Audit report, Grady County Board of Education, Cairo, Georgia, year ended June 30, 1996

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AUDIT REPORT GRADY COUNTY BOARD OF EDUCATION
CAIRO, GEORGIA YEAR ENDED JUNE 30, 1996

STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA. GEORGIA 30334

GRADY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

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

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES. EXPENDITURES

AND CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

34

GRADY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

36

2 CASH AND CASH EQUIVALENTS

38

3 ACCOUNTS RECEIVABLE

39

SCHEDULE OF REVENUE

4

STATE

40

5

TAXES AND OTHER

41

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

43

7

LOTTERY PROGRAMS

44

8

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUNDS

46

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

47

10

BY PROGRAM

48

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

50

SECTION II
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 2, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Grady County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Grady County Board of Education, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
96ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, 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, 1995, were improperly recorded in the year ended June 30, 1996. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Grady County Board of Education as of June 30, 1996, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated April 2, 1997, on our consideration of the Board's internal control structure and a report dated April 2, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Grady County Board of Education taken as a whole. The combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Grady 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 effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:cm 96ARL-13

GRADY COUNTY BOARD OF EDUCATION - 1-

GRADY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1996

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 1,843,748.04 $

643,668.90 $ 1,478,158.18

107,115.85

341,242.59

134,761.75

94,455.75

33,013.41 8,922.88

Total Assets

$ 2,045,319.64 $ 1,026,847.78 $ 1,612,919.93

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Unearned Lottery Funds
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

120,392.15 $

133,221.09 $

80,138.01

55.00

268,273.54

7,844.97

51,948.60

566,004.45

237,393.19

$

128,292.12 $

453,443.23 $

883,535.65

$

19,292.61

$

$

19,292.61 $

1,897,734.91

$ 1,917,027.52 $

33,013.41 8,922.88 $
41,936.29 $
531,468.26
573,404.55 $

67.48 67.48 729,316.80 729,384.28

$ 2,045,319.64 $ 1,026,847.78 $ 1,612,919.93..

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

EXHIBIT "A"

FIDUCIARY FUND TYPES TRUST FUNDS

TOTALS

(Memorandum Only)

JUNE 30, 1996

JUNE 30, 1995

$

90,937.74 $ 4,056,512.86 $ 3,589,250.62

583,120.19

857,864.73

94,455.75

43,850.00

33,013.41 8,922.88

24,824.59 9,624.28

$

90,937.74 $ 4,776,025.09 $ 4,525,414.22

$

333,751.25 $

268,328.54

59,793.57

566,004.45

237,393.19

$

1,465,271.00 $

316,516.70 203,088.10 117,157.37
17,539.01
89,670.57
743,971.75

$

7,500.00 $

7,500.00 $

7,500.00

19,292.61

29,521.68

33,013.41 8,922.88 67.48

24,824.59 9,624.28 67.48

$

7,500.00 $

68,796.38 $

71,538.03

83,437.74

3,241,957.71

3,709,904.44

$

90,937.74 $ 3,310,754.09 $ 3,781,442.47

$

90,937.74 $

4,776,025.09 $

4,525,414.22

-3-

GRADY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Initial Contribution

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 14,991,808.62 $ 110,206.81
4,156,143.40

908,331.97 $ 2,725,524.00
393,492.87

1,369,029.60

$ 19,258, 158.83 $ 4,027,348.84 $ 1,369,029.60

$ 12,249,133.87 $ 1,729,149.15

545,961.21 768,879.73 680,151.00 168,382.22 1,111,288.31 118,299.29 1,632,102.71 771,337.89
85,872.85 1,326.97
24,573.01

157,997.36 215,794.26
10,660.95 103,084.84
3,861.00
2,228.69 17,826.56
129,850.80 1,620,120.61

252,419.17 38,103.61

74,140.31 $ 2,616,423.96

$ 18,447,831.84 $ 4,064,714.53 $ 2,616,423.96

$

810,326.99 $

-37,365.69 $ -1,247,394.36

$

$

-796,017.13

$

-796,017.13 $

221.23 $

795,795.90

221.23 $

795,795.90

$

14,309.86 $

1,902,717.66

-37, 144.46 $ -451,598.46

603,061.59

1,180,982.74

8,188.82 -701.40

FUND BALANCE JUNE 30

$ 1,917,027.52 $

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

-4 -

573,404.55 $ ===7=29=,3=84=.2=8

EXHIBIT"B"

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30, 1996

JUNE 30, 1995

$ 17,269,170.19

$

2,835,730.81

4,549,636.27 $ _ _ _...;.6,..;;,5.;;.97;....;.;.31_;__

17,269,170.19 $ 2,835,730.81 4,556,233.58

14,928,270.94 2,695,117.01 3,986,099.00

$ 24,654,537.27 $

6 597.31 $_;;;;..2.;4..,i.6;;6_1;;,_1_3,_4_.5-'8-'- $ 21,609,486.95

$ 13,978,283.02

703,958.57 984,673.99 690,811.95 271,467.06 1,115,149.31 118,299.29 1,634,331.40 789,164.45
85,872.85 131,177.77 1,644,693.62

326,559.48 $ 2,654,527.57

$ 25,128,970.33 $

$

-474,433.06 $

$ 13,978,283.02 $ 12,783,771.54

10,048.79

703,958.57 984,673.99 690,811.95 271,467.06 1,115,149.31 118,299.29 1,634,331.40 789,164.45
85,872.85 131,177.77 1,644,693.62
336,608.27 2,654,527.57

614,776.63 932,019.50 670,480.78 252,160.27 989,576.91 110,416.16 1,495,908.36 727,318.49
83,545.55 73,918.51 1,297,654.15 193,196.95 241,171.26 543,070.76

10,048.79 $ 25,139,019.12 $ 21,008,985.82

-3 451.48 $

-477,884.54 $

600,501.13

$

796,017.13

-796,017.13

$

0.00

$

-474,433.06 $

3,686,761.99

8,188.82 -701.40

$

796,017.13 $

562,468.63

-796,017.13

-562,468.63

$

0.00 $

0.00

-3,451.48 $ 87,077.13

-477,884.54 $ 3,773,839.12

600,501.13 3,146,714.65

8,188.82 -701.40

3,050.17 552.64
23,020.53

$ 3,219,816.35 $

83,625.65 $

3,303,442.00 $

3,773,839.12

-5-

GRADY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERALANDSPEC~LREVENUEFUNDS
YEAR ENDED JUNE 30. 1996

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 14,452,909.00 $ 14,991,808.62

110,206.81

3,978,582.32

4,156,143.40

Total Revenues

$ 18,431,491.32 $ 19,258,158.83

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

$ 12,030,643.82 $ 12,249,133.87

522,900.00 706,537.50 646,285.00 167,600.00 1 ,049,322.50 116,975.00 1,571,807.50 744,550.00
84,900.00
253,000.00 39,400.00

545,961.21 768,879.73 680,151.00 168,382.22 1,111,288.31 118,299.29 1,632,102.71 771,337.89
85,872.85 1,326.97
24,573.01 252,419.17
38,103.61

Total Expenditures

$ 17,933,921.32 $ 18,447,831.84

Excess of Revenues over (under) Expenditures

$ 497,570.00 $ 810,326.99

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

2,430.00

-500,000.00 $ -796,017.13

Total Other Financing Sources (Uses)

$ -497,570.00 $ -796,017.13

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

0.00 $

14,309.86

FUND BALANCE JULY 1, 1995

1,816,682.14

1,902,717.66

FUND BALANCE JUNE 30. 1996

$ 1,816,682.14 $ 1,917,027.52

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 132,067.85 $ 908,331.97

2,420,047.71 2,725,524.00

272,459.03

393,492.87

$ 2,824,574.59 $ 4,027,348.84

$ 1,126,567.00 $ 1,729,149.15

17,750.00 123,992.00
16,675.00 99,307.00

157,997.36 215,794.26
10,660.95 103,084.84
3,861.00

2,300.00 14,897.00

2,228.69 17,826.56

130,000.00 1,212,778.31

129,850.80 1,620,120.61
74,140.31

$ 2,744,266.31 $ 4,064,714.53

$

80,308.28 $ -37,365.69

$

221.23

$

221.23

$

80,308.28 $ -37,144.46

683,517.98

568,612.72

$ 763,826.26 $ 531,468.26

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

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30. 1996

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

MILDRED PELHAM SCHOLARSHIP
FUND

TOTALS (Memorandum Onll}
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

0.00 $

0.00 $

0.00

$

500.00 $

500.00 $

500.00

$

-500.00 $

-500.00 $

-500.00

208.74

208.74

219.88

$

-291.26 $

-291.26 $

-280.12

7,603.35

7,603.35

7,883.47

$

7,312.09 $

7,312.09 $

7,603.35

========

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

GRADY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1996

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Scholarships
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

MILDRED PELHAM SCHOLARSHIP
FUND

TOTALS {Memorandum Onlz'.)
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

-500.00 $

-500.00 $

-500.00

208.74

$

-291.26 $

7,603.35

208.74 -291.26 $ 7,603.35

219.88 -280.12 7,883.47

$

7,312.09 $

7,312.09 $

7,603.35

======

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

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPES - the trust funds used to account for assets held by a government unit in a trustee capacity. These funds include:
NONEXPENDABLETRUSTFUND Mildred Pelham 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 college scholarships.
EXPENDABLE TRUST FUNDS Chuck Huey Scholarship Fund and Eleanor Kelly Scholarship Fund - the funds used to account for principal and earnings which may be expended to provide college scholarships.
Kenridge Fund - the fund used to account for the principal and earnings which may be expended to provide drug education programs.
.
Martin Lincoln Beller Trust Fund - the fund used to account for the principal and earnings which may be expended to provide deserving and/or needy children assistance in treatment of eye diseases and blindness.
- 10 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Wight Nurseries Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships to graduating seniors.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1996, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the

- 11 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SlTh-1:MARY OF SIGNIFICANT ACCOUNTING POLICIES
Board in the same twelve months. As ofJune 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Grady County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper 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 of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

- 12 -

GRADY COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Not"e 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 1995

$ 603,061.59

Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods

-24,824.59 -9,624.28

Fund Balance July 1, 1995 (Budget Basis)

$ 568,612.72

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

-37 144.46

FUND BALANCE JUNE 30, 1996 (Budget Basis)

$ 531,468.26

CASH AND CASH EQUIVALENTS

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

RECEIVABLES

Receivables consist of grant 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.

- 13 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Grady County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on October 3, 1995 (levy date). Taxes were due on December 30, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The Grady County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1995 tax year (calendar year) for the Grady County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.5 mills

INVENTORIES

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

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 1996, are recorded as prepaid items.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements of expenditures/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.

- 14 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Not"e 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws 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 of the State of Georgia, and

- 15 -

GRADY COUNTY BOARD OF EDUCATION

EXI-IlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS

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

CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $5,915,723.03. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category
1 2 3
Total
Note 3: NON-MONETARY TRANSACTIONS

Bank Balance
$ 237,075.43 0.00
5,678,647.60
$ 5 915 723.03

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;

errors or omissions; job related illness or injuries to employees; natural disaster and unemployment

compensation.

._

The Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.
- 16 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 4: RISK MANAGEMENT

The Board has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The Grady County Board of Education has not incurred any liabilities for unemployment compensation during the past two fiscal years.

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss.

Note 5: OPERATING LEASES

Grady County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1996, amounted to $72,386.80. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

1997 1998 1999

$ 78,129.60 78,129.60 6 150.80

Total

$ 162 410.00

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $381,997.28 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

- 17 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 6: ON-BEHALF PAYMENTS

Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $332,222.28

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$49,775.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

97 /96S-665-021

$2,795,795.17 $ 152,114.40

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

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter 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.

Note 9: 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).

- 18 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

'I,
Note 9: RETIREMENT PLANS
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $12,906,369.46; total payroll was $14,862,985.28.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $2,169,559.67, of which $1,524,241.06 was made by the Board and $645,318.61 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the i:;ension benefit obligation was adopted by the GASB to enable

- 19 -

GRADY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIRE1\1ENT PLANS

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 of TRS as of June 30, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1,585,541,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $1,524,241.06 was actuarially determined and represented .2510% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.

P SERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number 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.

- 20 -

GRADY COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 9: RETIREMENT PLANS
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. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
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 119 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $3,976.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 10: SURETY BONDS
The School Superintendent, Mr. Larry Lovett Rawlins, is bonded in the amount of $15,000.00 with the Continental Insurance Company, Farmington, Connecticut, their Bond No. 1310520, on which premium was paid through December 31, 1996.

- 21 -

GRADY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1996

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Unearned Lottery Funds
Total Liabilities FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 597,335.05 $

3,516.85

42,764.53

33,013.41 8,922.88

$ 682,035.s7 $ _ _ _3_.s_1_s_.s_s

$ 45,486.20 $ 68,329.74
$ 113,815.94 $

3,516.85 3,516.85

$ 33,013.41 8,922.88
$ 41,936.29 526,283.64 $
$ 568,219.93 $

0.00 0.00

~~----= $ 682,035.87 $

3,516.85

See notes to the general purpose financial statements.

- 22 -

EXHIBIT"G" Page 1

LOTTERY PROGRAMS

GRANTS TO LOCAL
EDUCATIONAL AGENCIES

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE II

STATE

EDUCATION OF

EISENHOWER

PROGRAM

CHILDREN WITH MIGRANT PROFESSIONAL

IMPROVEMENTS

DISABILITIES

EDUCATION DEVELOPMENT

TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES

$ 30,410.58 $

10,913.15 $

0.00 $

0.00

$

2,804.56 $

1,935.84

81,801.54

129,329.00

$ 26,392.34

116.00

$ 112,212.12 $

140,242.15 $

0,00 $ ~=====0.0=0 $ 26,392.34 $

2,804.56 $-==2=,0=5=1=8=4

$ 38,685:36 $ 55,138.16 18,388.60

25,794.49 107,236.62
7,211.04

$ 112,212.12 $

140,242.15

$ 22,573.88 1,122.56 $ 2,685.32 10.58
$ 26,392.34 $

2,804.56 $ 2,804.56 $

1,935.84 116.00
2,051.84

$

0.00 $

$

0.00 $

0.00 $- - - - -0.0-0 $

0.00 $

0.00 $ - - - - -0.0-0 $ - - - - -0.0-0 $

0.00 $

0.00 $ - - - -0.-00

0.00 $ - - - - -0.0-0 $ - - - -0.-00

$ 112,212.12 $

140,242.15 $

0.00 $ ======0.0=0 $ 26,392.34 $

2,804.56 $ ====2,=051=.8=4

- 23 -

GRADY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Unearned Lottery Funds
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTS

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$

33,049.54 $

17,587.27

------ $

33,049.54 $

17,587.27

$

5,044.44 $

13,963.70

14,041.40

$

33,049.54 $

4,013.80 1,482.64 12,090.83
17,587.27

$

0.00 $

$

0.00 $

0.00 0.00

Total Liabilities and Fund Equity

$

-==--=~~ 33,049.54 $

17,587.27

See notes to the general purpose financial statements.

- 24 -

EXHIBIT"G" Page2

TITLE V JOBS WITH
DIGNITY

CHILD CARE SCHOOL AGE
PROGRAM

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

6,206.14 $

703,758.98 $

893,201.99

$ 60,839.18

341,242.59

339,314.94

33,013.41 8,922.88

24,824.59 9,624.28

$ 60,839.18 $

6,206.14 $ 1,086,937.86 $ 1,266,965.80

$ 37,516.20 3,795.47 $ 19,437.36 90.15
$ 60,839.18 $

$ 1,021.52
1,021.52 $

60,090.08 $ 133,221.09 268,273.54
51,948.60
513,533.31 $

60,985.51 193,388.42 203,013.10 116,846.61
89,670.57
663,904.21

$

33,013.41 $

24,824.59

8,922.88

9,624.28

$

41,936.29 $

34,448.87

$

0.00 $

5,184.62

531,468.26

568,612.72

$

0.00 $

5,184.62 $

573,404.55 $

603,061.59

$ 60,839.18 $

6,206.14 $ 1,086,937.86 $ 1,266,965.80

- 25 -

GRADY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay
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

STATE PRESCHOOL HANDICAPPED
PROGRAM

$ 97,538.00 $ 1,165,813.59 321,784.87

42,083.00

$ 1,585,136.46 $ _ _ _42..:.,o_s_3_.o_o

$

34,433.77

231.50 7,417.73

$ 1,619,848.61

$ 1,619,848.61 $ _ _ _42--'-,o_s_3_.o_o

$ -34,712.15 $

0.00

$ -34,712.15 $

0.00

595,444.66

0.00

8,188.82 -701.40

$ 568,219.93 $ ~=====0.0=0

See notes to the general purpose financial statements.

- 26 -

EXHIBIT"H" Page 1

LOTTERY PROGRAMS

GRANTS TO LOCAL
EDUCATIONAL AGENCIES

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE II

STATE

EDUCATION OF

EISENHOWER

PROGRAM

CHILDREN WITH MIGRANT

PROFESSIONAL

IMPROVEMENTS DISABILITIES EDUCATION DEVELOPMENT

TITLE VI INNOVATIVE EDUCATION PROGRAM STRATEGIES

$ 768,710.97
$

923,275.96 $

20,000.00 $

143.99 $ 61,813.84 $

$ 768,710.97 $ 923,275.96 $ _ _..._;_20,..:..,000_._o_o $ _ _ _ _1_4_3_.9_9 $ 61,813.84 $

21,538.00 $

31,709.00

21,538.00 $ _ _ _3-'1,_70_9_.o_o

$ 534,550.54 $ 141,983.96 85,701.31
3,861.00 148.75
2,414.64
272.00

696,013.37
2,006.59 $ 94,178.20
1,227.00
129,850.80

$ 20,000.00

143.99 $ 61,190.55
$
75.35 547.94

$
21,492.17 45.83

18,765.27
2,444.90 10,429.45
69.38

$ 768,932.20 $

$

-221.23 $

923,275.96 $ 0.00 $

20,000.00 $ _ _ _ _1_4_3_.9_9 $ 61,813.84 $

0.00 $

0.00 $

0.00 $

21,538.00 $ _ _ _31~,7_0_9_.o_o

0.00 $

0.00

221.23

$

0.00 $

0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $

0.00

0.00

0.00

$

0.00 $

0.00 $=====0=.0=0 $

0.00 $

0.00 $

0.00 $ = = = =0.= 00

- 27 -

GRADY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay
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

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTS

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$ 172,687.60 $ $ 172,687.60 $

36,195.17 36,195.17

$ 115,332.70 $
12,307.00 28,917.92
488.41
305.00 15,336.57

30,601.96
3,706.40 1,886.81

$ 172,687.60 $

$

0.00 $

36,195.17 0.00

$

0.00 $

0.00

0.00 0.00

FUND BALANCE JUNE 30

$

0.00 $ -========0=.0=0

See notes to the general purpose financial statements.

- 28 -

EXHIBIT"H" Page2

TITLE V JOBS WITH
DIGNITY

CHILD CARE SCHOOL AGE
PROGRAM

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 292,346.85 ____ $
$ 292,346.85 $

$ 71,708.00 71,708.00 $

908,331.97 $ 2,725,524.00
393,492.87
4,027,348.84 $

1,107,506.09 2,594,201.54
329,290.05
4,030,997.68

$ 238,117.00
53,344.56 885.29

$

$ 292,346.85 $

$

0.00 $

$
74,140.31 74,140.31 $ -2,432.31 $

1,729,149.15 $
157,997.36 215,794.26
10,660.95 103,084.84
3,861.00 2,228.69 17,826.56
129,850.80 1,620,120.61
74,140.31
4,064,714.53 $
-37,365.69 $

1,759,870.14
158,852.99 297,883.23
62,367.41 92,567.57
2,284.57 20,871.27
119.00 73,040.24 1,276,078.58 193,196.95
4,000.00
3,941,131.95
89,865.73

221.23

737.66

$

0.00 $

-2,432.31 $

-37, 144.46 $

90,603.39

0.00

7,616.93

603,061.59

508,855.39

8,188.82 -701.40

3,050.17 552.64

$

0.00 $

5,184.62 $

573,404.55 $

603,061.59

- 29 -

GRADY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1996

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

96-665-033

97/96S-665-021

TOTALS JUNE 30, 1996 JUNE 30, 1995

$ 729,316.80

$

749,554.06 $ 1,478,870.86 $ 1,198,038.76

$

780.16

133,981.59

134 761.75

347,261.34

Total Assets

$ 729,316.80 $

780.16 $

883,535.65 $ 1,613,632.61 $ 1,545,300.10

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

$

Accounts Payable

Contracts Payable

Retainages Payable

Total Liabilities

$

FUND EQUITY

Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated

$ $ 729,316.80

Total Fund Equity

$ 729,316.80 $

712.68 $
712.68 $

$ 80,138.01 566,004.45 237,393.19
883,535.65 $

712.68 $ 80,138.01 566,004.45 237,393.19
884,248.33 $

345,320.85 1,457.50
17,539.01
364,317.36

67.48 0.00 $
67.48 $

$ 0.00 0.00 $

67.48 $ 729,316.80 729,384.28 $

67.48 1,180,915.26 1,180,982.74

Total Liabilities and Fund Equity $ 729.316.80 $

780.16 $

883.535.65 $ 1,613,632.61 $

See notes to the general purpose financial statements.

- 30 -

GRADY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1996

EXHIBIT "J"

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

96-665-033

97/96S-665-021

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

REVENUES

State Funds

$

0.00 $

0.00 $ 1,369,029.60 $ 1,369,029.60 $

347,261.34

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements

$

0.00 $

0.00 $

$

0.00 $

2,616,423.96

2,616,423.96

58,698.90 443,319.14

Total Expenditures

$

0.00 $

0.00 $ 2,616,423.96 $ 2,616,423.96 $

502,018.04

Excess of Revenues over (under) Expenditures

$

0.00 $

0.00 $ -1,247,394.36 $ -1,247,394.36 $ -154,756.70

OTHER FINANCING SOURCES {USES)

Operating Transfers In Operating Transfers Out

$ -451,598.46

$ 1,247,394.36 $ 1,247,394.36 $ -451,598.46

561,730.97

Total Other Financing Sources (Uses)

$ -451,598.46

$ 1,247,394.36 $ 795,795.90 $

561,730.97

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

-451,598.46 $

0.00 $

0.00 $ -451,598.46 $

406,974.27

FUND BALANCE JULY 1

1,180,915.26

67.48

0.00

1,180,982.74

774,008.47

FUND BALANCE JUNE 30

$ 729,316.80 $

67.48 $

0.00 $ 729,384.28 $ 1,180,982.74

See notes to the general purpose financial statements.

-31 -

GRADY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1996

ASSETS Cash and Cash Equivalents
FUND EQUITY Fund Balances
Reserved For Endowment Corpus
Unreserved Deficit Undesignated
Total Fund Equity

NON EXPENDABLE TRUST FUND MILDRED PELHAM SCHOLARSHIP FUND

CHUCK HUEY SCHOLARSHIP
FUND

ELEANOR KELLEY
SCHOLARSHIP FUND

$

7,312.09 $

1,682.48 $

24,212.14

$

7,500.00

-187.91 _______ $

$

7,312.09 $

1,682.48 $ - - -24-,21-2.1-4
1,682.48 $ =====24=,2=12=.1=4

See notes to the general purpose financial statements.

- 32 -

EXHIBIT"K"

EXPENDABLE TRUST FUNDS

MARTIN

LINCOLN

KENRIDGE

BELLER

-FUND

TRUST FUND

WIGHT NURSERIES SCHOLARSHIP
FUND

TOTALS

JUNE 30, 1996

JUNE 30, 1995

$

5,422.02 $

50,600.03 $

1,708.98 $

90,937.74 $

94,680.48

$

7,500.00 $

7,500.00

-187.91

$

5,422.02 $

50,600.03 $ _ _ _ _1"--,7-'-08_._98_

83,625.65

87,180.48

$

5,422.02 $

50,600.03 $

1,708.98 $

90,937.74 $ ====9=4,=68=0=.48=

- 33 -

GRADY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1996

REVENUES Taxes and Other Funds
EXPENDITURES Current Other Operations of Non-Instructional Services
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 Residual Equity Transfer Initial Contribution
FUND BALANCE JUNE 30

CHUCK HUEY SCHOLARSHIP
FUND

ELEANOR KELLEY
SCHOLARSHIP FUND

KENRIDGE FUND

$

49.69 $

636.52 $ - - - - -2,'0-00-.0-0

$

500.00 $

$

-450.31 $

0.00 $ - - - - -5-,2'5-8-.79-

636.52 $

-3,258.79

2,132.79

23,575.62

8,680.81

$

1,682.48 $

24,212.14 $ ===5=,4=2==2=.0=2

See notes to the general purpose financial statements. - 34 -

EXHIBIT "L"

MARTIN LINCOLN BELLER
FUND

WIGHT NURSERIES SCHOLARSHIP
FUND

TOTALS

YEAR ENDED

JUNE 30, 1996

JUNE 30, 1995

$

1,356.41 $

2,554.69 $

6,597.31 $ - - -1~3,89-9.7-9

$

1,790.00 $

$

-433.59 $

51,033.62

2,500.00 $ 54.69 $
1,654.29

10,048.79 $ -3,451.48 $ 87,077.13

5,251.64 8,648.15 55,476.21
-67.76 23,020.53

$

50,600.03 $

1,708.98 $

83,625.65 $ =====87=,0=7=7.=13=

- 35 -

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Direct Summer Food Services Program for Children 1996 Grant Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)

10.665 $ 1~5.206.54 $

143,627.34 (3)

10.553
* 10.555 10.550

226,706.75
711,152.47 92,747.83

(2)
1,383,473.44 (3) 92,747.83

Total U. S. Department of Agriculture

$ 1,165,813.59 $

1,619,848.61

Education, U. S. Department of Through Chattahoochee-Flint Regional Educational Service Agency d/b/a Two Rivers Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1996 Grant Through Georgia Department of Education Elementary and Secondary Education Act Title I Education of Children with Disabilities 1996 Grant Grants to Local Educational Agencies 1996 Grant State Program Improvements 1996 Grant Title II Eisenhower Professional Development 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Goals2000 State and Local Education Systemic Improvement Grants 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant
Total U. S. Department of Education

84.011
84.009 * 84.010
84.218 84.281 84.298
84.276
84.027 84.173
84.048 84.243
- 36 -

$

61,813.84 $

143.99 923,275.96
20,000.00 21,538.00 31,709.00
14,862.39
172,687.60 36,195.17
54,857.58 40,486.84 $ 1,377,570.37 $

61,813.84
143.99 923,275.96
20,000.00 21,538.00 31,709.00
14,862.39
172,687.60 36,195.17
(4) (4) 1,282,225.95

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Labor, U. S. Department of Through Georgia Department of Human Resources SOWEGA Council on Aging, Incorporated Senior Community Services Employment Program - Title V 1996 Grant

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.235 $ 292,346.85 $ _ _ _2_9_2,,_3_46_._85_

Total Federal Financial Assistance

$ 2,835,730.81 $ =====3,=19=4=,4=21=.=41=

Major Programs are identified by an asterisk(*) in front of the CFDA number.
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 37 -

GRADY COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1996

SCHEDULE "2"

NONINTEREST BEARING ACCOUNT
First National Bank of Grady County, Cairo, Georgia
INTEREST BEARING ACCOUNTS
Cairo Banking Company, Cairo, Georgia
N.O.W. Accounts (2.25%) Money Market Accounts (2.50%)
Citizens Bank, Cairo, Georgia
N.O.W. Account (2.50%)
First National Bank of Grady County, Cairo, Georgia
N.O.W. Accounts (2.25%)

$ 49,292.03
$ 667,225.44 10,703.55
3,324,370.06 4,921.78 4,007,220.83 $ 4,056,512.86

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

GRADY COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "3"

Agriculture, U. S. Department of Summer Food Service Program for Children
Buckley, James W., and Associates, Incorporated Refund of Overpayment
Chattahoochee-Flint Regional Educational Service Agency d/b/a Two Rivers Migrant Education Agency ESEA - Title I Migrant Education
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Federal Program Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Goals 2000 State and Local Education Systemic Improvement Grants
Georgia Pines Community Service Sale of Meals
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Grady County Tax Commissioner County Wide School Tax
Office of School Readiness Pre-Kindergarten Program
SOWEGA Council on Aging, Incorporated Senior Community Services Employment Program TitleV
Various Sources Commodity Rebates Reimbursement of Expenditures

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 20,797.00

$ 20,797.00

$

780.16

780.16

26,392.34

26,392.34

12,186.30 5,889.10

12,186.30 5,889.10

129,329.00

129,329.00

$ 7,500.00

7,500.00

2,502.50

2,502.50

133,981.59 133,981.59

99,615.85

99,615.85

81,801.54

81,801.54

60,839.18
962.75 542.88

60,839.18
962.75 542.88

$ 107,115.85 $ 341,242.59 $ 134,761.75 $ 583,120.19

See notes to the general purpose financial statements.

- 39 -

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1996

SCHEDULE "4"

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 Technology Training Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Mid-term Adjustment Migrant Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Family Connection Health Insurance Innovative Programs Next Generation Schools Preschool Handicapped Program Remedial Summer School Program Lottery Programs Alternative School Program Instructional Technology Next Generation Schools Pre-Kindergarten Program Safe Schools Grant Technology Installation
Georgia Department of Community Affairs Governor's Emergency Funds (1)
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Implementation of School Based Leadership Activities Governor's School Leadership Institute

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 8,505,576.00 1,432,518.00 275,362.00 361,881.00 117,271.00 2,379,933.00

424,148.00 133,210.00
51,530.00 234,252.00 294,551.00
75,252.00 25,691.00 63,479.00 23,138.00 -1,175,520.00 1,233,203.00
$ 33,992.12

97,538.00

57,195.00 5,000.00
23,063.37 422.00
1,170.00 332,222.28
4,675.30 6,333.00
12,985.55

42,083.00

22,248.52 47,524.22 77,000.00 228,115.00
3,861.00 88,888.00

$ 8,505,576.00 1,432,518.00 275,362.00 361,881.00 117,271.00 2,379,933.00
424,148.00 133,210.00 51,530.00 234,252.00 294,551.00
75,252.00 25,691.00 63,479.00 23,138.00 -1,175,520.00 1,233,203.00 97,538.00 33,992.12
57,195.00 5,000.00
23,063.37 422.00
1,170.00 332,222.28
4,675.30 6,333.00 42,083.00 12,985.55
22,248.52 47,524.22 77,000.00 228,115.00
3,861.00 88,888.00

7,500.00

7,500.00

$ 1,369,029.60

1,369,029.60

301,074.23

301,074.23

49,775.00

49,775.00

2,000.00

2,000.00

$ 14,991,808.62 $ 908,331.97 $ 1,369,029.60 $ 17,269,170.19
(1) The purpose of this fund is for the resurfacing of the track at Cairo High School. 0
See notes to the general purpose financial statements. - 40 -

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Sources Donations Indirect Cost Special Revenue Fund Interest Earned Milk Court Settlement Rents Sales Adult Meals Contracted Meals Lunches Supplemental School Assets Shared Service Contributions Chattahoochee-Flint Regional Educational Service Agency Other

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTAL

$ 4,010,666.73
4,036.23 14,251.78

$ 4,010,666.73
4,036.23 14,251.78

1,250.00

$

7,660.75 95,442.49 $
3,475.00

15,100.15 104.33

17,515.96

93,541.40 27,651.25 127,086.59 46,674.25

4,500.00 2,097.31

5,750.00
7,660.75 112,639.95
104.33 3,475.00
93,541.40 27,651.25 127,086.59 46,674.25 17,515.96

1,844.46

71,708.00 11,626.90

71,708.00 13,471.36

$ 4,156,143.40 $ 393,492.87 $

6,597.31 $ 4,556,233.58

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

THIS PAGE LEn BLANK

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 12,777,357.87 $ 2,085,627.41 $ 14,862,985.28

3,129,134.23

469,938.66

3,599,072.89

68,978.87

31,677.61

100,656.48

79,754.22

34,014.00

113,768.22

10,879.84

10,879.84

50,954.97

50,954.97

1,538.82

14,541.83

16,080.65

91,891.32

91,891.32

8,509.65

8,509.65

48,386.00

48,386.00

67,629.32

8,537.25

76,166.57

13,107.42

13,107.42

10,500.00

10,500.00

97,078.92

2,744.00

99,822.92

977,554.85

271,395.91

1,248,950.76

445,608.14

24,170.70

469,778.84

687,394.20

687,394.20

252,521.98

5,321.70

257,843.68

22,142.30

5,980.25

28,122.55

7,660.75

7,660.75

322.62

11,105.85

11,428.47

315,597.57

382,987.34

698,584.91

Total Expenditures

$ 18,447,831.84 $ 4,064,714.53 $ 22,512,546.37

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

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1996

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Repairs and Maintenance Communication Energy Supplies Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALTERNATIVE SCHOOL
PROGRAM

INSTRUCTIONAL TECHNOLOGY

NEXT GENERATION
SCHOOLS

$

210.00

1,800.00

10,452.93 $ 200.00 1.92

9,583.67

$

22,248.52 $

$

1,000.00

81.51

1,718.55

3,333.33

5,339.22

24,140.84 900.00

42,185.00

46,047.00

------ 47,524.22 $

TT,221.23

See notes to the general purpose financial statements.

- 44 -

SCHEDULE "7"

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

383,379.47

$

384,379.47

84,184.91

84,266.42

3,726.56

5,445.11

2,791.43

6,334.76

1,800.00

137.16

137.16

740.36

740.36

33,702.90 $

3,861.00 $

18,888.00

96,384.89

5,126.44

6,226.44

1.92

15,400.00

70,000.00

183,215.67

$

529,189.23 $

3,861.00 $

88,888.00 $

768,932.20

- 45 -

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 1996
EXPENDITURES
Operating Costs Professional and Technical Services Supplies Dues and Fees Scholarships
Total Expenditures

SCHEDULE "8"

$

1,250.00

3,898.79

1,900.00

3,000.00

$ 10,048.79

See notes to the general purpose financial statements. - 46 -

GRADY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 10,638,816.00 $

338,165.00

$ 10,936,460.31 716,820.35 $ _ ___,;,,58,;_3;,,:_,4,;,:;2;;_5_;,.3_7
$ 11,653,280.66

-213,606.41 $ 11,439,674.25

$

0.00 $ =======O=.O=O

See notes to the general purpose financial statements. - 47 -

GRADY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1996

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 -12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Sub-Total - Regular Category V (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM(*) Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

935,265.00

$

841,738.50 $

2,114,460.00

1,903,014.00

$ 3,049,725.00 90 $ 2,744,752.50 $

1,147,053.00 90

1,032,347.70

1,899,271.00 90

1,709,343.90

1,019,770.00 90

917,793.00

863,683.00 90

777,314.70

526,074.00 90

473,466.60

$ 8,505,576.00

$ 7,655,018.40 $

0.00 0.00
63,479.00 63,479.00

$ 1,390,769 .00

$ 1,251,692.10 $

0.00

$ 1,390,769.00 90 $

41,749.00 90

$ 1,432,518.00

$

$

275,362.00 90 $

$ 10,213,456.00

$

1,251,692.10 $ 37,574.10
1,289,266.20 $ 247,825.80 $
9,192,110.40 $

0.00
0.00 0.00 63,479.00

$

289,207.00 90 $

260,286.30 $

72,674.00 90

65,406.60

$

361,881.00

$

325,692.90 $

0.00 0.00

$ 10,575,337.00

$ 9,517,803.30 $

63,479.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Thirteen Weighted Programs.

$

28,928.00

$

28,928.00 $

0.00

88,343.00

88,343.00

0.00

$

117,271.00 100 $

117,271.00 $ ~=====0=.0=&

See notes to the general purpose financial statements.

- 48 -

SCHEDULE "10"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

841,738.50 $

1,029,840.89 $

31,735.07 $ 1,061,575.96

1,903,014.00

2,124,831.75

95,901.07

2,220,732.82

$ 2,744,752.50 $ 3,154,672.64 $

127,636.14 $ 3,282,308.78 $

0.00

1,032,347.70

1,195,549.30

68,227.46

1,263,776.76

0.00

1,709,343.90

2,101,195.74

126,559.03

2,227,754.77

0.00

917,793.00

915,552.82

139,961.99

1,055,514.81

0.00

840,793.70

932,830.31

28,310.96

961,141.27

0.00

473,466.60

611,559.70

77,367.78

688,927.48

0.00

$ 7,718,497.40 $

8,911,360.51 $

568,063.36 $ 9,479,423.87

$ 1,251,692.10 $

22,128.54 $ 469,543.29 675,568.39 103,851.66

1,271.08 $ 3,556.84 5,348.41
214.50

23,399.62 473,100.13 680,916.80 104,066.16

$ 1,251,692.10 $

1,271,091.88 $

10,390.83 $ 1,281,482.71

0.00

37,574.10

43,773.69

956.20

44,729.89

0.00

$ 1,289,266.20 $ 1,314,865.57 $

11,347.03 $ 1,326,212.60

$

247,825.80 $

268,141.80 $

4,014.98 $

272,156.78

0.00

$ 9,255,589.40 $ 10,494,367.88 $

583,425.37 $ 11,077,793.25

$

260,286.30 $

442,092.43

$

442,092.43

0.00

65,406.60

$

133,394.98

133,394.98

0.00

$

325,692.90 $

442,092.43 $

133,394.98 $

575,487.41

$ 9,581,282.30 $ 10,936,460.31 $

716,820.35 $ 11,653,280.66 $

0.00

$

28,928.00 $

88,343.00

$

117,271.00 $

0.00 $ 0.00

62,962.35 $ 57,888.31

62,962.35 57,888.31

0.00 $

120,850.66 $

120,8so.ee $-====~==o_.o_o

- 49 -

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1996

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. W. Tyler Maxwell, Chairman (*) 5407 Georgia Highway 111 South Whigham, Georgia 31797
Mr. John William Bass, Sr. (*) P. 0. Box 88 Cairo, Georgia 31728
Mr. Fred B. Collins (*) 841 Old 179 South Whigham, Georgia 31797
Mr. James H. Douglas (*) 55 23rd Street, N. E. Cairo, Georgia 31728
Mrs. Oshie R. Williford (*) 302 10th Street, S. W. Cairo, Georgia 31728
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

1,200.00 $

945.22

1,200.00

1,039.58

1,200.00

821.54

1,200.00

1,180.79

1,200.00

892.71

$

6,000.00 $ ===4=,8=7=9.=84=

See notes to the general purpose financial statements.

- 50 -

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
April 2, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Grady County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Grady County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 2, 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 Grady 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 granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
d~
Claude L. Vickers State Auditor
CLV:cm 96CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 2, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Grady County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 2, 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 Grady 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) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

96CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Grady 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,

CLV:cm 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
April 2, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Grady 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 Grady County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 2, 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 Grady County Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Una!lowed

(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 ofFederal Financial Assistance, for the year ended June 30, 1996. The management of the Grady 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 ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Bu.,,dget (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 Grady 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 Grady 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, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 96CRL-80

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
April 2, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Grady County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 2, 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 ofthe fiscal year 1996 general purpose financial statements of the Grady County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements 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 Grady County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

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

96CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
tf~
Claude L. Vickers State Auditor
CLV:cm 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
April 2, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Grady County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Grady County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 2, 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 ofthe Grady County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of the Grady County Board ofEducation for the year ended June 30, 1996, we obtained an understanding of the internal control structure.
96ICL-3

With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to det-ennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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, reportable conditions were noted in the following control categories:
(1) Accounting Controls (Overall)
(2) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the 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 conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining. the nature, timing, and extent of the procedures to be performed in our audit of the Grady County Board ofEducation's financial statements and this report does not affect our report thereon dated April 2, 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:cm 96ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 2, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Grady 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 Grady County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated April 2, 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 Grady County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated April 2, 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 Grady County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128: This report addresses our consideration of internal control structure policies and procedures 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 April 2, 1997.
96ICL-7

The management ofthe Grady 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 ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

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

During the year ended June 30, 1996, the Grady County Board ofEducation expended 58% 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 noncomplia11ce 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-7

are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, w~ do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal fin~ncial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Grady County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated April 2, 1997.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 96ICL-7

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

GRADY 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 6651-93-03
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$10,229.07 for the Staff Development - Professional Development Stipends 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 this underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $2,772.94 Audit Control Number 6651-93-04
The audit report for the year ended June 30, 1993, reported that the Grady County Board of Education overpaid an employee in the amount of $2,772.94. This overpayment was the result of an error in salary calculation. The Board has attempted to contact the former employee involved to obtain reimbursement of $2,772.94 but has not been successful. The Board should continue its efforts to collect the overpayment for deposit into the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $17,137.74 Audit Control Number 6651-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $17,137.74 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $17,137.74 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
- 1-

GRADY 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 Amount: $82.06 Audit Control Number 6651-94-02
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $82.06 for the operations portion of the Category V - Gifted, Special Education Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $82.06 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 Meet Expenditure Requirements Financial Statements Amount: $2,072.81 Audit Control Number 6651-95-01
The audit report for the year ended June 30, 1995, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $2,072.81 for the Staff Development Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $2,072.81 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 Excessive Lottery Cash Balance Financial Statements Finding Resolved Audit Control Number 6651-95-02
The audit report for the year ended June 30, 1995, stated that a review of cash management procedures for the Lottery - Instructional Technology program disclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During the year under review, the Board implemented procedures to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and the disbursement of such funds by the Board. The Georgia Department of Education determined in a letter dated January 3, 1997, that a reclaim of funds was not necessary.
-2-

GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIRE1\1ENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 6651-93-01
The audit report for the year ended June 30, 1995, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. In the year under review, no improvement in adequate separation of employee duties was noted. This condition was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" of this report, are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6651-93-02
The audit report for the year ended June 30, 1995, noted that the management of the Grady 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 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.
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GRADY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CURRENT YEAR GENERAL LEDGER Improper use of Trust Fund Corpus Cash Financial Statements Nonmaterial Noncompliance Audit Control Number 6651-96-01 The Nonexpendable Trust - Mildred Pelham Scholarship Fund had expenditures of $187.91 in excess of available fund income resulting in a portion of the endowment corpus of $7,500.00 being used to fund scholarships. The use of endowment corpus to fund such expenditures is not in compliance with the trust agreement which requires the endowment corpus to be invested and preserved intact. This act was the result of management's failure to follow the requirements of the Trust agreement. Appropriate action should be taken by the Board to implement procedures to assure that the Trust agreement is followed and the endowment corpus is maintained intact. EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Utilize Funds for Intended Purpose Financial Statements Nonmaterial Noncompliance Amounts: $2,800.06 Audit Control Number 6651-96-02 For the year under review, the Board received $77,000.00 in Lottery funds from the Georgia Department of Education for Next Generation Schools Grant purpose. The Georgia Department of Education provided these lottery funds to the Board for specific purposes defined in the application process. The salaries, employee benefits and travel to employees paid for with the Next Generation Schools Grant Lottery funds totaling $2,800.06 are not allowable expenditures as defined by O.C.G.A. 50-27-3. The Georgia Department of Education should review, this matter to determine if a refund is appropriate.
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SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

GRADY COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1996
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6651-93-01
We concur with this finding, however due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations, this finding can not be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6651-93-02
We concur with this recommendation. The Board is evaluating the feasibility of establishing a General Fixed Assets Account Group within the formal accounting records for use during subsequent fiscal periods.
GENERAL LEDGER Improper use of Trust Fund Corpus Cash Financial Statements Nonmaterial Noncompliance Audit Control Number 6651-96-01
We concur with this finding. The Board has implemented procedures to assure that the cash endowment corpus is replaced intact, and that the endowment corpus cash be invested and preserved intact as required by the Trust agreement.
Note: The Grady County Board ofEducation has elected not to provide comments for inclusion in this report other than the above.