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1143-14
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT JACKSON COUNTY BOARD OF EDUCATION
JEFFERSON, GEORGIA YEAR ENDED JUNE 30, 1994

JACKSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALLFUNDTYPESANDACCOUNTGROUP

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 AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

27

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

28

J

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCYFUND

29

JACKSON COl JNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

30

2 ANALYSIS OF CASH AND CASH EQUlVALENTS

32

3 INVESTMENTS

33

4 ACCOUNTS RECEIVABLE

34

5 DEBT SERVICE REQUIREMENTS TO MATURITY

35

SCHEDULE OF REVENUE

6

STATE FUNDS

36

7

LOCAL AND OTHER FUNDS

37

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

39

9

LOTTERY PROGRAMS

40

10

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

42

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

11

OVERALL

43

12

BY PROGRAM

44

13 SCHEDULE OF COMPENSATION OF BOARD MEMBERS

46

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

JACKSON COUNTY BOARD OF EDlJCATION - TABLE OF CONTENTS -
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTIONN 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 I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 12, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Jackson 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 (Exlnbits A through D) of the Jackson County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of the Office ofManagement and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
94ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 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 ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose_financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Jackson County Board of Education as of June 30, 1994, and the results ofits 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 Jackson County Board of Education taken as a whole. The combining and individual fund statements (Exhibits E through J) and the financial schedules (Schedules 1 through 13 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Jackson County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
94ARL-13

A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
d7~
Claude L. Vickers State Auditor
CLV:djf 94ARL-13

JACKSON COUNTY BOARD OF EDUCATION - 1-

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
lnventcries Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount ID be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Sala~ Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For lnventcries Food Donated Commodities Purchased Food For S - Capital Outlay Projects
Unreserved Undeslgnated
Total Fund Equity
Total Liabilities and Fund Equity

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 284,895.95 $

94,291.03 $

20,432.90

1,566,195.00

191,350.87

322,669.19

31,773.35 14,496.64

$ 2042441.82 $ 463,230.21 $

20432.90

$

430,921.50 $

190,023.14

139,630.50

12,838.67

$ 430,921.50 $ 342,492.31

$ 275,189.00 7,400.86 $
$ 282,589.86 $ 1,328,930.46
$ 1,611,520.32 $

23.94
31,773.35 14,496.64
$ 46,293.93 $ 74,443.97 120,737.90 $

2 042,441.82 $ 463230.21 $

1,729.00 1,729.00 18,703.90 20,432.90
20432.90

The nol8s ID the general purpose financial statements are an integral part of this statement. -2-

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

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

$ 601,880.01 $

743.74

$ 1,002,243.63 $ 2,148,252.14

532,184.84

2,098,379.84

1,740,600.10

16,309.52

530,329.58

670,823.02

31,773.35 14,496.64

26,140.45 11,244.99

$

1,150,374.37

1,150,374.37

1,701,919.76

6,554,625.63 1,380,298.87

6,554,625.63 1,380.298.87

6,283,080.24 1,565.068.87

$ 1150 374.37 $

743.74 $

9.085 298.87 $ 12762,521.91 $ 14,147,129.57

$ 1,150,374.37
$ 1,150,374.37 0.00 $
$ 1,150,374.37 $ $ 1 150 374.37 $

$
1,380,298.87 7,705,000.00

620,944.64 $ 139,830.50
12,838.67
1,380,298.87 7 705,000.00

765,418.14 130,33263
16.04 197,489.94
18,000.00 1,565,068.87 7,965,000.00

$

9,085,298.87 $ 9,858,712.68 $ 10,661,325.62

743.74 743.74
743.74 $

$

275,189.00 $

121.414.00

58.25

1,150,374.37

1,701,919.76

7,424.80

31,773.35 14,496.64 1,729.00

26,140.45 11,244.99 1,729.00

$ 1,480,987.16 $ 1,862,506.45

1,422.82207

1.623.297.50

$ 2,903,809.23 $ 3,485,803.95

9,085,298.87 $ 12.762,521.91 $ 14,147,129.57

-3-

JACKSON QQlJNTY BQARP QF EDUCATION
COMBINED STATEMENT OF REVENUES EXPENDIJURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENPEP JUNE 30 1994

~
State Funds Federal Funds Local and other Funds
Total Revenues
EXPENDITURES
Current Instruction SupportSe!vic;e$ PupllSe!vic;e$ lmp,ovement of Instructional Services Educational Media Servic:as General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Servic:as Central Support Services Other Support Servic:as Food Services Operation CommunityService Other Operatkms of Non-Instructional Services
Capital Outlay Deo!Service
Principal 1-eot E50t0W Agent Paying Agent Fees
Total Expendttures
Excaos of Revenues ewer (u.-i Expendttures
QTMER FINANCING SOURCES CUSES}
Refunding Bond Issuance Coot Proceeds of Refunding Bonds
Par Value Payments to Refunded Bond E50t0W Agent Operating Transfaf$ In Operating Transfaf$ Out
Total Other Financing Sourees (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and other Financing Uses
FUND BALANCE JULY 1
Food Inventory Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

10,885,437.89 $ 73,136.00
4653175.11

773,266.16 1,685,075.99
506059.27 $

15 611 749.00 $ 2 964 401.42 $

9':rl.37 9':rl.37

9,995,855.71 $ 1,230,702.74

622,547.99 408,219.23 418,732.30 165,408.95 1,245,439.72 115,118.42 1,161,365.32 866,230.32 200,801.56
6,761.55 51,392.33
69,568.47 25,414.94

130,661.15 63,890.19 22,652.17 5,805.72 2,400.00 14.04 7,815.56 8,030.80
121,374.05 1,366,996.51
2,902.80

184,770.00 84,762,57

8,731.46

15 624 389.38 $ 2 983 245.83 $

$

-12640.38 $

-18 844.41 $

8731.46 -7794.09

$ -1757.00
-1757.00 $

1,757.00 1757.00

-14,397.38 $ 1,625,917.70

-17,087.41 $ 128,940.76

5,632.80 3 251.65

-7,794.09 28,226.99

FUND BALANCE JUNE :30

$ 1,611,520.32 $

120.737.so $ ___2_0_._4.3.2_.s_o_

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

EXHIBIT"B"

TYPES
DEBT SERVICE
FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS {M!morandum On~
YEAR ENDED JUNE 30 1994 JUNE 30 1993

$ 11,658,704.05 $

1,758,211.99

$ 1 079889.08

6 240060.83

$ 1 079 889.08 $ 19 656 976.87 $

0.00 $

11,658,704.05 $ 1,758,211.99 6240060.83

10,586,004.90 1,703,322.09 6301557.98

0.00 $ 19 656 976.87 $ 18 590 884.97

$ 11,226,558.45

753,209.14 4n,1os.42 441,384.47 171,214.67 1,247,839.n 115,132.46 1,169,180.88 876,261.22 200,801.58 128,135.60 1,438,388.84
2,902.80 69,588.47 $ 34,146.40

456,852.50
1,1n.11.02
2 407.95

184,no.oo 541,615.07
1,1n.11.02
2 407.95

1631434.47 $ 20247801.14 $

$ -551 545.39 $ -590 824.27 $

-188,933.81 $ -188,933.81

7,705,000.00 -7,516,066.18

7,705,000.00 -7,516,066.18
1,757.00 -1757.00

$

0.00 $

0.00

$ -551,545.39 $ -590,824.27 $

1,701,818.76

3,485,005.21

5,632.90 3251.65

$ 1,150,374.37 $ 2,903,065.49 $

$ 11,226,558.45 $ 10,337,350.81

55.00

753,209.14 4n,1os.42 441,384.47 171,214.67 1,247,839.n 115,132.46 1,169,180.88 876,261.22 200,801.58 128,135.60 1,438,388.84
2,902.80 69,623.47 34,146.40

730,030.04 416,nS.44 420,178.20 149,429.91 1,209,873.58 105,615.33 1,130,402.27 1,340,783.34 184,213.71 100,059.52 1,284,631.92
2,621.31 103,945.38 75,512.37

184,770.00 541,615.07
1,1n.11.02
2 407.95

485,000.00 718,091.61
625.00

55.00 $ 20247856.14 $ 18 796 139.74

-55.00 $

.590 879.27 $

-205254.n

-188,933.81
7,705,000.00 -7,516,066.18
1,757.00 $ -1757.00
0.00 $

2,169.09 -2169.09
0.00

-55.00 $ 798.74

-590,879.27 $ 3,485,803.95

-205,254.n 3,692,242.73

5,632.90 3251.65

-1,307.92 123.91

743.74 $ 2,903,809.23 $ 3,485,803.95

.5.

JACKSON C!OLJNTY BQARP OF EQUCATION C!QMBINEP STATEMENT OF BEVfNUes EXfENQIDJBES ANP CMANGl;S 1N FUNP BALANCES
ACTUAL AND BUDGET GQVFRNMl;NJAI FUNP TYPES
YEAR liNOEP JUNE 3Q 1994

EXHIBIT"C"

~
State Funds Federal Funds Local and Other Funds
Total Revenues
ExpfNQITURES
Cumint Instruction Support Services Pupil Services Improvement d Instructional Semce& Educational Media Services General Administration School Administration Business Administration Maintenance and Operation d Piant Student TransportaUon Services Central Support SeMC8S Other Support Service& Food Services Operation Community Service Other Operations of Non-Instructional Services
Capital Outlay DeblSeMce
Total Expenditures
Excess of Revenues OYer (under) Expenditures
Qil:H~R ANANCING ~BCES (.1.~l
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess al Revenues and Other Financing Sources OWK (under} E,q,endltures and Other Financing Uses
FUt,!C! ~ ! . ~ JUbY 1 1993
ADJUSJMENTS
Prio< Year (Net)
FOOQ ltfll;:NTORY - NET g:HANGE IN PERIOD
Donated Commodities Purehasad Food

ACTUAL PER
EXHIBIT"B"

ADJUSlMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLEl

11,658,70'.05 $ 1,758.211.99 6.240,060.83
19,656,976.87 $

0.00 $ 0.00 $

11,658,704.05 $ 10,973,055.02 $

1,758.211.99

1,565,937.74

6.240,060.83

6 160,032.06

19,656,976.87 $ 18,699,024.82 $

685,649.03 192.274.25 so,028.n
957,952.05

11,226,558.45 $
753,209.14 472,109.42 441,384.47 171.214.67 1.247,839.72 115,132.48 1,169,180.88 876.261.22 200,801.56 128,135.60 1,438,388.84
2,902.80 69,568.47 34,146.40 1,900,967.(M
20,247,801.14 $
-590,824.27 $

0.00 $
0.00 $ 0.00 $

11,226,558.45 $ 11.231.249.88 $

753,209.14 472,109.42 441,384.47 171.214.67 1.247,839.72 115,132.46 1,169,180.88 876,261.22 200,801.56 128,135.60 1,"'38,388.84
2,902.80 89,568.47 34,1"'6.) 1,900,967.<M

783,331.48 494,785.65 433,354.47 163,719.80 1.269,SS0.83 10,,934.24 1,169.203.33 1,060,007.16 186,055.22 129.242.00 1.297,866.02
4',"'50.00 96,331.38 390,667.73 2.237,354.02

20,247,801.14 $ 21,052,403.21 $

-590 824.27 $ -2,353,378.39 $

4,691.43
30,122.34 22,676.23 .a,030.00 -7,494.87 22,011.11 -10,198.22
22.45 183,745.94 -1-1,7"'6.3"
1,106.40 -14'0,522.82
1,547.20 26,762.91 356,521.33 336,386.98
804,602.07
1,762,554.12

7,706,757.00 $ -7,706,757.00
0.00 $
-590,82U7 S
3,485,005.21

0.00 $ 0.00 $

7,706,757.00 $ -7,706,757.00
0.00 $

0.00 $ 0.00 $

7,706,757.00 -7,706,757.00
0.00

0.00 S
-37,38S.44

-590,824.27 S -2,353,378.39 S

3,447,619.n

3,638,947.28

1,762,554.12 -191,327.51

0.00

0.00

111,111.99

111,111.99

5,632.90

-5,632.90

0.00

0.00

3,251.65

-3.251.65

0.00

0.00

FUND ~CE JUN~~ 1994

s 2,903,065.49 $

-46,269.99 $

2,856,795.50 $ 1,174,456.90 $

1,682,338.60

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

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Jackson 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 ofthe 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 Jackson County Board ofEducation.
Based upon the application ofthe above criteria, the Jackson County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Jackson County, Georgia, excluding those areas encompassed by the City of Commerce and the City ofJefferson. 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 rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 8-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: 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 ofeducation.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLE TRUST FUND Student Achievement Recognition Fund - the fund used to account for donations which may be expended to provide awards made at the discretion ofthe Board.
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
- 9-

JACKSON COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUPS
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.
Agency funds are purely custodial in nature and do not involve measurement of results of operatioos.
Governmental funds and the expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to
- 10 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Jackson County Board ofEducation has a legally authorized nonappropriated budget which is formally
a approved by the Board at the aggregate level. Budgets are prepared to provide basis for funding operations
and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education.
The Board 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 ofdeposits (tncluding N.0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:

- 11 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNlFICANT ACCOUNTING POLICIES

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations ofany corporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the Office ofTreasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations ofother political subdivisions of the State of Georgia.

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 Jackson County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 7, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The Jackson 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 Jackson County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

12.35 mills 2.94 mills

l.S..22mills

- 12 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 of this obligation as this amount is deemed immaterial to the general purpose financial statements. Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General LongTerm Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures 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.

- 13 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
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 ofthe 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,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or of the State ofGeorgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws ofthe 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.
- 14 -

JACKSON COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $1,948,481.80. 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
1 2 3
Total

Bank Balance $ 200,000.00
1,569,184.16 179 297.64
$ 1948481 80

CATEGORIZATION OF INVESTMENTS At June 30, 1994, the carrying amount of the Board's total investments was $2,098,379.84 and consisted entirely offunds in the Local Government Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, no claims were paid.

- 15 -

JACKSON COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note5: GENERALLONG-TERMDEBT

CAPITAL LEASES The Jackson County Board ofEducation entered into an agreement on April 1, _1991, with the Georgia School Boards Association, (GSBA}, Incorporated for the construction and subsequent lease of various school facilities. Under the terms of the lease agreement, the Board will make semi-annual payments through July 1, 2001. The lease includes an annual renewal clause.

The Jackson County Board ofEducation has entered into a lease agreement as lessee for computer equipment. Under the terms ofthe lease agreement the Board will make monthly payments to IBM Corporation through September, 1993.

These lease agreements quality as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

ADVANCE REFUNDING During the year under review, the Jackson County Board of Education issued $7,705,000.00 in General Obligation Refunding Bonds to advance refund $7,985,000.00 of outstanding bonds. The bond issue of $7,705,000.00, less underwriters and bond issue cost of$188,933.81 provided net proceeds of$7,516,066.19. The total net proceeds plus additional debt service funds of $1,172,174.02 were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on the 1988 Bond issue. As a result, the 1988 Series Bonds are considered deceased, and the liability for these portions has been removed from the General Long-Term Debt Account Group. The Jackson County Board of Education refunded the aforementioned bonds to reduce its total Debt Service payments over 15 years beginning subsequent to fiscal year 1993 by $835,093.48 and to obtain an economic gain (difference between the present values of total debt service payments and the old and new debt) of $254,747.14.

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

Capital Leases

GSBA

Other

General Obligation
Bonds

Total

Balance July 1, 1993 $ 1,560,298.87 $ 4,770.00 $ 7,985,000.00 $ 9,550,068.87

Additions

7,705,000.00

7,705,000.00

Deletions

180 000.00

4 770.00

7 985 000.00

8 169 770.00

Balance June 30, 1994 $ l 380 298 87 $=="'0.,,0.,.0 $ 7 705 000 00 $ 2 085 228 87

- 16 -

JACKSON 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

$ 40,698.87 265,982.74 264,717.74 262,567.74 264,405.24 590 031.85

$ 771,900.00 768,075.00 767,206.25 764,662.50 765,262.50
6 847 278.75

$ 812,598.87 1,034,057.74 1,031,923.99 1,027,230.24 1,029,667.74 7 437 310.60

Total Principal and Interest

$ 1688404.18 $10 684 385 00 $12 372 789 18

Deduct: Imputed Interest

$ 308 105.31

Net Present Value ofFuture Minimum Lease Payments

$ I 380 298 87

Principal and interest due July 1, 1994 on the GSBA Capital Lease was paid prior to June 30, 1994, and has been excluded from this note.

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$32,200.05 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery funds in the amount of $27,322.57 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

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

$ 6,994.00 1,617.00 8,617.38
14 991.67
$ 32 220 05

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

- 17 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, ifany, will be immaterial to its overall financial position.
The Board is a defendant in a legal proceeding pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general purpose financial statements.
Note 8: SUBSEQUENT EVENTS
In the subsequent fiscal year, the Board issued general obligation bonds in the amount of$14,000,000.00 dated July 1, 1994. The proceeds from these bonds will be used for various capital outlay projects.
Note 9: ACCUMULATED EMPLOYEES' LEAVE
The Board's administrative staffand certain other full-time employees earn .84 days per month of annual leave. Annual leave may be accumulated to a maximum of twenty days, and an amount based on unused leave, up to the maximum accumulation, is paid to employees, at their current rate of pay, upon retirement or termination of employment. 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 ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distnbution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A .disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had
- 18 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 10: RETIREMENT PLANS

the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $10,087,865.01; total payroll was $11,708,798.54.

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

Total contributions made during fiscal year 1994 amounted to $1,796,649.76, of which $1,191,373.77 was made by the Board and $605,275.99 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 accurnu1ating 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 Unfunded pension benefit obligation

12 821 722 000.00
$ I 090 292 ooo 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 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.

- 19 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 10: RETIREMENT PLANS
Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $1,191,373.77 was actuarially determined and represented .2284% oftotal contributions made by all participating employers.
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System ofGeorgia (PSERS). All employer's contributions are made by the State of Georgia.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe. employee had retired at age 65 as long as the employee has 15 or more years ofcreditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 132 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $4,380.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.

- 20 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 11: SURETY BONDS
Dr. Russell W. Cook, School Superintendent through August 20, 1993, was bonded in the amount of $50,000.00 with the Hartford Insurance Company of the Southeast, Orlando, Florida, their Bond No. 20RN4600389.
Ms. Sarah Greene, Interim Superintendent from August 23, 1993 through October 11, 1993 ~as bonded in the amount ofSS0,000.00 with the Hartford Insurance Company of the Southeast, Orlando, Florida, their Bond No. 467-9012.
The School Superintendent, Mr. Anderson S. Byers, effective October 12, 1993, is bonded in the amount of $50,000.00 with the Hartford Insurance Company of the Southeast, Orlando, Florida, their Bond No. 20RN4680151, on which premium is paid through October 12, 1995.

- 21 -

JAQKSQ~ QQU~Il: BQABD QE EDUQAIIQN !:;QMl;!l!!ll!!l!a l:ll\L.AN!:;E l,HEET
!i,PEi:;11\b BEllEN!.!E F!.!!::!P
J!.!!::!E30 1994

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

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1

EDUCATION OF

DEPRIVED

MIGRANT

CHILDREN

PROGRAM

$ 155,130.90

$

958.81 $

23,668.94 $ 3,043.24

11,065.34 $ 220,848.74

73,007.93

31,773.35 14,496.64

Total Assets

$ 212,466.23 $ 220,848.74 $

958.81 $

96,676.87 $ 3,043.24

Lll\!llLITIEl! AND FUND EQ!,!ITY

.L.IAl!ll.!I!fi
Cash OVerdratt Accounts Payable Salaries Payable Expired Grant Balances Payable

$ 88,476.38

$ 26,175.51

132,372.36 $

65,576.76

Total Liabilnies

91,752.27 $ 220,848.74 $

FUND EQ!,!ITY

Fund Balances

Reserved

For Continuation or Federal Programs

For Expired Grant Balances/Questioned Costs

For Inventories

Food

Donated Commodities

$

Purchased Food

31,773.35 14,496.64

Unreserved Undesignated

$ 46,269.99 74,443.97 $

0.00 $

Total Fund Equity

$ 120,713.96 $

0.00 $

93.75 $ 865.06 958.81 $

24,784.62 $ 60,636.86 11,255.39
96,676.87 $

831.84 1,493.18
718.22
3,043.24

0.00 $ 0.00 $

0.00 $

0.00

0.00 $

0.00

Total Liabilities and Fund Equity

$ 212,466.23 $ 220,848.74 $

958.81 $

96,676.87 $ 3,043.24

See notes to the general purpose financial statements.

-22-

EXHIBIT"E"

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

DEPENDENT CARE PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

60.48 $

23.94

$

182,886.31 $

146,053.08

$

14,995.10 $

2,738.04 $

14.04

322,669.19

147,125.70

31,m.35 14,496.64

26,140.45 11,244.99

$

60.48 $

23.94 $

14,995.10 $

2,738.04 $

14.04 $

551,825.49 $

330,564.22

$

60.48

$

60.48

$

35.72 $

4,869.38

10,090.00

$

14,995.10 $

69.14 $ 835.20 1,833.70
2,738.04 $

14.04 $ 14.04 $

88,595.28 190,023.14 $ 139,630.50 12,838.67
431,087.59 $

71,274.79 130,332.63
16.04
201,623.46

$

23.94

$

58.25

$

23.94

31,m.35 14,496.64

26,140.45 11,244.99

$

23.94

46,293.93 $

37,443.69

$

0.00

0.00 $

0.00 $

0.00 $

0.00

74,443.97

91,497.07

$

0.00 $

23.94 $

0.00 $

0.00 $

0.00 $

120,737.90 $

128,940.76

$

60.48 $

23.94 $

14,995.10 $

2,738.04$

14.04 $

551,825.49 $

330,564.22

-23-

J~~Qt:I ~um ~BP QE ECU.!~IIQt:I ~MEHNlt:I~ SIAIEMEtfi QE B~t:IUEi EieEtiPIIUBEi At:IP ~t:IAN~Ei lt:I EUNQ aal.At:l~ES
seECIAL BEllEt!!.!E El!t!Cl
VEAB ENQEQ JUNE 3Q 1994

~
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 Administralion Business Administration Maintenance and Operation of Plant Student Transportation Services other Support Services Food Services Operation CommunilyService
Total Expenditures
ExcMa of Reven- c,..,r (under) Expenditures
QTHER Elt!AN!:;ltj!, SQUR!:;E!ii
Operating Transfe,s In

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNmES
Af::r

ELEMENTARY AND

CHAPTER 1

EDUCATION OF

DEPRIVED

MIGRANT

CHILDREN

PROGRAM

$ 89,554.00 $ 683,712.16

774,330.14

$

506,059.27

$ 1,369,943.41 $ 683,712.16 $

26,854.94 $ 26,854.94 $

558,436.41 $ 13,650.72 558,436.41 $ 13,650.72

$ 583,739.67
78,418.00$ 8,143.60

$ 1,386,996.51

7,638.56 4,455.37 1,315.96

$ 1,386,996.51 $ 683712.16 $

$ -17,053.10 $

0.00 $

$
26,585.49 206.70
62.75

521,669.75 $
1,522.53 31,270.82
1,076.31 2,400.00

13,650.72

497.00

26,854.94 $ 0.00 $

558,436.41 $ 0.00 $

13,650.72 0.00

ExcMa of Revenues and other Financing Sources c,..,r (under) Expenditures
FUNQ EfaL.AN"E JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

$ -17,053.10 $ 128,882.51
5,632.90 3,251.65

0.00 $ 0.00

0.00 $ 0.00

0.00 $

0.00

0.00

0.00

F!,!NCl l!l',bAN!:;1;; J!,!!j~ ~

$ 120,713.96 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statement&.

-24-

EXHIBIT"F"

SECONDARY EDUCATION ACT

TITLE 11-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT- AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DlSABILITTES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

DEPENDENT CARE PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

36,458.43$

13,538.00$ 220,665.29 $

41,128.02 $

$

36,458.43 $

13,538.00$ 220,665.29 $

41,128.02 $

$ 14.04
14.04 $

773,266.16 $ 1,685,075.99
506,059.27
2,964,401.42 $

87,006.00 1,617,946.76
529,734.22
2,234,666.98

$

9,118.43

$

81,539.24 $

20,984.93

6,379.88$ 22,652.17
64.95

13,532.56 39.75

24,135.13 4,356.63
4,561.96

176.00 3,575.53 99,418.00

$ 20,143.09

2,902.80

$

38215.43 $

13,572.31 $ 220,665.29 $

41,128.02 $

$

-1,757.00 $

-34.31 $

0.00 $

0.00 $

1,757.00

$

0.00 $

-34.31 $

0.00 $

0.00 $

0.00

58.25

0.00

0.00

$

0.00 $

23.94 $

0.00 $

0.00 $

$
14.04
14.04 $ 0.00 $

1,230,702.74 $
130,661.15 63,890.19 22,652.17
5,805.72 2,400.00
14.04 7,815.56 8,030.90 121,374.05 1,386,996.51 2,902.80
2,963,245.83 $
-18,844.41 $

694,436.23
51,271.20 45,879.39 22,912.46
5,128.80
154.00 1,946.06 85,508.73 1,228,261.16 2,621.31
2,13!f,119.34
96,567.64

1,757.00

2,169.09

0.00 $ 0.00

-17,087.41 $ 128,940.76
5,632.90 3,251.65

98,736.73 31,388.04
-1,307.92 123.91

0.00 $

120,737.90 $ 128,940.76

-25-

ASSETS Cash and Cash Equivalents

JAC~SON COUtfl)'. l;!OARt;! QF EQUCATION COMBINING BAlANC!l; SHEET CAPITAL PROJECTS FUND JUNE30 1994

EXHIBIT ~G"

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT ABS-678-061

TOTALS JUNE30 1994 JUNE 30 1993

$ 18703.90 $

1729.00 $

20432.90 $

84645.47

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For 5 - Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabiltties and Fund Equity

$ $ 18 703.90 $ 18703.90 $
s $ 18i703.90

$

500.00

37,918.48

18000.00

$

56418.48

1,729.00 $ 0.00
1729.00 $

1,729.00 $ 18703.90 20432.90 $

1,729.00 26497.99 28226.99

1729.00 $

201432.90 $

84645.47

See notes to the general purpose financial statements.

-26-

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

EXHIBIT"H"

REVENUES
Local and Other Funds
EXPENDITURES
Current Support Services
General Administration Professional and Technical Services
Capilal Outlay Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT ABS-678--061

TOTALS

YEAR ENDED

JUNE 30, 1994

JUNE 30, 1993

$

f/37.37 $

0.00 $

f/37.37 $

1,954.87

$

8,731.46 $

8,731.46 $

$

-7,794.09 $

0.00 $ 0.00 $ 0.00 $

$ 8,731.46 8,731.46 $ -7,794.09 $

500.00 55,918.48 56,418.48 -54,463.61

FUND BALANCE JULY 1

26,497.99

1,729.00

28,226.99

82,690.60

FUND BALANCE JUNE 30

$ 18703.90 $

1729.00 $

20,432.90 $

28226.99

See notes to the general purpose financial statemen1s.

-27-

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30 1994

EXHIBIT"r

Cash and Cash Equivalents Accounts Receivable
TolalAssets

EXPENDABLE TRUST FUND
STUDENT ACHIEVEMENT RECOGNITION
FUND

AGENCY FUND

TOTALS JUNE 30 1994 JUNE 30 1993

$

743.74 $

0.00 $

743.74 $

798.74

159571.46

$ _ _ _ _743.....,._7_4_$

0.00 $

743.74 $ _ _1_so_.,3_1_0_.20_

LIABILITIES AND FUND EQUITY
LIABILITIES
Contracts Payable
FUND EQUITY
Fund Balances Unreserved Undesignated

159,571.46

743.74 $

0.00 $ _ _ _ _743=.7_4_

798.74

Total Liabilities and Fund Equity

743.74 $

0.00 $

743.74 $ _....,160=3_,7,aa0:::;20_,

See notes to the general purpose financial statements.

-28-

JACKSON COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30 1994

EXHIBIT "J"

BALANCE JULY1, 1993

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1994

LEASE POOL FINANCING PROGRAM

ASSETS Cash Accounts Receivable

$

0.00 $

159,571.46 $

159,571.46 $

0.00

159,571.46

159,571.46

Total Assets

$

159,571.46 $

159 571.46 $

319,142.92 $

0.00

LIABILITIES Contracts Payable Funds Held for Others

$

159,571.46

$

159,571.46 $

0.00

$

159,571.46

159,571.46

Total Liabilities

$

159,571.46 $

159,571.46 $

319,142.92 $

0.00

See notes to the general purpose financial statements. -29-

J6QISSQ~ ~mil:! aQABC! QE ECn.!Ci!IIQH Cl::IEl2YL E QE Ef;Qf;B6L El~6~Cl6L ~l~~~E
YEAR ENPEP JYNE :30 1994

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. s. Department d llirec;t Food and Nutrition Program Food Sarvices Summer Food Services Program 1993Summer 1994Summer Through Georgia Department d Education Food and Nutrition Program Food Services School Breakfast Program 1993 Grant 1994 Grant Naticnal School Lunch Program 1993Grant 1994Grant Food Distribution Program (1)
Total U.S. Department d Agriculture
Education, U.S. Department d Through Georgia Department d Education Drug-Free Schools and Communities Act 1994 Grant Elementa,y and Seconda,y Education Ad Chapter 1 Education d Deprived Children 1992 Car,y-0ver 1993 Regular 1993Summer 1993 Cony-Over 1994 Regular 1994Summer Chapler2 Innovative Programs 1993 Regular 1994 Regular Tltlall Etsenhower Mathematies and Science Education 1993 Regular 1994 Regular Individuals with Disabilities Education Ad TrtleVl,B Flow Through 1993 Regular 1993 Cony-Over 1994 Regular Preschool Program 1992 Car,y-Over 1993 Cony-Over 1994 Regular Vocational Education - Basic Grants to States High School Program Bask;Grant 1993Grant 1994 Grant Consumer and Homemaking Education 1994 Contract

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.559 10.559

16,074.00

4,341.00 $ 8,160.00

2,668.77 8,160.00

2,668.77 8,160.00

10.553 10.553
10.555 10.555 10.550

186,190.04
509,481.78 87829.55
779575.37 $

5,745.04 160,323.00
4,149.96 504,297.18 N/A
687016.18 $

186,190.04
509,481.78 87 829.55
774 330.14 $

(2)
1,288,338.19 (3) 87 829.55
1 386996.51

84.186 $ 27,720.00 $

84.010 84.010 84.010 84.010 84.010 84.010
84.151 84.151

134,621.00 455,391.00
9,000.00
29,097.00

84.164 84.164

13,538.00

84.027 84.027 84.027
84.173 84.173 84.173

29,171.00 199,186.00
2,064.00 43,380.00

84.048 84.048
84.049

68,740.00 4,396.00

27,720.00 $ 26,854.94 $

26,854.94

7,500.00 78,829.33
6,450.00 126,621.00 370,062.87
15,000.00 29,097.00

118,732.68 438,899.85
803.88
7,361.43 29,097.00

118,732.68 438,899.85
803.88
9,118.43 (3) 29,097.00

13,538.00

13,538.00

34.31 13,538.00

19,488.32 29,171.00 176,499.19
4,420.00 2,064.00 36,325.96

29,171.00 191,494.29
2,064.00 39,064.02

29,171.00 191,494.29
2,064.00 39,064.02

18,178.71

16,996.00

68,740.00

(4)

3,484.00

4,396.00

(4)

- 30 -

JACKSON COUNTY BQARQ QF EDUCATION SCHEDULE OF FEDERAL FINANCIAi ASSISTANCE
VEAR ENPEP JUNE 39 1994

SCHEDULE "1"

FUNDING AGENCY PRQGRAU/GRANT
Education, U. S. Department of Through Hall County Board of Education d/bla Piedmont Migrant Education Agency Elementary and Secondary Educatk>n Act Chapler 1 Migratory Education Program 1993 Regular 1994 Regular

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.011 84.011

$ 14 368.94

1,146.22 14 368.94 $

13650.72 $

13650.72

Total U. S. Dapartment of Education

$ 1 030 672.94 $

996 958.56 $ 983867.81 $

912523.12

Health and Human Sarvi<:es, U.S. Daparlment of Through Georgia Dapartment of Human Resources Dapendent Care Program 1994 Regular

93.673 $

15000.00

14.04 $

14.04

Labor, u. s. Dapartment of
Through Norti-c Georgia Regional Davalopment Center Job Training Partnership Act 92-JKBOE

17.250

10071.99

Total Federal Fmancial Assistance

$ 1,825,248.31 $

1,694,046.73 $ 1,758,211.99 $ _ _ _2_._29_9._533....,..67_

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

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary

assistance for donated cornrnod;ties received and/or consumed by the system during the current fiscal year.

Bnoo- (2) Expenditures lor the School

Program were not maintained separately and are included in the 1994

National School Lunch Program.

(3) Expenditures lor lhis program include S - , and/or Local and Other Funds.

Expenditures are not maintained by fund source.

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

See notes to the general purpose financial statements.

- 31 -

JACKSON COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994
INTEREST BEARING ACCOUNTS
First Commerce Bank, Commerce, Georgia
N.O.W. Accounts (2.27%)
First National Bank of Jackson County, Jefferson, Georgia
N.O.W. Accounts (2.35%)

SCHEDULE "2"
$ 226,108.66 776,134.97
$ 1,002,243.63

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

JACKSON COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30 1994
INVESTMENT POOL Office of Treasury and Fiscal Services Local Government Investment Pool (4.237%)

SCHEDULE "3" $ 2,098,379.84

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

JACKSON COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE 4

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Funds Lottery Funds Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant Federal Programs ESEA - Chapter I Education of Deprived Children Individuals with Disabilities Education Act TrtleVI, B Flow Through Preschool Program
Human Resources, Georgia Department of Federal Program Dependant Care Program
Jackson County Comprehensive High School Athletic Supplies and Equipment
Jackson County Regional Evening School Reimbursement for Salaries
Jackson County Tax Commissioner County Wide Bond Tax County Wide School Tax
Other Returned Checks

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 5,867.04 5,184.60
$ 11,194.63 52,656.00
2,316.00 72,461.56
5,230.57 117,062.05
23,778.56
73,007.93
14,995.10 2,738.04

$ 5,867.04 5,184.60
11,194.63 52,656.00
2,316.00 72,461.56
5,230.57 117,062.05
23,778.56
73,007.93
14,995.10 2,738.04

13,925.74 46,470.17 67,104.33

14.04

14.04

13,925.74

46,470.17

$ 16,309.52

16,309.52 67,104.33

13.70

13.70

$ 191,350.87 $ 322,669.19 $ 16,309.52 $ 530,329.58
See notes to the general purpose financial statements. - 34 -

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

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

SCHEDULE "5"

TOTAL DEBT SERVICE

1993 ISSUE

INTEREST

PRINCIPAL

$

771,900.00 $ 351,900.00 $ 420,000.00

768,075.00

338,075.00

430,000.00

767,206.25

322,206.25

445,000.00

764,662.50

304,662.50

460,000.00

765,262.50

285,262.50

480,000.00

764,062.50

264,062.50

500,000.00

766,118.75

241,118.75

525,000.00

761,367.50

216,367.50

545,000.00

759,737.50

189,737.50

570,000.00

760,915.00

160,915.00

600,000.00

759,692.50

129,692.50

630,000.00

760,847.50

95,847.50

665,000.00

759,325.00 755,212.50

59,325.00

700,000.00

20,212.50 - 735,000.00

$ 10,684,385.00 $ 2,979,385.00 $ 7,705,000.00

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

TOTAL

1993 ISSUE

1988 ISSUE

$ 7,985,000.00 $ 7,985,000.00 $

0.00

7,705,000.00

7,705,000.00

7,985,000.00

7,985,000.00

Bonds Payable at June 30, 1994

$ 7,705,000.00 $

0.00 $ 7,705,000.00

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

JAN 1-JUL 1 JAN 1

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

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

SCHEDULE"6"

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 Limited English Speaking Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Fiscal Year 1993 1994 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education other State Programs Innovative Programs Mentor Teacher Program Pre-Kindergarten Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 6,184,283.00 1,509,432.00 99,599.00 274,479.00 96,942.00 1,921,002.00
598,531.00 177,866.00 10,312.00 245,488.00 230,440.00 63,299.00

$ 6,184,283.00 1,509,432.00 99,599.00 274,479.00 96,942.00 1,921,002.00
598,531.00 177,866.00 10,312.00 245,488.00 230,440.00 63,299.00

72,479.00 489,796.00 -1,850,429.00 519,675.00
$ 162,750.63
4,860.00 7,200.00 13,738.00 32,796.00

89,554.00

72,479.00 489,796.00 -1,85(f,429.00 519,675.00
89,554.00 162,750.63
4,860.00 7,200.00 13,738.00 32,796.00

4,750.00 16,149.26

2,316.00 118,041.56
5,230.57 117,062.05 417,283.42 23,778.56

4,750.00 16,149.26
2,316.00 118,041.56
5,230.57 117,062.05 417,283.42 23,778.56

$ 10,885,437.89 $ 773,266.16 $ 11,658,704.05

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

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

SCHEDULE '7"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real E - Transfer Tax
Other Interest Eamed Lost and Damaged Books Procaeds from Anti-Trust Lawsutt Recovery of Prior Year Questioned Cost Theft of Funds Rent Sales Lunches and Breakfast School Assets Shared Sarvice Contributions Banks County Board of Education Barrow County Board of Education City of Commerce Board of Education City of Jefferson Board of Education Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 4,348,044.13 220.61
11,468.25

$ 1,055,833.95 $ 1,055,833.95

4,348,044.13

220.61

2,690.08

14,158.33

53,264.81 $ 2,330.65

3,512.13 $ 2,716.50

2,505.00

480.00

35,048.70

499,350.64

11,403.00 30,000.00 46,162.97 6,769.00 105,253.72 2,704.27

720.12 217.25

21,365.05

78,862.11 2,330.65 2,716.50
480.00 2,505.00
499,350.64 35,048.70
11,403.00 30,000.00 46,162.97
6,769.00 105,253.72
2,921.52

$ 4,653,175.11 $ 506,059.27 $

937.37 $ 1,079,889.08 $ 6,240,060.83

Sae notes 10 the general purpose financial statements.

- 37 -

c o u m J A C K S O N

BOARD OF EDUCATION

SCHEDULE OF f;XPE;NDITURES BY OBJECT

GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30 1994

SCHEDULE "8"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 10,575,789.96 $ 1,133,008.58 $ 11,708,798.54

2,884,953.11

283,780.09

3,168,733.20

53,467.49

19,523.70

72,991.19

77,033.16

33,706.11

110,739.27

11,200.00

11,200.00

34,974.84

1,560.00

36,534.84

64,202.15

13,998.65

78,200.80

4,068.27

4,068.27

8,933.51

2,750.00

11,683.51

65,165.99

296.00

65,461.99

44,871.28

44,871.28

7,934.22

7,934.22

6,671.89

6,671.89

126,169.58

120,092.97

246,262.55

20,152.92

8,352.14

28,505.06

602,837.89

368,968.91

971,806.80

504,698.85

371.39

505,070.24

684,604.59

684,604.59

125,112.54

6,056.77

131,169.31

23,679.75

4,440.83

28,120.58

55.48

55.48

4,155.38

9,413.04

13,568.42

269,532.57 18,256.57 97,143.87

285,650.17

269,532.57 18,256.57
382,794.04

$ 15 624,389.38 $ 2,983,245.83 $ 18,607,635.21

See notes to the general purpose financial statements. - 39 -

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

EXPENDITURES
Operating Cosls Salaries Employee Benefits Travel Professional and Technical Services Insurance Shared Services Other Purchased Services Supplies Energy Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

2,316.00 $

16,743.44 $

4,276.18

101,298.12

954.39

$

2,316.00 $

118 041.56 $

5 230.57

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

SCHEDULE "9"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$

77,861.47

39,200.58

$

117,062.05 $

189,214.79 52,653.96 8,236.82 858.60 296.00 531.88 784.08 93,603.61 $ 371.39 5,574.82
65,157.47

$ 22,197.56

189,214.79 52,653.96 8,236.82 858.60 296.00 531.88 784.08
216,998.26 371.39
5,574.82

1,581.00

208,191.56

417283.42 $

23,778.56 $

683,712.16

- 41 -

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

SCHEDULE "10"

EXPENDITURES
Operating Costs Supplies

$ _ _ _s_s._oo_

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

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

SCHEDULE "11

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 8,557,589.00 $

96,942.00

$ 8,840,468.07 436,721.22 $
$ 9,277,189.29 $

96,942.00 96,942.00

-140,849.62

$ 9,136,339.67 $

-7,400.86 89,541.14

$

0.00 $

7 400.86

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

JACICSQN cot IN'JY RQABP 9F EQI !CAIIQN ANAi YSI OF l,IINIMlJM fXPENPm 'BE REQUIREMENTS ex PBQGRAM
GENERAi FlJNP OUAI 11Y RAS1QED\ JCATIQN PROGRAMS
YEAR ENDED JUNE 3Q 1994

GENERAi AND CAREER EQl JCATION ffiOGRAf,A Ki.-garten(1 Grades 1 - 3 (1
Sub-Total-K-3 Grades 4- 5 (") Grades 6 - 8 (") Grades 9-12 (1 High School Laboratories (") Vocational Education Laboratories r)
Total General and Career Education Programs
pEQlAI fQUCATIQN PBQQRAM
Regular Programs C8tego,yl(1 C8tego,y II (1 category Ill(") category IV (") Itinerant Supplemental Speech Sub-Total - Regular C8tego,y V (Gifted) (") Total Special Education Programs
RfMEQIAI EQI JCATIQN PROGRAM M
MfplA GENTER ffiOGRAMS
Total Thirteen Weighted and Media Center
STAFF PE)/ELOPMENT PROGRAMS (1)
Coat a Instruction - I """9lopmenl
TotalStatrOe,elopmenl
r> Identifies Thirteen Weighted Programs.
Note: (1) $11,279.40dtheallotmentforProfe&sional """9lopmenl has been transferred to Cost d Instruction as authorized by OCGA 20-2-182
See notes to the general purpme financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

ORIGINAL ..JL

REQUIRED ORIGINAL

MID-TIERM

TOTAL REQUIRED

644,694.00

580,224.60

1678936.00

1 511 042.40 $

2,323,630.00 90 $ 2,091,267.00 $

871,927.00 90

784,734.30

1,392,836.00 90

1,253,552.40

946,378.00 90

851,740.20

262,14H>O 90

235,926.90

38737i.OO 90

348633.90

$ 6184 283.00

5 565 854.70 $

225 000.00

580,224.60 1 736 042.40

225,000.00 $ 2,316,267.00

784,734.30

264,796.00

1,518,348.40

851,740.20

235,926.90

348 633.90

489 796.00 $ 6 055 650.70

1,479,585.00

1,331,626.50 $

0.00 $ 1,331,626.50

1,479,585.00 29 847.00
1509432.00 99 599.00
274 479.00

90 $ 90
90 $ 90 $

1,331,626.50 $ 26 862.30
1 358 488.80 $ 89 639.10 $
247031.10 $

0.00 $
0.00 $ 0.00 $ 0.00 $

1,331,626.50 26 862.30
1 358488.80 89 639.10
247031.10

$ 8,067,793.00

$ 7,261,013.70 $

489,796.00 $ 7,750,809.70

33,025.40 100 $ 63 916.60 100

33,025.40 $ 63,916.60

0.00 $

33,025.40 63 916.60

96,942.00

96,942.00 $

o.oo s_...,;se=,94;;;2.,;.oo;;.

S 8,164,735.00

7,357,955.70 $

489,796.00 $ 7,847,751.70

- 44 -

SCHEDULE "12''

REQUIRED ALLOTMENT

SAL.ARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDllURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

565,065.00 S

764,259.82

15,159.60 $

14,532.16

1 688114.70

1707999.01

47 927.70

59 786.72

$ 2,253,179.70 $ 2,472,258.83 $

0.00

63,087.30 S

74,318.88 $

0.00

760,383.00

1,027,354.28

0.00

24,351.30

33,483.45

0.00

1,480,683.40

1,489,331.28

0.00

37,665.00

63,003.71

0.00

813,742.20

1,098,162.53

0.00

37,998.00

78,958.86

0.00

225,442.80

248,224.59

0.00

10,484.10

15,516.09

0.00

302 832.90

543 401.87

0.00

45 801.00

45 853.75

0.00

5 838 264.00 $ 6 878 733.38 $

0.00

219 386.70 $

311134.74 $

0.00

124,619.40 $ 249,787.80 sn,322.10
37,979.10

112,938.52 257,829.19 1,084,578.41
3,Bn.06

1,289,709.00 $ 26109.90
1 315 818.90 $ 88061.40 $
190548.00 $

1,459,023.18 $ 61,827.92 $
1520851.10
89 515.31 s
351 368.28 $

s 7,430 692.30 $ 8 840,468.07

0.00 0.00
0.00 0.00
0.00

6,465.60 $ 5,411.70 24,177.60 1,315.80 1,515.60 3 031.20
41,917.50 $
752.40
42669.90 $
1 577.70
56 483.10 S

9,457.36 6,366.60 21,297.38 14,363.71
51,485.05 $ 3 436.98 $
54922.03 6704.11
63 960.34 $

320 117.40 $

436,721.22 $

0.00 0.00
0.00 0.00
0.00

7,430,692.30 $ 8,840,468.07 $

33,025.40 $ 63 916.60

40,426.26 $ 56 515.74

0.00 7 400.86

96 942.00 $

96 942.00 $

7 400.86

0.00

417,059.40 $

533,663.22 $

7 400.86

45

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION OF BOARD MEMBERS
YEAR ENDED JUNE 30 1994

SCHEDULE "13"

BOARD MEMBER ADDRESS
Mr. Arthur Parr, Jr., Chairman (*) 3287 Athens Highway Jefferson, Georgia 30549
Ms. Emma Baeme (*) 3688 New Kings Bridge Road Nicholson, Georgia 30565
Mr. Jeff Carr (*) 639 Deadwyler Road Maysville, Georgia 30558
Mr. Barry Cronic(*) 95 Hoyt Wood Road Braselton, Georgia 30517
Ms. Julia Shirley (*) 3385 Lyle Field Road Jefferson, Georgia 30549

$

2,000.00

2,500.00

2,050.00

2,250.00

2,400.00

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

$ ==1=1=,2=0=0.=00=

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 12, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Jackson 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 ofthe Jackson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Jackson County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

94CRL-10

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 12, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Jackson 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 ofthe Jackson County Board ofEducation l!S of and for the year ended June 30, 1994, and have issued our report thereon dated May 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Jackson County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:djf 94CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 12, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Jackson 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 ofthe Jackson County Board of Education a~ of and for the year ended June 30, 1994, and have issued our report thereon dated May 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Jackson County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

94CRL-80

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 12, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Jackson County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1994 general purpose financial statements of the Jackson County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular 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:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

SECTION ill INTERNAL CONTROL
{

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 12, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Jackson 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 ofthe Jackson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as
identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit ofthe general purpose financial statements ofthe Jackson 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 of the Jackson 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.
94ICL-3

The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation ofpolicies 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 (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement

(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation (8) General Ledger (9) General Fixed Assets

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

We noted 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 descnbed in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(I) Accounting Controls (Overall)

(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 perfomtlng their assigned functions.

94ICL-3

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Jackson County Board ofEducation's financial statements and this report does not affect our report thereon dated May 12, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:djf 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 12, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Jackson 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 ofthe Jackson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 12, 1995.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and the provisions ofOffice 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 Jackson County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major
94ICL-7

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 May 12, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

94ICL-7

During the year ended June 30, 1994, the Jackson County Board of Education expended 61% 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 descnbed above that are applicable to each ofthe Board's major Federal financial assistance programs, which 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 OP.inion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more 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.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit ofthe Jackson County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated May 12, 1995.
94ICL-7

This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted, ~
~ /4-~
Claude L. Vickers State Auditor
CLV:djf 94ICL-7

SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditures Financial Statements Amount: $13,925.74 Audit Control Number 6781-93-01
Prior year audit reports have directed attention to improper expenditures totaling $23,903.58 made from the General Fund during the year ended June 30, 1982, for Athletic Supplies and Equipment for extracurricular athletic programs at Jackson County High School. At June 30, 1993, partial reimbursements received by the Board had reduced the outstanding balance to $15,538.11. In the year under review, a partial reimbursement of$1,612.37wasmadetotheBoard's General Fund, and at June 30, 1994, a balance of$13,925.74 remained due from Jackson County High School. This outstanding balance is included in Accounts Receivable of the General Fund as reflected on Schedule "4" and Exhibit"A" of this report.
AUDIT FOLLOW-UP/RESOLUTION Theft ofFunds Financial Statements Amount: $5,150.00 Audit Control Number 6781-93-02
In the year ended June 30, 1984, the Jackson County Board of Education initiated legal action against Ms. Wynella Dennis, Secretary at North Jackson Elementary School. Ms. Dennis was charged with "Theft by Taking" and "Interference with Government Property". On September 20, 1984, Ms Dennis plead guilty to all charges in the indictment. The Court imposed a sentence often (10) years and will allow Ms. Dennis to serve it on probation, on condition that she pays full restitution of $11,610.00. Restitution is to be made through the Adult Probation Office of the Superior Court of Jackson County. The Adult Probation Office is to disburse to the Jackson County Board of Education all monies paid by Ms. Dennis on an annual basis. In the year under review, $480.00 was received as partial reimbursement to the Board, and at June 30, 1994, a balance of $5,150.00 remained due from Ms. Dennis.

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6781-93-03
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance of accounting functions and related procedures. In the year under review, no improvement was noted in the separation of employee duties. This deficiency occurred as a result ofthe Board's decision to limit the number of administrative staff responsible for accounting functions. The Board should periodically review this decision to determine if employee duties can be reassigned to achieve adequate internal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "I " of this report are affected by this finding.
EXPENDITURE/LIABILITIES/DISBURSEMENTS Questioned Cost Financial Statements Nonmaterial Noncompliance Amount: $74,649.94 Audit control Number 6781-93-04
The audit report for the year ended June 30, 1993 reported that a total of$65,918.48 had been expended on a construction project for facilities built on property owned by the Georgia School Board Association. The Jackson County Board ofEducation entered into a lease-purchase agreement with the Georgia School Board Association for the property and the facilities constructed on the property pursuant to Official Code of Georgia Annotated Section 20-2-506.
In the year under review, the Board incurred additional local expenditures of $8,731.46 on this project. An Attorney General's opinion dated October 31, 1957, states that school funds may not be spent for the construction of a building on property not owned by a local board of education.

JACKSON 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 6781-93-05
The audit report for the year ended June 30, 1993, noted that the management ofthe Jackson County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $7,400.86 Audit Control Number 6781-94-01
For the year under review, the Board reported to the Georgia Department ofEducation on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $40,426.26 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board transferred more than 15 percent of its initial allotment offunds for Professional Development Stipends to StaffDevelopment - Cost oflnstruction Program resulting in an underexpenditure of$7,400.86 for the minimum required allotment of$63,916.60 for the Staff Development - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994

CURRENT YEAR

FEDERAL FINANCIAL REPORTS Completion Report Not Supported By Accounting Records Federal Financial Assistance Nonmaterial Noncompliance Amount: $23.94 Audit Control Number 6781-94-02

For the period under review, a comparison of the Board's project completion report applicable to the Education for Economic Security Act, Title Il (CFDA 84.164)- 1993 Regular grant to the accounting records
revealed that the project completion report was not supported by total expenditures recorded for this program
in the accounting records, as indicated below:

Actual Expenditures

Project Completion
Report

1993 Regular

$ 15 627.06

$ 15 651.00

Federal Regulation (34 CFR 80.20 (b) (1)) states as follows:

"Accurate, current and complete disclosure ofthe financial results offinancially assisted activities must be made in accordance with the financial reporting requirements of the grant or subgrant."

This deficiency occurred because the Board did not properly review and compare actual expenditures with the completion report prior to final approval. The Board should establish procedures to ensure that completion reports are accurate and are verifiable with accounting records. The Board should file a corrected completion report and refund $23.94 to the Georgia Department ofEducation.

AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan in a Timely Manner Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6781-94-03

The Jackson County Board of Education failed to submit, on a timely basis, a Corrective Action Plan to the Grants Management Section of the Georgia Department of Education stating procedures to be implemented in order to resolve findings and improper or questioned costs disclosed in the audit report for the year ended June 30, 1993. This condition occurred because the Board was not aware of the requirement to file a corrective action plan in accordance with 0MB Circular A-128. Procedures should be implemented to ensure
that corrective action plans are submitted in a timely manner.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

JACKSON COUNTY BOARD OF EDlJCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditures Financial Statements Amount: $13,925.74 Audit Control Number 6781-93-01
Prior year audit reports have directed attention to improper expenditures totaling $23,903.58 made from the General Fund in the year ended June 30, 1982, for Athletic Supplies and Equipment for extracurricular athletic programs at Jackson County High School. The year under review partial reimbursement of $1,612.37 was made to the Board's General Fund, and at June 30, 1994, a balance of$B,925.74 remained due from Jackson County High School. Jackson County High School continues to make reimbursement to the Jackson County Board ofEducation for this outstanding balance.
AUDIT FOLLOW-UP/RESOLUTION Theft ofFunds Financial Statements Amount: $5,150.00 Audit Control Number 6781-93-02
In the year ended June 30, 1984, the Jackson County Board of Education initiated legal action against Ms. Wynella Dennis, Secretary at North Jackson Elementary School. Ms. Dennis was charged with "Theft by Taking" and "Interference with Government Property". On September 20, 1984, Ms Dennis plead guilty to all charges in the indictment. The Court imposed a sentence often (10) years probation on the condition that she pays full restitution of $11,610.00. At the end of her probation period Ms. Dennis had not paid full restitution, and the Jackson County Board ofEducation carried her back to court. In June 1995, the Court imposed a garnishment of her wages, and that garnishment is now being paid to the Jackson County Board of Education through the Superior Court of Jackson County.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6781-93-03
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance of accounting functions and related procedures. In the year under review, no improvement in this internal control occurred. The Board has added additional personnel to separate duties and this should be reflected in the audit report for the year ended June 30, 1995.

JACKSON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
EXPENDITURE/LIABILITIES/DISBURSEMENTS Questioned Cost Financial Statements Nonmaterial Noncompliance Amount: $74,649.94 Audit Control Number 6781-93-04
The audit report for the year ended June 30, 1993 reported a total of$65,918.48 had been expended on a construction project for facilities built on property owned by the Georgia School Board Association. In the year under review, the Board incurred additional local expenditures of $8,731.46 on this project. It is the Jackson County Board's position that based upon opinions by the Board's legal council and the Georgia School Board's legal council that significant legislation has passed that renders this opinion "not applicable" to the factual situation stated above.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6781-93-05
The audit report for the year ended June 30, 1993, noted that the Board did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records required by generally accepted accounting principals. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Jackson County Board of Education has decided not to pursue the recording of General Fixed Assets of the financial statement.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $7,400.86 Audit Control Number 6781-94-01
For the year under review, the Board reported to the Georgia Department ofEducation on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $40,426.26 for the Staff Development - Cost of Instruction Program. The Board transferred more than 15 percent of its initial allotment offunds for Professional Development Stipends to StaffDevelopment - Cost of Instruction Program resulting in an underexpenditure of$7,400.86 for the minimum required allotment of$63,916.60 for the Staff Development- Professional Stipends Program. This cost resulted from the Board's reliance on incorrect information decimated state-wide from the Georgia Department of Education. The Jackson County Board expects these funds to be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.

JACKSON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
FEDERAL FINANCIAL REPORTS Completion Report Not Supported By Accounting Records Federal Financial Assistance Norunaterial Noncompliance Amount: $23.94 Audit Control Number 6781-94-02
We concur with this finding. This error was the result of two (2) employees of the Board having identical names with the correct compensation going to the wrong person. The Board has filed a corrected completion report and procedures are in place to prevent this error in the future.
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan in a Timely Manner
Federal Financial Assistance Norunaterial Noncompliance Audit Control Number 6781-94-03
We concur with this finding. The Corrective Action Plan has been filed, but not on a timely basis. Procedures are in place to insure that Corrective Action Plans are submitted in a timely manner.