Audit report, Habersham County Board of Education, Clarkesville, Georgia, year ended June 30, 1994

G,1.
ASoo .Rl E.~l, Hi J. 1'193-'l'f
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT HABERSHAM COUNTY BOARD OF EDUCATION
CLARKESVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

HABERSHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES -ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

26

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

29

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

30

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

32

3 ACCOUNTS RECENABLE

33

HABERSHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION!

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

4 DEBT SERVICE REQUIREMENTS TO MATURITY

34

SCHEDULE OF REVENUE

5

STATE FUNDS

35

6

LOCAL AND OTHER FUNDS

36

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

37

8

LOTTERY PROGRAMS

38

9

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

40

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

41

11

BY PROGRAM

42

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

44

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

HABERSHAM 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

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
June 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Habersham County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) ofthe Habersham County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

94ARL-13

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.
* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, I993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Habersham County Board ofEducation as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Habersham County Board of Education taken as a whole. The combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Habersham County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect ofadjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
94ARL-13

A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
7~
Claude L. Vickers State Auditor
CLV:jy 94ARL-13

HABERSHAM COUNTY BOARD OF EDUCATION - 1-

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years
For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

1,082,136.93 $ 517,228.79 $ 5,838,652.13

328,062.30

447,906.63

656,764.76

28,140.02 7,708.26

To1a1Assets

$ 1,410,199.23 $ 1,000,983.70 $ 6,495,416.89

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable
Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for 01hers Capital Lease Agreements General Obligation Bonds Payable
To1al Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated
To1al Fund Equity

$

3,537.00 $

42,189.01

126,653.80

5,315.74

$

303,449.49

136,717.11

3,537.00 $ 174,158.55 $ 440,166.60

176,028.25 $
26,257.45
202,285.70 $ 1,204,376.53 $ 1,406,662.23 $

2,227.46

28,140.02 7,708.26 $
38,075.74 $ 788,749.41 826,825.15 $

5,758,827.05 296,423.24
6,055,250.29
0.00 6,055,250.29

To1al Liabilities and Fund Equity

1,410,199.23 $ 1,000,983.70 $ 6,495,416.89

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

-2-

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onlrl JUNE 30, 1994 JUNE 30, 1993

$

15,065.64 $

13,788.83

$ 7,466,872.32 $ 1,992,096.28

2,045.43

1,434,779.12

554,780.14

28,140.02 7,708.26

34,879.26 7,233.61

$

17,111.07

17,111.07

6,372,888.93 1,354,949.49

6,372,888.93 1,354,949.49

1,668,549.54

$

17111.07 $

13,788.83 $

7 744,949.49 $ 16,682,449.21 $ 4,257,538.83

$

45,726.01 $

39,357.40

126,653.80

137,965.65

5,315.74

543.19

303,449.49

136,717.11

$

3,275.86

3,275.86

8,657.54

$

1,354,949.49

1,354,949.49

1,668,549.54

6,390,000.00

6,390,000.00

$

3,275.86 $

7,744,949.49 $ 8,366,087.50 $ 1,655,073.32

$

17,111.07

$

17,111.07

0.00 $

$

17,111.07 $

$

17,111.07 $

10,512.97 10,512.97
13,788.83 $

176,028.25 $ 2,227.46
17,111.07 26,257.45

199,075.90 7,698.24
927.35

28,140.02 7,708.26
5,758,827.05 296,423.24

34,879.26 7,233.61
164,086.00

$ 6,312,722.80 $

413,900.36

2,003,638.91

1,988,565.15

8,316,361.71 $ 2,402,465.51

7,744,949.49 $ 16,682,449.21 $ 4,257,538.83

-3 -

HABERSHAM COUNJV SQA.RD QF FPUCATIQN COMBINFP STATEMENT OF REYfNUfS EXPfNPITURES AND CHANGE$ IN FLJNQ BALANCES
GOVERNMENTAL FUND TYPES AND EXPENPABI ETRUST FUND YEAR ENPEP JUNE 30 1994

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

State Funds Federal Funds Local and other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement rA Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support SeJvices Other Support SeJvices Food SeJvices Operation Other Operations d Non-Instructional SeJvices
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expendttures
Excess d Revenues over (under) Expendttures
OTHER FINANCING SOURCES CUSES)
Accrued Interest on Bonds Sold Proceeds from General ~igation Bonds
Par Value Discount on Bonds Sold capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources {Uses)
Excess of Revenues and Other Financing Sources over {under) Expenditures and other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodtt.es Purchased Food

13,667,806.04 $ 118,572.88
7389411.88

661,123.39 $ 1,416,738.24
734142.00

1,486,268.64 114 872.92

21 175 790.80 $ 2 812 003.63 $ 1 601141.56

13,908,874.66 $ 784,536.48

740,833.13 741,256.44 617,972.68 236,768.15 1,610,723.40 165,015.81 1,850. 732.30 884,795.99
27,105.07
144,073.71

92,977.92 96,278.97 173,430.73 22,427.88
400.00
$ 73,649.38
4,044.50 3,893.79 1,496.37 1,368,365.86

250,002.26

1,971,675.57

291,227.53 97,634.12

22,372.52 1,571.42

21317012.99 $ 2 645 445.82 $ 2 221 677.83 -141 222.19 $ 166,557.81 $ -620 536.27

-3 924.45 -3,924.45 $

711.89

6,515,000.00 -6,512.00
3,212.56

711.89 $ 6 511 700.56

-145,146.64 $ 1,551,808.87

167,269.70 $ 5,891,164.29

665,820.04

164,086.00

-6,739.24 474.65

FUND BALANCE JUNE 30 The notes to the general purpose financial statements are an integral part of this statement.
-4-

1,406,662.23 $ 826,825.15 $ 6,055,250.29

EXHIBITB"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS
!Memorandum Onl~ YEAR ENDED
JUNE 30 1994 JUNE 30 1993

381 918.11 381 918.11

15,815,198.07 1,535,311.12 8620344.91 $
25970854.10 $

181 305.83

15,815,198.07 $ 1,535,311.12 8 801 650.74

13,190,197.44 1,667,367.72 7 808 779.84

181 305.83 $ 26 152 159.93 $ 22 666 345.00

$ 14,663,411.14

14,663,411.14 $ 13,425,159.81

833,611.05 837,535.41 791,403.41 259,196.03 1,611,123.40 415,018.07 1,924,381.66 868,640.49
3,893.79 28,601.44 1,366,365.66 144,073.71 $ 1,971,675.57

191,543.46

833,611.05 837,535.41 791,403.41 259,196.03 1,611,123.40 415,016.07 1,924,381.66 868,640.49
3,893.79 28,601.44 1,366,365.66 335,617.17 1,971,675.57

801,757.95 715,915.57 595,073.25 262,950.11 1,570,157.17 155,326.49 1,740,920.85 1,050,259.26
5,700.34 26,595.40 1,378,645.37 301,660.55 192,927.42

$ 125,000.00 265,016.67 1 292.04

438,600.05 364,222.21
1292.04

438,600.05 364,222.21
1 292.04

120,000.00 84,145.00

$ 391308.71 $ 26 575 445.35 $ 191 543.46 $ 26 766 988.81 $ 22 427 194.54

-9390.60 $ -604 591.25 $

-10237.83 $ -614 828.88 $

239 150.46

$

26,501.67 $

26,501.67

6,515,000.00 -6,512.00

3,924.45 -3924.45

26 501.67 $ 6534 959.67

26,501.67
6,515,000.00 -6,512.00
3,924.45 -3 924.45
6 534 989.67 $

149,219.54 156,493.42 -156 493.42
149219.54

$

17,111.07 $ 5,930,398.42 $

-10,237.63 $ 5,920,160.79 $

388,370.00

0.00

2,381,714.91

20,750.60

2,402,465.51

2,018,364.26

-6,739.24 474.65

-6,739.24 474.65

-4,573.01 304.26

17111.07 $ 8.305.848.74 $

10.512.97 $ 6.316,361.71 $ 2,402.465.51

.5.

HABERSHAM COUNTY BOARD OF EDUCATION Zl:ffllttEP STATEMENT OF RfYFNUES EXPENQITLJRES ANQ CHANGES IN R.JND RAJ ANCES
ACTUAL AND BUDGET GOVERNMENTAL FUND JYPES VEAR ENDED JUNE 30 1994

EXHIBIT"C"

~
Stale Funds Federal Funds Local and Other Funds
Total Revenue&
s--EXPENpr11.JRES CumKII lnotruction
PupilS....lmpnwement of - I S....Educational Media S....Genenll Administration School Administration Business Administration Maintenance and Operation of Plant stooMt Traneportat;on Senriceo Central Support Services Other Support Services Food Senriceo Operation Other Operations of Non-1-..:tional S....Capal Outlay DeblSerYice
Total~_ . , _ _ _ (under) "-1dit.,,..
Qitll:B FtNANCm ~B!iZS a.1:~}
OtherSourceo Other!MN
Total Other F'N10ncing Sources (Uses)
Exceu of ReYenUN and Other F'tnaneing Sources IMII' (u,mr) Expondilufeo and Other Fmancing !MN
EUHC!a&AtiCEJJ.!LY l lm
EQQQ l~NTORY NEC Q~E I~ ~B!.QQ
Donated Commodities Pu<chaaedFood

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORASI.E (!!NFAVORABLEl

15,815,198.07 $ 1,535,311.12 8,620,344.91
25 970,854.10 $

0.00 $ 0.00 $

15,815,198.07 $ 13,802,111.00 $

1,535,311.12

1,303,604.15

8,620,344.91

8,300,295.68

25,970,854.10 $ 23,406,010.83 $

2,013,087.07 231,706.97 320,049.23
2,564,843.27

14,693,411.14 $
833,811.05 837,535.41 791,403.41 259,198.03 1,611,123.40 415,018.07 1,924,381.68 888,840.49
3,893.79 28,601.44 1,368,365.86 144,073.71 1,971,675.57 804,114.30
26,575,445.35 $
-604,591.25 $

0.00 $
0.00 $ 0.00 $

14,693,411.14 $ 14,263,924.85 $

833,811.05 837,535.41 791,403.41 259,198.03 1,611,123.40 415,018.07 1,92..,381.68 888,840.49
3,893.79 28,601.44 1,368,365.86 144,073.71 1,971,875.57 804,114.30

786,947.82 715,415.91 814,215.73 243,515.10 1,655,628.28 179,179.91 1,TT4,589.23 1,064,898.39
28,000.00 1,286,000.00
135,645.19
858,050.42

26,575,445.35 $ 23,406,010.83 $

-604 591.25 $

0.00 $

-429,486.29
-46,863.23 -122,119.50 1TT,187.68
15,680.93 44,504.88 -235,838.16 -149,792.45 176,057.90 -3,883.79
~1.44 -82,365.86
..S,428.52 -1,971,675.57
-146,063.88
-3, 169,434.52
-604,591.25

6,545,426.12 $ 10,436.45
6,534,969.67 $

0.00 $ 0.00 $

6,545,426.12 $ -10,436.45
6,534,969.67 $

207,785.00 $ -207 785.00
0.00 $

8,337,841.12 197,348.55
6,534,969.67

5,930,398.42 $ 2,381,714.91

0.00 $
2,112.87

5,930,398.42 $

0.00 $

2,339,602.04 2,078,106.45

5,930,398.42 261,495.59

-6,739.24

6,739.24

0.00

0.00

474.65

74.65

0.00

0.00

F!,,!NP IML!t-!:QE J!Jtll; ;Ki 1~

$ 8,305,848.74 $

-35,848.28 $ 8,270,000.46 $ 2,078,106.45 $

6,191,894.01

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

HABERSHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Habersham County Board ofEducation (Board) was established under the laws of the State ofGeorgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Habersham County Board ofEducation.
Based upon the application of the above criteria, the Habersham County Board ofEducation is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Habersham County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 8-

HABERSHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLE TRUST FUND Self-Insured Employee Benefit Fund - the fund used to account for the Dental Insurance contributions and expenditures.

- 9-

HABERSHAM COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

mNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are inclded on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales 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 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to

- 10 -

HABERSHAM COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO TIIB GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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

- 11 -

HABERSHAM COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

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

PROPERTY TAXES

The Habersham County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on September 9, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January I, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The Habersham County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

Tax millage rates levied for the 1993 tax year (calendar year) for the Habersham County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

8.17mills ~mills

2.00 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. 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 offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

- 12 -

HABERSHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfen are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

- 13 -

HABERSHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

(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 ofthe State of Georgia,

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

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

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

CATEGORIZATION OF DEPOSITS

At June 30, 1994, the bank balances were $8,822,850.57. The amounts of the total bank balances are classified into three categories of credit risk:

Category I - 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, 1994, as follows:
Risk Category
1 2 3
Total

Bank Balance
$ 403,533.16 8,419,317.41 0.00
$ 8 822 850 57

- 14 -

HABERSHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$2,016.63 was paid in claims.

Note 5: GENERALLONG-TERMDEBT

CAPITAL LEASES The Habersham County Board of Education has entered into various lease agreements as lessee for buses, computers and buildings. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$ 1,668,549.54 $

0.00 $ 1,668,549.54

Additions

6,515,000.00 6,515,000.00

Deductions

313 600.05

125 000.00

438 600.05

Balance June 30, 1994

$ l 354 949 49 $ 6 32Q Q0Q 0Q $ 7 744 949 49

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

- 15 -

HABERSHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1995 1996 1997 1998 1999 2000 and thereafter
Total Principal and Interest

$ 284,811.07 $ 414,707.50 $ 699,518.57 305,033.44 411,707.50 716,740.94 238,851.65 418,507.50 657,359.15 239,701.65 419,657.50 659,359.15 204,905.00 420,402.50 625,307.50 411 870.00 8 528 792.50 8 940 662.50
$1,685,172.81$ JO 613 775 00 $]2 298 947 81

Deduct: Imputed Interest

330 223.32

Net Present Value of Future Minimum Lease Payments

$ 1354949 49

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$! 17,084.30 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department ofEducation has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Distant Learning Safe Schools Grant

$ 2,903.72 114 180.58

$ )17 084 30

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

Project 92-668-022A 92-668-022B

Unearned Executed Contracts

Funding Available From State

$ 2,678,318.65 $ 361,734.40 3 566 766.00 1 269 624.96

$ 6 245 084 65 $ 1 631 359 36

- 16 -

HABERSHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: SIGNIFICANT COMMITMENTS
The amounts described in this note are not reflected in the general purpose financial statements.
Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable 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 ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had 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, 1994, was $13,279,812.99; total payroll was $15,062,007.80.

- 17 -

HABERSHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 8: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $2,365,141.89 of which $1,568,347.49 was made by the Board and $796,794.40 was made by employees. These contributions represented I 1.81% (Board) and 6% (employees) of covered payroll.

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

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ l 090 292 000 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$1,568,347.49 was actuarially determined and represented .3007% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

- 18 -

HABERSHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half 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 ofemployer contributions occurs, but the member's contnbutions are refunded with interest.
There were 132 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contnbutions from employees ofthe Board made during fiscal year 1994 amounted to $4,556.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Ms. Jerry H. Hooper, is bonded in the amount of$50,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60331160, on which premium was paid through December 31, 1994.

- 19 -

HABERSHAM COUNTY BQARQ QF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE30 1994

~and~ Equivalenla
Accounts Receivable
I,,_
Food Donated Commodities Pu-Food
TotalAalebl

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNmES
ACr

CHAPTER 1

EDUCATION OF

DEPRIVED

MIGRANT

CHILDREN

PROGRAM

$ 865,257.84

4,326.40

5,580.,46 $ 371,284.39 $

180.84 $

62,495.47

28,140.02 7,708.26
$ 906,686.58 $ 371,284.39 $

s 180.84 s _ _,...62_._4_95_.4_7

4,326.40

1 IABIL mes ANP FUND EQUIJY

~

~Overdraft

-

Payable

Salaries Payable

Expired Grant -

Payable

Tola! Llabilitloo

EUNPEOUIJY

Fund Balancea R-.ec! For Ccnlnuallon of Federal Progmno For lnvenlorieo Food Donated Commodllieo Purchued Food

Ul1fMerved UndNignated
Total Fund Equity

Total Liabil~ieo and Fund Equity

$ 364,054.30 $

$ 16,557.30

7,210.09

65,531.59

$ 82,088.89$ 371,284.39 $

180.84 $ 180.84 $

1,091.99 13,818.62 $ 47,584.88
62,495.47 $

1,188.90 2,895.06
242.44
4,326.40

$ 28,140.02 7,708.26
$ 35,848.28 788,749.41 $
$ 824,597.89 $

0.00 $ ---~o~.oo~s _____o_.oo_s ___o_.oo_ 0.00 $ ---~o~.oo~s ____~o=.oo~s __~o.=oo~

s 906.686.58 s 311.284.39 s _ _ _1_80_.84_s _ _ _62__,49_5_.4_1_ s 4,326.40

See notes to the general purpooe financial -ements.

-20-

EXHIBIT"E"

SECONDARY EDUCATION ACT

TITLE U-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT- AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

0.00 $

2,227.46 $ 10,683.65$

B0.67 $ 882,556.02 $ 887,777.33

8,385.37

447,906.63 111,558.26

28,140.02 7,708.26

34,879.26 7,233.61

$

0.00 $

2,227.46 $ 10,683.65 $

8,446.04 $ 1,366,310.93 $ 841,448.46

$

1,454.75 $

4,18828

5,0B0.62

$ 10,683.65$

$ 1,959.35 6,474.01
12.88

365,327.23 42,189.01 $
126,653.80 5,315.74

37,119.58 137,965.65
543.19

8,446.04$ 539,485.78 $ 175,628.42

2,227.46

$

2,227.46 $ 7,698.24

28,140.02 7.708.26

34,879.26 7,233.61

$

2,227.46

38,075.74 $ 49,811.11

$

0.00

0.00 $

0.00 $

0.00

788.749.41

616,008.93

$

0.00 $

2,227.46 $

0.00 $

0.00 $ 826,825.15 $ 665,820.04

$

0.00 $

2,227.46 $ 10,683.65 $

8,446.04 $ 1,366,310.93 $ 841,448.46

-21-

1-tARfRSHAM CQUNJY BOARD OF FOUCATIQN COMBINING STATEMENT OF REVENUES FXPENPffiJRES ANP CHANGES IN FUNP BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 3Q 1994

SCHOOL FOOD
SERVICES FUND

ELEMENTARY AND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1

EOUCATION OF

DEPRIVED

MIGRANT

CHILDREN

PROGRAM

S-Funds Federal Funds Local and Olher Funds
Total Revenues
EXPENDITIJRFS
Current lnsb\ldion SupportSarvices Pupil Sarvices Improvement of Instructional Services Educational Media Sarvices General Administration School Administration Maintenance and Operation of Plant Student Transportation Sarvices Cantnal Support Sarvices Olher Support Sarvices
-Food Sarvices Operation
Olher Operations of Non-Instructional Sarvices DabtSenlice
Principal Reti"""8111
Tolal Expenditu"'5
Excess of Revenues """(under) Elcpenditu"'5
OTHER FINANCING SOURCES IUSFl
Oparating Transfa,s In
Excess of Revenues and Other Financing Sources over (undar) Elcpenditures
FLJNP BALANCE JULY 1
Food ln..-y - Net Change in Period llonatad Commocfrties Purchasad Food
FUND BALANCE JUNE 30

101,720.00 $ 705,244.34 734,142.00

558,403.39 $

1,541,106.34 $ 559,403.39 $

33,923.94 $ 33,923.94 $

398,09821 $ 25,674.61 398,09821 $ 25,674.61

$ 310,635.17 $
173,430.73 73,649.38 2,400.00

8,317.30 $
15,373.06 9,756.08
74.50 400.00

$ 1,368,385.86

368,101.09 $
613.00 3,356.34
22,248.74

25,674.61

2,279.67 1,496.37

1,388,385.86 $ 560,11528 $

1n.140.48 $

-111.89 $

33,923.94 $ 0.00 $

398,09821 $ 0.00 $

25,674.61 0.00

1n,740.48 $ 658,121.80
-6,739.24 474.65

711.89
0.00 $ 0.00

0.00 $ 0.00

0.00 $

0.00

0.00

0.00

824,597.69 $

0.00 $ _ _....,o~.00_$ _ _ _ _0_.00_$ _ _ _ _0~.oo=

See notes to the general purpose financial statements.

-22-

EXHIBITP

SECONDARY EDUCATION />C,T

TITLEII

EISENHOWER

CHAPTER2

MATHEMATICS

B1.0CKGRANT- AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION />C,T

mLEVl,B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

29,787.00 $ 29 787.00 $

14,794.00 $ 158,444.15 $ 14,794.00 $ 158,444.15 $

$ so,n1.ss
s so,n1.ss

661,123.39 $ 1,416,738.24
734,142.00
2,812,003.63 $

98,158.00 1,566,521.80
727,475.47
2.392,155.27

5,n5.16 67.90

20,228.04 36.74

48,223.08 $ 61,828.35 45,200.48
1,578.14 1,614.12

22,372.52 1571.42
29,787.00 $
0.00 $

20,264.78 $ 158,444.15 $

-5,470.78 $

0.00 $

17,810.07 $ 784,536.48 $ 718,017.41

15,163.51 17,732.05
66.36

92,9TT.92 96,278.97 173,430.73 22,427.88
400.00 73,649.38
4,044.50 3,893.79 1,496.37 1,368,365.86

n,061.78 67,612.54
33,381.67
2,480.68 5,700.34
1,378,645.37 3,850.00

s so,n1.ss

22,372.52 1,571.42
2,645,445.82 $

2,286,749.79

0.00 $ 166,557.81 $ 105,405.48

0.00 $ 0.00

-5,470.78 $ 7,698.24

0.00 $ 0.00

711.89

0.00 $ 0.00

167,269.70 $ 665,820.04

105,405.48 564,683.31

-6,73924 474.65

-4,573.01 304.26

0.00 $

2,227.48 $

0.00 $

0.00 $ 826.825.15 $ 665,820.04

-23-

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

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects
UnresetVed Undesignated Total Fund Equity
Total Liabiltties and Fund Equtty

REGULAR

1993 BOND ISSUE
FUND

$

0.00 $ 5,758,827.05

$

0.00 $ 5 758,827.05

$ 5,758,827.05

$ 5,758,827.05

$

0.00

0.00

$

0.00 $ 5758827.05

$

0.00 $ 5 758,827.05

See notes to the general purpose financial statements.

-24-

EXHIBIT"G"

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

92-668-022

92-668-022A

92-668-022B

TOTALS JUNE30 1994 JUNE30 1993

$

0.00 $

239,736.65

$ 5,998,563.70 $ 164,086.00

409785.80 $ 246978.96

656764.76

$

0.00 $

649522.45 $ 246.978.96 $ 6 655.328.46 $ 164.086.00

$ 303,449.49 106336.31
409785.80 $

159,911.57 $ 30380.80 190292.37 $

159,911.57 303,449.49 136717.11
600078.17

$ 5,758,827.05

$

239736.65 $

56686.59

296423.24 $ 164 086.00

$

239,736.65 $

56,686.59 $ 6,055,250.29 $ 164,086.00

0.00 0.00 $

0.00 239736.65 $

0.00

0.00

56686.59 $ 6 055 250.29 $

0.00 164086.00

$

0.00 $

649,522.45 $ 246.978.96 $ 6 655,328.46 $ 164,086.00

.25.

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

BEVENUES
State Funds Local and other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration Bond Issuance Cost
Capital Outlay Land and Land Improvements Building and Building Improvements
Tola! Expendnures
Excess of Revenues over (under) ~ u r e s
OTHER FINANCING SOURCES (USES)
Proceed& from General Obligation Bonds Par Value Discount on Bonds Sold
Operating Transfers In Operating Transfers Out
Tola! Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources CNer (under) Expend~res and Other Financing Uses
FUND BALANCE JULY 1
Residual Equny Transfer
FUND BALANCE JUNE 30

REGULAR

1993 BOND ISSUE
FUND

$

0.00

$

114872.92

$

0.00 $ 114 872.92

$ 250,002.26
$ 14 812.56 $ 14812.56 $ 250002.26 $ -14812.56 $ -135129.34

$ 6,515,000.00 -6,512.00
$ 14,812.56 -614 531.61
$ 14812.56 $ 5893956.39

$

0.00 $ 5,758,827.05

0.00

0.00

0.00 $ 5 758,827.05

See notes to the general purpose financial statements.

-26-

EXHIBIT"H"

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

92-668-022 92-668-0Z!A 92-668-022B

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30 1993

0.00 $ 1,197,079.60 $ 289,189.04 $ 1,486,268.64 $

0.00

114872.92

s _ _~o=.oo~s 1197079.so s 289189.04 s 1601141.56 s _ _ _~o=.oo~

$ 250,002.26

$

0.00

$ 413,302.81

413,302.81

$ 1244513.95

299046.25

1558372.76 $ 156493.42

$

0.00 $ 1 244 513.95 $ 712349.06 $ 2221 677.83 $ 156493.42

$

0.00 $ -47434.35 $ -423160.02 $ -620 536.27 $ -156493.42

$ 6,515,000.00

-6,512.00

$ 205,128.00 $ 397,803.61

617,744.17 $

-614 531.61

$ 205128.00 $ 397803.61 $ 6 511 700.56 $

156,493.42 156493.42

0.00 $ 164,086.00 -164 086.00

157,693.65 $ 0.00
82043.00

-25,356.41 $ 5,891,164.29 $

0.00

164,086.00

82043.00

0.00

0.00 164,086.00

0.00 $ 239736.65 $ 56686.59 $ 6055250.29 $ 164,086.00

-27-

HABERSHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND JYPES JUNE 30 1994

EXHIBIT"!"

ASSETS Cash and Cash Equivalents

EXPENDABLE TRUST FUND SELF-INSURED EMPLOYEE BENEFIT FUND
DENTAL INSURANCE
FUND

AGENCY FUNDS

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

10512.97 $

3275.86 $

13788.B3 $

29408.14

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

FUND EQUITY

Fund Balances

Unr---1

Undesignated

$

$ 10,512.97

3,275.86 $

3,275.86 $

8,657.54

0.00

10,512.97

20,750.60

Total Liabilities and Fund Equity

$

10512.97 $

3275.86 $

13788.B3 $

29 408.14

See notes 1D the general purpose financial statements.

-28-

HABERSHAM COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABH ITIES
FIDUCIARY FUND TYPE AGENCY FUNDS
YEAR ENDED JUNE 30 1994

EXHIBIT"J"

GSBA LEASE/PURCHASE FINANCING PROGRAM
ASSETS cash and cash Equivalents

BALANCE JULY 1 1993

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30 1994

4 720.95 $

0.00 $

4 720.95 $ _ _ _ _ _0._00_

LIABILITIES Funds Held for ()then;

4720.95 $

0.00 $

4,720.95 $ _ _ _ _ _0._00_

DRUG ABUSE RESISTANCE EDUCATION
ASSETS cash and Cash Equivalents

3,936.59 $

5,505.00 $

6,165.73 $ _ _,.;3...2.7.-5._66_

LIABILITIES Funds Held for ()then;

3,936.59 $

5,505.00 $

6,165.73 $ ___3_,2_7_5._66_

TOTALS AGENCY FUNDS
ASSETS cash and Cash Equivalents

8,657.54 $

5,505.00 $

10 886.68 $ ___3_,2_7_5._66_

LIABILITIES
Funds Held for others

8,657.54 $

5,505.00 $

10,886.68 $ _ _,.;3.,.27=5.6..6_

See notes to the general purpose financial statements.

-29-

~RSHAM ~ltfD". ~QQE fQY&ATIQ!i S~t:::tEt&!LE QE B;QEB&. El~!& M!~~~
YEAR ENDER JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agricultura, u. s. Depar1men1 of
Direct Summer Food Service Program for Children 1994Grant
Through Office d Treasury and Fascal Services National Forest Reserve Funds
Through Georgia Depar1men1 of Ed""lior> Food and Nutrition Program Child and Adult Care Food Program 1994 Contract Food Services S<hool Breaklast Program 1994 Gran1 National School Lunch Program 1993Gran1 1994Gran1 Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U. S. Depar1men1 of Through Georgia Depar1men1 of Education Drug-Free Schools and Communities Act 1993 Regular 1993 Cany-Over 1994Regular Elementary and Secondary Education /1,:;t. Chapts, 1 Education d Deprived Children 1993Regular 1993 Cany-Over 1994 Regular Chapter2 Block Grant - Flow Through 1994 Regular Tltlell Eisenhower Mathematico and Science
Education
1993Regular 1994 Regular Individuals with OisabUities Education Act TotleVl,B Flow Through 1993Regular 1993 Cany-Over 1994 Regular Preschool Program 1993Regular 1993 Cany-Over 1994 Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1993Grant 1994 Gran1 Community Based Organizations Vocational Educational Support Program 1994 Contract Tech-Prep Education 1993Grant 1994 Gran1

CFDA NUMBER

AWAADS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.559 10.665

1,184.36 18,783.13 $

18,783.13

1,184.36 $ 18,783.13

1,395.99 (3) (5)

10.558
10.553 10.555 10.555 10.550

5,390.90
126,693.48
468,079.88 103ass.n
s n4021.1

5,390.90

5,390.90

13,485.04 (3)

126,693.48

126,693.48

3,550.05 463,683.78 NIA
618101.34 $

468,079.88 103895.72
s n4027.47

(2)
1,246,589.11 (3) 103895.n
1 368365.86

84.186 84.186 84.186

$ 1,614.00 35,646.00

985.62 1,614.00 $ 32,129.00

1,614.00$ 32,309.94

1,614.00 32,309.94

84D10 84.010 84.010
84.151

13,663.00 397,496.00
29,787.00

87,608.62 13,663.00 321,939.74

13,663.00 384,43521

29,787.00

29,787.00

13,663.00 384,43521
29,787.00

84.164 84.164

14,794.00

14,794.00

14,794.00

7,69824 12,566.54

84.027 84.027 84.027
84.173 84.173 84.173

20,146.00 169,846.00
8,580.00 44,103.00

14,965.37 20,146.00 143,358.n
3,813.64 8,580.00 33,819.30

20,146.00 138,298.15
8,580.00 42,191.99

20,146.00 138,298.15
8,580.00 42,191.99

84.048

16,064.01

84.048

30,846.90

25,011.14

30,846.90

(4)

84.174

14,830.85

12,830.85

14,830.85

(4)

84.243

51,505.36

84243

54,112.00

47,226.64

54,112.00

(4)

30.

HABERSHAM COUNTY BOARD OF EQI ICATKlN SCHEPYLE OF FEDERAL ElNANCIAL ASSISTANCE
VEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PBOGRAU/GRANT
Education, U.S. Dopanmenld Through Hall County Boord d Education d/bla Piedmont Migrant Education ~ Elementary and Secondary Education Act. Chaplet- 1 Migral0ry Education Program 1993Regur 1S84Regular
Total U.S. Dapa-dEducation

CFDA NUMBER

AWAADS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.011 84.011

$ 25917.05
661 381.60 $

-10823 25917.05 $
905850.88 $

25 674.61 $

25 674.61

811283.65 $ _ _.,_11,.,,6,,,964=.68=-

Total Federal Financial Assistance

$ 1 585 409.27 $

1523.952.22 $ 1535311.12 $

2065330.54

Major Programs are identified by an asterisk (1 in front of the CFOA number.

(1) (2)

-ITho amounts shown for the Food Distribution Pr<>gn,m represents the Faderally assigned valued nonmonetary
assistance for donatad commodities received and/or consumed by the system during the current fiscal year. Expenditures for the School Breakfast Program 'N9f8 not maintamed separately and are included in the 19&4

S-. School Lunch Program.
(3) Expenditures for this prcgram Include

and/or Local and Other Fu-.

~ - era not maintained by fund source.

(4) Expenditures on this program were not maintained by fund source.

(5) Funds oomod on this prcgn,m do not require IOf)Olting d expenditures.

See .-S to the general purpose financial statements.

- 31

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

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Habersham Bank, Cornelia, Georgia
INTEREST BEARING ACCOUNTS
Community Bank and Trust, Cornelia, Georgia
Certificate of Deposit No. 31796 (3.45%)
First National Bank of Habersham, Cornelia, Georgia
Certificate of Deposit No. 9500054903 (3.95%)
Habersham Bank, Cornelia, Georgia
Money Market Accounts (Variable) N.O.W. Account (3.15%) Certificates of Deposit
No. 570457 (4.00%) No. 570696 (4.00%) No. 570759 (4.00%) No. 570880 (4.00%) No. 570985 (4.00%) No. 571037 (4.00%)
Trust Company Bank, Clarkesville, Georgia
Certificates of Deposit No. 2615 (3.86%) No. 2616 (3.91 %) No. 2617 (4.06%) No. 2618 (4.11%)

$

8,898.44

$ 511,170.55
507,403.15
1,478,415.50 -86,398.05 500,000.00 504,704.11 505,685.89 509,435.34 512,797.12 514,760.27

500,000.00 500,000.00 500,000.00 500,000.00

7,457,973.88

$ 7,466,872.32

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

HABERSHAM COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3"

AgriculbJre, U. S. Department of Summer Food Service Program for Children
Education, Georgia Department of Food Services National School Lunch Program Vocational Education Federal Funds Lottery Programs Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant Federal Programs Drug-Free Schools and Communities Act ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act Trtle VI, B - Preschool Program
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Habe<sham County Commissioners Alcoholic Beverage Sales Tax
Habe!sham County Tax Commissioner County Wide Bond Tax County Wide School Tax
Northeast Georgia Regional Educational Service Agency Reimbursement for Registration Fees
Revenue, Georgia Department of Local Option Sales Tax

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

1,184.36

1,184.36

14,721.12

4,396.10
114,688.00 7,096.28
173,430.73 76,049.38 180.94 62,495.47

8,385.37

4,396.10 14,721.12
114,688.00 7,096.28
173,430.73 76,049.38
180.94 62,495.47
8,385.37

22,227.40 24,559.18

$ 656,764.76 2,045.43

656,764.76
22,227.40
2,045.43 24,559.18

1,666.00 264,888.60

1,666.00 264,888.60

$ 328,062.30 $ 447,906.63 $ 656,764.76 $ 2,045.43 $ 1,434,779.12

See notes to the general purpose financial statements.

- 33 -

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996 1997 1998 1999
2000 2001 2002 2003 2004
2005 2006 2007 2008 2009
2010 2011 2012 2013

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

SCHEDULE "4"

TOTAL DEBT SERVICE

1993 ISSUE

INTEREST

PRINCIPAL

$

414,707.50 $ 314,707.50 $

100,000.00

411,707.50

311,707.50

100,000.00

418,507.50

308,507.50

110,000.00

419,657.50

304,657.50

115,000.00

420,402.50

300,402.50

120,000.00

420,722.50 420,660.00 625,200.00 630,410.00 634,210.00

295,722.50 290,660.00 285,200.00 270,410.00 254,210.00

125,000.00 130,000.00 340,000.00 360,000.00 380,000.00

636,350.00 636,950.00 640,950.00 638,032.50 643,852.50

236,350.00 216,950.00 195,950.00 173,032.50 148,852.50

400,000.00 420,000.00 445,000.00 465,000.00 495,000.00

647,865.00 650,040.00 650,070.00 653 480.00

122,865.00 95,040.00 65,070.00 33 480.00

525,000.00 555,000.00 585,000.00 620 ODO.DO

$ 10,613,TT5.00 $ 4,223,TT5.00 $ 6,390,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Issued During Period Bonds Retired During Period
Bonds Payable at June 30, 1994

1993 Issue

$

0.00

6,515,000.00

-125,000.00

$ 6,390,000.00

MATURITY DATES Sem~Annual Interest Payment Dates Annual Debt Retirement Date

JUN 1-DEC 1 JUN 1

See notes to the general purpose financial statements.

- 34 -

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

SCHEDULE "5"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

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 Reguiar Bus Replacement Limited English Speaking Middle School Incentive Special Instructional Assistance In-School Suspension Mid-tenn Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Innovative Programs Mentor Teacher Program Next Generation Schools Preschool Handicapped Program Special Education Low Incidence Grant Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Lcttery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Next Generation Schools Safe Schools Grant

$ 8,979,009.00 1,252,706.00 160,751.00 380,252.00 122,733.00 2,628,112.00
527,262.00 176,269.00
79,842.00 357,349.00 193,413.00 100,788.00 241,395.00 -2,450,203.00 580,728.00
$ 13,132.00
4,980.00 1,440.00 172,105.00 46,476.00 31,435.00
2,500.00 18,852.04

101,720.00
2,316.00 187,616.00
7,096.28 173,430.73 112,895.00
76,049.38

$ 8,979,009.00 1,252,706.00 160,751.00 380,252.00 122,733.00 2,628,112.00
527,262.00 176,269.00
79,842.00 357,349.00 193,413.00 100,788.00 241,395.00 -2,450,203.00 580,728.00 101,720.00
13,132.00
4,980.00 1,440.00 172,105.00 46,476.00 31,435.00
2,500.00 18,852.04
2,316.00 187,616.00
7,096.28 173,430.73 112,895.00
76,049.38

Financing and lnvesbnent Commission, Georgia State Reimbursement on Construction Projects

$ 1,486,268.64

1,486,268.64

CONTRACTS Education, Georgia Department of Implementation of Department's Elementary School Foreign Language Implementation of Governor's School Leadership Institute

45,480.00 1,000.00

45,480.00 1,000.00

$ 13,667,806.04 $

661,123.39$ 1,486,268.64$ 15,815,198.07

See notes to the general purpose financial statements.

- 35 -

HABERSHAM COUNTY BOARD OE EDUCATION SCHEPUL EOF LOCAI ANP OTHER REVENUE
YEAR ENEp JUNE 30 1994

SCHEDULE"6"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTAL

Taxes Alcoholic Beverage Sales Tax County Wide Bend Tax
County Wide School Tax
Lccal Option Sales Tax
Railroad car Tax
Real Estate Transfer Tax

$ 232,483.87
3,801,171.48 3,112,381.88
73.47 22,665.78

$ 376,356.74
7.46 2,296.53

$ 232,483.87 376,356.74
3,801,171.48 3,112,381.88
80.93 24,962.31

Other Anlilruat Milk Lawsuit Settlement Contributions lo Sell-lnsunld Emplafee Dental Plan Fund from Other Funds For Denial Plan Insurance Donations Throogh Southern Regional Education Board Lettie Pate Evans Foundation Interest Earned
JuryD~FLost and Damaged Bocks Rent Sales
Lunct.s and BreaSchool Asoels Shanld Service Contributions

-

of Education

BrisCounty

0-Counly

Lumpkin County

Rabun County

Tuition

Other

$ 3,220.26

3,220.26

$ 181,305.83

181,305.83

10,000.00 62,672.56
2,610.00 2,872.65
845.00
28,530.45

22,528.99 $ 114,872.92 692,011.91

3,257.38

3,350.00 3,350.00 3,350.00 3,350.00 23,914.92 75,789.82

16,380.84

10,000.00 203,331.85
2,610.00 2,872.65
845.00
692,011.91 28,530.45
3,350.00 3,350.00 3,350.00 3,350.00 23,914.92 92,170.66

$ 7,389,411.88 $ 734,142.00 $ 114,872.92 $ 381,918.11 $ 181,305.83 $ 8,801,650.74

See notes lo the general purpose financial statements.

36.

HABERSHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 14,171,376.31 $ 4,101,585.90 55,201.00 81,462.49 9,999.73 78,177.86 161,887.23 6,260.81 82,766.14 43,427.06
38,031.82 686,449.38 662,001.39
210,366.47 28,931.00 75,032.60

890,631.49 $ 252,011.11
13,931.89 88,407.29
11,013.33
3,096.12 7,243.07 5,045.09 346,740.78 9,870.99 630,241.29 4,605.75 8,300.50. 4,692.33

15,062,007.80 4,353,597.01 69,132.89 169,869.78 9,999.73 78,177.86 172,900.56 6,260.81 82,766.14 46,523.18 7,243.07 43,076.91 1,033,190.16 671,872.38 630,241.29 214,972.22 37,231.50 79,724.93

388,861.65 435,194.15

23,943.94 345,670.85

412,805.59 780,865.00

Total Expenditures

$ 21,317,012.99 $ 2,645,445.82 $ 23,962,458.81

See notes to the general purpose financial statements. - 37 -

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

EXPENDITURES Operating Costs Professional and Technical Services Supplies Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

$

2,560.89 $

6,960.00

181123.00

$

2 560.89 $

188 083.00

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

SCHEDULE "8"

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

NEXT
GENERATION SCHOOLS

SAFE SCHOOLS
GRANT

TOTAL

$

2,400.00 $

2.400.00

$

6,361.78 $

47,069.56 $

112,895.00

73,649.38

249,496.61

734.50

126 361.17

308 218.67

$

7,096.28 $

173,430.73 $

112,895.00 $

76,049.38 $ _ _.;;;56;;,;0;,.,1;.;1.;;,5;;;2~8

- 39 -

HABERSHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

SCHEDULE "9"

EXPENDITURES Operating Costs Dental Benefit Claims Professional and Technical Services
Total Expenditures

$ 179,114.46 12,429.00
$ 191,543.46

See notes to the general purpose financial statements. - 40 -

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

SCHEDULE "10"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 11,014,113.00 $

122,733.00

$ 12,308,641.01 490,904.09 $
$ 12,799,545.10 $

122,733.00 122,733.00

-233,220.68

$ 12,566,324.42 $

-25,330.10 97,402.90

$

0.00 $

25,330.10

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

HABfRHAM CO\ INTY BQABQ Qf EQI. lQA.TIQN ANALYSIS 9f MINIMUM EXPfNPffiJRE REQl IIREMENTS BY PROGRAM
GENERAi BJNP QI IAI ITY BASIC fpt JCA.TIQN ffiOORAM
YEARENDEPJl1Nf30 1994

GENERAL ANQ CAREER fQLJQATION PROGRAMS Kindelgarten (") Grades 1 - 3 (") Sub-Total K-3 Grades 4 - 5 (") Grades 6 - 8 (") Grades 9 -12 (") K,gh School Laboratories (") Vocational Education Laboratories (1 Total General and Career Education Programs
SpECIAI EDI ,CATION PROGRAMS
Regular Programs Categayl (") Catego,yll(") Calegay Ill (") Catego,y IV (") Itinerant Supplemental Speech Sub-Total Regular Calegay V (Gilled) (") Total Special Education Programs
RfMfQlAI EOUCATIQN PROGRAM ,, MEDIA CFNTFR PROGRAMS
Total Thirteen Weighted and Media Center
STAFF PfYfl opME;NT PROGRAMS (1) Cost d. lnstructk>n Professional De,efopment
Total staff Development
(*) Identifies Thirteen Weighted Programs Note: (1) $14,272.50 of the aUotment for Professional
Dewlopment has been transferred to Cost of Instruction as authorized by OCGA 20-2-182
See notes to the general purpose financial statements

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL ~

ORIGINAL

MID-TERM

REQUIRED

893,720.00

804,348.00 $

2 243 429.00

2 019 086.10

$ 3,137,149.00 90 $ 2,823,434.10 $

1,291,058.00 90

1,161,952.20

2,100,267.00 90

1,890,240.30

728,418.00 90

655,576.20

1,159,895.00 90

1,043,905.50

562 222.00 90

505 999.80

$ 8,979 009.00

8,081,108.10 $

31,000.00 $ 30 395.00 61,395.00 $
130,000.00 191 395.00 $

835,348.00 2 049 481.10 2,884,829.10 1,161,952.20 1,890,240.30
655,576.20 1,173,905.50
505 999.80 8,272 503.10

1,085,917.00

977,325.30 $

50,000.00 $ 1,027,325.30

1,085,917.00 166 789.00
1 252,706.00 160 751.00 380 262.00

90 $ 90
90 $ 90

977,325.30 $ 150110.10 1127,435.40 $ 144,675.90 $ 342 226.80 $

50,000.00 $ 1,027,325.30

150110.10

50 000.00 $ 1177 435.40

0.00 $

144,675.90

0.00 $

342 226.80

$ 10,772,718.00

9,695,446.20 $

241,395.00 $ 9,936,841.20

41,855.50 100 $ 80 877.50 100

41,855.50 $ 80 877.50

0.00 $

41,855.50 80 877.50

122,733.00

122,733.00 $

0.00 $

122,733.00

$ 10,895,451.00

9,818,179.20 $

241,395.00 $ 10,059,574.20

42

SCHEDULE "11"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

815,266.30 $ 1,0TT,794.91

20,081.70 $

25,430.65

1 985 223.20

2 647 580.29

64 257.90

82197.22

2,800,489.50 $ 3,725,375.20 $

0.00

84,339.50 $

107,627.87 $

0.00

1,127,894.40

1,577,513.62

0.00

34,057.80

39,635.98

0.00

1,836,598.50

2,091,992.21

0.00

53,641.80

76,080.59

0.00

627,953.40

702,180.65

0.00

27,622.80

32,010.21

0.00

1,125,092.60

1,354,032.99

0.00

48,812.90

57,622.34

0.00

442 897.20

555,232.31

0.00

63,102.60

67 797.-44

0.00

7 960 925.60 $ 10 006 326.98 $

0.00

311 577.50 $

380 774.-43 $

0.00

11,338.20 $ 186,071.40 727,295.90 60,473.70 16,245.00
1 991.70

30,048.65 237,087.60 975,978.29
69,803.96

554.40 s
3,798.00 17,583.30 1,973.70

520.63 4,06.2.99 18,802.21 1,859.30

1,003,415.90 $ 1,312,918.50 $

0.00

23,909.40 s

25,245.13 $

0.00

146143.80

303 795.20 $

0.00

3 966.30

4,529.36 $

0.00

1149 559.70 $ 1 616 713,70

27,875.70 $

29 774.49

142 243.20 s

149 453.65 $

0.00

2,432.70 $

3,029.17 $

0.00

267 414.30 s

536146.68 $

0.00

74 812.50 $

77 326.00 $

0.00

$ 9 520,142.80 $ 12,308,641.01 $

0.00

416,698.40 $

490,904.09 $

0.00

9,520,142.80 $ 12,308 641.01 $

41,855.50 $ 80,877.50

67,185.60 $ 55,547.40

0.00 25,330.10

122,733.00 $

122,733.00 $

25,330.10

0.00

539,431.40 $

613,637.09 $

25,330.10

- 43 -

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

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr. Charles English, Chairman (") Route 1, Box 1830 Demorest, Georgia 30535
Mr. Randall Caudell (*) Route 3, Box 114 Toccoa, Georgia 30577
Mr. Michael B. Hill (") P.O. Box284 Clarkesville, Georgia 30523
Mr. Fred Holbrooks (") Route 1, Box 1098 Demorest, Georgia 30535
Mr. James J. Holcomb P.O. Box437 Clarkesville, Georgia 30535
Ms. Martha B. Sikes (") P.O. Box622 Cornelia, Georgia 30531

COMPENSATION

TRAVEL

$

2,100.00 $

1,149.73

1,850.00

1,950.00 1,500.00 1,450.00

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

$

8,850.00 $-==1....1.;.;4~9;,.;,.7,;;,.3

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Habersham County Board ofEducation
CO:MPLIANCE 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 Habersham County Board of Education as ofand for the year ended June 30, 1994, and have issued our report thereon dated June 23, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Habersham County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

94CRL-10

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

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Habersham 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 Habersham County Board ofEducation as ofand for the year ended June 30, 1994, and have issued our report thereon dated June 23, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Habersham 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 ofFederal Financial Assistance, for the year ended June 30, 1994:

(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.

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Habersham County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs.
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,
t:1~~
Claude L. Vickers State Auditor
CLV:jy 94CRL-50

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 23, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Habersham 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 Habersham County Board ofEducation of and for the year ended June 30, 1994, and have issued our report thereon dated June 23, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Habersham County Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

94CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Habersham County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
In our opinion, the Habersham County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:jy 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 23, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Habersham County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 23, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1994 general purpose financial statements of the Habersham County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office 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, 1994. 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 ofan opinion on the Habersham County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-120

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

SECTION Ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Habersham 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 Habersham County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 23, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit of the general purpose financial statements of the Habersham County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Habersham County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures.
94ICLa3

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

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

(1) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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

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

General Fixed Assets

A material weakness is a reportable condition in which the design or operation ofone 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.

94ICL-3

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Habersham County Board ofEducation's financial statements and this report does not affect our report thereon dated June 23, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~A
Claude L. Vickers State Auditor
CLV:jy 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 23, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Habersham County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Habersham County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 23, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 23, 1995.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Habersham County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

94ICL-5

In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 23, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(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 ofEffort, 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

94ICL-5

For all of the internal control structure categories listed above, we obtained an understanding of the design

ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control

risk.

.

During the year ended June 30, 1994, the Habersham County Board ofEducation expended 57% of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
~~~~

CLV:jy 94ICL-5

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

HABERSHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $927.35 Audit Control Number 6681-93-02
The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Stipends Program had an underexpenditure ofQuality Basic Education (QBE) funds of $927.35 for the required minimum allotment. In the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal year.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6681-93-01
The audit report for the year ended June 30, 1993, noted that the management of the Habersham 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, no action was taken by the Board to establish this account group. 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, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.

HABERSHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditures Requirements Financial Statements Nonmaterial Noncompliance Amount: $25,330.10 Audit Control Number 6681-94-01
For the year under review, the Board reported to the Georgia Department of Education on DE Form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $67,185.60 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for Staff Development Cost oflnstruction Program purposes resulting in an underexpenditure of $25,330.10 for the minimum required allotment of $80,877.50 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
DRUG-FREE WORKPLACE ACT Inadequate Drug-Free Workplace Policy Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6681-94-02
According to provisions of P. L. 100-690, all grantees that have been approved or awarded a direct Federal grant are required to establish a drug-free workplace policy containing certain information. In the year under review, the Board received funds from the U. S. Department of Agriculture for the Summer Food Service Program (CFDA 10.559). The Board's drug-free workplace policy did not include the requirement that employees notify the employer in writing of any criminal drug statute conviction for a violation occurring in a workplace no later than five calendar days after such conviction.
This deficiency occurred because management was not aware of the provisions of P.L. 100-690. The Board should amend their drug-free workplace policy to insure that all drug-free workplace compliance requirements are included within the policy.

HABERSHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEARENDEDJUNE30 1994
CURRENT YEAR
DRUG-FREE WORKPLACE ACT Failure to Implement a Drug Awareness Program Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6681-94-03
Federal regulation (7 CFR 3017} for the Summer Food Services Program (CFDA 10.559) requires that all grantees that have been approved or awarded a direct Federal grant are required to implement a Drug-Free Awareness Program. In the year under review, the Board did not implement a Drug-Free Awareness Program. For the grantee to be certified as a drug-free workplace, a drug awareness program must be estabHshed. This program must inform employees of the dangers of drug abuse in the workplace, of the grantee's policy for maintaining a drug-free workplace and ofany available drug rehabilitation and employee assistance programs.
This condition occurred because management was not aware ofthe requirements of Federal regulation (7 CFR 3017) for the Summer Food Services Program. The Board should develop a drug-free awareness program that includes all the elements of the drug-free policy.
Note: The Habersham County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.