GA A Category V (Gifted) Total Special Education Programs REMEDIAL EDUCATION PROGRAM(*) Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs Total Thirteen Weighted and Media Center Programs STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development Programs ci Identifies Thirteen Weighted Programs. ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 1,044,087.00 $ 939,678.30 $ 2,419,837.00 2,177,853.30 $ 3,463,924.00 90 $ 3,117,531.60 $ 1,239,975.00 90 1,115,977.50 2,111,279.00 90 1,900,151.10 1,103,879.00 90 993,491.10 825,546.00 90 742,991.40 507,753.00 90 456,977.70 $ 9,252,356.00 $ 8,327,120.40 $ 210,834.00 210,834.00 210,834.00 421,668.00 $ 1,562,052.00 $ 1,405,846.80 $ 0.00 $ 1,562,052.00 79,717.00 $ 1,641,769.00 $ 236,016.00 $ 11,130,141.00 90 $ 1,405,846.80 $ 90 71,745.30 $ 1,477,592.10 $ 90 $ 212,414.40 $ $ 10,017,126.90 $ 0.00 0.00 0.00 421,668.00 $ 316,541.00 90 $ 284,886.90 $ 79,332.00 90 71,398.80 $ 395,873.00 $ 356,285.70 $ 0.00 0.00 $ 11,526,014.00 $ 10,373,412.60 $ 421,668.00 $ 31,674.00 96,730.00 $ 31,674.00 $ 96,730.00 $ 128,404.00 100 $ 128,404.00 $ 0.00 0.00 0.00 See notes to the general purpose financial statements. - 42 - SCHEDULE "12" , TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 1,150,512.30 $ 1,270,543.41 $ 39,270.97 $ 1,309,814.38 2,177,853.30 2,363,068.04 119,888.60 2,482,956.64 $ 3,328,365.60 $ 3,633,611.45 $ 159,159.57 $ 3,792,771.02 $ 0.00 1,326,811.50 1,429,525.81 61,166.78 1,490,692.59 0.00 1,900,151.10 2, 135, 163.04 101,351.48 2,236,514.52 0.00 993,491.10 1,028,483.74 72,866.52 1,101,350.26 0.00 742,991.40 1,080, 124.94 31,411.11 1,111,536.05 0.00 456,977.70 580,596.35 57,814.65 638,411.00 0.00 $ 8,748,788.40 $ 9,887,505.33 $ 483,770.11 $ 10,371,275.44 $ 1,405,846.80 $ 305,036.39 $ 1,318,014.37 2,329.03 4,512.98 $ 34,273.01 2,545.64 309,549.37 1,352,287.38 4,874.67 $ 1,405,846.80 $ 1,625,379.79 $ 41,331.63 $ 1,666,711.42 0.00 71,745.30 88,055.21 3,349.14 91,404.35 0.00 $ 1,477,592.10 $ 1,713,435.00 $ 44,680.77 $ 1,758,115.77 $ 212,414.40 $ 237,971.81 $ 3,996.97 $ 241,968.78 0.00 $ 10,438,794.90 $ 11,838,912.14 $ 532,447.85 $ 12,371,359.99 $ 284,886.90 $ 518,462.79 $ 518,462.79 0.00 71,398.80 $ 79,597.99 79,597.99 0.00 $ 356,285.70 $ 518,462.79 $ 79,597.99 $ 598,060.78 $ 10,795,080.60 $ 12,357,374.93 $ 612,045.84 $ 12,969,420.77 $ 0.00 $ 31,674.00 96,730.00 $ ===12=8=,4=04==0=0 $ 85,210.96 $ 85,210.96 43,688.17 43,688.17 $ 128,899.13 $ 128,899.13 $======0=.0=0 - 43 - GORDON COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30. 1996 SCHEDULE "13" BOARD MEMBER ADDRESS Mr. Barry Wright, Chairman (*) 337 Langston Drive, N.E. Calhoun, Georgia 30701 Mr. Danny Bingham (*) 198 Corinth Road, N.E. Calhoun, Georgia 30701 Ms. Amogene Blackstock (*) 1519 Nickelsville Road, N.E. Resaca, Georgia 30735 Mr. Jerry Casey (*) 881 Covington Bridge Road, S.E. Fairmount, Georgia 30139 Mr. Bobby Hall (*) 186 Hunt Bend Road, N.W. Calhoun, Georgia 30701 Mr. Jack Miller (*) 640 Miller Loop, S.W. Plainville, Georgia 30733 Mr. Johnny Owens (*) 12453 Fairmount Highway, S.E. Fairmount, Georgia 30139 (*) Denotes Board Members Serving as of June 30, 1996 COMPENSATION TRAVEL $ 1,500.00 $ 1,420.13 1,550.00 2,008.52 1,650.00 1,914.95 1,600.00 1,656.87 1,900.00 1,869.14 1,800.00 2,331.05 1,400.00 824.12 $ 11,400.00 $ ====1=2=,0=24=.7=8 See notes to the general purpose financial statements. - 44 - 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 June 6, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Gordon 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 ofthe Gordon County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to Gordon County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 96CRL-10 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a maUer of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:dt 96CRL-10 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 6, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Gordon 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 ofthe Gordon County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have applied procedures to test the Gordon County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996: (1) Political Activity (5) Allowable Costs/Cost Principles (2) Civil Rights (6) Audit Follow-Up/Resolution (3) Cash Management (7) Administrative Requirements (4) Federal Financial Reports Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Gordon County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 96CRL-40 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that Gordon 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 ofpublic record. Respectfully submitted, CLV:dt 96CRL-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 June 6, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Gordon County Board of Education SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe Gordon County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Gordon County Board of Education's compliance with the requirements governing: (1) Types of Services Allowed or Unallowed (5) Applicable Special Tests and Provisions (2) Eligibility (3) Matching, Level of Effort, and/or Earmarking (6) Other Requirement Claims for Advances and Reimbursements (4) Reporting These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the Gordon County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. 96CRL-80 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 Gordon County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Gordon County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, L~ Claude L. Vickers State Auditor CLV:dt 96CRL-80 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 6, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members ofthe Gordon County Board of Education SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe Gordon County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. In connection with our audit of the fiscal year 1996 general purpose financial statements of the Gordon County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing: (1) Types of Services Allowed or Unallowed (2) Eligibility Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Gordon County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 96CRL-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 Gordon County Board of Education had not complied, in alf 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 notintended to limit the distribution ofthis report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:dt 96CRL-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 June 6, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education and Superintendent and Members of the Gordon 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 ofthe Gordon County Board of Education as ofand for the year ended June 30, 1996, and have issued our report thereon dated June 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of the Gordon County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 96ICL-3 In planning and performing our audit ofthe general purpose financial statements ofthe Gordon County Board ofEducation for the year ended June 30, 1996, we obtained an understanding ofthe internal control structure. Wi~ respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. As described in the Schedule of Findings and Improper or Questioned Costs, a reportable condition was noted in the following control category: General Fixed Assets A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness. This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the Gordon County Board of Education's financial statements and this report does not affect our report thereon dated June 6, 1997. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:dt 96ICL-3 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 6, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members ofthe Gordon 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 Gordon County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated June 6, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Gordon County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 6, 1997. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Gordon County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the intemai control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 6, 1997. 96ICL-5 The management of the Gordon 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 of inherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purposes of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: GENERAL REQUIREMENTS SPECIFIC REQUIREMENTS (1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (1) Types of Services Allowed or Unallowed (2) Eligibility (3) Matching, Level of Effort, and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Audit Follow-Up/Resolution (7) Administrative Requirements (5) Applicable Special Tests and Provisions (6) Other Requirement Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1996, the Gordon County Board of Education expended 57% of its total Federal financial assistance under major Federal financial assistance programs. We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which 96ICL-5 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 d,o 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 ofperforming their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:dt 96ICL-5 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS GORDON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30. 1996 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6641-93-02 The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $28,768.66 for the StaffDevelopment Programs - Professional Development Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,394.13 Audit Control Number 6641-94-02 The audit report for the year ended June 30, 1994, disclosed that the Staff Development - Professional Development Stipends Program had an underexpenditure of Quality Basic Education (QBE) funds of $1,394.13 for the required minimum allotment. In the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. AUDIT FOLLOW-UP/RESOLUTION Failure to Comply with Davis-Bacon Act Federal Financial Assistance Finding Resolved Audit Control Number 6641-95-01 The audit report for the year ended June 30, 1995, stated that the Board failed to comply with provisions of the Davis-Bacon Act. In the year under review, the Board did not have any construction contracts funded with Federal funds. However, the Board implemented procedures to ensure that future construction contracts funded with Federal funds are in compliance with provisions of the Davis-Bacon Act. - 1- GORDON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1996 PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6641-93-01 The audit report for the year ended June 30, 1995, noted that the management of the Gordon County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ' -2- SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS GORDON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED JUNE 30, 1996 AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,394.13 Audit Control Number 6641-94-02 We concur with this finding. This finding will be resolved by Georgia Department of Education through a future increase in Board's local fair share portion of QBE allotments. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6641-93-01 We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.