00=0=.o=o 
FEB 1 -AUG 1 FEB 1 
 
See notes to the general purpose financial statements. - 34 - 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "5" 
 
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 Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program Mentoring Program Preschool Handicapped Program Special Education Low Incidence Grant Teachers' Retirement Lottery Programs Distant Learning Instructional Technology Pre-Kindergarten Program Safe Schools Grant 
Georgia Council of the Arts Arts Grant 
Office of School Readiness Pre-Kindergarten Program 
Office of Treasury and Fiscal Services Public School Employees Retirement 
Revenue, Georgia Department of Unclaimed Property 
See notes to the general purpose financial statements. 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 18,596,310.00 2,863,843.00 317,599.00 769,660.00 249,286.00 4,955,771.00 
1,106,798.00 323,498.00 695,189.00 289,379.00 265,362.00 492,443.00 2,501.00 52,317.00 128,825.00 
-4,870,436.00 1,045,417.00 
$ 15,882.00 
40,302.00 34,964.03 
2,000.00 645,311.34 
3,100.00 32,175.00 
4,500.00 105,161.00 27,572.83 
55,108.66 
 
$ 18,596,310.00 2,863,843.00 317,599.00 769,660.00 249,286.00 4,955,771.00 
 
216,464.00 
 
1,106,798.00 323,498.00 695,189.00 289,379.00 265,362.00 492,443.00 2,501.00 52,317.00 128,825.00 
-4,870,436.00 1,045,417.00 
216,464.00 15,882.00 
 
40,302.00 34,964.03 
2,000.00 645,311.34 
3,100.00 32,175.00 
4,500.00 105,161.00 27,572.83 
55,108.66 
 
36,500.00 304,759.86 427,000.00 
22,330.23 
 
36,500.00 304,759.86 427,000.00 
22,330.23 
 
2,325.00 
 
2,325.00 
 
543,148.00 
 
543,148.00 
 
112,554.00 
 
112,554.00 
 
2 613.97 
 
2,613.97 
 
$ 28,367,331.83 $ 1,550,202.09 $ 29,917,533.92 
 
- 35 - 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE 
YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "6" 
 
Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax 
Other Sources Compensation for Loss of Assets Contributions to Self-Insured Workers' Compensation Donations Interest Earned Sales Lunches and Breakfast Tuition Other 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
DEBT 
 
GENERAL 
 
REVENUE 
 
SERVICE 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 18,534,396.52 
16,703.39 42,043.45 
 
$ 649,124.67 $ 649,124.67 
18,534,396.52 16,703.39 42,043.45 
 
90,040.24 
 
150,000.00 9,755.46 
500,873.63 $ 
 
41,840.85 
 
194,924.73 414,515.49 
 
1,281,832.89 2,747.70 
 
21,937.12 
 
90,040.24 
150,000.00 9,755.46 
564,651.60 
1,281,832.89 194,924.73 417,263.19 
 
$ 19,953,252.91 $ 1,326,421.44 $ 671,061.79 $ 21,950,736.14 
 
See notes to the general purpose financial statements. 
 
- 36 - 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "7" 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures 
Nonoperating Costs Land and Land Improvements Building and Building Improvements Equipment 
Total Expenditures 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
TOTAL 
 
$ 30,349,910.97 $ 2,290,648.44 $ 32,640,559.41 
 
9,366,769.42 
 
591,273.62 
 
9,958,043.04 
 
136,070.30 
 
42,344.60 
 
178,414.90 
 
696,325.95 
 
88,848.69 
 
785,174.64 
 
9,066.25 
 
9,066.25 
 
356,650.26 
 
4,128.00 
 
360,778.26 
 
82,792.81 
 
82,792.81 
 
2,621.37 
 
12,000.00 
 
14,621.37 
 
106,371.00 
 
106,371.00 
 
128,727.52 
 
224.70 
 
128,952.22 
 
11,461.56 
 
11,461.56 
 
63,951.10 
 
63,951.10 
 
19,785.37 
 
19,785.37 
 
1,964,117.91 
 
452,318.38 
 
2,416,436.29 
 
1,467,830.87 
 
75,158.00 
 
1,542,988.87 
 
1,328,379.48 
 
1,328,379.48 
 
481,684.45 
 
768.75 
 
482,453.20 
 
123,151.23 
 
19,737.14 
 
142,888.37 
 
47,810.91 
 
17,069.07 
 
64,879.98 
 
341,000.00 257,596.65 1,005,690.49 
 
4,500.00 514,642.15 
 
345,500.00 257,596.65 1,520,332.64 
 
$ 46,988,139.46 $ 5,473,287.95 $ 52,461,427.41 
 
See notes to the general purpose financial statements. - 37 - 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT 
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "8" 
 
DISTANT LEARNING 
 
INSTRUCTIONAL PRE-KINDERGARTEN 
 
TECHNOLOGY 
 
PROGRAM 
 
SAFE SCHOOLS 
GRANT 
 
EXPENDITURES 
 
Operating Costs 
 
Salaries 
 
Employee Benefits 
 
Travel of Employees 
 
Professional and Technical 
 
Services 
 
Water, Sewer and Cleaning 
 
Services 
 
Rents 
 
Communications 
 
Other Purchased Services 
 
Supplies 
 
$ 
 
Energy 
 
Food Usage 
 
Books, Textbooks and 
 
Periodicals 
 
Dues and Fees 
 
Other Expenditures 
 
2,670.10 $ 
 
$ 24,553.52 
 
518,892.80 136,385.32 
9,878.85 
850.00 
4,128.00 12,000.00 
64.70 19,785.37 138,939.85 $ 75,158.00 4,181.20 
768.75 270.00 8,082.82 
 
$ 4,623.18 
 
Nonoperating Costs Land and Land Improvements Equipment 
 
34,009.38 
 
293,169.51 
 
4,500.00 59,562.62 
 
17,764.00 
 
TOTAL 
518,892.80 136,385.32 
9,878.85 
850.00 
4,128.00 12,000.00 
64.70 19,785.37 170,786.65 75,158.00 4,181.20 
768.75 270.00 8,082.82 
4,500.00 404,505.51 
 
Total Expenditures $ 
 
36,679.48 $ 
 
317,723.03 $ 
 
993,448.28 $ 22,387.18 $ 1,370,237.97 
 
See notes to the general purpose financial statements. 
 
- 38 - 
 
 FLOYD COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1996 
 
SCHEDULE "9" 
 
Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis 
Salaries Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
Amount of Underexpenditure for Total Allotment 
 
THIRTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS 
 
$ 23,039,685.00 $ 
 
782,105.00 
 
$ 25,845,093.65 
1,818,501.71 $ ----1,6-2-7,6~77-.0-7 
$ 27,663,595.36 
 
-438,556.94 $ 27,225,038.42 
 
$ 
 
0.00 $ = = = = =0.=00 
 
See notes to the general purpose financial statements. - 39 - 
 
 FLOYD COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1996 
 
GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - _5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs 
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Sub-Total - Regular Category V (Gifted) (*) Total Special Education Programs 
REMEDIAL EDUCATION PROGRAM (*l Total Thirteen Weighted Programs 
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs 
Total Thirteen Weighted and Media Center Programs 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
ORIGINAL 
 
% 
 
ORIGINAL 
 
MID-TERM 
 
$ 1,869,560.00 4,845,697.00 
$ 6,715,257.00 2,352,731.00 4,260,384.00 919,807.00 3,079,654.00 1,268,477.00 
$ 18,596,310.00 
 
$ 1,682,604.00 $ 
 
4,361,127.30 
 
90 $ 6,043,731.30 $ 
 
90 
 
2,117,457.90 
 
90 
 
3,834,345.60 
 
90 
 
827,826.30 
 
90 
 
2,771,688.60 
 
90 
 
1,141,629.30 
 
$ 16,736,679.00 $ 
 
200,000.00 201,251.00 401,251.00 
74,850.00 476,101.00 
 
$ 2,504,753.00 
 
$ 2,254,277.70 $ 
 
0.00 
 
$ 2,504,753.00 
 
359,090.00 
 
$ 2,863,843.00 
 
$ 
 
317,599.00 
 
$ 21,777,752.00 
 
90 $ 2,254,277.70 $ 
 
90 
 
323,181.00 
 
$ 2,577,458.70 $ 
 
90 $ 
 
285,839.10 $ 
 
$ 19,599,976.80 $ 
 
0.00 
0.00 16,172.00 492,273.00 
 
$ 
 
616,694.00 90 $ 
 
555,024.60 $ 
 
0.00 
 
152,966.00 90 
 
137,669.40 
 
$ 
 
769,660.00 
 
$ 
 
692,694.00 $ 
 
0.00 
 
$ 22,547,412.00 
 
$ 20,292,670.80 $ 
 
492,273.00 
 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
Total Staff Development Programs (*) Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements. 
 
$ 
 
61,478.00 
 
$ 
 
61,478.00 $ 
 
0.00 
 
187,808.00 
 
187,808.00 
 
0.00 
 
$ 
 
249,286.00 100 $ 
 
249,286.oo s =======o=.o==o 
 
- 40 - 
 
 SCHEDULE "10" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 1,882,604.00 $ 2,086,940.84 $ 
 
100,014.77 $ 2,186,955.61 
 
4,562,378.30 
 
5,891,537.65 
 
175,416.65 
 
6,066,954.30 
 
$ 6,444,982.30 $ 7,978,478.49 $ 
 
275,431.42 $ 8,253,909.91 $ 
 
0.00 
 
2,117,457.90 
 
2,709,950.38 
 
82,158.25 
 
2,792,108.63 
 
0.00 
 
3,834,345.60 
 
4,081,142.61 
 
173,683.04 
 
4,254,825.65 
 
0.00 
 
827,826.30 
 
1,638,438.61 
 
453,420.94 
 
2,091,859.55 
 
0.00 
 
2,771,688.60 
 
2,986,772.35 
 
191,628.78 
 
3,178,401.13 
 
0.00 
 
1,216,479.30 
 
1,608,797.82 
 
256,223.46 
 
1,865,021.28 
 
0.00 
 
$ 17,212,780.00 $ 21,003,580.26 $ 1,432,545.89 $ 22,436,126.15 
 
$ 2,254,277.70 $ 
 
53,595.86 $ 
2,737,412.12 105,541.23 
 
$ 2,910.53 68,096.72 115,080.00 
 
53,595.86 2,910.53 
2,805,508.84 220,621.23 
 
$ 2,254,277.70 $ 2,896,549.21 $ 
 
186,087.25 $ 3,082,636.46 
 
0.00 
 
323,181.00 
 
460,247.47 
 
9,043.93 
 
469,291.40 
 
0.00 
 
$ 2,577,458.70 $ 3,356,796.68 $ 
 
195,131.18 $ 3,551,927.86 
 
$ 
 
302,011.10 $ 
 
467,324.41 $ 
 
0.00 $ 
 
467,324.41 
 
0.00 
 
$ 20,092,249.80 $ 24,827,701.35 $ 1,627,677.07 $ 26,455,378.42 
 
$ 
 
555,024.60 $ 1,017,392.30 
 
$ 1,017,392.30 
 
0.00 
 
137,669.40 
 
$ 
 
190,824.64 
 
190,824.64 
 
0.00 
 
$ 
 
692,694.00 $ 
 
1,017,392.30 $ 
 
190,824.64 $ 1,208,216.94 
 
$ 20,784,943.80 $ 25,845,093.65 $ 1,818,501.71 $ 27,663,595.36 $ 
 
0.00 
 
$ 
 
61,478.00 
 
187,808.00 
 
$ ==2=4=9=2s=6=.o=o 
 
$ 
 
192,962.55 $ 
 
192,962.55 
 
63,730.61 
 
63,730.61 
 
$ 
 
256,693.16 $ 
 
256,693.16 $======0=.0=0 
 
- 41 - 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
YEAR ENDED JUNE 30, 1996 
 
SCHEDULE 1111 11 
 
BOARD MEMBER ADDRESS 
Mr. Steve Murdock, Chairman (*) 1 Edgewood Drive Lindale, Georgia 30147 
Mr. George Bevels (*) 302 Randall Road Cave Springs, Georgia 30124 
Mr. William L. Brown (*) 588 Haywood Valley Road Armuchee, Georgia 30105 
Mr. Mark Hufstetler(*) P. 0. Box 539 Shannon, Georgia 30172 
Mr. Bryan Shealy (*) 3 Rosalynn Drive, S. W. Rome, Georgia 30161 
(*) Denotes Board Members Serving as of June 30, 1996 
 
COMPENSATION 
 
TRAVEL 
 
$ 
 
1,950.00 $ 
 
832.27 
 
1,100.00 
 
561.99 
 
1,350.00 
 
592.99 
 
1,350.00 
 
1,300.00 
 
29.00 
 
$ 
 
7,050.00 $ ===2==,0=1=6.=25= 
 
See notes to the general purpose financial statements. 
 
- 42 - 
 
 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 
August 8, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Floyd County Board of Education 
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 fmancial statements of the Floyd County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. 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 the purchased foods inventory at June 30, 1996, 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 Floyd County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 
The results of our tests of compliance disclosed a material instance of noncompliance, which is described in the Schedule of Findings and Improper or Questioned Costs. 
96CRL-20 
 
 As also described in the Schedule ofFindings and Improper or Questioned Costs, the certain material instance of noncompliance noted above has been corrected in the financial statements. 
We considered this material instance of noncompliance in forming our opinion on whether the fi3cal year 1996 general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated August 8, 1997 on those general purpose financial statements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
 
CLV:cm 96CRL-20 
 
Claude L. Vickers State Auditor 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
August 8, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Floyd County Board of Education 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the Floyd County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. 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 Floyd County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996: 
 
(1) Political Activity 
 
(5) Allowable Costs/Cost Principles 
 
(2) Civil Rights 
 
(6) Audit Follow-Up/Resolution 
 
(3) Cash Management 
 
(7) Administrative Requirements 
 
(4) Federal Financial Reports 
 
Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Floyd County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 
 
96CRL-40 
 
 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those requirements. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~ 
Claude L. Vickers State Auditor 
CLV:cm 96CRL-40 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
August 8, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Floyd County Board of Education 
 
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements ofthe Floyd County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. 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 Floyd County Board of Education's compliance with the requirements governing: 
 
(1) Types of Services Allowed or Unallowed 
 
(5) Applicable Special Tests and Provisions 
 
(2) Eligibility 
(3) Matching, Level of Effort, 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, 1996. The management of the Floyd 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. 
 
96CRL-80 
 
 Except as discussed in the )wing paragraph, we conducted our audit of compliance in accordance with generally accepted auditinf, ..mdards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board'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, 1996, 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 of this report. 
In our opinion, the Floyd County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~~ 
Claude L. Vickers State Auditor 
CLV:cm 96CRL-80 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
August 8, 1997 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education 
and Superintendent and Members of the Floyd County Board of Education 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the Floyd County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. 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 of the fiscal year 1996 general purpose financial statements of the Floyd County Board of Education 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, 1996. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements govemmg: 
 
(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 Floyd County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 
 
With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Floyd County Board of Education had not complied, in all material respects, with those requirements. 
 
96CRL-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, 
 
CLV:cm 96CRL-120 
 
Claude L. Vickers State Auditor 
 
 SECTION III INTERNAL CONTROL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
August 8, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Floyd County Board of Education 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements of the Floyd County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. 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, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
The management of the Floyd 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 of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not 
 
96ICL-3 
 
 be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
In planning and performing our audit of the general purpose financial statements of the Floyd County Board ofEducation for the year ended June 30, 1996, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose 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 a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. 
As described in the Schedule of Findings and Improper or Questioned Costs, a reportable condition was noted in the following control category: 
General Fixed Assets 
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness. 
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the Floyd County Board of Education's financial statements and this report does not affect our report thereon dated August 8, 1997. 
96ICL-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, 
 
CLV:cm 96ICL-3 
 
Claude L. Vickers State Auditor 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
August 8, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Floyd County Board of Education 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements ofthe Floyd County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. 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 Floyd County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated August 8, 1997. 
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 of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Floyd County Board of Education 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, 1996, 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, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures 
96ICL-5 
 
 relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated August 8, 1997. 
 
The management ofthe Floyd 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 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 of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
 
For the purposes of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: 
 
GENERAL REQUIREMENTS 
 
SPECIFIC REQUIREMENTS 
 
(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports 
 
(1) Types of Services Allowed or Unallowed 
(2) Eligibility 
(3) Matching, Level of Effort, 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 whether they have been placed in operation, and we assessed control risk. 
 
During the year ended June 30, 1996, the Floyd County Board of Education expended 70% ofits total Federal financial assistance under major Federal financial assistance programs. 
 
96ICL-5 
 
 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 ofthe Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. 
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of perfonning their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. 
Respectfully submitted, 
 
CLV:cm 96ICL-5 
 
Claude L. Vickers State Auditor 
 
 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
PRIOR YEAR 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6571-93-02 
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$38,230.22 for the StaffDevelopment - Professional Development Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required. 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $24,426.16 Audit Control Number 6571-94-01 
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $24,426.16 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $24,426.16 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Procedures Federal Financial Assistance Finding Resolved Audit Control Number 6571-94-03 
The audit report for the year ended June 30, 1995, noted that the Board failed to perform a physical inventory of equipment for the Individuals with Disabilities Education Act - Part B - Special Education, Flow Through Program (CFDA 84.027) as required by Chapter 41 of the Financial Management for Georgia Local Units of Administration. In the year under review, the Board performed a physical inventory as required. 
- 1- 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
PRIOR YEAR 
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Procedures Federal Financial Assistance Finding Resolved Audit Control Number 6571-94-04 
The audit report for the year ended June 30, 1995, noted that the Board's property management records for the Individuals with Disabilities Education Act - Part B - Special Education, Flow Through Program (CFDA 84.027) were incomplete and failed to meet Federal property management standards as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration. In the year under review, the Board implemented procedures which provided for the identification of all equipment as required. 
PRIOR YEAR/CURRENT YEAR 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6571-93-01 
The audit report for the year ended June 30, 1995, noted that the management of the Floyd County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
-2- 
 
 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
CURRENT YEAR GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number 6571-96-01 For the year under review, the Board failed to transfer local matching funds from the General Fund to the Capital Projects Fund as required for the approved Lottery Project for the 1996 fiscal year. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration and the agreement signed by the Board to receive the funding through Georgia Department of Education require that the Board transfer local matching funds by year end and designate those funds by project name and number. A correcting audit adjustment was necessary to transfer $44,324.00 from the General Fund to Lottery Project No. 97-657-019 as required. 
Note: The Floyd County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report. 
-3-