Audit report, Harris County Board of Education, Hamilton, Georgia, year ended June 30, 1994

GA A800 .Rl
[;J..I,,
H3 l'l't3- '14
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT HARRIS COUNTY BOARD OF EDUCATION
HAMILTON, GEORGIA YEAR ENDED JUNE 30, 1994

HARRISCOUNTYBOARDOFEDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIIlBITS

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

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

26

3 ACCOUNTSRECEIVABLE

27

4 DEBT SERVICE REQUIREMENTS TO MATURITY

28

SCHEDULE OF REVENUE

5

STATE FUNDS

30

6

LOCAL AND OTHER FUNDS

31

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

33

8

LOTTERY PROGRAMS

34

9

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

36

HARRIS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

37

11

BY PROGRAM

38

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

40

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

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' ADMINISTERIN'G FEDERAL FINANCIAL ASSISTANCE PROGRAMS

HARRIS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Harris 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) of the Harris County Board ofEducation, 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.
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 CircularA-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
94ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 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, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Harris County Board of Education 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 ofthe Harris County Board ofEducation taken as a whole. The combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 12 which includes the Schedule ofFederal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Harris County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy 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.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 94ARL-13

HARRIS COUNTY BOARD OF EDUCATION - 1-

BOARD OF EDUCATION BALANCE SHEET AND ACCOUNT GROUP E 30 1994

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Prepaid Items
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
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2,678,503.46 $ 180,330.05 $ 357,638.17

135,713.54

105,895.55

18,852.42

12,115.11 9,773.18

$ 2,833,069.42 $ 308,113.89 $ ===35=7,.,6;;;3;;;;8.;,17=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Deferred Revenues Expired Grant Balances Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food
Unreserved Un designated
Total Fund Equity

$ 178,324.97 $

17,710.11

105,441.30

4,334.00

2,616.34

$ 178,324.97 $ 130 101.75

$

2,993.70

$ $ 2,654,744.45 $ 2,654,744.45 $

12,115.11 9,773.18
24,881.99
153,130.15 $
178,012.14 $

357,638.17 357 638.17

Total Liabilities and Fund Equity

$ 2,833,069.42 $ 308,113.89 $ 357,638.17

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

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS !Memorandum On~ JUNE 30 1994 JUNE 30 1993

$ 382,653.86 $

17,512.61

$ 3,616,638.15 $ 2,611,636.17

5,618.94

247,228.03

259,937.94

18,852.42

12,115.11 9,773.18

18,522.15 6,594.04

$

388,272.80

388,272.80

447,805.52

4,901,727.20 254 367.43

4,901,727.20 254 367.43

5,122,194.48 14 185.82

$ 388,272.80 $

17,512.61 $

5,544,367.43 $ 9,448,974.32 $ 8,480,876.12

$ 196,035.08 $

46,376.78

105,441.30

96,100.01

4,334.00

2,616.34

24,718.58

$

254,367.43

254,367.43

14,185.82

5 290,000.00 5 290 000.00 5 570,000.00

$

5,544,367.43 $ 5,852,794.15 $ 5 751,381.19

$ 388,272.80
$ 388,272.80 0.00 $
$ 388,272.80 $ $ 388272.80 $

17512.61 17 512.61
17,512.61 $

$

908.09

$ 388,272.80

447,805.52

2,993.70

2,993.70

12,115.11 9773.18

18,522.15 6,594.04

$ 413,154.79 $ 476,823.50

3183 025.38 2,252,671.43

$ 3,596180.17 $ 2 729,494.93

5 544,367.43 $ 9,448,974.32 $ 8,480,876.12

-3-

HABBS CQUNJY BOARD OE EPUCATIQN
COMBINED STATEMENT OE BEYFNlJES EXPENDITURES ANP CHANGES IN EUNP BA\ ANCES GPYEBNMENTAL FUND IYPFS AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1994

JID!ftlliil
State Funds Federal Funds Local and other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration BusJness Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Seivices Food Services Operation Community Service Operations other Operations of Non-Instructional Services
capital Outlay Debi Service
Principal Interest Paying Agent Fees
Total Expend~ures
Excess of Revenues over (under) Expenditures
OTI:tER FINANCING SOURCES <USES)
capital Leases Operating Transfers In Operating Transfers Out
Total other Financing Sources (Uses)
Excess of Revenues and other Financing Sources over (under) Expend~ures and other Financing Uses
EYND BA) ANCf JULY 1
Food Inventory Net Change in Period Donated Commodtties Purchased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

7,406,911.00 $ 108,787.54
4,976 868.17

768,217.34 1,158,349.24
326623.71 s _ _-"9"'823=.95"'-

s 12 492 566.71 s 2 253190.29 s _ __a.e~823=.95=

7,300,141.33 $ 934,217.93 $

387,737.46 207,893.10 356,470.97 283,833.19 599,040.99 170,756.64 858,855.38 833,685.42

119,175.92 29,944.90 94,648.73 47,978.90 25,749.38
64,362.29 31,405.96

52,581.03
80,327.07 80,902.52 470,167.29

8,910.05 1,001,059.57
16,320.00

87,320.39 9,093.55

11 778 806.33 $ 2373773.61 $ 713 760.38 $ -120,583.32 $

0.00
0.00 9823.95

$ 327,502.00 $
-238400.51
89101.49 $

83,400.51 $ 155,000.00 83400.51 $ 155000.00

802,861.87 $ 1,851,882.58

-37,182.81 $ 218,422.85

164,823.95 192,814.22

-6,407.04 3179.14

FUND BALANCE JUNE

2 654 744.45 $ 178012.14 $ 357638.17

The notes to the general purpose financial statements are an integral part of this statement. .4.

EXHIBIT"B"

lYPES
DEBT SERVICE
FUND

TOTAL

FIDUCIARY
FUNDlYPE EXPENDABLE TRUST FUND

TOTALS
{Memorandum Onl:t) YEAR ENDED
JUNE 30 1994 JUNE 30 1993

$ 8,175,128.34 $

1,267,136.78

$ 543 662.78

5 856978.61

$ 543 662.78 $ 15 299 243.73 $

0.00 $

8,175,128.34 $ 1,267,136.78 5 856978.61

6,771,808.22 1,277,185.64 5449179.15

0.00 $ 15 299 243.73 $ 13 498173.01

$ 8,234,359.26

506,913.38 237,838.00 451,119.70 331,812.09 624,790.35 170,756.64 923,217.67 885,091.38

61,491.08 1,001,059.57
80,327.07 $ 80,902.52 488,487.29

$ 280,000.00 322,695.50 500.00

367,320.39 331,789.05
500.00

$ 803195.50 $ 14 755 775.44 $

$ -59532.72 $ 543468.29 $

$ 8,234,359.26 $ 6,946,247.31

1,057.15

506,913.38 237,838.00 451,119.70 331,812.09 624,790.35 170,756.64 923,217.67 865,091.38
61,491.08 1,001,059.57
81,384.22 80,902.52 488,487.29

453,555.22 227,572.70 397,194.87 311,149.63 623,113.82 121,838.25 810,592.79 901,220.00 52,972.83
0.00 868,905.44
71,329.14 71,195.99

367,320.39 331,789.05
500.00

220,000.00 331,807.50
1512.66

1 057.15 $ 14 756 832.59 $ 12410208.15

-1 057.15 $

542 411.14 $ 1 087964.86

$ 327,502.00 238,400.51 -238 400.51
$ 327 502.00

327,502.00 238,400.51 $ -238400.51

160,754.59 -160 754.59

$

327502.00 $

0.00

$ -59,532.72 $ 870,970.29 $

447,805.52

2,710,925.17

-1,057.15 $ 18,569.76

869,913.14 $ 2,729,494.93

1,087,964.86 1,647,706.80

-6,407.04 3179.14

-6,407.04 3179.14

-6,651.98 475.25

$ 388 272.80 $ 3 578 667.56 $

17512.61 $ 3596180.17 $ 2 729494.93

.5.

t:IABBIS ~um EK26BP QE EQ!JCaIIQN ~MEUNEQ m~MEliI QE BE~NUES EiPEt:lPII.YBES At:IQ Ct:IAN~ES IN EUt:AQ aAI ANCES
~Il.!AI 6HP am;~:z~ !:JQYEBt:iMEliIAl E!Jt:IIJ IleES
YEAR ENPEP JUNE 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE !UNFAVORABLE!

~

state Funds Federal Funds
Local and Other Funds

$ 8,175,128.34 $ 1,267,136.78 5856978.61

0.00 $

8,175,128.34 $ 7,278,149.00 $ 1,267,136.78 1,074,573.00 5,856,978.61 5404557.00

896,979.34 192,563.78 452 421.61

Total Revenues

$ 15,299,243.73 $

0.00 $ 15,299 243.73 $ 13 757 279.00 $ 1 541964.73

FXPENPITYBES

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

School Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

other Support Services

Food Services Operation

Community Service Operatlons

Other Operations of Non-Instructional Services

capital Outlay

Debi Service

8,234,359.26 $
506,913.38 237,838.00 451,119.70 331,812.09 624,790.35 170,756.64 923,217.67 865,091.38 61,491.08 1,001,059.57 80,327.07
80,902.52 486,487.29 899609.44

0.00 $ 8,234,359.26 $ 7,632,990.00 $

506,913.38 237,838.00
451,119.70 331,812.09 624,790.35 170,756.64 923,217.67 865,091.38
61,491.08 1,001,059.57
80,327.07 80,902.52 486,487.29 699,609.44

521,475.00 255,435.00
380,953.00 342,237.00 646,978.00 159,497.00 878,869.00 934,264.00
58,023.00 855,500.00
92,410.00 81,648.00 259,500.00 603,048.00

-601,369.26
14,561.62 17,597.00 -70,166.70 10,424.91 22,187.65 -11,259.64 -44,348.67 69,1n.62 -3,468.08 -145,559.57 12,082.93
745.48 -226,987.29
-96,561.44

Total Expendilures

$ 14,755,775.44 $

0.00 $ 14,755,775.44 $ 13 702 827.00 $ 1,052,948.44

Excess of Revenues over (under) Expendttures $ 543,468.29 $

0.00 $ 543468.29 $ 54,452.00 $

489016.29

Qit:IEB EINANQIN~ SQUB~ES (USES)

other Souroes other Uses

$ 565,902.51 $ 238400.51

0.00 $ 565,902.51 $ 155,000.00 $

-238400.51

-155,000.00

410,902.51 -83400.51

Total other Financing Sources (Uoes) $ 327502.00 $

0.00 $ 327,502.00 $

0.00 $

327502.00

Exceu of Revenues and other F"anancing Sources

"""' (under) Expendttures and other Financing

Uses

$

870,970.29 $

0.00 $ 870,970.29 $ 54,452.00 $

816,518.29

E\JND Beil ANQE Jl.!LY l l ~

2,710,925.17

-25,116.19 2,685,808.98 2,680,626.18

5,162.80

EQQQ ltri!etilQBY !!la! !.l:llll!sle IN elaBIQQ

Donated Commodities

-6,407.04

6,407.04

0.00

0.00

Purchased Food

3,179.14

-3179.14

0.00

0.00

EtlNQ fl!~~~ JY~~ ~ :1~

$ 3,578,667.56 $ -21,888.29 $ 3,556,779.27 $ 2,735,078.18 $

821,701.09

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

HARRIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Harris County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in 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 of the 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 Harris County Board of Education.
Based upon the application ofthe above criteria, the Harris County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Harris 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, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rates at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results 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-

HARRIS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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

- 9-

HARRIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable 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.
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, 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 ofpersoooel of the Board were employed for a one hundred and ninety day period begiMing in late August 1993 and ending in early June 1994. Persoooel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share ofthese 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 ofthe 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
- 10 -

HARRIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
BUDGET
The Harris County Board of Education 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 ofthis 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
COMPOSffiON OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
RECEIVABLES
Receivables consist 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 Harris County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on September 25, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes
- 11 -

HARRIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

was January l, 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 Harris 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 Harris County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

13.27 mills 1.48 mills

~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.

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 1994 are recorded as prepaid items.

COMPENSATED ABSENCES

Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.

Additionally, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.

- 12 -

HARRIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 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 transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
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 ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
- 13 -

HARRIS 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 of the 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 ofthe State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $4,871,779.01. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Risk Category

Bank Balance

1

$ 200,000.00

2

2,250,131.73

3

2 421 647.28

Total

s 4 87) 779 OJ

- 14 -

HARRIS COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE 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. Each fund contributes their pro rata share to the Unemployment Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, a total of$1,057.15 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Harris County Board of Education has entered into various lease agreements as lessee for office equipment and modular classrooms. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date oftheir inception.

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$ 16,583.33 $ 5,570,000.00 $ 5,586,583.33

Retroactive Restatement ofPrior Year Balances

-2 397.51

-2 397.51

Balance July 1, 1993 Restated

$ 14,185.82 $ 5,570,000.00 $5,584,185.82

Additions

327,502.00

0.00

327,502.00

Deductions Balance June 30, 1994

87 320.39

280 000.00

367 320.39

$ 2!H 36Z~3 $ 222Q QQQ QQ $ !i !i~~ 367~3

- 15 -

HARRIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 5: GENERAL LONG-TERM DEBT

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1995 1996 1997 1998 1999 2000 and thereafter

$ 120,653.62 116,145.12 30,551.58

$ 609,788.00 604,763.00 598,360.00 605,085.00 601,735.00
4 818 016.00

$ 730,441.62 720,908.12
628,911.58
605,085.00 601,735.00 4 818 016.00

Total Principal and Interest

$ 267 350.32 $ Z 32 Z4Z QQ SJQ;iQ2Z32

Deduct: Imputed Interest

$ 12 982.89

Net Present Value ofFuture Minimum Lease Payments

$ 2~4 3!:iZ ~3

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1992, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1994, $4,205,000.00 ofbonds defeased by the 1992 bond issue are outstanding and are considered defeased.

Note 7: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of $4,334.00 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with Lottery Programs. The Georgia Department of Education 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 year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

Computers in Classrooms

$ 4 3J4 00

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

- 16 -

HARRIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 9: ACCUMULATED EMPLOYEES' LEAVE
The Board's administrative staff and certain other full-time employees earn 10 days per year of annual leave. Annual leave may be accumulated to a maximum of20 days. Upon notice of retirement or termination of employment, the employee is requested to use up all accumulated annual leave; however, if this is not possible, up to 20 days of accumulation is paid to the employee. See Note 1- Compensated Absences
Note 10: 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 of creditable service, regardless of age, or after 1Oyears ofservice and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution 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 IO 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 $7,343,706.19; total payroll was $8,461,690.20.
- 17 -

HARRIS COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 10: 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 of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $1,307,900.26, ofwhich $867,289.93 was made by the Board and $440,610.33 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

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

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ 1 090 292 000 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$867,289.93 was actuarially determined and represented .1663% 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 -

HARRIS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 10: 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 of60 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 contnbutions occurs, but the member's contnbutions are refunded with interest.
There were 128 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 contnbutions 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 $4,196.00. 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 11: SURETY BONDS
The School Superintendent, Dr. Tommy R Lee, is bonded in the amount of$50,000.00 with the Continental Insurance Companies, New York, New York, their Bond No. BNSl371818, on which premium is paid through December 31, 1995.

- 19 -

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

!:IABBIS QQ!.!!:ffl'. l!QABC! QE laC!!.!QAIIQN QQM!llNIN!.2 11111.ANQE S!:lElaI S!!l:QIAL Blalll;N!,!I; E!.!NC! J!JNE3Q 1994

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

CHAPTER1

EDUCATION OF EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS CHILDREN

$ 195,007.42 $

0.00 $

5,095.02 $

0.00

3,966.13

$

76,917.56

12,115.11 9,773.18

Total Assets

$ 220,861.84 $

0.00 $

5,095.02 $

0.00 $

76917.56

LIABlblTI!; AND E!JND !;QUITY

~

Cash Overdrafts Accounts Payable Salaries Payable Deferred Revenues Expired Grant Balances Payable

$

3,949.52

41,893.86

Total Liabillties

$ 45,843.40

f!.!NC! EO!,!ITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Expired Grant Balances/Questioned

Costs

For Inventories

Food

Donated Commodities

$

Purchased Food

12,115.11 9,773.18

Unreserved Undesignated

$ 21,868.29 153130.15 $

Total Fund Equity

$ 175,018.44 $

$

4,334.00

761.02

$

5,095.02

0.00 $ 0.00 $

0.00 $ 0.00 $

$

11,130.37

10,744.03

51,270.00

779.46

$

73,923.86

$

2,993.70

$ 0.00 0.00 $

2,993.70 0.00
2993.70

Total Liabillties and Fund Equity

$ 220,861.84 $

0.00 $

5,095.02 $

0.00 $

76,917.56

See notes to the general purpose financial statements.

-20-

EXHIBIT"E"

SECONDARY EDUCATION ACT

TITLEII-

EISENHOWER

CHAPTER 2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING

PARTNERSHIP

TOTALS

ACT

JUNE 30, 1994 JUNE 30, 1993

$

109.55 $

9.96

$

0.00 $ 200,221.95 $ 207,988.24

$

16,166.00 $

8,845.86

105,895.55

123,770.80

12,115.11 9,773.18

18,522.15 6,594.04

109.55 $

9.96 $

16,166.00 $

8,845.86 $

0.00 $ 328,005.79 $ 356,875.23

$

109.55 $

$

109.55 $

$
9.96 9.96 $

3,617.88 $ 2,454.32 10,093.80
16,166.00 $

5,143.65 582.24
2,183.62
956.35
8,845.86

$

19,891.90

17,710.11 $

105,441.30

4,334.00

2,616.34

18,296.57 96,100.01
24,055.80

149,993.65 $ 138,452.38

$

0.00 $

$

0.00 $

$

109.55 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

9.96 $

16,166.00 $

8,845.86 $

$

908.09

$

2,993.70

2,993.70

$ 0.00 0.00 $

12,115.11 9,773.18
24,881.99 $ 153,130.15
178,012.14 $

18,522.15 6,594.04 29,017.98 189,404.87
218,422.85

0.00 $ 328,005.79 $ 356,875.23

-21-

l:IABBIS QQL!NIY aQaBQ QE EDI IQAIIQH CQMEU~IHG SIAIEMEtn: QE BE~t:iL!ES EXeEtiQIIUBES 6tiQ QtiAtiGES lti EUtiQ B6LAtiQES
eE!::IIIL BE~!!ll.!E El.!!!112 YEAR E@ED Jl.!!!IE :lQ 1994

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

CHAPTER1

EDUCATION OF EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS CHILDREN

~

Slate Funds Federal Funds Local and Other Funds
Total Revenues

$ 65,132.00 $ 573,029.14 326623.71
s 964,784.85 S

31,236.00 S 671,849.34 $
31236.00 S 671,849.34 $

1,416.00 S

418,685.10

1 416.00 $

418685.10

exee@IWBeli

Current Instruction Support S8<vlces Pupil S8<vlces lmp,ovement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services C8pltal Outlay Food Services Operation
Total Expenditures
Elo:ess of Revenues tNer (under) Expenditures

$
s 1,001,059.57 s 1 001,059.57 $ s -36,274.72 S

14,723.70 $ 442,759.56

17,928.67

80,470.42 210.00
94,648.73

25,749.36 62,644.88 29,946.75 $

16,320.00

32652.37 $ 752749.70 $ 1,416.37 S .al,900.36 S

1,459.21

361,602.44 130.54 434.86
47,607.21
8,910.05

1459.21 $
s -43.21

418685.10 0.00

Qil::IEB EltiAtitlti~ SQUBCES

Operating Transfess In

1416.37

80,900.36

43.21

Elo:ess of Revenues and Other Financing Sources

over (under) Expenditures

$ -36,274.72 S

0.00 $

0.00 $

0.00 $

0.00

El.!!!112 l!Ai.11!!11::E JULY l
Food Inventory. Net Change in Period Donated Commodities Purchased Food

214,521.06
-6,407.04 3,179.14

0.00

0.00

0.00

2,993.70

El.!!!11:! l!ALll!!l!::E Jl,!!!IE ;iQ

$ 175,018.44 S

0.00 $

0.00 $

0.00 $

2,993.70

See notes to the general purpose financial statements.

-22

EXHIBIT"F"

SECONDARY EDUCATION ACT TITLEII-
EISENHOWER CHAPTER2 MATHEMATICS BLOCK GRANT - AND SCIENCE FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE30 1994 JUNE 30 1993

$ 768,217.34 $ 86,003.00

$

21,911.45 $

10,635.04 $ 117,731.00 $

11,689.51 $

3,052.00 1,158,349.24 1,224,486.40

326623.71

307900.64

s

21911.45 S

10,635.04 $ 117731.00 $

11689.51 $

3052.00 $ 2 253190.29 $ 1,618,390.04

s

21,862.81

$

78,327.91 $

11,689.51 $

3,052.00 $ 934,217.93 $ 596,504.44

48.64

11,514.67 30.04

20,846.29 17,785.37
293.01
1,717.41

119,175.92 29,944.90 94,648.73 47,978.90 25,749.36 64,362.29 31,405.96
8,910.05 16,320.00 1,001,059.57

37,253.70 32,674.07
45,338.19
1,711.07 8,890.00 10,099.83
868905.44

s

21911.45 S

11,544.71 S 118 769.99 $

11889.51 $

3,052.00 $ 2 373 773.61 $ 1601376.74

s

0.00 S

-909.67 $

-1,038.99 $

0.00 $

0.00 S -120,583.32 $ 17,013.30

1.58

1,038.99

83,400.51

5754.59

s

0.00 $

-908.09 $

0.00 $

0.00 $

0.00 $ -37,182.81 $ 22,767.89

0.00

908.09

0.00

0.00

0.00

218,422.85

201,831.69

-o,407.04 3179.14

-o,651.98 475.25

s

0.00 S

0.00 $

0.00 $

0.00 $

0.00 $ 178,012.14 $ 218,422.85

-23-

t:!IIBBllil !.Q!.!NIY llQIIBQ QE EQ!.!!.III!QN 1>!.t:!EQ!.!LE QE FEQEBIIL EINAt!l!.IIIL Mlilllilillt!l!.E
YEAR ENDED JUNE 30 1994

SCHEDULE 1

FUNDING AGENCY PRQGRAMIGRANT
Agriculture, U.S. Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1994 Contract Food Services School Breakfast Program 1993 Grant 1994 Grant National School Lunch Program 1993 Grant 1994 Grant Food Distribution Program (1)

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.558 $

3,625.25 $

10.553 10.553
10.555 10.555 10.550

115,390.22
389,652.40 64361.27

3,625.25 $

3,625.25

(4)

2,351.52 115,356.07
3,186.49 385,720.42 NIA

115,390.22

(2)

389,652.40 $ 64361.27

936,698.30 (3) 64361.27

Total U.S. Department of Agriculture

$ 573029.14 $

510,239.75 $ 573029.14 $ 1 001 059.57

Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1993Regular Education of Deprived Children 1993Regular 1993 Carry-Over 1994Regular Chapter2 Block Grant - Fla.Y Through 1992 Carry-Over 1994Regular Trtlell Eisenhower Mathematics and Science Education 1993 Regular 1994Regular Individuals with Disabilities Education Act TrtleVl,B Fla.YThrough 1993 Regular 1993 Corry-over 1994Regular Preschool Program 1992 Carry-Over 1994 Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1993 Grant 1994 Grant Tech-Prep Education 1994Grant

84.009 $ 84.010 84.010 84.010
84.151 84.151
84.164 84.164
84.027 84.027 84.027 84.173 84.173
84.048 84.048 84.243

1,416.00 $ 45,036.00 420,859.00
610.00 21,411.00
10,645.00
6,565.00 111,166.00
15,906.00
32,719.62 60,000.00

1,416.00 $

1,416.00 $

64,844.96 41,486.00 301,061.00

40,879.98 377,805.12

1,45921 (3)
40,879.98 377,805.12

610.00 21,411.00

610.00 21,301.45

610.00 21,301.45

10,645.00

10,635.04

909.67 (3) 10,635.04

27,767.03 6,565.00 95,000.00
1,565.00 4,000.00

6,565.00 111,166.00
11,889.51

6,894.33 (3) 111,875.66 (3)
11,889.51

24,442.59

18,282.02

32,719.62

(4)

21,890.00

60,000.00

(4)

- 24

HARRIS COUNTY BOARD Of EDUCATION SCHEDULE QF FfPERAi FINANCIAL ASSISTANCE
YEAR FNDEp JUNE 30 1994

SCHEDULE 1

FUNDING AGENCY
PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of Through Georgia Department of Human Resources Drug Abuse Resistance Education Program 1994Grant

84.186

16067.92 $

14607.20 $ 16067.92 $

16067.92

Total U.S. Department of Education

$ 742401.54 $

655 592.80 $ 691 055.64 $

600327.89

Labor, U. S. Department of Through Columbus Consolidated Government Job Training Partnership Act Contract No. 93-098

17.250 $

3 052.00 $

3 052.00 $

3052.00 $

3052.00

Total Federal Financial Assistance

$ 1 318 482.68 $

1 168 884.55 $ 1 267136.78 $ 1604439.46

Major Programs are Identified by an asterisk (') in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current f,scal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included In the 1994 National School Lunch Program.
(3) Expendttures for this program include State, and/or Local and Other Funds. Expendttures are not maintained by fund source.
(4) Expendttures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

25.

HARRIS COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE30 1994
INTEREST BEARING ACCOUNTS
First Peoples Bank, Pine Mountain, Georgia
Checking Accounts (Variable Rates) Certificate of Deposit No. 1219 (3.00%) Certificate of Deposit No. 1317 (3.60%)
First Union National Bank, Pine Mountain, Georgia
Checking Accounts (Variable Rates) Certificate of Deposit No. 8743195 (3.52%)

SCHEDULE "2"
$ 487,391.13 600,000.00 100,000.00
2,029,247.02 400,000.00
$ 3,616,638.15

See notes to the general purpose financial statements. - 26 -

HARBIS QQUt:m'. BQARQ OF l;;QUCATION AQQOUNTS RECEIV8l,E JUNE 30 1994

SCHEDULE"3"

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

Chattahoochee County Board of Education

Shared Services

$

602.17

$

Harris County Tax Commissioner County Wide Bond Tax City Wide School Tax

51,097.00

$

5,618.94

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education High School Program State Funds Federal Funds Tech-Prep Education Federal Funds Federal Programs ESEA - Chapter 1 Education of Deprived ChUdren Individuals with Disabilities Education Act - TIiie VI, B Flow Through Preschool Program

$

34.15

3,931.98

15,652.00 14,437.60
38,110.00

76,917.56

16,166.00 8,845.86

Human Resources, Georgia Department of Drug Abuse Resistance Education Program

1,460.72

Park Elementary School Lost Books

1,545.08

Various Sources Interest Earned Salary Overpayment Tuiticn

10,927.91 1,681.06 200.00

TOTAL
602.17
5,618.94 51,097.00
34.15 3,931.98
15,652.00 14,437.60 38,110.00
76,917.56
16,166.00 8,845.86
1,460.72
1,545.08
10,927.91 1,681.06 200.00

$ 135 713.54 $ 105,895.55 $

5 618.94 $ 247,228.03

See notes to the general purpose financial statements.

- 27

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

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

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$ 609,788.00 $ 309,788.00 $ 300,000.00

604,763.00

294,763.00

310,000.00

598,360.00

278,360.00

320,000.00

605,085.00

260,085.00

345,000.00

601,735.00

241,735.00

360,000.00

600,883.00

220,883.00

380,000.00

603,373.00

198,373.00

405,000.00

518,770.00

173,770.00

345,000.00

518,933.00

153,933.00

365,000.00

517,580.00

132,580.00

385,000.00

514,673.00

109,673.00

405,000.00

514,968.00

84,968.00

430,000.00

513,523.00

58,523.00

455,000.00

515,313.00

30,313.00

485,000.00

$ 7,837,747.00 $ 2,547,747.00 $ 5,290,000.00

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

TOTAL

1992 ISSUE

$ 5,570,000.00 $ 5,085,000.00

280,000.00

235,000.00

$ 5,290,000.00 $ 4,850,000.00

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

JUN1-DEC1 JUN 1

See notes to the general purpose financial statements. - 28 -

SCHEDULE "4"

1992 ISSUE

INTEREST

PRINCIPAL

19751SSUE

INTEREST

PRINCIPAL

$ 275,468.00 $ 250,000.00 $

264,343.00

255,000.00

252,230.00

265,000.00

238,245.00

280,000.00

224,965.00

295,000.00

209,183.00

310,000.00

192,133.00

325,000.00

173,770.00

345,000.00

153,933.00

365,000.00

132,580.00

385,000.00

109,673.00

405,000.00

84,968.00

430,000.00

58,523.00

455,000.00

30,313.00

485,000.00

34,320.00 $ 30,420.00 26,130.00 21,840.00 16,770.00 11,700.00 6,240.00

50,000.00 55,000.00 55,000.00 65,000.00 65,000.00 70,000.00 80,000.00

$ 2,400,327.00 $ 4,850,000.00 $ 147,420.00 $ 440,000.00

1975 ISSUE $ 485,000.00
45,000.00

$ 440,000.00

JUN 1 -DEC 1 JUN 1

- 29 -

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

SCHEDULE 5

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Innovative Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Lottery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant
Georgia Public Telecommunication Commission Lottery Program Distant Leaming
OTHER Education, Georgia Department of Student Information Systems Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 4,946,635.00 511,119.00 170,309.00 210,770.00 66,559.00
1,444,226.00
438,345.00 147,482.00 158,824.00 369,536.00 66,530.00 317,410.00 -1,648,900.00 140,527.00
$ 61,884.00
1,245.00 2,160.00

$ 4,946,635.00 511,119.00 170,309.00 210,770.00 66,559.00
1,444,226.00

65,132.00

438,345.00 147,482.00 158,824.00 369,536.00 66,530.00 317,410.00 -1,648,900.00 140,527.00 65,132.00 61,884.00

31,236.00

1,245.00 2,160.00 31,236.00

1,250.00

2,316.00 84,380.10 5,000.00 87,500.00 433,414.36 54,503.88

1,250.00
2,316.00 84,380.10 5,000.00 87,500.00 433,414.36 54,503.88

4,735.00

4,735.00

1,000.00

1,000.00

$ 7,406,911.00 $ See notes to the general purpose financial statements.
- 30 -

768,217.34 $ 8,175,128.34

HARRIS COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30 1994

SCHEDULE"6"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax

$ 4,765,826.61 290.04
27,385.67

$ 525,588.32 $ 525,588.32

4,765,826.61

11.37

301.41

3,075.30

30,460.97

other After School Program Anti-Trust Milk Settlement Commodity Rebates Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Rents Sales Lunches and Breakfast School Assets Shared Service Contributions Chattahoochee County Board of Education Supply Fees Tuition other

71,363.53 $
659.05 500.00

736.07 529.50

7,480.72 48,816.49
2,884.68 1,433.00

5,671.81 $ 30.00

13,511.54

318,421.65

9,821.95 2.00

14,987.79

71,363.53 736.07 529.50 659.05 500.00
7,480.72 79,298.04
2,884.68 1,465.00
318,421.65 13,511.54

1,204.34
33,972.50 1,540.00

920.00 314.68

1,204.34 920.00
33,972.50 1,854.68

$ 4,976,868.17 $ 326,623.71 $ 9,823.95 $ 543,662.78 $ 5,856,978.61

See notes to the general purpose financial statements.

- 31 -

c;.
,\v?o\~

HARRIS 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 Tuition Commodity Hauling Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures
Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 7,529,741.16 $ 1,571,843.78 43,576.39 124,848.67 16,379.66 30,285.46 37,120.29 84,240.28 97,737.34 28,668.09 1,162.00
30,694.94 575,065.57 403,808.87
180,894.17 22,360.95

931,949.04 $ 176,607.75
10,799.31 32,954.43
17,136.36 16,320.00
1,681.63
4,713.53 6,625.06 340,188.19 8,141.00 509,834.73 4,207.02
280.00 7,480.72 2,770.47

8,461,690.20 1,748,451.53
54,375.70 157,803.10
16,379.66 30,285.46 54,256.65 100,560.28 97,737.34 30,349.72
1,162.00 4,713.53 37,320.00 915,253.76 411,949.87 509,834.73 185,101.19 22,640.95 7,480.72 2,770.47

96,413.94 69,364.00 84,599.93 750,000.84

302,084.37

96,413.94 69,364.00 84,599.93 1,052,085.21

Total Expenditures

$ 11,778,806.33 $ 2,373,773.61 $ 14,152,579.94

See notes to the general purpose financial statements. - 33 -

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Rents Supplies Energy Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

2,457.94 $

3,979.21 $

5,054.81

80,400.89

$

2,457.94 $

84,380.10 $

5 054.81

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

SCHEDULE "8"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

G.P.T.C. DISTANT LEARNING

TOTAL

$

$

6,924.59

80,794.89

$

87,719.48 $

195,909.25 24,255.94
3,771.91 16,320.00 200,412.77 $ 8,141.00
280.00 2,138.95
62,605.31

543.88 53,960.00 $

$

195,909.25

24,255.94

3,771.91

16,320.00

219,373.20

8,141.00

280.00

2,138.95

4,798.36

282,559.45

513 835.13 $

54,503.88 $

4 798.36 $ 752,749.70

- 35 -

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

SCHEDULE "9" $ ====-1,~05;,;,7;,,;,.15~

See notes to the general purpose financial statements. - 36 -

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

SCHEDULE "1 O"

Minimum Expenditure Requirements (Total Allotment)
Expencfrtures 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 Professional Development
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 6,088,539.00 $

67,453.00

$ 6,146,800.36 724,621.73 $
$ 6,871,422.09 $

68,267.30 68,267.30

-131,457.42

$ 6,739,964.67 $

-514.30 -300.00
67,453.00

$

0.00 $

0.00

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

HARRI COUNTY BQARQ Of pt k?ATIQN
ANALYSIS Of MINIM\ IM fXPfNQmJRE REQUIREMENTS - ey PROORAM GENERAL FlJNP- QJA\ ITV BASIC f;DUCATIQI\I PROGRAMS YEAR NpEQ JUNE 3Q 1Q94

GEt-lER!L ANQ CARffR fQ!.!.QAII~ PRQGB!MS
Kindergarten Ci Grades 1 3 (i
Sub-Total - K-3 Grades4-5 (')
Grades 6 8 (i Grades 9-12 (") High School Laboratofies M
Vocational Education Laboratories (j Total General and career Education Programs
Se&CIAI EDUCATION PR~RAMS Regular Programs category I (')
category II (i
category Ill (1
category IV (i
Itinerant Supplemental Speech
Sub-Total - Regular
category V (Gifted) rJ
Total Special Education Programs Ri;Ml;Ql&, E~ 9TION PRQS;zRAM 1:l Ml;QIA CENTER PROGRAMS
Total Thirteen Weighted and Media Center
filAFF~! OPMl;NT~RAMS (1) Cool d Instruction Proles6ional0e,elopmenl
Total Staff Development
ci Identifies Thirteen Weighted Programs. Note: (1) $7,627.00 dthe alldmenl for Professional
DeYelopment has been transferred to Cool d Instruction as authorized byOCGA 20-2-182.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL -1L

ORIGINAL

MID-TERM

REQUIREO

513,055.00 1300212.00 1,813,267.00
678,960.00 1,064,379.00
690,535.00 371,360.00 328134.00 4 946.635.00

90 $ 90 90 90 90 90

461,749.50 $ 1170190.80 1,631,940.30 $
611,064.00 957,941.10 621,481.50 334,224.00 295,320.60 4 451,971.50 $

19,024.00 S 480,773.50

118 467.00

1 288657.80

137,491.00 $ 1,769,431.30

24,813.00

635,STT.OO

31,695.00

989,636.10

0.00

621,481.50

0.00

334,224.00

36 892.00

332 212.60

230 891.00 $ 4682 862.50

474,093.00

426,683.70 $

1,858.00 $

428,541.70

474,093.00 37 026.00 511119.00 170 309.00 21ono.oo

90 $ 90
90 $ 90 $

426,683.70 $ 33 323.40 460007.10 $ 153278.10 $ 189,693.00 $

1,858.00 $ 9532.00 11 390.00 $ -365.00 $ 7790.00

428,541.70 42 855.40
471 397.10 152913.10 197 483.00

$ 5,838,833.00

5,254,949.70 $

249 706.00 $ 5 504,655.70

22,609.00 100 $ 43 950.00 100

22,609.00 S 43 950.00

894.00 $ 0.00

23,503.00 43 950.00

66,559.00

66,559.00 $

894.00 $

67 453.00

$ 5 905,392.00

5 321,508.70 $

250 600.00 $ 5 572,108.70

- 38 -

SCHEDULE..., 1"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBlITION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDER EXPENDITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

468,501.20 $

498,629.45

1222500.30

1402492.25

1,691,001.50 $ 1,901,121.70 $

801,884.00

697,806.45

960,760.40

1,103,326.62

595,045.80

681,412.76

320,063.40

385,691.76

258 171.30

340 432.92

$ 4 426,906.40 $ 5109 792.21 $

12,272.30 $

19,822.61

66157.50

87 669.73

0.00

78,429.80 $

107,492.34 $

0.00

34,013.00

46,795.72

0.00

28,875.70

78,935.38

0.00

26,435.70

96,098.00

0.00

14,160.60

184,865.08

0.00

74 041.30

97 394.26

0.00

255 956.10 $

611 580.78 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

7,484.40 $ 78,300.90 329,327.10

5,661.90 356,094.65 102,945.95

415,112.40 $ 41 434.20
456 546.60 S 150680.70 S 153 318.30 $

464,702.50 $ 47138.60 S
511 841.10 254 734.11 $ 270432.94 $

5187,452.00 $ 6,146,800.36 $

0.00 0.00
0.00 0.00
0.00

2,227.90 $ 1,613.70 8,634.60
303.30 649.80
13,429.30 $
1421.20
14 850.50 S
2 232.40 $
44164.70 $

2,588.22 11,114.96
6,619.56 322.49
20,645.23 $ 7575.13 $
28 220.36 5236.11 $
79 584.48 $

317,203.70 $

724,621.73 S

0.00 0.00
0.00 0.00
0.00

$ 5,187,452.00 S 6 146 800.38 $

23,503.00 $ 43,950.00

24,017.30 $ 44 250.00

67,453.00 $

68,267.30 $

0.00

384,656.70 $

792,889.03 S

0.00 0.00 0.00
0.00

- 39 -

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

SCHEDULE "12''

BOARD MEMBER ADDRESS
Mrs. Janice Harris, Chairman (*) 371 Mountain Hill Road Fortson, Georgia 31808
Mrs. Joanne Duncan (*) 2691 Georgia Highway 208 Cataula, Georgia 31804
Mrs. Barbara Gray (*) 255 Malida Creek Terrace Pine Mountain, Georgia 31822
Mr. Robert Jones (*) 895 Denney Road Cataula, Georgia 31804
Mrs. Nancy Moore P. 0. Box407 Waverly Hall, Georgia 31831
Mr. Willard Murphy (*) 688 Valley Rescue Mission Road Hamilton, Georgia 31811
Mr. Willie Rutledge P. 0. Box642 West Point, Georgia 31833
Mrs. Ginger Turner(*) Box 215, B Street Pine Mountain, Georgia 31826
Mr. Cecil Wyatt (*) P. 0. Box303 Hamilton, Georgia 31811

COMPENSATION

TRAVEL

$

1,850.00 $

50.00

2,100.00

383.62

1,950.00 2,400.00

1,988.26

50.00

1,100.00

158.11

800.00

50.00

2,000.00

137.80

1,100.00

261.87

$

13,350.00 $===3;,:;,0=2=9.=66=

(*) Denotes Board Members Serving as of June 30, 1994
See notes to the general purpose financial statements. - 40 -

SECTION II COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 24, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Harris County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Harris County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated January 24, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standard~ issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Harris County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests indicate that, with respect to the items tested, the Harris 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.

94CRL-10

This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 94CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 24, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Harris 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 Harris County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated January 24, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Harris County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office ofManagement 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 ofan opinion on the Harris County Board ofEducation's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Harris County Board ofEducation 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,
t:f~
Claude L. Vickers State Auditor
CLV:gp 94CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Harris 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 Harris County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated January 24, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) 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 ofFederal Financial Assistance, for the year ended June 30, 1994. The management ofthe Harris 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

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 Hanis County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Hanis County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 24, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Harris 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 Harris County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated January 24, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Harris 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 Harris 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,
L~
Claude L. Vickers State Auditor
CLV:gp 94CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 24, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Harris 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 Harris County Board ofEducation as ofand for the year ended June 30, 1994, and have issued our report thereon dated January 24, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of the Harris 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 Harris County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, 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
94ICL-4

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

As described in the Schedule ofFmdings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(1) Employee Compensation

(2) General Fixed Assets

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

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above.

94ICL-4

However, as descn'bed in the Schedule ofFmdings and Improper or Questioned Costs, we noted a reportable condition in the following control category that we also believe to be a material weakness:
General Fixed Assets
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit ofthe Harris County Board ofEducation's financial statements and this report does not affect our report thereon dated January 24, 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,
L~
Claude L. Vickers State Auditor
CLV:gp 94ICL-4

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 24, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Harris 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 Harris County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated January 24, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated January 24, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Harris County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 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 January 24, 1995.
94ICL-5

The management ofthe Harris County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, 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 ofthe 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) Audit Follow-Up/Resolution (7) Administrative Requirements

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

For all of the internal control structure categories listed above, we obtained an understanding ofthe 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 Harris County Board ofEducation expended 64% 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

94ICL-5

are identified in the Schedule ofFederal Financial Assistance. Our procedures were Jess 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.
Respectfully submitted,

CLV:gp 94ICL-5

~A'~
Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

HARRIS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED ruNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Inadequate Separation of Duties Financial Statements Federal Financial Assistance Finding Resolved Audit Control Number 6721-93-0l
The audit report for the year ended June 30, 1993, disclosed that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. For the year under review, our audit disclosed that the Board had implemented internal accounting control procedures to provide for adequate separation ofemployee duties in the performance of the accounting functions and related procedures.
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 6721-93-03
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter l (CFDA 84.010) Program disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations by the Board.
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $1,315.30 Audit Control Number 6721-93-04
The audit report for the year ended June 30, 1993, noted that the Board had overpaid an employee in the amount of $1,315.30 which resulted from an erroneous salary calculation. During the course of this examination, action was taken by the Board to recover this overpayment; however, the Board has not yet been reimbursed. The Board should continue to take appropriate action to procure reimbursement for deposit into the General Fund.

HARRIS cmJNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Expenditure/Obligation Not Liquidated Federal Financial Assistance Amount: $2,549.31 Audit Control Number 6721-9~-05
The audit report for the fiscal year ended June 30, 1993, stated that the project completion report submitted to the Georgia Department ofEducation for the Elementary and Secondary Education Act - Chapter 1, 1993 Regular Program (CFDA 84.010) included obligations ofS2,549.31 which were canceled in the 1994 fiscal year. This resulted in an unexpended grant balance remaining on hand at June 30, 1993. For the year under review, no action was taken by the Board. The $2,549.31 should be refunded to the Georgia Department of Education.
AUDIT FOLLOW-UP/RESOLUTION Project Completion Reports Not Supported by Accounting Records Federal Financial Assistance Amount: $444.39 Audit Control Number 6721-93-06
The audit report for the fiscal year ended Iune 30, 1993, stated that the accounting records applicable to the Elementary and Secondary Education Act- Chapter 1, 1993 Regular Program (CFDA 84.010) did not support the amounts reported on the project completion report. Expenditure amounts reported to the Georgia Department ofEducation exceeded expenditures recorded in the accounting records by $444.39. This resulted in an unexpended grant balance remaining on hand at June 30, 1993. For the year under review, no action was taken by the Board. The $444.39 should be refunded to the Georgia Department ofEducation.
AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 6721-93-07
The audit report for the year ended June 30, 1993, stated that the Board's property management records of the Elementary and Secondary Education Act- Chapter 1 (CFDA 84.010) Program were incomplete and failed to meet Federal property management standards. In the year under review, the Board installed a property management system which meets Federal property management standards as set forth in Chapter 8 of the Georgia Financial Accounting Handbook for Local School Systems (GFAH).

HARRIS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6721-93-02
The audit report for the year ended June 30, 1993, noted that the management of the Harris County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location ad description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
EMPLOYEE COMPENSATION Salary Overpayment Financial Statements Reportable Condition Amount: $414.98 Audit Control Number 6721-94-01
In the year under review, the Board overpaid an employee in the amount of $414.98. This overpayment was a result ofa miscalculation by payroll personnel. Appropriate action should be taken by the Board to ensure that all professional personnel are paid in accordance with the contracted salaries for work actually performed. Reimbursement of $414.98 should be secured from the employee involved and deposited to the Board's General Fund.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

HARRIS COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $1,315.30 Audit Control Number 6721-93-04
We concur with this finding. This finding will be resolved by the end of August, 1995. We have deducted this overpayment from our employee (Ruthie Hite) over a period of months.
AUDIT FOLLOW-UP/RESOLUTION Expenditure/Obligation Not Liquidated Federal Financial Assistance Amount: $2,549.31 Audit Control Number 6721-93-05
This payment has already been refunded with our check #116838 as requested in a letter dated May 12, 1995 from Mr. C. Hart Pearson. This check was sent in the amount of$2,549.00 as requested.
AUDIT FOLLOW-UP/RESOLUTION Project Completion Reports Not Supported by Accounting Records Federal Financial Assistance Amount: $444.39 Audit Control Number 6721-93-06
This payment has already been refunded with our check #116838 as requested in a later dated May 12, 1995 from Mr. C. Hart Pearson. This check was sent in the amount of $444.00 as requested.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6721-93-02
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prolubiting the hiring ofadditional administrative staff the Board has decided not to pursue the recording of general fixed assets on the financial statements.

HARRIS COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
EMPLOYEE COMPENSATION Salary Overpayment Financial Statements Reportable Condition Amount: $414.98 Audit Control Number 6721-94-01
We concur with this salary overpayment condition. As of the end of FY 95, we have actually received all of this overpayment except for $32.49.