Audit report, Gilmer County Board of Education, Ellijay, Georgia, year ended June 30, 1994

GA
A800 .Rl
c:J.J, C1f
l'/1J-q4
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT GILMER COUNTY BOARD OF EDUCATION
ELLIJAY, GEORGIA YEAR ENDED JUNE 30, 1994

GILMERCOUNTYBOARDOFEDUCATION -TABLE OF CONTENTS -

SECTION!

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

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

6

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE- NONEXPENDABLE TRUST FUND

8

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

31

K

FIDUCIARY FUND TYPES

COMBINING BALANCE SHEET

32

GILMER COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

33

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

35

3 ACCOUNTS RECEIVABLE

37

4 DEBT SERVICE REQUIREMENTS TO MATURITY

38

SCHEDULE OF REVENUE

5

STATE FUNDS

40

6

LOCAL AND OTHER FUNDS

41

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

42

8

LOTTERY PROGRAMS

43

9

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

44

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND c QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

45

11

BY PROGRAM

46

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

48

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May4, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Gilmer 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 financial statements (Exhibits A through F) of the Gilmer County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
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 ofManagement 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, 1994, 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:
94ARL-14

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1994_- Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
* The Board did not record the revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch 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 ofthe 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 Gilmer County Board ofEducation as of June 30, 1994, and the results ofits operations and the cash flows ofits nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
For fiscal year 1993, revenues for county wide bond tax were not recorded in the Debt Service Fund as required by generally accepted accounting principles. As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board correctly recorded revenue for county wide bond taxes in the Debt Service Fund. This change is in accordance with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Gilmer County Board ofEducation taken as a whole. The combining statements (Exhibits G through K) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Gilmer County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the 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
94ARL-14

in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office 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.
"ZA
Claude L. Vickers State Auditor
CLV:gp 94ARL-14

GILMER COUNTY BOARD OF EDUCATION - 1-

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Due from Other Funds
Inventories Food Donated Commodtties Purchased Food
Prepaid Items
Amount Available in Debi Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debi Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

68,925.93 $ 294,046.14 $ 507,7'57.70

351,005.96

181,584.66

395,341.96

426.58

'57,922.79

13,260.38 9,992.37

Total Assets

$ 478,281.26 $ 498,883.55 $ 903,099.66

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Due to Other Funds Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total Llabiltties
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debi Service For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodtties Purchased Food For State Capital Outlay Projects
Unreserved Defictt Undesignated
Total Fund Equity

161,917.19 $

84,173.45 $ 89,952.41
1,330.75
426.58 132,910.44

1,500.00
290,782.00 345,841.96

$ 161917.19 $ 308793.63 $ 638123.96

$

6,263.80

$ 6,263.80 $

13,260.38 9,992.37
$
23,252.75 $

264975.70 264,975.70

310 100.27 316364.07 $

166837.17 190089.92 $

0.00 264975.70

Total Llabiltties and Fund Equity

$ 478,281.26 $ 498,883.55 $ 903,099.66

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

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onl)'.) JUNE30 1994 JUNE30 1993

329,325.89 $

40,129.79

$ 1,240,185.45 $ 448,021.24

38,150.07

966,082.65

1,884,471.65

426.58

13,260.38 9,992.37

22,486.21 7,115.84

57,922.79

$

367,475.96

367,475.96

302,183.99

3,442,524.04 358123.84

3,442,524.04 358,123.84

3,597,816.01 367625.22

367475.96 $

40129.79 $

4168123.84 $ 6 455 994.06 $ 6629720.16

$ 247,590.64 $ 363,692.01

89,952.41

73,725.62

1,325,000.00

1,330.75

161.17

290,782.00

98,584.94

345,841.96

426.58

132,910.44

$

358,123.84

358,123.84

367,625.22

3810000.00

3810000.00

3900000.00

$

4168123.84 $ 5 276,958.62 $ 6128788.96

$ 367,475.96 $
$ 367,475.96 $ 0.00
$ 367475.96 $ $ 367475.96 $

10,000.00
10,000.00 30129.79 40129.79

$

310.11

$ 367,475.96

302,183.99

10,000.00

10,000.00

6,263.80

13,260.38 9,992.37
264975.70 $ 671,968.21 $
507067.23 $ 1 179 035.44 $

22,486.21 7,115.84
342,096.15 -3,776.78
162611.83
500931.20

40,129.79 $

4,168,123.84 $ 6,455,994.06 $ 6,629,720.16

-3-

GILMER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

REVENUES
S-Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expendttures
OTHER FINANCING SOURCES (IJSl;;S)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expendttures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 7,688,022.99 $ 156,482.61 $ 3,441,630.94

48,937.62

1,241,755.10

49,500.00

3707797.80

302459.03

2881.73

$ 11 444 758.51 $ 1 700 696.74 $ 3494012.67

$ 7,003,634.15 $
299,966.08 280,634.72 280,466.40 212,103.87 681,483.08 207,231.23 773,665.13 709,080.48 35,133.91
19,926.31 5,379.55
93,986.92 75,849.39
124,788.38 18,304.50

682,982.30
97,663.70 51,872.72
925.95 65,634.77
109.35 849.10
35.68 767,072.49
$ 3,635,526.97

$ 10 831 634.10 $ 1 667 146.06 $ 3635526.97

$

613124.41 $

33550.68 $ -141514.30

115,287.00 $
-408,270.56
$ -292 983.56 $

1,780.56 $ 406,480.00 1780.56 $ 406480.00

$

320,140.85 $

35,331.24 $ 264,975.70

-3,776.78

161,107.98

0.00

-9,225.83 2876.53

FUND BALANCE JUNE 30

316,364.07 $

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

-4-

180,089.92 $ 264 975.70

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS
!Memorandum Onl~ YEAR ENDED
JUNE30 1994 JUNE30 1993

$ 11,286,136.54

1,340,192.72

$ 406624.72

4419763.38 $

$ 406624.72 $ 17,046 092.64 $

486.10

11,286,136.54 $ 1,340,192.72 4420249.48

7,420,026.65 1,132,846.35 3972313.19

486.10 $ 17046578.74 $ 12525186.19

$ 7,686,616.45

$ 7,686,616.45 $ 7,117,821.67

397,629.78 332,507.44 291,392.35 277,738.64 $
681,483.08 207,231.23 773,665.13 709,189.83
35,983.01 19,961.99 m,452.04 93,986.92 3,711,376.36

1,687.75

397,629.78 332,507.44 291,392.35 279,426.39 681,483.08 207,231.23 773,665.13 709,189.83
35,983.01 19,961.99 772,452.04 93,986.92 3,711,376.36

290,050.74 276,560.99 273,700.73 386,637.35 638,673.00 133,954.80 722,720.17 661,611.94
6,493.61
-684,820.95 85,720.82
1,686,959.40

$

90,000.00

250,832.75

500.00

214,788.38 269,137.25
500.00

214,788.38 269,137.25
500.00

276,592.87 284,203.78
2000.00

$ 341332.75 $ 16 475 639.B8 $

1687.75 $ 16477327.63 $ 13 528 522.82

65291.97 $

570452.76 $ 1201.65 $

569251.11 $ .1003336.63

$

115,287.00

408,270.56

-408270.56

$

115 287.00

$

115,287.00 $

135,684.00

408,270.56

566,333.73

-408270.56

--566 333.73

115287.00 $ 135,684.00

$

65,291.97 $

302,183.99

685,739.76 $ 459,515.19

1,201.65 $ 29,999.92

684,538.11 $ 489,515.11

-667,652.63 1,348,847.25

..S,225.83 2876.53

9,225.83 2876.53

1,204.65 7115.84

367 475.96 $ 1 138,905.65 $ 28,798.27 $ 1,167,703.92 $ 489,515.11

.5.

glL,MER ~Q~Jt{['! 6:QABQ QF E;QU~ATIQN ~M61Hf;Q T6:rl;M:fNT OF Rf;VE~!,,!ES EXPENDII.YBE ANQ ~HANG~S IN EiJND ~LANQf;S
&;I!,!11~ ll~Q llUClS,~T - la~~B~Mlatrrll~ E!.!~Q D'.P~
YEAR ENDED JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~

State Funds Federal Funds Local and other Funds

$ 11,286,136.54 $ 1,340,192.72 4,419,763.38

0.00 $ 11,286,136.54 $ 13,254,965.00 $

1,340,192.72

846,311.00

4,419,763.38 4,308,523.00

-1,968,828.46 493,881.72 111,240.38

Total Revenues

$ 17,046,092.64 $

0.00 $ 17,046,092.64 $ 18,409,799.00 $ -1,363,706.36

~XP~~Q!I!.!B~S
current
Instruction Support Services
Pupil Services Improvement of Instructional Services Educational Media Services General AdministratKM'I School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services other Support Services Food Services Operation other Operations of Non-Instructional Services Capital Outlay Debt Service

$ 7,686,616.45 $
397,629.78 332,507.44 291,392.35 277,738.64 681,483.08 207,231.23 773,665.13 709,189.83
35,983.01 19,961.99 772,452.04
93,986.92 3,711,376.36
484,425.63

0.00 $ 7,686,616.45 $ 7,386,435.00 $

397,629.78 332,507.44 291,392.35 277,738.64 681,483.08 207,231.23 773,665.13 709,189.83
35,983.01 19,961.99 772,452.04

344,950.00 335,634.00 279,120.00 270,844.00 671,892.00 247,276.00 855,929.00 757,752.00
34,060.00 18,125.00 707,628.00

93,986.92 3,711,376.36
484,425.63

98,425.00 6,259,772.00
342,333.00

-300,181.45
-52,679.78 3,126.56
-12,272.35 -6,894.64 -9,591.08 40,044.77 82,263.87 48,562.17 -1,923.01 -1,836.99
-64,824.04
4,438.08 2,548,395.64 -142,092.63

Total Expenditures

16,475,639.88 $

0.00 $ 16,475,639.88 $ 18,610,175.00 $ 2,134,535.12

Excess of Revenues over (under) Expenditures

$ 570,452.76 $

0.00 $ 570,452.76 $ -200,376.00 $

770,828.76

OTH~R FINANCIN!, SO!,!B!.iaS (US~S}

Other Sources other Uses

$ 523,557.56 $ -408,270.56

0.00 $ 523,557.56 $ 372,265.00 $

-408,270.56

-301,250.00

151,292.56 -107,020.56

Total other Financing Sources (Uses) $ 115,287.00 $

0.00 $ 115,287.00 $

71,015.00 $

44,272.00

Exceu of Revenues and other Financing sources

over (under) Expenditures and other Financing

Uses

$

685,739.76 $

0.00 $ 685,739.76 $ -129,361.00 $

815,100.76

FUNQ ~~NQ:f JULY 1 1993

459,515.19

-29,602.05

429,913.14

502,615.86

-72,702.72

111:1,!!,!STM~~

Prior Year (Net)

-25,026.83

25,026.83

FQQQ ltjV~t[[OBY - ~~ !:;HAN!;.~ IN P~RIOD

Donated CommodPurchased Food

-9,225.83

9,225.83

0.00

0.00

2,876.53

-2,876.53

0.00

0.00

FUNQ 6eiLANQf; JUt.-lf; ~ 1 ~

$ 1,138,905.65 $ -23,252.75 $ 1,115,652.90 $ 348,228.03 $

767,424.87

The notes to the general purpose financial statements are an integral part of this statement. -6-

GILMER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

EXHIBIT "D"

OPERATING REVENUE None Recorded
OPERATING EXPENSES Current Scholarship Operating Income (Loss)
NONOPERATING REVENUE Interest Earned Income (Loss)
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
DR. EDWARD W. WATKINS
SCHOLARSHIP FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

0.00 $

0.00 $ _ _ _ _0_._00_

$ _ _ _ _ 450_.00 $

$

-450.00 $

450.00 $ -450.00 $

900.00 --900.00

365.43

365.43

438.55

$

-84.57 $

-84.57 $

-461.45

11,416.09

11,416.09

11,877.54

------ $

11,331.52 $

11,331.52 $

11,416.09

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

GILMER COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Scholarships Net Cash Provided (Used) by Operating Activities
Cash Flows from Investing Activities: Interest Received on Investments
Net Cash Provided by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

ENDOWMENT FUND
DR. EDWARD W. WATKINS
SCHOLARSHIP FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

-450.00 $

-450.00 $

-900.00

$

-450.00 $

-450.00 $

-900.00

$

365.43 $

$

365.43 $

$

-84.57 $

$ - - - ~ 11,4-16-.0-9 $

365.43 $ 365.43 $ -84.57 $ 11,416.09 $

438.55 438.55 -461.45 11,877.54

Cash and Cash Equivalents - June 30

$

11,331.52 $

11,331.52 $~_1_1..,,4_16_._09~

The notes to the general purpose financial statements are an integral part of this statement. -8-

GILMER COUNTY BOARD OF EDUCATION

E:xmBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Gilmer County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in confonnity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Gilmer County Board ofEducation.
Based upon the application ofthe above criteria, the Gilmer County Board of Education is detennined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Gilmer County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board detennines the millage rates at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set 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.
- 9-

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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 TYPES - the trust funds 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. These funds include:
NONEXPENDABLE TRUST FUND Dr. Edward W. Watkins Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to needy students within the Board's jurisdiction who might not otherwise be able to attend college.

- 10 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
EXPENDABLE TRUST FUND Self-Insured Employee Benefit Fund - the fund used to account for Unemployment Compensation contributions and expenditures.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
The nonexpendable trust fund is accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of this fund is included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds and the expendable trust fund 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 if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.

- 11 -

GIT.MER COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion ofthe compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by the nonexpendable trust fund. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Gilmer County Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (tncluding N. 0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings
- 12 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

RECEIVABLES

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

PROPERTY TAXES

The Gilmer County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on May 4, 1993 (levy date). Taxes were due on February 28, 1994. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria ofGASB codification section P70.103. The Gilmer 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 1993 tax year (calendar year) for the Gilmer County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

12.59 mills _Ll_ mills

~mills

For fiscal year 1993, revenues for county wide bond tax were not recorded in the Debt Service Fund as required by generally accepted accounting principles. For the fiscal year 1994, the Board correctly recorded revenue for county wide bond taxes remitted by the Gilmer County Tax Commissioner in the Debt Service Fund. This change is in accordance with generally accepted accounting principles.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. The Board uses the purchases method to account for inventories of purchased foods whereby expenditures are recorded at the time of purchase. Both the donated food commodities inventory and the purchased foods inventory reported on the balance sheet are equally offset by reservations of fund

- 13 -

Gil,MER COUNTY BOARD OF EDUCATION

ExmBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
balance which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. The Federally assigned value of donated commodity items received and consumed has not been reflected as revenues and expenditures in the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1994, are recorded as prepaid items.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows 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
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public
- 14 -

GILMER COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 2: DEPOSITS
funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State ofGeorgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $1,867,216.61. 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.)
- 15 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

The Board's deposits are classified by risk category at June 30, 1994, as follows:

Risk Category

Bank Balance

I

$ 200,000.00

2

284,904.09

3

1 382 312.52

Total

$ 1 867 216 61

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Each fund contributes their pro rata share to the Unemployment Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, a total of$1,687.75 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Gilmer County Board ofEducation has entered into various lease agreements as lessee for school buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1994, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$ 367,625.22 $ 3,900,000.00 $4,267,625.22

Additions

115,287.00

0.00

115,287.00

Deductions

124 788.38

90 000.00

214 788.38

Balance June 30, 1994

$ 358 123 84 $ 3 810 000 00 $4 168 123 84

- 16 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

At June 30, 1994, payments due, by fiscal year which includes principal and interest for these items:

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1995 1996 1997 1998 1999 2000 and thereafter

$ 170,248.00 95,307.91 57,922.79 57,922.79 27,155.12

$ 369,407.50 395,772.50 419,866.25 441,635.00 465,835.00
3 546 380.00

$ 539,655.50 491,080.41 477,789.04 499,557.79 492,990.12
3 546 380.00

Total Principal and Interest

$ 408,556.61 $ ~ 638 826 25 $ 6 047 ~52 86

Deduct: Imputed Interest

50 432.77

Present Value of Future Minimum Lease Payments

$ 358 123 84

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$153,965.69 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery funds equal to this amount are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools

$

309.00

17,122.05

5,364.20

86,216.37

44 954.07

$ 153 965 69

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1994, together with funding available:

- 17 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

Funding Available From State

94-661-044

$ 2 41193696 $ 2 169 228 65

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

Note 7: CONTINGENT LIABILITIES

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

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement afler 30 years of creditable service, regardless of age, or afler 10 years of service and attainment of age 60. A member is eligible for early retirement afler 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal_ to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is
entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement,
whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had

- 18 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 8: RETIREMENT PLANS

the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years ofservice) and compensation up to the time of disability or death.

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $6,864,170.29; total payroll was $7,893,789.96.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 1-1.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%.

Total contnbutions made during fiscal year 1994 amounted to $1,222,508.52, of which $810,657.64 was made by the Board and $411,850.88 was made by employees. These contributions represented 11.81 % (Board) and 6% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ I 090 292 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.

- 19 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$810,657.64 was actuarially determined and represented .1554% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years.of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life halfofwhat the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 86 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $2,792.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.

- 20 -

GILMER COUNTY BOARD OF EDUCATION

EXIilBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 9: SURETY BONDS
The School Superintendent, Mr. Bennett L. Arp, is bonded in the amount of$15,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60236382, on which premium is paid through December 31, 1995.

- 21 -

GILMER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 205,293.63 $ 134,240.00 $

1,409.30

18,871.96

42,049.61

13,260.38 9,992.37

Total Assets

$ 247,418.34 $ 176,289.61 $

1,409.30

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Due to Other Funds Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$ 18,639.07 $ 42,049.61 $ 38,262.77 1,329.56 426.58 132,910.44
$ 57,328.42 $ 176,289.61 $

1,409.30 1,409.30

$ 13,260.38 9,992.37
$ 23,252.75 166,837.17 $
$ 190,089.92 $

0.00 $ 0.00 $

0.00 0.00

Total Liabilities and Fund Equity See notes to the general purpose financial statements.

-22-

$ 247,418.34 $ 176,289.61 $

1,409.30

EXHIBIT"G" Page 1

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II -

CHAPTER 1

EISENHOWER

EDUCATION OF EDUCATION OF

CHAPTER 2

MATHEMATICS

CHILDREN IN

DEPRIVED

BLOCK GRANT - AND SCIENCE

STATE SCHOOLS

CHILDREN

FLOW THROUGH EDUCATION

$

0.00

$

3,047.46 $

1,474.00 $

62,230.96

$

586.20

$

3,047.46 $ _ _ _ _1'"",4""7..4."".0-'-0 $

62,230.96 $

----- 0.00 $

586.20

$

1,406.80 $

361.59

1,277.88

1.19

$

3,047.46 $

1,474.00 $

11,147.63 12,048.31 39,035.02

1,474.00 $

62,230.96

$

586.20

$

586.20

$

o.oo $ _ _ _ _ _o_.o_o $

$

o.oo $ _ _ _ _ _o_.o_o $

0.00 $ 0.00 $

0.00 $ _ _ _ _0._00_ o.oo s _ _ ___;;;o-c:.oo;:_

$

3,047.46 s_ _ _ _1._,4_7_4_.o_o $

62,230.96 $ _ _ _ _ _o._o_o $ _ _ _5_8_6._20_

-23-

GILMER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

$

3,453.14

$

11,643.00

$

5,402.10

Total Assets

$

11,643.00 $

3,453.14 $

5,402.10

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Due to other Funds Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$

2,878.73

$

3,406.17 $

3,453.14

5,358.10

480.52 1,111.58 3,810.00

$

11,643.00 $

3,453.14 $

5,402.10

$

0.00 $

$

0.00 $

0.00 $ 0.00 $

0.00 0.00

Total liabilities and Fund Equity See notes to the general purpose financial statements.

$ -24-

11,643.00 $

3,453.14 $

5,402.10

EXHIBIT"G" Page2

PROJECT HEAD START

CHILDCARE AFTER SCHOOL
PROGRAM

JUVENILE JUSTICE AND DELINQUENCY PREVENTION ACT
IN-SCHOOL PROBATION

TOTALS JUNE 30, 1994 JUNE 30, 1993

$ 344,396.07 $ 189,764.56

$

33,809.31 $

954:42 $

1,515.64

181,584.66

79,172.71

13,260.38 9,992.37

22,486.21 7,115.84

$

33,809.31 $

954.42 $

1,515.64 $ 549,233.48 $ 298,539.32

$

30,756.15 $

844.52

2,208.64

104.26 $ 850.16

$

33,809.31 $

954.42 $

1,515.64 $ 1,515.64 $

50,349.93 84,173.45 $ 89,952.41
1,330.75 426.58
132,910.44
359,143.56 $

63,544.55 73,725.62
161.17
137,431.34

$

0.00 $

$

0.00 $

$

33,809.31 $

0.00 $ 0.00 $
954.42 $

$

310.11

$
$ 0.00 0.00 $

13,260.38 9,992.37
23,252.75 $ 166,837.17
190,089.92 $

22,486.21 7,115.84
29,912.16
131,195.82
161,107.98

1,515.64 $ 549,233.48 $ 298,539.32

-25 -

GILMER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds Local and other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Student Transportation Services Central Support Services other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 54,664.00 $ 426,336.79 299,136.53
$ 780,137.32 $

72,392.61 $ 72,392.61 $

29,426.00 29,426.00

$ 72,392.61 $

29,426.00

$ 744,495.97 $ 744,495.97 $ $ 35,641.35 $

72,392.61 $ 0.00 $

29,426.00 0.00

$ 35,641.35 $ 160,797.87
-9,225.83 2,876.53
$ 190,089.92 $

0.00 $ 0.00
0.00 $

0.00 0.00
0.00

See notes to the general purpose financial statements.

-26-

EXHIBIT"H" Page 1

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE If.

CHAPTER 1

EISENHOWER

EDUCATION OF EDUCATION OF

CHAPTER 2

MATHEMATICS

CHILDREN IN

DEPRIVED

BLOCK GRANT - AND SCIENCE

STATE SCHOOLS

CHILDREN

FLOW THROUGH EDUCATION

$

16,942.27 $

$

16,942.27 $

2,475.00 $

357,275.96 $

18,254.67 $

7,406.09

2,475.00 $

357,275.96 $ _ _ _1_8~,2_54_._67_ $ _ _ _7~,4_0_6._09_

$

2,777.80 $

8,197.46 5,913.61

53.40

$

16,942.27 $

$

0.00 $

2,475.00 $

319,353.18 $
1,143.01 35,228.83
908.46

606.80 35.68

2,475.00 $ 0.00 $

357,275.96 $ 0.00 $

18,204.08 $ 50.59

538.25
7,160.46 17.49

18,254.67 $ 0.00 $

7,716.20 -310.11

$

0.00 $

0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

-310.11 310.11

$

o.oo $ _ _ _ _ _o_.o_o $ ______0._00_$ _ _ _ _ _0_._00_$ _ _ _ _0._oo_

-27 -

GILMER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Student Transportation Services Central Support Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

$

85,005.00 $

21,481.00 $

$

85,005.00 $

21,481.00 $

8,330.08 8,330.08

$

71,585.10 $

22,966.56 $

6,455.44 3,524.82

250.00 45.00

3,197.34

242.30

1,269.97 749.25
6,310.86

$

85,005.00 $

23,261.56 $

$

0.00 $

-1,780.56 $

8,330.08 0.00

1,780.56

$

0.00 $

0.00 $

0.00

0.00

0.00 0.00

$

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-28-

EXHIBIT"H" Page2

PROJECT HEAD START

CHILDCARE AFTER SCHOOL
PROGRAM

JUVENILE JUSTICE AND DELINQUENCY PREVENTION ACT
IN-SCHOOL PROBATION

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 267,206.53 $ $ 267,206.53 $

27,991.92 $ 3,322.50
31,314.42 $

$ 156,482.61 $ 73,411.83

3,049.79 1,241,755.10 1,037,086.43

302,459.03

292,757.42

3,049.79 $ 1,700,696.74 $ 1,403,255.68

$ 141,214.28 $ 47,393.15
56,022.58

22,576.52

$ 267,206.53 $

$

0.00 $

779.47 30,425.60 $
109.35
31,314.42 $ 0.00 $

$

0.00 $

0.00

0.00 $ 0.00

$

0.00 $

0.00 $

$ 682,982.30 $ 537,614.93

3,049.79

97,663.70 51,872.72
925.95 65,634.77
109.35 849.10 35.68 767,072.49

27,118.88 32,031.90
56,514.84 6,493.61
678,673.06

3,049.79 $ 1,667,146.06 $ 1,338,447.22

0.00 $

33,550.68 $

64,808.46

1,780.56

272.12

0.00 $ 0.00

35,331.24 $ 161,107.98

65,080.58 87,706.91

-9,225.83 2,876.53

1,204.65 7,115.84

0.00 $ 190,089.92 $ 161,107.98

-29-

GILMER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1994

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 94-661-044

TOTALS JUNE 30 1994 JUNE 301 1993

$

557,257.70 $

557,257.70 $

69,653.08

$

49 500.00

345,841.96

395 341.96

147 877.41

$

49,500.00 $

903,099.66 $

952,599.66 $

217,530.49

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Contracts Payable Retainages Payable

$

49,500.00

$

Total Liabilities

$

49,500.00 $

FUND EQUITY

Fund Balances

Reserved

For State Capital Outlay Projects

$

Unreserved

Undesignated

$

0.00

Total Fund Equity

$

0.00 $

$ 1,500.00 290,782.00 345,841.96
638,123.96 $

49,500.00 1,500.00 $
290,782.00 345 841.96
687,623.96 $

118,945.55 98,584.94
217 530.49

264,975.70 $

264,975.70

0.00

0.00 $

0.00

264,975.70 $

264 975.70 $

0.00

Total Liabilities and Fund Equity

$

49,500.00 $

903,099.66 $

952,599.66 $

217,530.49

See notes to the general purpose financial statements.

-30-

GILMER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1994

EXHIBIT "J"

REVENUES

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 94-661-044

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 301 1993

State Funds Federal Funds Local and Other Funds

$

3,441,630.94 $ 3,441,630.94 $

147,877.41

$

49,500.00

49,500.00

2,881.73

2,881.73

160,733.29

Total Revenues

$

49,500.00 $

3,444,512.67 $ 3,494,012.67 $

308,610.70

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

$

2,003.75

$

2,003.75 $

159,504.41

$

3,633,523.22

3,633,523.22

1,062,658.57

263 830.87

Total Expenditures

$

2,003.75 $

3,633,523.22 $ 3,635,526.97 $ 1,485,993.85

Excess of Revenues over (under) Expenditures

$

47 496.25 $

-189 010.55 $ -141 514.30 $ -1,177.,383.15

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$

2,003.75 $

-49,500.00

453,986.25 $

455,990.00 $ -49 500.00

130,885.36

Total Other Financing Sources (Uses) $

-47,496.25 $

453,986.25 $

406,490.00 $

130,885.36

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

0.00 $

264,975.70 $

264,975.70 $ -1,046,497.79

FUND BALANCE JULY 1

0.00

0.00

0.00

1,046,497.79

FUND BALANCE JUNE 30

$

0.00 $

264,975.70 $

264,975.70 $

0.00

See notes to the general purpose financial statements.

-31 -

GILMER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE30 1994

EXHIBIT"K"

ASSETS Cash and Cash Equivalents

NON EXPENDABLE TRUST FUND
DR. EDWARD W. WATKINS
SCHOLARSHIP FUND

EXPENDABLE TRUST FUND SELF-INSURED EMPLOYEE BENEFIT FUND UNEMPLOYMENT COMPENSATION
FUND

TOTALS JUNE 30 1994 JUNE 30 1993

$

11331.52 $

28.798.27 $

40,129.79 $

41 668.01

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

10,000.00 1331.52 $
11 331.52 $

252.00

$ 28 798.27 28798.27 $

10,000.00 $ 30129.79 40129.79 $

10,000.00 31416.01 41416.01

Total Liabilities and Fund Equity

$

11,331.52 $

28,798.27 $

40,129.79 $

41,668.01

See notes to the general purpose financial statements.

-32-

GILMER COUNTY BOARD OF EQUQATION
QHEQ!.1I E OF FEDERAi FINANQIA! ASSISTANQ~
YEAR ENQEQ JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Through Office of Treasury and Fiscal Services National Forest Reserve Funds Through Georgia Department of Education Food and Nutrition Program Food Services Child and Adult Care Food Program 1994 Contract School Breakfast Program 1993 Grant 1994Grant National School Lunch Program 1993 Grant 1994 Grant Food Distribution Program

10.665 $ 25,847.07 $

10.558
10.553 10.553
10.555 10.555 10.550

1,953.26
110,885.61
313,497.92 52408.67

25,847.07 $ 25,847.07

(5)

1,953.26
6,705.59 99,793.53
2,395.03 305,718.04 N/A

1,953.26

(2)

110,885.61

(2)

313,497.92 $ (1)

744,495.97 (3) 1

Total U. S. Department of Agriculture

$ 504592.53 $

442412.52

452,183.86 $

744 495.97

Appalachian Regional Commission Through Office of the Governor Community Development Grant

23.002 $ 49500.00

49500.00

Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1993 Grant 1993 Carry-OVer 1994Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1993Regular 1993 carry-aver 1994Regular Education of Deprived Children 1992 carry-over 1993Regular 1993 Carry-Over 1994Regular Chapter2 Block Grant - Flow Through 1993 carry-over 1994Regular Trtlell Eisenhower Mathematics and Science Education 1993Regular 1994Regular Individuals with Disabilities Education Act n1evI,B Flow Through 1993Regular 1993 Carry-Over 1994Regular Preschool Program 1993 Regular 1993 Carry-Over 1994Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1993Grant 1994Grant

84.186 84.186 $ 84.186
84.009 84.009 84.009
84.010 84.010 84.010 84.010
84.151 84.151
84.164 84.164
84.027 84.027 84.027
84.173 84.173 84.173
84.048 84.048

$ 697.00 20,370.00
351.00 2,124.00 1,570.00 83,391.00 292,090.00
515.00 18,986.00
9,520.00
11,981.00 73,024.00
2,683.00 18,798.00
6,041.49

1,371.04 697.00 $
13,199.00

697.00 $ 16,245.27

697.00 16,245.27

1,176.37 351.00 650.00
1,570.00 42,271.17 83,391.00 210,084.00
515.00 17,739.67

351.00 2,124.00
1,570.00
83,391.00 272,314.96
515.00 17,739.67

351.00 2,124.00
1,570.00
83,391.00 2n,J14.96
515.00 17,739.67

-310.11 7,130.00

-310.11 7,716.20

7,716.20

6,620.10 11,981.00 61,381.00
680.79 2,683.00 18,798.00

11,981.00 73,024.00
2,683.00 18,798.00

11,981.00 73,024.00
3,761.56 (3) 19,500.00 (3)

27,745.66

(4)

1,514.60

6,041.49

(4)

- 33 -

GILMER COUNTY BOARD OF EDUCATION
SCHEDULE Of FEDERAL FJNANCIAJ ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U.S. Department of

Through Georgia Department of Education

Vocational Education - Basic Grants to States

High School Program

Community Based Organizations

Vocational Educational Support

Program

1994 Contract

84.174 $

15000.00 $

15 000.00 $ 15000.00

(4)

Total U. S. Department of Education

$ 557141.49 $

526239.29 $ 529881.48 $

510930.66

Health and Human SelVices, U. S. Department of Through Georgia Department of Human Resources Child Care After School Program 1994 Contract Through Georgia Department of Medical Assistance Physicals at School 1994Grant Through Ninth District Opportunity, Incorporated Project Head Start 1993Grant 1994Grant 1994 Pre-Kindergarten Grant

93.037 $
93.778
93.600 93.600 93.600

45,000.00 $
2,049.06
223,173.00 135406.00

27,100.00 $

27,991.92 $

31,314.42 (3)

2,049.06
64,485.45 133,018.43
49116.25

2,049.06
51,262.54 140,816.29 75127.70

(4)
51,262.54 140,816.29
75127.70

Total U. S. Department of Health and Human Services
Justice, u..s. Department of
Through Office of the Governor Juvenile Justice and Delinquency Prevention Act In-School Probation 1994 Contract

$ 405628.06 $

16.540 $

3719.44 $

275749.19 $ 297247.51 $

298520.95

1 534.15 $

3049.79 $

3049.79

Labor, U. S. Department of Through North Georgia Private Industry Council Job Training Partnership Act Contract No. 93020205 Contract No. 94012805

17.250 17.250 $

10584.37

7,665.19 $

2,927.98 $ 5402.10

2,927.98 5402.10

Total U. S. Department of Labor

$ 10584.37 $

7 665.19 $

8330.08 $

8330.08

Total Federal Financial Assistance

$ 1 531 165.89 $

1 253 600.34 $ 1340192.72 $ 1 565327.45

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 distributed to the system by the Georgia Department of Education. The value of commodities is not included in the system's general purpose financial statements.
(2) Expenditures for the School Breakfast Program and the Child and Adult Care Food Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.
(5) Funds earned on this program do not require reporting of expenditures.

See notes to the general purpose financial statements.

- 34.

GILMER COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994

SCHEDULE"2"

INTEREST BEARING ACCOUNTS
Bank of Ellijay, Ellijay, Georgia
N.O.W. Accounts (3.14%) N.O.W. Account (3.47%) N.O.W. Account (3.77%)
First National Bank of Gilmer County, Ellijay, Georgia
N.O.W. Account (3.04%) N.O.W. Account (3.75%)

$ 763,472.07 11,331.52 28,798.27 $ 803,601.86

$ 107,257.70 329,325.89

436,583.59

$ 1,240,185.45

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

GILMER CO\lNTY BOARD Of EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE"3"

Education, Georgia Department d FoodService School Breakfast Program National School Lunch Program Vocational Education S-Funds Federal Funds L-.y Programs Algebra Clossrooms Computers in Classrooms Federal Programs Drug-Free Schools and Communities Act ESEA Chapter 1 Education of ChHdren in State Schools Education of Deprived Children Titlell Individuals - Disabilities Educ:ation Act-Title VI, B Flow Through
Gilmer County Parks and Recreation Reimbursement for Use of Buses
Gilmer County Tax Commissioner County Wide Bond Tax County Wide School Tax
Georgia State Financing and Investment Commission Reimbursement on Construction Project
Human Resources, Georgia Department of Child Care After School Program
Ninth Distric:t ~nity, lncorporaled Project Head Start -Vehicle Reimbu"""""'1
North Georgia Private Industry Council Job Training Partnership Act
North Georgia Regional Educational Service Agency Motor Vehicte Reimbursement Rent
Dffice d lhe Governor Community Development Grant .l<Mmile Justice nd Deiinquency Prevention Act In-School Probation
Various Sources Chilcf Cara Insurance Reimbursement Reimbu"""""'1 d Expense

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

10,643.89 4,526.89
164.05

11,092.08 7,779.81!,
1,990.70 40,058.91
3,047.46
1,474.00 62,230.96
586.20
11,643.00

329,768.43

11,092.08 7,779.81!,
10,643.89 4,526.89
1,990.70 40,058.91
3,047.46

1,474.00 62.230.96
586.20

11,643.00

164.05

38,150.07

38,150.07 329,768.43

601.98

345,841.96 891.92 33,809.31
5,402.10

345,841.96
891.92
33,809.31 601.98
5,402.10

596.60 2,600.00
112.50 1,991.62

1,515.64 62.50

49,500.00

596.60 2,600.00
49,500.00 1,515.64
62.50 112.50 1,991.62

351,005.96 $ 181,584.66 $ 395,341.96 $ 38,150.07 $ 966,082.65

See notes lo the general purpose financial statements.

37

GILMER COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30 1994

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

TOTAL DEBT SERVICE

TOTAL INTEREST

$ 369,407.50 $ 244,407.50

395,772.50

235,772.50

419,866.25

224,866.25

441,635.00

211,635.00

465,835.00

195,835.00

496,957.50

176,957.50

500,467.50

155,467.50

502,072.50

132,072.50

506,585.00

106,585.00

509,095.00

79,095.00

514,327.50

49,327.50

516,875.00

16,875.00

$ 5,638,896.25 $ 1,828,896.25

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Retired During Period

Bonds Payable at June 30, 1994

MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date

See notes to the general purpose financial statements. - 38 -

SCHEDULE 4

TOTAL PRINCIPAL

1991 ISSUE

INTEREST

PRINCIPAL

19891SSUE

INTEREST

PRINCIPAL

$ 125,000.00 $ 150,317.50 $ 45,000.00 $

160,000.00

147,422.50

60,000.00

195,000.00

143,586.25

75,000.00

230,000.00

138,775.00

90,000.00

270,000.00

132,970.Q0

105,000.00

320,000.00

125,855.00

130,000.00

345,000.00

117,550.00

140,000.00

370,000.00

108,447.50

150,000.00

400,000.00

98,485.00

160,000.00

430,000.00

79,095.00

430,000.00

465,000.00

49,327.50

465,000.00

500,000.00

16,875.00

500,000.00

94,090.00 $ 88,350.00 81,280.00 72,860.00 62,865.00 51,102.50 37,917.50 23,625.00
8,100.00

80,000.00 100,000.00 120,000.00 140,000.00 165,000.00 190,000.00 205,000.00 220,000.00 240,000.00

$ 3,810,000.00 $ 1,308,706.25 $ 2,350,000.00 $ 520,190.00 $ 1,460,000.00

TOTAL

1991 ISSUE

1989 ISSUE

$ 3,900,000.00 $ 2,380,000.00 $ 1,520,000.00

90,000.00

30,000.00

60,000.00

$ 3,810,000.00 $ 2,350,000.00 $ 1,460,000.00

JAN 1-JUL 1 JUL 1

JAN 1 -JUL 1 JUL 1

- 39 -

GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994

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 Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Governor's Emergency Funds (1) Innovative Programs Mentor Teacher Program Preschool Handicapped Program Special Education Low Incidence Grant Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computars in Classrooms
Georgia Public Telecommunications Commission Lottery Program Distant Leaming
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
OTHER Education, Georgia Department of Reimbursement for Supplies

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 4,667,378.00 609,918.00 123,050.00 201,816.00 63,783.00
1,371,422.00
366,088.00 120,751.00 161,678.00 276,362.00
66,651.00 241,298.00 -1, 111,423.00 448,971.00
$ 35,371.37
2,000.00 4,980.00 4,560.00
15,247.00

54,664.00 29,426.00

1,850.00 15,771.62

1,990.70 67,406.91

$ 4,667,378.00 609,918.00 123,050.00 201,816.00 63,783.00
1,371,422.00
366,088.00 120,751.00 161,678.00 276,362.00
66,651.00 241,298.00 -1,111,423.00 448,971.00
54,664.00 35,371.37
2,000.00 4,980.00 4,560.00 29,426.00 15,247.00
1,850.00 15,771.62
1,990.70 67,406.91

2,995.00

2,995.00

$ 3,441,630.94

3,441,630.94

500.00

500.00

7.688,022.99 $ 156,482.61 $ 3,441,630.94 $ 11 266136.54

(1) Ellijay Middle School - 1994 Georgia School of Excellence.

See notes to the general purpose financial statements.

- 40 -

GILMER COUNTY BOARD OF EDiJCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30 1994

SCHEDULE"6"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
other Insurance Recovery Interest Earned Jury Duty Fees Lost and Damaged Books Reimbursement for Paving Gilmer County Board of Commissioners Revenue in Lieu of Taxes National Flood Control Funds Rent Sales Breakfast Lunches School Assets Shared Service Contributions Fannin County Board of Education Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTAL

$ 3,613,875.10 1,634.09
18,865.87

$ 401,234.38 385.02

$ 401,234.38 3,613,875.10 1,634.09 19,250.89

4,595.60 11,013.47 $
2,862.50 882.25

4,818.78 $

2,881.73

5,005.32 $

488.10

4,595.60 24,205.40 2.862.50
882.25

9,421.57

2,479.81 14,300.00

17.01

18,478.36 275,839.39

8,402.51 7,161.54 12,286.58

3,322.50

9,421.57
2,479.81 14,300.00
18,478.36 275,839.39
17.01
8,402.51 7,161.54 15,609.08

$ 3,707,797.90 $ 302,459.03 $ 2,881.73 $ 406,624.72 $

488.10 $ 4,420.249.48

See notes to the general purpose financial statements.

- 41 -

GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES !;!Y OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

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 Property Services Insurance Communications Commodity Hauling Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Interest Expense Other Expenditures
Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 7,082,920.82 $ 2,089,623.54 34,894.55 69,073.04 7,969.98 33,779.68 130,567.00 1,197.50 20,167.50 39,100.06 32,339.63
28,255.70 388,469.40 284,642.30
126,172.93 23,122.85 41,409.79
7,040.55

810,869.14 $ 280,235.58
4,256.90 63,603.96
242.30
300.72 3,480.74 1,402.56 86,714.87 25,880.27 315,657.94 1,062.83
757.00
589.95

7,893,789.96 2,369,859.12
39,151.45 132,677.00
7,969.98 33,779.68 130,809.30
1,197.50 20,167.50 39,100.06 32,640.35
3,480.74 29,658.26 475,184.27 310,522.57 315,657.94 127,235.76 23,879.85 41,409.79
7,630.50

143,092.88 62,836.40 2,400.00 182,558.00

72,091.30

143,092.88 62,836.40 2,400.00 254,649.30

Total Expenditures

$ 10,831,634.10 $ 1,667,146.06 $ 12,498,780.16

See notes to the general purpose financial statements. - 42 -

GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE "8"

EXPENDITURES
Operating Costs Supplies
Nonoperating Costs Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

G.P.T.C. DISTANT LEARNING

TOTAL

$

1,990.70 $

4,670.11

$

6,660.81

62,736.80 $

2,995.00

65,731.80

Total Expenditures

$

1 990.70 $

67 406.91 $

2,995.00 $

72,392.61

See notes to the general purpose financial statements. - 43 -

GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30 1994
EXPENDITURES
Operating Costs Unemployment Compensation Claims

SCHEDULE "9"
$ ==1:e6=8=7=.7=5

See notes to the general purpose financial statements. - 44 -

GILMER COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE "10"

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 for Staff Development Programs in Excess of Total Staff Development Allotment for: Cost of Instruction
Expenditures per Aucf,t
Amount of Underexpendlture for Total Allotment

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 5,842,767.00 $

64,476.00

$ 6,175,379.71 281,618.41 $
$ 6,456,998.12 $

66,255.49 66,255.49

-82,297.68

$ 6,374,700.44 $

-7,949.10 58,306.39

$

0.00 $

6,169.61

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

GIi MfR COUNTY BQA.RQ Of fnLK"::AJIQN
ANALYSIS OF MINIMUM l;XPE;NQITURE RE=QlllREMENTS - BY PROGRAM GENERAi FUND QUALl1Y BASIC EDUCATIQN PROGRAMS YEAR fNQfQ llJNE 30 1994

GENERAL AND CAREER EDUCATIO~ EBOOB:AMS
Kindergarten (i Grades 1 3 (1
Sub-Total- K-3 Grades 4 - 5 (") Grades 6 - 8 (") Grades9-12 (1
High School Laboratories Ci Vocational Education Laboratories Ci
Total General and career Education Programs SPECIAL EDUCATION PROGRAMS
Regular Programs category I(") Category II (1 Category Ill (1 Category IV (1 Itinerant Supplemental Speech Sub-Total - Regular Category V (G;ited) (") Total Special Education Programs
R!;M!;;QIAI I;;DUCATION PROGRAM (*) MFQIA. CENTER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF QeVEI QJ:MENT PROGRAMS (1) Cost r1 Instruction Professional Development
Total Staff Development
(i Identifies Thirteen Weighted Programs.
Note: (1) $7,415.00 of the allotment for Professional Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182
See notes to the general purpose financial statements.

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

_.l!,_

ORIGINAL

MID-TERM

REQUIRED

441,925.00 1,328,065.00 1,769,990.00
651,056.00 1,032,854.00
652,484.00 254,852.00 306,142.00 4 667,378.00

90 $ 90 90 90 90 90

397,732.50 $ 1,195,258.50 1,592,991.00 $
585,950.40 929,568.60 587,235.60 229,366.80 275,527.80 4 200 640.20 $

0.00 $

397,732.50

1,195 258.50

0.00 $ 1,592,991.00

585,950.40

108,272.25

1,037,840.85

132,332.75

719,566.35

229,366.80

275 527.80

240 605.00 $ 4441 245.20

524,324.00

471,891.60 $

0.00 $

471,891.60

524,324.00 90 $ 85,594.00 90
609,918.00 123,050.00 90 $ 201,816.00 90 $

471,891.60 $ 77,034.60
548,926.20 $ 110,745.00 $ 181,634.40 $

0.00 $
0.00 $ 0.00 $ 0.00 $

47-1,891.60 77 034.60
548 926.20 110 745.00 181 634.40

5,602,162.00

5,041,945.80 $

240,605.00 $ 5,282 550.80

21,766.00 100 $ 42 017.00 100

21,766.00 $ 42 017.00

63,783.00

63,783.00 $

693.00 $

22,459.00 42017.00

693.00 $

64476.00

$ 5,665,945.00

5,105,728.80 $

241,298.00 $ 5,347 026.80

- 46 -

SCHEDULE "11"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

387,740.70 $

539,813.43

1 158 818.40

1,396 948.46

1,546,559.10 $ 1,936,761.89 $

568,642.50

748,545.42

994,199.40

1,007,635.01

673,785.40

715,849.05

219,665.70

296,120.72

240 922.80

407,927.41

$ 4243 774.90 $ 5112,839.50 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

9,991.80 $ 36,440.10 46,431.90 $ 17,307.90 43,641.45 45,782.95
9,701.10 34 605.00 197 470.30 $

11,463.47 38,236.82 49,700.29 $ 20,579.99 46,366.87 46,496.30 11,523.80 37 807.62 212,474.87 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

22,494.60 $ 110,744.10 275,935.50 49,987.80

76,231.82 73,877.88 443,735.36 10,145.95

459,162.00 $ 74 983.50
534145.50 $ 108,871.20 $ 141,854.40 $

603,991.01 $ 75 098.49 $
679,089.50 149,759.69 $ 233 691.02 $

5,028,646.00 $ 6,175,379.71 $

0.00 0.00
0.00 0.00
0.00

1,108.80 $ 2,278.80 7,221.60 1,644.30
172.80 303.30
12,729.60 $
2,051.10
14,780.70 $
1,873.80 $
39 780.00 $

13,191.18 366.43 420.10
13,977.71 $ 2,963.56 $
16,941.27 1,779.61 $
50,422.66 $

253,904.80 $

281,618.41 $

0.00 0.00
94.19 0.00
94.19

5,028,646.00 $ 6175,379.71 $

0.00

22,459.00 $ 42,017.00

30,408.10 $ 35,847.39

64,476.00 $

66,255.49 $

318,380.80 $

347,873.90 $

0.00 6169.61 6,169.61
6,263.80

- 47 -

GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994

SCHEDULE "12''

BOARD MEMBER ADDRESS
Mr. Michael Bramlett, Chairman () Route 8, Box 2821 Ellijay, Georgia 30540
Mr. Wayne Davenport() Route 2, Box 1635 Ellijay, Georgia 30540
Mr. James Bill Parks() Route 4, Box 424 Ellijay, Georgia 30540
Mrs. Rebecca Sette! () Route 4, Box 241-B Ellijay, Georgia 30540
Mr. Ronnie Thompson () P. 0. Box468 Ellijay, Georgia 30540

COMPENSATION

TRAVEL

$

1,400.00

1,300.00

1,400.00

1,200.00 $

1,319.98

1,350.00

$

6,650.00 $

1,319.98

() Denotes Board Members Serving as of June 30, 1994

See notes to the general purpose financial statements. - 48 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 4, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Gilmer 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 financial statements of the Gilmer County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 4, 1995. 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, 1994, 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 Gilmer 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.
94CRL-10

The results of our tests indicate that, with respect to the items tested, the Gilmer County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 4, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Gilmer 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 Gilmer County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 4, 1995. 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 Gilmer County Board of Education's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994:

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-40

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

Re~

CLV:gp 94CRL-40

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 4, 1995

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

SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Gilmer County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 4, 1995. 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 Gilmer 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 ofEffort, and/or Earmarking

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994. The management of the Gilmer County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office 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 Gilmer County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, 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 Gilmer County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other .Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May4, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Gilmer County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 4, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1994 general purpose financial statements of the Gilmer County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(I) Types of Services Allowed or Unallowed

(2) Eligibility

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

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Gilmer County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 4, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Gilmer 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 Gilmer County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 4, 1995. 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, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit of the general purpose financial statements of the Gilmer County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Gilmer County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute,
94ICL-3

assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(I) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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

As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:

General Fixed Assets

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

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all

94ICL-3

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 Gilmer County Board of Education's financial statements and this report does not affect our report thereon dated May 4, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 94ICL-3

CIAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 4, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Gilmer County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Gilmer County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 4, 1995. 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 Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 4, 1995.
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 ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Gilmer 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, 1994, 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, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular
94ICL-5

A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated May 4, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) 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 ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, I 994, the Gilmer County Board of Education expended 51% of its total Federal financial assistance under major Federal financial assistance programs.

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We performed tests of controls, as required by O1\IB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other .Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
7~
Claude L. Vickers State Auditor
CLV:gp 94ICL-5

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Deficit Fund Balance Financial Statements Finding Resolved Audit Control Number 6611-93-02
The audit report for the year ended June 30, 1993, reported a $3,776.78 deficit in the General Fund. For the year under review, the deficit was fimded and the Board ended the year with an unreserved, undesignated fund balance.
AUDIT FOLLOW-UP/RESOLUTION Outstanding Loan Financial Statements Finding Resolved Audit Control Number 6611-93~03
The audit report for the year ended June 30, 1993, disclosed that the General Fund had an unpaid loan outstanding in the amount of $850,000.00 on December 31, 1992, which was in violation of Article IX, Section V, Paragraph V of the Constitution of the State ofGeorgia. At December 31, 1993, the Board did not have any outstanding loans.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6611-93-01
The audit report for the year ended June 30, 1993, noted that the management of the Gilmer County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.

GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $94.19 Audit Control Number 6611-94-01
For the year under review, the Gilmer County Board ofEducation had an underexpenditure of Quality Basic Education (QBE) funds of $94. I9 for the operations portion of the Remedial Education Program. This questioned cost resulted from management's failure to properly monitor expenditures for this program. The underexpenditure of$94.19 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $6,169.61 Audit Control Number 6611-94-02
For the year under review, the Gilmer County Board of Education reported to the Georgia Department of Education on DE Form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $30,408.10 for the Staff Development - Cost of Instruction Program. A review of the underlying source documentation for the Quality Basic Education (QBE) Program disclosed that the Board expended more than 15% ofits initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost of Instruction Program purposes resulting in an underexpenditure of $6,169.61 for the minimum required allotment of$42,0l 7.00 for the StaffDevelopment - Professional Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation ofOfficial Code ofGeorgia 20-2-182. The underexpenditure of$6,169.61 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
Note: The Gilmer County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.