Audit report, Jefferson County Board of Education, Louisville, Georgia, year ended June 30, 1994

-i)\
A800 JU
[.J.(:,
T4S
1qq3_q</-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

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

JEFFERSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS- OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES -ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

28

3 INVESTMENTS

29

4 ACCOUNTS RECENABLE

30

5 DEBT SERVICE REQUIREMENTS TO MATURITY

31

SCHEDULE OF REVENUE

6

STATE FUNDS

32

7

LOCAL AND OTHER FUNDS

33

JEFFERSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION!

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

35

9

LOTTERY PROGRAMS

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

IO

OVERALL

39

11

BYPROGRAM

40

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

42

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

SECTION III
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

JEFFERSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 16, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Jefferson County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Jefferson 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.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* School activity accounts maintained at the individual schools and the Board's Staff Development
account 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.
94ARL-18X

* 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.
As described in the notes to the general purpose financial statements, the Board did not maintain a General Fixed Assets Account Group for inclusion in the general purpose financial statements as had been reported in the prior fiscal year. This change in accounting method from the previous fiscal year constitutes a change from generally accepted accounting principles to an accounting method that is not generally accepted. The effects on the general purpose financial statements of this departure from generally accepted accounting principles have not been determined, but are believed to be material.
In our opinion, because ofthe effects of the matter discussed in the preceding paragraph, the general purpose financial statements do not present fairly, in all material respects, the financial position of the Jefferson County Board ofEducation as ofJune 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Jefferson County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Jefferson County Board of Education.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94ARL-18X

JEFFERSON COUNTY BOARD OF EDUCATION - 1-

JEFFERSON CQUNJV BQARP QF EPUCATIQN COMBINFQ RAIANCE Hf;fT
ALL FUND TYPES AND ACCOUNT GROUP JUNE:30 1994

Cash and Cash Equiva-
1..--
Acc:ounls Receivable
1.-... Food Donated Commodities Purchased Food
GoneralFocedAssels
Amount Available In Debt SeMee Fund
Amount to be Provtded m Future Years For Payment ol: Bond Debt Capital Loose Ag...-nents

GENERAL FUND
2,899,643.85 $
90,674.51

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

579,328.21

3,119,639.02

2,810,085.03

180,258.40

83,509.80

21,454.67 9,421.12

TotalAaots
LIABILITIES ANQ FUND EQUITY
lJAllll.lilla
Acc:c,waPoyable Salaries Payable Expir9d G111nt Balances Payable o.terred Revenue Capital Loose Ag...-nents
- . . 1 Obligation Bonds Payable
Total Liabilities
FUNPEQUITY
lnwstment in _ . , I Foxed Assets
Fund Balances
RFor Bus Roplacement Funds For Continuation d Federal Programs ForDebtSerliee For Expired Grant Balanceo/Q- Costs For Inventories Food Donated Commodities Purohased Food For Purpooos d Bond Issue For State Capital Outlay Prcjecls
Unreserved Undesignoted
Total Fund Balances
Total Fund Equity
Total Llabillties and Fund Equity

$ 2,990,318.36 $ 790,462.40 $ 6 013,233.85

318,101.68 $ 428.91

173,052.68 164,m.SB
15,811.94 121,260.59

318 530.59 $ 474898.79

$ 185,391.55 $
3,987.27

7,069.02 2,776.88

189,378.82 $ 2482 408.95 2 671 787.77 $ 2 671 787.77 $

21,454.67 9,421.12
$
40,n1.68 $ 274841.92 315563.61 315563.61

5,935,923.32 73212.80
6,009,136.12 4097.73
6013233.85 6013233.85

2,990,318.36 $ 790,462.40 $ 6 013,233.85

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

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL LONG-TERM DEBT

TOTALS
<Memorandum On~ JUNE 30 1994 JUNE 30 1993

$ 194,771.23

6,793,382.31 $ 3,506,994.15

2,810,085.03

7,938.33

362,381.04

243,053.49

202,709.56

21,454.67 9,421.12
202,709.56

20,061.16 8,624.01
15,654,319.55

5,797,290.44 148423.00

5,797,290.44 148 423.00

$ 202,709.56 $

6,148,423.00 $ 16,145,147.17 $ 19,433,052.36

148,423.00 6 000 000.00
6 148 423.00 $

491,154.36 $ 164,773.58 16,240.85 121,260.59 148,423.00 6 000 000.00
6 941 852.38 $

119,326.04 167,275.46 14,093.70
300695.20

$ 15 654 319.55

202,709.56
202,709.58 0.00
202 709.56 202709.56

$

185,391.55 $

260,164.44

7,069.02

10,021.02

202,709.56

6,764.15

2,698.36

21,454.67 9,421.12 5,935,923.32 73~12.80

20,061.16 8,624.01
390740.71

6,441,946.19 $ 692,309.70

2761 348.60

21ssn1.91

9 203 294.79 $ 3478037.61

9 203 294.79 $ 19132357.16

202,709.56 $

6,148,423.00 $ 16,145,147.17 $ 19,433,052.36

3

JEFFfRSQN mt INT)' RQABP Of fpucATIQN mua1NEP SJAifMENT OF RfYEN' Es ExeENPm ~fS ANP CHANGES 1N s NP BAI ANCEs
GPYERNMENTA( FUNQ JYPES
YfAB ENPEP JUNE 30 1994

EXHIBIT"B''

~
State Funds Federal Funds Local and Other Funds

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS {Memorandum On~
YEAR ENDED JUNE30 1994 JUNE 30 1993

$ 9,470,138.47 $ 324,379.82 $

33,867.92 2,528,182.20

2 426 912.35

153164.95

157,747.50 85860.17 $

$ 383 057.74

9,952,265.79 $ 2,562,050.12 3 048 995.21

9,462,485.98 2,472,240.69 2 818 225.49

Total ReYenue&

$ 11930918.74 $ 3 005 726.97 $ 243607.67 $ 383 057.74 $ 15563311.12 $ 14 752 952.16

EXPENPm.JRES

Current

lnoOuction

$

SUppol!Selvices

PupilSelvices

Improvement cf Instructional Selvices

Educationaf Media Services

General Administration

School AdminiBtration

Business Administration

Maintenance and Operation of Plant

Student Transportation SeMces

Central Support Services

Other Support SeMces

Food SeMces Ope,atian

Community SeMce Operations

other Operations d Non-Instructional SeMce6

C8pital0utlay

Debt Service

Interest

7,656,513.41 $ 1,414,561.02

582,063.29 313,022.35 315,679.62 217,041.29 704,977.85 146,054.19 1,112,979.50 713,396.35
28,735.39 31,371.51
451.35 1,780.00 71,019.06
990.66

48,902.62 82,056.67
3,652.16 116,188.99
23,095.94 $
1,116.27 31,574.25 20,783.98 39,050.93 1,296,898.86

78,768.00 697,593.67

$ 9,071,074.43 $ 8,526,060.69

628,966.11 395,079.02 319,331.78 333,230.28 728,073.79 224,822.19 1,114,095.77 744,970.60 49,519.37
70,422.44 1,297,350.21
1,780.00 71,019.06 698,584.33

573,386.96 349,621.78 333,440.94 242,465.86 686,813.37 117,616.39 1,080,443.86 547,974.43 74,949.07
25,630.40 1,239,191.75
626.40 69,379.43 355,074.44

198 548.44

198 548.44

Total Expenditures

$ 11896075.82 $ 3 075 881.89 $ 776 361.67 $ 198 548.44 $ 15 946 867.82 $ 14 222 875.77

Excess cf ReYenues OYer {under) Expenditures

34642.92 $

OTHER FINANCING SOURCES (I JSES)

Accrued Interest on Bonds Sold Pmceed& from Gene181 OOligation Bonds
Par Value Discount on Bonds Sold capital Leases Operating Transfers In Operating Transfers Out
Total other Financing Sources (Uses)

148,423.00 $
-211 608.00
$ - ~ = = -63185.00 $

Excess of Revenues and other Financing Sources OYer (under) Expenditures and Other Financing lJ&e&

-26,342.06 $

FlJNP BALANCf .llJI Y 1

2,700,129.85

Food lmoentoiy - Net Change in Period Donated Commodities Purchased Food

-70 154.92 $ -532 754.00 $

$ 6,000,000.00 -60,000.00

462.00

211,126.00

482.00 $ 6 151126.00 $

-69,672.92 $ 5,618,372.00 $

383,045.91

394,861.85

1,393.51 797.11

184509.30 $ -383 556.70 $ 530076.39

18,200.26 $

18,200.26

6,000,000.00 -60,000.00 148,423.00 211,608.00 $
-211608.00

633,756.54 -633 756.54

18 200.26 $ 6 106 623.26 $

0.00

202,709.56 $ 5,723,000.58 $ 530,076.39

0.00

3,478,037.61

2,952,705.42

1,393.51 797.11

-4,419.18 -325.02

FtJNQ BALANCE JUNE 30

$ 2671 787.77 $ 315 563.61 $ 6 013 233.85 $ 202 709.56 $ 9 203 294.79 $ 3 478 037.61

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

JEFFl;RSQ~ gQ!.!HTY ~BQQE !;Q~ATIQM ~Bl~fQ SJ:ATEMENT QF Rl;'.:!lt;NUf l;~PENQITUBSS AND QHANGES IN FUND BALANCES
AQTUAL ANQ BU~l;I gQVl;RNMeNTA!,, FUf:40 TYPES YEAR ENDED JUNE 30 1994

EXHIBIT"C"

~
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPE!'::!QIT!!!!E
Current lnstruc:tion Suppart Services Pupil Services Improvement of Instructional Secvices Educational Media Services General Administration School Administration Business Administration Maintenance and Opa,ation of Plant Student Transportation Services c.ntrolSupportSeNioes Other Support SeNioes Food Services Operation Community Service Operations Other Operations of Non--lnstruetional Services
Capital Outlay Debt Service
Total~itures
Excess of Revenues over (under) Expenditures
QI!:tER flNA~QINSi! QYBgE (b!i;S}
Other Sources Other Uses
Total other Financing Sources (Uses)
Excess d Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FU!'::!Q ~LANCE JULY 1 1993
.ei~,u~:;Nm
Prior Year (Net)
FQQQ INl(ENTORY - !'::!ET !,HAN!,E IN PERIQQ
Donated Commodities Purchased Food

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABL~

$ 9,952,265.79 $ 2,562,050.12 3,048,995.21
$ 15.563,311.12 $

0.00 $

9,952,265.79 $ 14,922,082.00 $

2,562,050.12

2,400,830.00

3,048.995.21

2 427.535.00

o.oo $ 15,563.311.12 $ 19,750,447.00 $

-4,969,816.21 161,220.12 621.460.21
-4, 187,135.88

9,071.074.43 $
628,966.11 395,079.02 319,331.78 333,23028 n8,073.79 224,822.19 1,114,095.n 744,970.60
49,519.37 70,422.44 1,297,350.21
1,780.00 71,019.06 698,584.33 198,548.44
$ 15.946.867.82 $
$ -383.556.70 $

0.00 $ 9,071,074.43 $ 8,970,155.01 $

628.966.11 395,079.02 319,331.78 333,230.28 728,073.79 224,822.19
1.11 ,095.n
744,970.60 49,519.37 70,422.44
1,297,350.21 1,780.00
71,019.06 698,584.33 198,548.44

603.979.00 395,709.00 324,280.00 348,165.00 726,510.00 133,901.00 1.109,567.00 722,842.00
53,394.00 69,378.00 1,281,818.00
66,103.00 5,884,688.00

0.00 $ 15,946,867.82 $ 20.670,509.01 $

0.00 $ -383.556.70 $ -920.062.01 $

-100,919.42
-24.987.11 629.98
4,948.22 14,954.n -1,563.79 -90,921.19 -4.52a.n -22,128.60 3,874.63 -1,044.44 -15,532.21 -1,780 00 -4.916.06 5,166. 103.67 198,548 ..
4.n3.641.1s
536.505.31

$ 6,389.400.11 $ -2B2,n6.85
6,106,623.26 $

0.00 $ 6,389,400.11 $ -2B2,n6.as
0.00 $ 6,106,623.26 $

388,874.00 $ -388,874.00
0.00 $

6,000,526.11 106,097.15
6,106,623.26

5,723,066.56 $ 3,478,037.61

0.00 $ 5,723,066.56 $ -920,062.01 $

-28,685.17

3,449,352.44

3,446,273.83

6,643,128.57 3,078.61

0.00

31,830.16

-31,830.16

1,393.51

-1,393.51

0.00

0.00

797.11

-797.11

0.00

0.00

FU!'::!Q ~I ANCE JUNE 30 !994

9,203,294.79 $ -30,875.79 $ 9,172,419.00 $ 2,558,041.98 $ s,614,3n.02

The notes to the general purpose financial statements are an integral part of this statement. -5-

JEFFERSON COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Jefferson County Board ofEducation (Board) was established under the laws of the State ofGeorgia 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 ofthe Jefferson County Board ofEducation.
Based upon the application ofthe above criteria, the Jefferson County Board ofEducation is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Jefferson County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage 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 ofits 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 ofaccounts. 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. In fiscal year 1993, general fixed assets were reported in the general purpose financial statements in accordance with generally accepted accounting principles. However, for fiscal year 1994, the Board did not maintain a General
- 6-

JEFFERSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Fixed Assets Account Group for inclusion in the general purpose financial statements. 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.
Although "school activity accounts" are maintained at the individual schools, and a "staff development account" is maintained by the Board, 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 ofa Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
- 7-

JEFFERSON COUNTY BOARD OF EDUCATION

EXlilBIT "D"

NOTES TO Tiffi GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities; which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds 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 ifthey 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 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.

- 8-

JEFFERSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Jefferson County Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting 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 of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds 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:
(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 of any corporation of the United States government,

- 9-

JEFFERSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the Office of Treasury 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 Jefferson County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on October B, 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. l 03. The Jefferson 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 Jefferson County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

11.0 mills -1.,_2 mills

12.2 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of

- 10 -

JEFFERSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNEJO 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese 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:
Reimbunements of~ditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 11 -

JEFFERSON COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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 of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists ofany one of or any combination ofthe following:

( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the

State of Georgia,



(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State ofGeorgia,

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $7,527,854.90. 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.

- 12 -

JEFFERSON COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS

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

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

Risk Category

Bank Balance

1

$ 227,427.18

2

6,400,427.72

3

900 000.00

Total

$ 7 527 85490

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 1994, the carrying amount of the Board's total investments was $2,810,085.03 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

- 13 -

JEFFERSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 4: RISK MANAGEMENT

'The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$2,664.78 was paid in claims.

Note 5: OPERATING LEASES

Jefferson County Board of Education has entered into various leases as lessee for office equipment. These leases are considered for accounting purposes to be operating leases. Lease eiq,enditures for the year ended June 30, 1994, amounted to $27,248.60. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

1995 1996 1997 1998 1999

$ 28,773.60 28,773.60 28,773.60 27,900.80 9 150.00

Total

$ 123 371 60

Note 6: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Jefferson County Board of Education has entered into a lease agreement as lessee for computer equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value cifthe future minimum lease payments as of the date of its inception.

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

Capital Leases

General Obligation
Bonds

Total

Balance July I, 1993

$

0.00 $

0.00 $

0.00

Additions

148 423.00 6 000000.00 6 148 423.00

Balance June 30, 1994

$ 148 423 Q0 $ fi 00Q QQQQQ S fi I~!! 423 00

- 14 -

JEFFERSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 6: 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

$ 78,046.25 $ 407,822.50 $ 485,868.75

78,046.25

409,412.50

487,458.75

415,617.50

415,617.50

421,180.00

421,180.00

426,185.00

426,185.00

8 709 855.00 8 709 855.00

Total Principal and Interest

$ 156 092.50 $]0 790 072 50 $]Q 946 ]6~ 00

Deduct: Imputed Interest

$ 7 669.50

Net Present Value ofFuture Minimum Lease Payments

$ ]48 423 00

Note 7: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$121,260.59 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department ofEducation has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment

$

486.00

37,664.54

4,670.21

78 439.84

$ 121 26059

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

- 15 -

IBFFERSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: SIGNIFICANT COMMITMENTS

94-681-050

Unearned Executed Contracts
$ 8 656 090 00

Funding Available From State
$ 5 290 036 so

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

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 9: ACCUMULATED EMPLOYEES' LEAVE

The Board's administrative staffand certain other full-time employees earn .83 days per month of annual leave (.45 days per month for 11 month employees). Annual leave may be accumulated to a maximum of20 days. When an employee retires from the Jefferson County Board ofEducation, that employee shall be paid, at their current rate of pay, up to twenty (20) days accumulated leave. See Note 1- Compensated Absences

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 16 -

IBFFERSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I0: RETIREMENT PLANS

Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years ofservice) 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 $7,969,0 l 0.38; total payroll was $9,481,986.73.

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

Total contributions made during fiscal year 1994 amounted to $1,419,282.67, ofwhich $941,140.13 was made by the Board and $478,142.54 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 year"s as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ 1 090 292 000 00

- 17 -

JEFFERSON COUNTY BOARD OF EDUCATION

EXJilBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

RJNE30 1994

Note 10: RETIREMENT PLANS
The measurement ofthe total pe!)Sion 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 ofassets and pension benefit obligation for individual employers.
Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $941,140.13 was actuarially determined and represented .1804% 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 of Georgia (PSERS). All employer's contributions are made by the State ofGeorgia.
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 l Oyears of service and retires between the ages of60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund 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 ofwhat the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contnbutions are refunded with interest.
There were 119 employees covered underPSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contnbutions actuarially determined and approved and certified by the PSERS' Board of Trustees.
- 18 -

JEFFERSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 10: RETIREMENT PLANS
Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $4,048.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 11: SURETY BONDS
The School Superintendent, Mr. Oliver Tucker Vaughn, is bonded in the amount of$30,000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. 02-0170-11003-93-5, on which premium was paid to July 1, 1994.

- 19 -

JEEfsRSQN CQIJNTY RQABD OF EDUCATION COMBINING BA[ ANCf SHEFT SpEQIAI RFVENUE fl JNP JUNE 30 199.4

Clllh - Clllh Equivalents
, _ Accounls RoceiYable
Food
Donated Com-
Purchased Food
TCllalAaet&
UAB1LffiES AND B JNP EQUITY
~ Clllh """"'8ft -Payable Salaries Payable Expin,d Gnmt Balances Payable Cllllened Rewnue
Total Liabilities
~
Fund Balances R__, For Continuation d Federal Progtams For Expired Grant BalancesiQuestioned Ca&ls For Inventories Food Donated Commodities Purchased Food
Un-
Undesignated
Total Fund Equity
Total Liabitities and Fund Equity

SCHOOL FOOD
SERVICES ~

ADULT ~

INNOVATIVE ~

LOTIERY ~

DRUG PREVENTION
PROGRAM

DRUG-l'REE SCHOOLS AND COMMUNmES
Ar:r

$ 322,589.66 $

4.12 $

758.78 $ 228,117.88 $

0.00 $

2,583.32

13,880.43

609.98

20,000.00

21,454.67 ~
s 367345.88 s ~ s ~ s 249111.88 s _ _""o_.oo_s_.....2.,sa_3"'_3.._2

3,897.83 S 54,953.46

614.10 S

758.78 $

---- ---- ----

126,841.85
15.44 121 260.59

S 58851.29 S______fili!Q_S~S 248117.88

2,582.84 0.48
2 583.32

2,776.88 21,454.67 ~ 33,652.67
$ 308 494.59 $ _______Q;QQ_ S __Q&Q_ $ __Q&Q_ $ _ _~0=.00~$ _ _~0=.00~
s 36734s.sa s ~ s ~ s 248111.a9 s _ _ _o_.o_o_ s _.....2_ss_3.,..3_2

See notes to the general purpose financial statements.

-20-

EXHIBIT''E"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II -

CHAPTER1

EISENHOWER

EDUCATION OF

CHAPTER 2

MATHEMATICS

DEPRIVED

BLOCK GRANT - AND SCIENCE

CHILDREN

FLOW THROUGH EOLICATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI B

FLOW

PRESCHOOL

THROUGH

PROGRAM

VOCATIONAL EOLICATION

BASIC

TECH-PREP

~ ~

TOTALS JUNE 30 1994 JUNE 30 1993

10,761.80 $

2,926.39 $

7,368.89 $ 20,314.07 $

6,161.07

601,585.98 $ 399,103.07

121,302.62

$ 16,643.18 $ 7,822.19

180,258.40

169,425.26

21,454.67 9421.12

20,061.16 8 624.01

132064.42 s _ __.2'"9"'25"'_3_9 s

7368.89 $ 20314.07 $ ~ $ 16 643.18 $ ~ $ 812720.17 $ 597213.50

27,945.47 $ 103,897.10
221.85
132064.42 $

2,926.39 S 2 926.39 $

299.87 $

3,422.17 $

5,786.36

11,105.54
----

$ 16,643.18 $ 5,614.59 $

1,555.78

2,207.60

136.66

4,468.63
---- ---

299.87 $ 20314.07 $ ~ $ 16643.18 $ 7822.19 $

22,2s1.n 173,052.68 $ 164,TT3.58
15,811.94 121 260.59
497156.56 $

37,802.38 167,275.-46
9,089.75
214167.59

7,069.02

7,069.02 $ 2,TT6.88

10,021.02

7,069.02 _ ______,o"".oo"'-s _ _ _------'o"'.oo"'- ---~"~-oo=s _ _~o"'oo"'"s~s-----2.:QQ.S_QJ!Q..
7069.02 $ _ _ _0 = 0 0 ~ $ ~ $ ~ $ _ Q J ! Q . . $

21,454.67 9421.12
40,721.69 $
274841.92 315563.61 $

20,061.16 8 624.01
38,706.19
344339.72 383045.91

132 064.42 s____2._9_26_._3_,9 s

7368.89 $ 20314.07 $ ~ $ 16643.18 $ 7822.19 $ 812720.17 $ 597213.50

lfEEfBSQN rptJNTV RQABQ OF fplJCA.TIQN CQMBININQ TAifMENT OF RfVfNlJfS fXPfNQffilRES AND GHANGES IN fUNP BALANCES
SPfC1AL RfYfN\ If FUND
VEAR fNQEQ II lNf 30 1994

State Funds Federal Funds Local and other Funds
Total Revenues
EXPfNPm IRES
eu.1-.:oon
Support Services Pupil Services lmp!'O'Wement of lrr&tructional Services Educational Media Services General Admini&tration School Admirnstration Maintenance and Operation rl Plant Student Tnmspcxtation Services Central Support Services other Support Services
Food Services Operation Communtty SeMce Operations
Total Expenditures
Exceu d Revenues c,.,ier (under} Expenditures
OTHER FINANCING SOI.JRCfS
Opending Transfers In
Excess of Revenues and Other Financing Sources DYer (under) Expenditures
FtJNP BAI ANCff JULY 1
Food 1"""'1loly Net ct,ange in Period Donated Commodities Purchased Food
FlJNQ BAI ANCfi JUNF 30

SCHOOL FOOD
SERVICES
_.B!:fil.._

ADULT ~

INNOVATIVE ~

DRUG LOTTERY PREVENTION ~ ~

DRUG-FREE SCHOOLS AND COMMUNmES
Aef

89,384.00 $ 987,628.99

3,466.85 $ 6,717.79

4,980.00 $ 226,548.97 $

4,589.01 $

153164.95 - - - - - - - - - - - - - - - -

$ 1 230 177.94 $ 10 184.64 $ 4 980.00 $ 226 548.97 $ 4 589.01 $

59,437.52 59 437.52

$ 1,296,898.86

7,297.26 $
93.24 2,794.14

5,462.00 $ 175,999.01 $ 8,111.03 963.93
21,623.00 19,527.00
325.00

4,481.91 $ 107.10

$ 1 296 898.86 $ $ .U,720.92 $

10 184.64 $ 0.00 $

5 462.00 $ 226 548.97 S ~ $

~2.00 $

0.00 $

0.00 $

32,735.27 11,582.39
119 86
15,000 00
59 437 5:' 000

S ~.720.92 $

0.00 $

0.00 $

0.00 $

0.00 $

000

373,024.89

0.00

0.00

0.00

0.00

0 00

1,393.51
~ ---- ---- ---- ---- ----

See notes to the general purpose financial statements

-22-

EXHIBIT"F"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE JI.

CHAPTER1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT AND SCIENCE

a-I/LOREN

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISASILmES EDUCATION ACT'

TlllE VI B

FLOW

PRESCHOOL

THROUGH

PROGRAM

VOCATIONAL EDUCATION

BASIC

TECH.PREP

~ ~

TOTALS JUNE 30 1994 JUNE 30 1993

$ 1,202,280.73 S $ 1202280.73 $

38,765.00 $ 38 765.00 $

22,992.48 S 122,306.46 $ 22992.46 $ 122 306.46 $

$ 324,379.82 $ 15,850.37 $ 59,791.66 $ 7,822.19 2,528,182.20
---- ---- 153164.95
15850.37 $ 59791.66 $ ~ $ 3 005 726.97 $

98,259.46 2,440,391.30
193 517.01
2132161.n

$ 1,038,749.74 S
2,225.32 35,650.44
3,652.16 75,235.85
1,472.94 1,116.27 1,668.10 5,783.98 38,725.93
$ 1 202 280.73 $
0.00 $

38,676.02 88.98
38 765.00 $ 0.00 $

26,944.46

46,421.63 $ 26,122.77 37,382.91 10,379.15

25944.48 S -2,952.00 $

122 306.46 $ 0.00 $

5,113.77 $ 59,624.41

$ 1,414,561.02 $ 1,314,406.64

10,336.60 400.00

167.25

7,822.19

---- ----

46,902.82 82,056.67
3,652.16 116,188.99 23,095.94
1,116.27 31,574.25 20,783.98 39,050.93 1,296,898.86
0.00

15850.37 $ 59791.66 $ ~ $ 3 075 881.89 $

31,101.29 46,083.88 2,586.52 97,676.54
1,339.20 1,010.06 11,042.38 42,524.69
1,239,191.75 8.40
2 788 971.35

0.00 S

0.00 $

0.00 $ -70,154.92 $

-56,803.58

0.00 $ 0.00
0.00 $

0.00 S 0.00

-2,952.00 $ 10,021.02

0.00 $

7 069.02 S

0.00 $ 0.00
0.00 $

---- ---- 482.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $
o.oo

-69,672.92 $ 383,045.91

440.00
-56,363.58 444,153.69

---- ----

1,393.51 797.11

-4,419.18 -325.02

0.00 $ _,2;22.S _,2;22. $ 315 563.61 $ 383 045.91

-23-

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

REGULAR

1993 BOND ISSUE
FUND

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 94-681-050

TOTALS JUNE30 1994 JUNE30 1993

$

4,097.73 $ 3,115,541.29

$ 3,119,639.02 $

372,881.68

2,810,085.03

2,810,085.03

10297.00 $

73 212.80

83509.80

21.980.17

$

4097.73 $ 5,935 923.32 $

73212.80 $ 6 013 233.85 $

394861.85

EUNDEQUITY

Fund Balances

Reserved

For Purposes of Bond Issue

$ 5,935,923.32

For State Capital Outlay Projects

$

Unreserved

Undesignated

$

4097.73

0.00

$ 5,935,923.32

73,212.80

73,212.80 $

0.00

4097.73

390,740.71 4121.14

Total Fund Equity

$

4097.73 $ 5 935 923.32 $

73212.80 $ 6 013 233.85 $

394861.85

See notes to the general purpose financial statements.

-24-

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

EXHIBIT"H"

REGULAR

1993 BOND ISSUE
FUND

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 94-681-050

TOTALS YEAR ENDED JUNE 30 1994 JUNE30 1993

REVENUES

State Funds Local and Other Funds

$

0.00

$

157,747.50 $ 157,747.50 $

11,012.01

$ 85 860.17

85,860.17

113.23

Total Revenues

$

0.00 $ 85 860.17 $

157747.50 $ 243607.67 $

11125.24

EXPENDITURES

Current

SupportSe!vices

Business Administration

Bond Issuance Cost

Capital Outlay

Land and Land Improvements

Building and Building Improvements

$

23.41

78,768.00 $

$ 78,768.00

697570.26

$ 697593.67

187,133.-46 66454.38

Total Expendttures

$

23.41 $ 78,768.00 $

697570.26 $ TT6361.67 $ 253587.84

Excess of Revenues over (under) Expendttures

$

-23.41 $

7 092.17 $

-539 822.76 $ -532,754.00 $ -242,-462.60

OTHER FINANCING SOURCES {USES)

Proceeds from General Obligation Bonds Par Value Discount on Bonds Sold
Operating Transfers In Operating Transfers Out

6,000,000.00 -60,000.00 $ -11168.85

222,294.85

6,000,000.00 -60,000.00 222,294.85 $ -11,168.85

633,316.54 -1866.71

Total Other Financing Sources (Uses)

$ 5928831.15 $

222294.85 $ 6,151,126.00 $ 631449.83

Excess of Revenues and Other Financing

Sources over (under) Expend~ures and

Other Financing Uses

$

-23.41 $ 5,935,923.32 $

-317,527.91 $ 5,618,372.00 $ 388,987.23

FUND BALANCE JULV 1

4121.14

0.00

390740.71

394861.85

5874.62

FUND BALANCE JUNE 30

$

4 097.73 $ 5 935,923.32 $

73,212.80 $ 6,013,233.85 $ 394861.85

See nces to the general purpose financial statements.

-25-

JEFFERSON COUNTY BOARD Of EDUCATION SC!:IEDULE OF fEDERAL FINANCIAi ASISTANCE
YEAR ENDED JUNE 3Q 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.558 $

539.72 $

10.553 10.553
10.555 10.555 10.550

167,173.12
734,751.48 85164.67

539.72 $

539.72

(2)

2,465.48 161,180.63
6,660.78 726,863.54 NIA

167,173.12

(2)

734,751.48 $ 1,211,734.19 (3)

85164.67

85164.67

Total U. S. Department of Agriculture

$ 987628.99 $

897710.15 $ 987628.99 $ 1296898.86

Education, U. S. Department of Through Augusta Technical Institute Adult Education 1993 Grant 1994Grant Through ~ Department of Education Drug-Free Schools and Communities Act 1992 Carry-C)Yer 1993 Regular 1993 Cany-Over 1994 Regular E - r y and Secondary Education Act Chapter 1 Education of Deprived Children 1993Regular 1993 Summer School 1993 Carry-C)Yer 1994Regular 1994 Summer School Chapter2 Block Grant - Flow Through 1992 Cany-Over 1993 Regular 1993 Carry-Over 1994Regular Tdlell Eisen"'-< Mathematics and Science Education 1993 Regular 1994Regular Individuals with Dlsabillties Education Act n1ev1,B Flow Through 1992 Carry-C)Yer 1993Regular 1993 Carry-OVer 1994Regular
Preschcol Program
1992 Cany-Over 1993 Regular 1993 Cany-Over 1994Regular

84.002 84.002 $

$ 8,984.41

84.186 84.186 84.186 84.186

158.00
7,105.00 52,175.00

84.010 84.010 84.010 84.010 84.010

214,589.00 1,045,460.00
58,279.00

84.151 84.151 84.151 84.151

605.00 38,160.00

84.164 64.164

23,039.00

84.027 84.027 84.027 84.027
84.173 84.173 84.173 84.173

17,412.00 127,792.00
5,319.00 17,352.00

-435.41 6,315.45 $

6,717.79 $

158.00 -7,105.71 7,105.00 52,175.00

158.00
7,104.52 52,175.00

10,164.64 (3)
158.00 7,104.52 52,175.00

130,327.35 54,470.96 214,589.00 812,140.00

54,470.96 214,589.00 933,220.n

54,470.96 214,589.00 933,220.n

-8.66 -605.51 605.00 38,160.00

605.00 38,160.00

605.00 38,160.00

-46.52 23,039.00

-46.52 23,039.00

9,974.50 15,969.98

815.15 13,731.57 17,412.00 116,000.00
3,322.08 -n1.42 5,319.00 15,000.00

17,410.00 104,896.46
5,259.60 10,590.n

17,410.00 104,896.46
5,259.60 10,590.n

- 26 -

JEFFERSON COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAi EINANCIAL ASSISTANCE
YEAR ENDED JUNF 30 1994

SCHEDULE 1

FUNDING AGENCY PROGRAM{GRANT

CFDA ~

Education, U. S. Department of Through Georgia Department of Education Vocational Education Basic Grants to States High School Program Basic Grant 1993Granl 1994Grant Tech-Prep Education 1994Grant Through Ogeeehee Area Mental Health, Mental Retardation and Substance Abuse Center Drug-Free Schools and Communities Act 1994 Prevention Grant

84.048 84.048 84.243
84.186

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ 59,791.66
7,822.19

11,939.81 43,148.48 $

59,791.66 $ 7,822.19

59,791.66 7,822.19

4589.01

4589.01

4589.01

4589.01

Total U. S. Department of Education

$ 1 688 632.27 $

1561388.63 $ 1540553.21 $ 1546972.06

OTH!;R f!;DERAI Al,I$IANC)a

Defense, U.S. Department of Direct Department of the Navy R.O.T.C. Program 1993 Grant 1994Granl

$

7,403.09

(4)

$ 33,867.92

26342.93 $ 33867.92

(4)

Total U.S. Department of Defense

$ 33 867.92 $

33 746.02 $ 33867.92

Total Federal Financial Assistance

$ 2710129.18 $

2 492 844.80 $ 2562050.12 $ 2843870.92

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

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expendlb.Jres for the Child and Adutt Care Food Program and the School Breakfast Program were not maintained
separately and are included in the 1994 National School Lunch Program.
(3) Expendlb.Jres for this program include State, 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.

- 27 -

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

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
First State Bank, Wrens, Georgia
INTEREST BEARING ACCOUNTS
Allied Bank, Thomson, Georgia
Certificate of Deposit No. 3/00019247 (3.55%)
Bank of Wadley, Wadley, Georgia
N.O.W. Account (2.27%)
First National Bank and Trust, Louisville, Georgia
N.O.W. Account (2.25%)
First State Bank, Wrens, Georgia
N.O.W. Accounts (2.35%) N.O.W. Account (2.27%) Certificates of Deposit
No. 5073360 (3.55%) No. 120009548 (4.00%) No. 1800009549 (3.50%) No. 1800009818 (3.25%)

$

5,826.73

$ 1,000,000.00

68.87

112.54

2,305,677.58 227,992.18
2,000,000.00 600,000.00 500,000.00 153,704.41

6,787,555.58

$ 6,793,382.31

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

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

SCHEDULE "3" $ 2,810,085.03

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

JEFFERSON COUN1Y BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "4"

Augusta Technical Institute Adult Education Federal State
Defense, U. S. Department of Department of the Navy R.O.T.C. Program
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Funds Lottery Programs Safe Schools Grant Federal Programs ESEA - Chapter 1 Education of Deprived Children
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Jefferson County Tax Commissioner County Wide Bond Tax County Wide School Tax
Other Lex JoUey and Company Overpayment of Bond Issuance Cost

GOVERNMENTAL FUND "TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$

402.34

207.64

$

402.34

207.64

$ 7,524.99

7,524.99

1,975.89

5,992.49 7,887.94
24,465.37 20,000.00

121,302.62

5,992.49 7,887.94 1,975.89 24,465.37 20,000.00
121,302.62

81,173.63

$ 73,212.80

73,212.80

$ 7,938.33

7,938.33 81,173.63

10,297.00

10,297.00

$ 90,674.51 $ 180,258.40 $ 83,509.80 $ 7,938.33 $ 362,381.04

See notes to the general purpose financial statemen1s.

- 30 -

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

SCHEDULE "5"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996 1997 1998 1999
2000 2001 2002 2003 2004
2005 2006 2007 2008 2009
2010 2011 2012 2013 2014
2015 2016 2017 2018

TOTAL DEBT SERVICE

1993 ISSUE

INTEREST

PRINCIPAL

$

407,822.50 $

297,822.50 $

110,000.00

409,412.50

294,412.50

115,000.00

415,617.50

290,617.50

125,000.00

421,180.00

286,180.00

135,000.00

426,185.00

281,185.00

145,000.00

430,602.50 434,402.50 442,555.00 449,725.00 450,950.00

275,602.50 269,402.50 262,555.00 254,725.00 245,950.00

155,000.00 165,000.00 180,000.00 195,000.00 205,000.00

451,520.00 451,307.50 455,395.00 453,515.00 455,890.00

236,520.00 226,307.50 215,395.00 203,515.00 190,890.00

215,000.00 225,000.00 240,000.00 250,000.00 265,000.00

462,242.50 461,995.00 465,945.00 468,825.00 470,635.00

177,242.50 161,995.00 145,945.00 128,825.00 110,635.00

285,000.00 300,000.00 320,000.00 340,000.00 360,000.00

471,015.00 475,305.00 478,232.50 479,797.50

91,015.00 70,305.00 48,232.50 24,797.50

380,000.00 405,000.00 430,000.00 455 000.00

$ 10,790,072.50 $ 4 790,072.50 $ 6,000,000.00

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

MATURITY DATES Sem~Annual Interest Payment Dates Annual Debt Retirement Date
See notes to the general purpose financial statements.

- 31 -

1993 ISSUE

$

0.00

6,000,000.00

$ s ooo,ooo.oo 1

JAN 1-JULY 1 JULY1

JEFFERSON 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 Mecf,a Center Programs Staff Developmant Programs Indirect Co&t Pupil Transportation Regular Bus Replacement Special Instructional Assistance In-School Suspension Mid--term Adjus1ment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other S - Programs Innovative Programs Mentor Teacher Program Preschool Handicapped Program Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Dis1ant Leaming Media Cenbtr and Library Equipment Pre-Kindergarten Program Safe Schools Grant
Augusla Technical I -
Adu~ Education
Financing and Investment Commission, GeorgiaSReimbursement on Construction Projects
OTHER Education, Georgia Department of Reimbursement for Student Testing Materials

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 5,592,640.00 1,036,997.00 235,607.00 248,150.00 85,314.00 1,749,110.00
345,810.00 114,310.00 149,410.00 94,452.00 115,008.00 -1, 186,105.00 787,566.00
$ 47,390.16
7,200.00 45,675.09
1,104.22

89,384.00
4,980.00
4,130.56 68,835.46
1,329.79 26,560.16 84,543.00 41,150.00

3,466.85

$ 5,592,640.00 1,036,997.00 235,607.00 248,150.00 85,314.00 1,749,110.00
345,810.00 114,310.00 149,410.00 94,452.00 115,008.00 -1,186,105.00 787,566.00 89,384.00 47,390.16
4,980.00 7,200.00 45,675.09 1,104.22
4,130.56 68,835.46
1,329.79 26,560.16 84,543.00 41,150.00
3,466.85

157,747.50

157,747.50

500.00

500.00

$ 9470,138.47 $ 324 379.82 $ 157747.50 $ 9 952 265.79

See notes to the general purpose financial statements.

- 32 -

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

SCHEDULE "7"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

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

$ 2,255,430.42 235.02
3,311.29

$ 379,665.08 $ 379,665.08 2,255,430.42 235.02 3,311.29

Other Anti-Trust Milk Settlement Compensation for Loss of Assets Indirect Cost Special Revenue Fund Interest Earned Sales Breakfast Lunches Tuition Other

$ 3,595.76

1,703.31

12,071.42 92,677.68

7,910.66 $ 85,860.17

16,733.51 42,857.25

2,700.20 123,512.43
17,338.35

3,392.66

1,703.31 3,595.76
12,071.42 189,841.17
2,700.20 123,512.43
16,733.51 60,195.60

$ 2,426,912.35 $ 153,164.95 $ 85,860.17 $ 383,057.74 $ 3,048,995.21

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

3'--t

JEFFERSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES 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 and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Commodity Hauling Shared Services other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs other Expenditures
Nonoperating Costs Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 8,134,248.72 $ 1,347,738.01 $ 9,481,986.73

1,759,664.70

250,152.28

2,009,816.98

33,135.63

20,792.72

53,928.35

95,314.23

95,331.38

190,645.61

16,310.38

16,310.38

31,293.92

55.00

31,348.92

29,770.94

34,964.83

64,735.77

46,918.75

46,918.75

87,656.51

87,656.51

30,032.50

2,607.29

32,639.79

6,522.56

6,522.56

29,386.50

29,386.50

510.00

26,548.75

27,058.75

471,737.47

229,543.59

701,281.06

413,575.91

413,575.91

664,933.29

664,933.29

217,439.76

28,557.03

245,996.79

27,185.25

10,627.00

37,812.25

12,071.42

12,071.42

19,072.07

1,406.80

20,478.87

990.66 451,831.92

344,029.94

990.66 795,861.86

Total Expenditures

$ 11,896,075.82 $ 3,075,881.89 $ 14 971 957.71

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

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Supplies Food Usage Books, Textbooks and Periodicals
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

3,633.89 $

4,868.33 $

1,329.79

496.67

63,967.13

$

4,130.56 $

68,835.46 $

1 329.79

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

SCHEDULE "9"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE
SCHOOLS GRANT

TOTAL

$

$

16,28821

10,271.95

$

26,560.16 $

25,947.50 5,253.08 1,205.42 540.51
22,818.00 $ 325.00
1,188.85
27,264.64

$ 19,527.00

25,947.50 5,253.08 1,205.42 540.51
68,465.22 325.00
1,685.52

21,623.00

123,126.72

84 543.00 $

41,150.00 $ 226,548.97

- 37 -

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

SCHEDULE "10"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 7,206,523.00 $

85,648.00

$ 6,841,147.06 544,526.85 $
$ 7,385,673.91 $

94,523.53 94,523.53

-65,066.62

$ 7,320,607.29 $

-8,575.77 -299.76
85,648.00

$

0.00 $

0.00

See notes to 1he general purpose financial statements. - 39 -

lfEffRSQN cot INTY RQA.RQ OF EQI !CATION ANAl vs1s OF M1N11,111u EXPFNPm JBE REQUIREMENTS - RV PBQGRAM
GENERAi BNP - gt lAI ITV BAS1CEQl )CATION PRQGBAMS
YfAR ENPEQ JUNE 30 1994

t?fNfRAi At:.,!Q ~RffR l;Ql ~AI!Qti PR~RAM
Kindergarten (1
Grades 1 -3 rJ
Sub-Total - K-3
Grades 4 - 5 rJ Grades 6 - 8 rJ Grades 9-12 rJ High School l.abaralories rJ Vocational Education Laboratorie& (,
Total General and career Education Programs Sef~IAI EQI :!S:;AI!QN PRQgRAUS
Regular Programs
categoly I (1 category II rJ category Ill rJ category IV rJ
Itinerant Supplemental Speech
Sub-Total - Regular
category V (Gilled) rJ
Total Special Education Programs RfMEQIAL l;P!:!GATIQN PR~RAM (:} Ml;QIA CfNTfR PRQGRAM
Total Thirteen Weighted and Media Center
IAFF Pf~! OPMfri[ ffiQRAMS (1) Cost rl Instruction
_,Development
TatalStaff""""'Pffle
(1 Identifies Thirteen Weighted Programs. Note: (1) $3,776.00 of the allotment for Profess-I
Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.
See notes to the general purpo&e financial statements

ALLOTMEtITS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL ~

ORIGINAL

MIO-TERM

REQUIRED

573,346.00

516,011.40 $

1514993.00

1 363483.70

2,088,339.00 90 $ 1,879,505.10 $

758,939.00 90

683,045.10

1,264,198.00 90

1,137,nB.20

n2,B37.00 90

695,553.30

348,422.00 90

313,579.80

359 905.00 90

323 914.50

$ 5 592 640.00

$ 5 033 376.00 $

~.127.00 $

509,BS4.40

57704.00

1 421197.70

51,5n.oo $ 1,931,082.10

24,128.00

707,173.10

-27,526.00

1,110,252.20

-17,239.00

678,314.30

30,382.00

343,961.80

0.00

323 914.50

61 322.00 $ 5 094 698 00

991,102.00

891,991.80 $

36,718.00 $

928,709 80

991,102.00 90 $ 45 895.00 90 1 036,997.00 235607.00 90 $ 248150.00 90 $

891,991.80 $ 41 305.50
933 297.30 $ 212 046.30 $ 223 335.00 $

36,718.00 $ 7 859.00
44,577.00 $ -15 233.00 $
2 463.00 $

928,709 80 49164 50
977 874.30 196 813.30 225 798.00

7,113,394.00

6,402,054.60 $

93,129.00 $ 6,495,183.60

22,940.00 100 $ 62 374.00 100

22,940.00 $ 62 374.00

85 314.00

85 314.00 $

334.00 $ 0.00

23,274.00 62 374.00

334.00 $

85,648.00

$ 7,198,708.00

6,487,368.60 $

93,463.00 $ 6,580,831.60

- 40 -

SCHEDULE "11"

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNOEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

496,458.-40 S

624,630.90

13,426.00 $

10,514.59

1376311.20

1280076.26

44 886.50

130118.03

1,872,769.60 S 1,904,707.16 $

0.00

58,312.50 $

140,632.62 $

0.00

685,012.00

721,249.72

0.00

22,161.10

34,088.86

0.00

1,076,561.80

1,291,866.56

0.00

33,690.40

59,389.37

0.00

647,753.40

764,829.22

0.00

30,560.90

74,972.86

0.00

325,826.80

382,942.33

0.00

18,135.00

52,532.45

0.00

281167.20

307 885.28

0.00

42 747.30

89 418.67

0.00

4 889 090.80 $ 5 373 480.27 $

0.00

205,607.20 $

451 034.83 $

0.00

13,308.70 s
361,447.40 486,166.80
30,291.60 10,045.80
4243.50

1,981.12 364,257.39 537,"'30.56
59,407.65

697.80 $ 7,912.00 13,536.70 1,059.50

1,457.36 5,570.81 20,086.89 1,582.64

905,503.80 $

963,076.72 $

0.00

23,206.00 $

28,6TT.70 S

0.00

47 TT3.70

56 256.82 $

0.00

1 390.80

1 898.47 $

0.00

9532n.so $ 1019333.54

24 596.80 $

30576.17

193 320.70 s

192 031.79 $

1 288.91

3 492.60 $

3 537.69 $

0.00

173 684.60 $

256 301.46 $

0.00

52113.40 $

59378.16 $

0.00

6 209 373.60 $ 6,841,147.06 $

1,288.91

285,810.00 $

544,526.85 $

0.00

23,274.00 $

31,849.77 S

0.00

62 374.00

62,673.76

0.00

85,648.00 $

94,523.53 $

0.00

6,209,373.60 $ 6,841,147.06 $

1,288.91

371,458.00 $

639,050.38 $

0.00

41

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

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr. James E. Fleming, Jr., Chairman (*) P. 0. Box247 Wrens, Georgia 30833
Mr. Charlie W. Brown (*) P. 0. Box365 Wrens, Georgia 30833
Mr. William J. English (*)
P. o. Box 125
Wrens, Georgia 30833
Ms. Martha Mnchell (*) P. 0. Box642 Wadley, Georgia 30477
Ms. Belinda Sheram (*) Route 1, Box 145 Louisville, Georgia 30434

COMPENSATION

TRAVEL

$

3,000.00 $

453.77

2,400.00

1,568.46

2,400.00

553.77

2,400.00

523.07

2,400.00

611.31

$

12,600.00 $

3,710.38

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

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

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
August 16, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Jefferson County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Jefferson County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August 16, 1995. This report on the general purpose financial statements contains an adverse opinion because of a change in generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General 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.
Compliance with laws, regulations, contracts, and grants applicable to Jefferson 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.
The results of our tests indicate that, with respect to the items tested, the Jefferson County Board ofEducation complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10X

This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:gp 94CRL-10X

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 16, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Jefferson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated August 16, 1995. This report on the general purpose financial statements contains an adverse opinion because of a change in generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office ofManagement and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression 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-40X

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Jefferson 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:gp 94CRL-40X

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 16, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Jefferson County Board ofEducation

SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Jefferson County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August 16, 1995. This report on the general purpose financial statements contains an adverse opinion because of a change in generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the Jefferson 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 Jefferson 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-90X

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office 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 Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
The results ofour audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above which is described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph.
In our opinion, the Jefferson County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-90X

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 16, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Jefferson County Board ofEducation

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Jefferson County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated August 16, 1995. Thisreport on the general purpose financial statements contains an adverse opinion because of a change in generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression ofan opinion on the Jefferson County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

94CRL-130X

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 Jefferson County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-130X

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 16, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Jefferson County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Jefferson County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August 16, 1995. This report on the general purpose financial statements contains an adverse opinion because of a change in generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement.
In planning and performing our audit of the general purpose financial statements of the Jefferson County Board ofEducation for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Jefferson County Board ofEducation is responsible for establishing and maintaining an internal control structure_ In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan interrial control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-4X

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation 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:

(I) 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 described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(I) Accounting Controls (Overall)

(2) Cash and Cash Equivalents

(3) General Fixed Assets

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

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

94ICL-4X

However, as descn"bed in the Schedule ofFindings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses:
(1) Accounting Controls (Overall)
(2) General Fixed Assets
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Jefferson County Board ofEducation's financial statements and this report does not affect our report thereon dated August 16, 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:gp 94ICL-4X

CIAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 16, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Jefferson County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Jefferson County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August 16, 1995. This report on the general purpose financial statements contains an adverse opinion because of a change in generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Jefferson County Board ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated August 16, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Jefferson County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to detemiine 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 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 August 16, 1995.
94ICL-7X

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

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Audit Follow-Up/Resolution (7) Administrative Requirements

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

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

During the year ended June 30, 1994, the Jefferson County Board ofEducation expended 76% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which

94ICL-7X

are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute ofCertified 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 ofone 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 a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the Jefferson County Board of Education'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 August 16, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 94ICL-7X

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

JEFFERSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOILOW-UP/RESOLUTION Lack ofDocumentation for Expenditures Financial Statements Amount: $361.88 Finding Deleted Audit Control Number 6811-93-01
The audit report for the year ended June 30, 1989, stated that the Jefferson County Board of Education paid $1,045.58 for employee travel for which documentation was inadequate. For the year ended June 30, 1990, the Board obtained adequate documentation for $683.70 of the expenditures in question. Adequate documentation had not been obtained to resolve the remaining balance of $361.88 at June 30, 1994. Administrative action should be taken to secure refund for any undocumented expenditures for deposit to the Board's General Fund.
Reference to this finding will be deleted from audit reports in subsequent years. However, the Board is not relieved of their responsibility to secure refund for the undocumented expenditures.
AUDIT FOILOW-UP/RESOLUTION Travel ofBoard Members Financial Statements Amount: $78.12 Finding Deleted Audit Control Number 6811-93-02
The audit report for the year ended June 30, 1989, noted that payments of $78.12 were made to Board members for travel expenses that were not allowable in accordance with Chapter 40 of the Financial Management for Georgia Local Units ofAdministration. Reimbursement had not been received by the Board at June 30, 1994. Administrative action should be taken to secure reimbursement of $78.12 for deposit to the Board's General Fund.
Reference to this finding will be deleted from audit reports in subsequent years. However, the Board is not relieved of their responsibility to secure reimbursement for the unallowable payments.
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Separate Accountability Financial Statements Finding Resolved Audit Control Number 6811-93-04
The audit report for the year ended June 30, 1993, stated that separate ledgers for each capital outlay project, funded in part by the Georgia State Financing and Investment Commission, were not maintained and

JEFFERSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Separate Accountability Financial Statements Finding Resolved Audit Control Number 6811-93-04
designated by project name and number as required by Chapter 70 of the Georgia Financial Accounting Handbook for Local School Systems. During the year under review, the Board implemented procedures which provide for separate accountability of capital outlay projects as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $2,698.36 Audit Control Number 6811-93-06
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$2,698.36 for the StaffDevelopment - Professional Development Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $2,698.36 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6811-93-03
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 ofaccounting functions and related procedures. For the year under review, our audit noted no improvements regarding separation of employee duties. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "l " ofthis report are affected by this finding.

JEFFERSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 6811-93-05
The audit report for the year ended June 30, 1993, stated that the Jefferson County Board ofEducation failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any one time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section. . . The aggregate of the face value ofsuch surety bond, the face or par value of securities pledged, and the amount of deposit insurance shall be equal to not less than 110 percent of the public funds being secured. . . after the deduction ofthe amount of deposit insurance".
In the year under review, the Board again failed to have its bank balances fully collateralized. This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $1,288.91 Audit Control Number 6811-94-01
For the year under review, the Board had an underexpenditure of Quality Basic Education (QBE) funds of $1,288.91 for the salaries portion ofthe Remedial Education Program. This questioned cost is the result of the Board expending less than the minimum expenditure requirement for this QBE program. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

JEFFERSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
GENERAL LEDGER Detailed Listing of Salaries Not Reconciled Financial Statements Nonmaterial Noncompliance Audit Control Number 6811-94-02
For the year under review, the detailed listing ofsalary payments made to employees as submitted by the Board to the Georgia Department of Audits was not reconciled with the general ledger as presented for audit. The unidentified variance of$801.55 in the Special Revenue Fund is reflected in a separately issued report titled "Independent Auditor's Combined Report on Supplementary Information - Summary and Schedule of Salaries and Travel". The unidentified variance was the result ofthe Board's failure to correctly report salaries to the Georgia Department of Audits.
Procedures should be established by the Board to ensure that the detailed listing of salary payments is reconciled to the accounting records prior to submission to the Georgia Department of Audits.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6811-94-03
For the year under review, the Jefferson County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. The management of the Board has chosen not to maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements ofthe 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 the maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ELIGIBILITY Failure to Properly Perform Verification Process Federal Financial Assistance Major/Nonmajor Program Nonmaterial Noncompliance Amount: $2,776.88 Audit Control Number 6811-94-04
According to Federal requirement 7 CFR 245.6(a), the Board must verify the information contained on not less than three percent of total approved free and reduced priced meal applications. A review of the

JEFFERSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
ELIGIBILITY Failure to Properly Perform Verification Process Federal Financial Assistance Major/Nonmajor Program Nonmaterial Noncompliance Amount: $2,776.88 Audit Control Number 6811-94-04
verification documents revealed that the Board verified less than three percent of total approved free and reduced priced meal applications. In addition, twenty-one applicants which did not respond to the verification inquiries were not removed from the master list and nineteen of the twenty-one received free and reduced priced meals resulting in overreimbursements of $2,377.70 for the National School Lunch Program (CFDA I0.555) and $399.18 for the School Breakfast Program (CFDA I0.553).
These questioned costs resulted from the Board's failure to properly perform the verification process on free and reduced price meal applications. Procedures should be implemented by the Board to ensure that the information contained on not less than three percent offree and reduced price meal applications is verified and that applicants not responding to the verification inquiries are removed from the master list as required. The overreimbursement of$2,776.88 should be refunded to the Georgia Department ofEducation.
Note: The Jefferson County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.