Audit report, Lee County Board of Education, Leesburg, Georgia, year ended June 30, 1994

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

AUDIT REPORT LEE COUNTY BOARD OF EDUCATION
LEESBURG, GEORGIA YEAR ENDED JUNE 30, 1994

LEE 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

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

26

3 ACCOUNTS RECEIVABLE

27

4 DEBT SERVICE REQUIREMENTS TO MATURITY

28

SCHEDULE OF REVENUE

5

STATE FUNDS

30

6

LOCAL AND OTHER FUNDS

31

LEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

~ SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

33

8

LOTTERY FUNDS

34

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

37

10

BY PROGRAM

38

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

40

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

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

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

SECTION I FINANCIAL

C!AUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 9, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Lee County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Lee 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:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
94ARL-13

School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position ofthe Lee County Board ofEducation as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Lee County Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules I through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Lee County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:gp 94ARL-13

Claude L. Vickers State Auditor

LEE COUNTY BOARD OF EDUCATION - 1-

LEE COUN1Y BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1994

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

GENERAL FUND

GOVERNMENTAL FUND "TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,376,549.29 $ 194,089.92 $ 522,722.15

1,423,604.60

78,934.66

27,240.00

5,756.89 5,886.56

$ 2,800,153.89 $ 284,668.03 $ 549,962.15

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue General Obligation Bonds Payable
Total Liabilities
FUND EQUl1Y
Fund Balances Reserved For Continuation of Federal Program For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$ 387,910.53 $ 1,438,893.59

30,301.06 97,341.34 44,720.85
$
7,723.20

$ 1,826,804.12 $ 180,086.45 $

8,770.30 21,836.70
30,607.00

$

$

15,518.32

2,290.01

5,756.89 5,886.56
$

19,785.86

$

15,518.32 $

13,933.46 $

19,785.86

957,831.45

90,648.12

499,569.29

$ 973,349.77 $ 104,581.58 $ 519,355.15

Total Liabilities and Fund Equity

$ 2,800,153.89 $ 284,668.03 $

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

-2-

549,962.15

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Onlt) JUNE 30, 1994 JUNE 30, 1993

$ 185,910.86

$ 2,279,272.22 $ 2,380,026.21

14,915.59

1,544,694.85

1,551,481.65

5,756.89 5,886.56

13,250.77 3,621.29

$

200,826.45

200,826.45

167,848.52

3,174,173.55

3,174,173.55

2,947,151.48

$ 200,826.45 $

3,375,000.00 $ 7,210,610.52 $ 7,063,379.92

$ 418,211.59 $ 379,576.25

1,536,234.93

1,432,825.38

44,720.85

4,405.37

8,770.30

21,836.70

161,711.28

7,723.20

$

3,375,000.00

3,375,000.00

3,115,000.00

$

3,375,000.0Ci $ 5.412.497.57 $ 5,093,518.28

$ 200,826.45
$ 200,826.45 0.00
$ 200,826.45

$

2,290.01 $

12.20

200,826.45

167,848.52

15,518.32

1,309.06

5,756.89 5,886.56 19,785.86

13,250.77 3,621.29

$ 250,064.09 $ 186,041.84

1,548,048.86

1,783,819.80

$ 1,798,112.95 $ 1,969,861.64

$ 200,826.45 $

3,375,000.00 $ 7,210,610.52 $ 7,063,379.92

- 3-

LEE COVNIY ROABP OF EPUCATIQN CQMB1NEP STATEMENT OF REVENUES flXPfNQITUBES AND CMANQES 1N FLJNQ BALANCES
GOVERNMENTAL FUND TYPES
YfAB ENPEP JUNE 3Q 1994

EXHBIT-S-

~
State Funds Federal Funds Local and Other Funds
Total Revenues
EX?ENQITURES
Currant Instruction SupportSeMces Pupil Services Improvement or Instructional Services Educational Media SeMces General Administration School Administration Business Administration Maintenance and Operation of Plant Student TransportaUon Services Central Support Services Olher Support SeMces
De-bi-Community Service OperaUons Foad 5eMces Operatioo Other Operations or Non--lnstructional
Capital Outlay
Principal
I-
Pay;ng Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditu1'86
QTHfR F l ~ ~ ~RC~ {Y2El
Accrued lntere&t on Bonds. Sold Refunding Bond Issuance Cost Proceeds from Refunding Bonds
Par Value Discount on Bonds Sold ~ to Bond Escrow Agent Operating Transfers In Operating Transfers Out
Total other Financing Sources (U. . .)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUNQ ~~f JULY 1
Food Inventory Net Change in Period Donated Commodities Purchased Foad

GENERAL FUND

SPEC1AL REVENUE
FUND

CAPITAL PROJECTS ~

DEBT SERVICE
FUND

TOTALS
l!!!!!morandum On!n
YEARENDEO
JUNE30 1994 JUNE 30 1993

12,532,139.21 $ no,947.n

207,404.48 1.017,875.28

2 834 985.61

531 264.82 $

15 574 529.30 $ 2 270 087.82 $

5 576.40 $ 5 576.40 $

329 293.12

13,253,086.93 $ 12,027,278.31

1,225,279.76

1,203,865.95

3 701119.95

3 383135.08

329~93.12 $ 18 179 486.64 $ 16 614 279.34

9,628,443.24 $ TT8,127.32

397,134.02 440,6TT.37 374,641.09 296,167.87 645,390.16
44,590.93 1,244,289.44 1,029,744.89
92,598.34 85,189.10
2,000.00 30,904.n

110,TT0.49 8,644.83
90,164.15 34,890.49
48,113.20 13,000.24 58,331.06 9,333.30
1,131,3n.n

109,252.27 823,809.00

322,111.24

----
15444832.44 $ 2 282 747.85 $ 322111.2-4 S
129 696.86 $ -12 860.03 $ -316 534.84 $

10,406,570.56 $ 9,691,092.83

507,904.51 449,322.20 4'64,805.2-4 331,058.36 845,390.16
44,590.93 1,292,402.64 1,042,745.13
150,929.40 94,522.40
2,000.00 1,1&2,2n.49

365,104.62 392,810.14 371,678.35 309,784.67 811,214.62 41,504.34 1,250,562.65 995,874.45 202,942.94
2,165.74 1,070,496.48

109,252.27 1,145,920.24

99,430.87 1,824,758.73

105,000.00 211,205.00
1133.34

105,000.00 211,205.00
1133.34

95,000.00 217,380.00
1860.41

317 338.34 $ 18 367 029.87 $ 17 743 661.82

11 954.78 $ -187 543.23 $ -1 129 382.48

$ -503 475.90
-503 475.90 $

3,475.90 $ 500,000.00

15,227.67 $ -73,803.07

15,227.67 -73,803.07

2,750,000.00 -18,900.50
-2,651,500.95

2,750,000.00 -18,900.50
-2,651,500.95 503,475.90 $ -503 475.90

3 475.90 $ 500 000.00 $

21 023.15 $

21 023.15 $

6.02 -o.02
0.00

-373, 779.04 $ 1,347,128.81

-9,164.13 $ 183,485.16 $ 118,994.32 335,889.99

32,977.93 $ 167,848.52

-166,520.08 $ -1,129,382.48

1,969,861.64

3,110,642.20

7,493.88
2 265.27 - - - -

-7,493.88 2 265.27

-12,401.37 1 003.29

F~NQ ~ C E JUN~ 30

973,349.TT $ 104,581.58 $ 519 355.15 $

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

.4.

200 826.45 $ 1798112.95 $ 1969861.64

L~E COU~ !;!QARD OF ED!,!Q6TION ~M61NEQ STeiTEMENT QE REVl;N~JE E~PENQIIURI; AND ~!:!ANG~S IN BJNQ ~LbN~ES
~UAL ANQ BUDGET GQV~RNM~NTAI FlJt,lQ TYPES YEAR ENDED JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~
State Funds Federal Funds Local and Other Funds

13,253,086.93 $ 1,225,279.76 3,701,119.95

0.00 $ 13,253,086.93 $ 12,225,218.00 $

1,225,279.76

984,756.00

3,701,119.95 3,402,503.00

1,027,868.93 240,523.76 298,616.95

Total Revenues

18,179,486.64 $

0.00 $ 18,179,486.64 $ 16,612,477.00 $ 1,567,009.64

EXPENDITURES
current
Instruction SuPPorf: Services
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Admintstration Maintenance and Operation of Pfant Student Transportation Services Central Support Services Other Support Services Community Service Operations Food Services Operation Other Operations of Non-Instructional Services Capital OU!Jay Debi Service

10,406,570.56 $
507,904.51 449,322.20 464,805.24 331,058.36 845,390.16
44,590.93 1,292,402.64 1,042,745.13
150,929.40 94,522.40 2,000.00
1, 162,277.49
109,252.27 1,145,920.24
317,338.34

0.00 $ 10,406,570.56 $ 10,284,396.00 $

507,904.51 449,322.20 464,805.24 331,058.36 845,390.16
44,590.93 1,292,402.64 1,042,745.13
150,929.40 94,522.40
2,000.00 1,162,277.49

420,663.00 474,657.00 403,053.00 349,511.00 914,000.00
71,578.00 1,218,900.00
992,267.00 148,701.00 94,902.00
3,700.00 1,080,160.00

109,252.27 1, 145,920.24
317,338.34

102,000.00 1,171,314.00
318,205.00

-122,174.56
-87,241.51 25,334.80 -81,752.24 18,452.64 68,609.84 26,987.07 -73,502.64 -50,478.13 -2,228.40
379.60 1,700.00 -82,117.49
-7,252.27 25,393.76
866.66

Total Expenditures

$ 18,367,029.87 $

0.00 $ 18,367,029.87 $ 18,048,007.00 $

-319,022.87

Exceu of Revenues over (under) Expenditures

-187,543.23 $

0.00 $ -187,543.23 $ -1,435,530.00 $ 1,247,986.77

QTHEB FINANCIN~ O!JBQES (!,!E}

Other Sources Other Uses

2,765,227.67 $ -2, 744,204.52

0.00 $ 2,765,227.67 $ 2,744,204.52

0.00 $ 2,765,227.67 -2,744,204.52

Total Other Financing Sources (Uses) $

21,023.15 $

0.00 $

21,023.15 $

0.00 $

21,023.15

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-166,520.08 $

0.00 $ -166,520.08 $ -1,435,530.00 $ 1,269,009.92

F!,!NQ l!e,LANQE J\1LY 1 j993

1,969,861.64

-16,872.06

1,952,989.58 2,408,826.11

-455,836.53

EQQQ INl(JatfiQRY - t,ll;I CHAN~E IN PERIOD

Donated Commodities Purchased Food

-7,493.88

7,493.88

0.00

0.00

2,265.27

-2,265.27

0.00

0.00

FUNQ BA~NCE JUNE 30 1994

$ 1,798,112.95 $ -11,643.45 $ 1,786,469.50 $ 973,296.11 $

813,173.39

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

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Lee County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Lee County Board of Education.
Based upon the application of the above criteria, the Lee County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Lee County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 6-

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES are used to account for all or most ofa Board's general activities. Governmental Fund Types include:
GENERAL FUND the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP used to account for general obligation bonds outstanding.
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.
- 7-

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
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 if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1993 and ending in early June 1994. Employment contracts for these employment periods typically 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 are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Lee County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
- 8-

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.

CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents 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.
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
TheLee County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on September 9, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 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 ofGASB codification section P70.103. The Lee County Tax Commissioner bills and collects the property taxes for the Board of Education.

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

School Operations School Bonds

12.20 mills 1.40 mills

13 60 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

- 9-

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral 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.

- 10 -

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 2: DEPOSITS
Acceptable security for deposits consists of any one of or any combination of the following:
(I) 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 ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(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 Banlc, 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 $3,769,628.01. The amounts of the total bank balances are classified into three categories of credit risk:
Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, 1994, as follows:

- 11 -

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

Risk Category

Bank Balance

1

$ 100,000.00

2

2,121,992.00

3

1 547 636.01

Total

$ 3 769 628 01

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$268.06 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

ADVANCE REFUNDING During the year under review, the Lee County Board ofEducation issued $2,750,000.00 in General Obligation Refunding Bonds to advance refund $2,385,000.00 of outstanding bonds. The bond proceeds of $2,750,000.00 less discount of$18,900.50 and less underwriters and bond issue cost of$73,803.07 provided net proceeds of$2,657,296.43. $2,651,500.95 ofthe total net proceeds were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on portions of the 1990 Bond issue. As a result, a portion of the 1990 Series Bonds are considered defeased, and the liability for this portion has been removed from the General Long-Term Debt Account Group. The Lee County Board of Education refunded the aforementioned bonds to reduce its total Debt Service payments over 16 years beginning subsequent to fiscal year 1994 by $153,642.67 and to obtain an economic gain (difference between the present values of total debt service payments and the old and new debt) of$102,165.67.

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

- 12 -

LEE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 5: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July I, I993

$3,115,000.00

Additions

2,750,000.00

Deletions

2 490 000.00

Balance June 30, 1994

$ 3 375 000 00

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

Fiscal Year Ended June 30

General Obligation
Bonds

1995 1996 1997 1998 1999 2000 and thereafter

$ 315,490.00 307,057.50 308,577.50 309,325.00 304,290.00
3 376 605.00

Total Principal and Interest

$4 92134500

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$34,428.32 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with Lottery Programs. Lottery funds in the amount of $32,425.73 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Computers in Classrooms Media Center and Library Equipment Safe Schools Grant

$ 26,705.12 123.20
7 600.00

$ 34 428 32

- 13 -

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

91-688-039 Local Reroofing Project

$ 14,861.80 52 459.16

$ 67 320 96

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

Note 7: CONTINGENT LIABILITIES

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

Note 8: SUBSEQUENT EVENTS

In the subsequent fiscal year, the Board issued general obligation bonds in the amount of$6,290,000.00 dated June 7, I995. The proceeds from these bonds will be used for paying the cost of acquiring, constructing and equipping new school buildings and/or repairing, renovating, improving, and equipping existing buildings, structures, and facilities.

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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 of years of

- 14 -

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS
creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $9,382,483.87, total payroll was $10,849,622.78.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $1,666,626.23, ofwhich $1,103,672.15 was made by the Board and $562,954.08 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

- 15 -

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ l 090 292 000 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, I994 of $1,103,672.15 was actuarially determined and represented 00.2116% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after IO years ofservice and attainment ofage 65. A member applying for service retirement with IO years of service and retires between the ages of60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.

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

There were 135 employees covered under PSERS for the year ended June 30, 1994.

- 16 -

LEE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $4,552.00. 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 10: SURETY BONDS
The School Superintendent, Dr. Robert A Clay, is bonded in the amount of$15,000.00 with the Hartford Insurance Company of the Southeast, Hartford, Connecticut, their Bond No. 20-RN4-534510, on which premium is paid through January 1, 1997.

- 17 -

LEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1994

Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 127,338.95 $ 63,054.63 $

750.61

15,165.25

1,949.47

52,250.00

5,756.89 5,886.56

$ 154,147.65 $ 65,004.10 $

53,000.61

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Program For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$

3,319.00 $ 13,516.85 $

48,537.08

43,764.05

7,723.20

$ 51,856.08 $ 65,004.10 $

11,473.17 41,527.44
53,000.61

$

5,756.89

5,886.56

$ 11,643.45

90,648.12 $

0.00 $

0.00

$ 102,291.57 $

0.00 $

0.00

Total Liabilities and Fund Equity

$ 154,147.65 $

See notes to the general purpose financial statements. -18-

65,004.10 $

53,000.61

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

TITLE 11-

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

0.00 $

2,290.01 $

307.41 $

348.31 $ 194,089.92 $ 150,908.23

5,569.94

4,000.00

78,934.66

79,823.02

5,756.89 5,886.56

13,250.77 3,621.29

$

0.00 $

2,290.01 $

5,877.35 $

4,348.31 $ 284,668.03 $ 247,603.31

$

1,236.54 $

4,208.62

432.19

$

5,877.35 $

755.50 $ 3,068.20
524.61
4,348.31 $

30,301.06 $ 97,341.34 44,720.85 7,72320
180,086.45 $

22,000.97 102,202.65
4,405.37
128,608.99

$

2,290.01

$

2,290.01 $

12.20

5,756.89 5,886.56

13,250.77 3,621.29

$

2,290.01

$

13,933.46 $

16,884.26

$

0.00

0.00 $

0.00 $

0.00

90,648.12

102,110.06

$

0.00 $

2,290.01 $

0.00 $

0.00 $ 104,581.58 $ 118,994.32

$

0.00 $

2,290.01 $

5,877.35 $

4,348.31 $ 284,668.03 $ 247,603.31

-19-

LEE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1994

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory- Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

ELEMENTARY

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 86,662.00 $ 634,285.72

501,984.01

$

531,264.82

$ 1,119,910.83 $ 634,285.72 $

342,153.00 342,153.00

$ 410,139.20 $

79,022.43 6,437.82
90,164.15

48,11320 3,636.76

$ 1,131,372.77

248.06

$ 1,131,372.77 $ 637,761.62 $

$ -11,461.94 $ -3,475.90 $

298,325.92 120.00
34,621.84
9,085.24 342,153.00
0.00

3,475.90

$ -11,461.94 $

0.00 $

0.00

118,982.12

0.00

0.00

-7,493.88 2,265.27

FUND BALANCE JUNE 30

$ 102,291.57 $

0.00 $

0.00

See notes to the general purpose financial statements. -20-

EXHIBIT"F"

AND SECONDARY EDUCATION ACT

TITLE II -

EISENHOWER

CHAPTER 2

MATHEMATICS

BLOCK GRANT - AND SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

26,363.00 $

$ _ _ _2_6_,3_63_._00_$

6,862.07 $ 113,150.81 $ 6,862.07 $ 113,150.81 $

$ 27,362.39

720,947.72 $ 80,868.00

1,017,875.28 1,050,101.64

531,264.82

493,177.79

27,362.39 $ 2,270,087.82 $ 1,624,147.43

$

2,471.17 $

39,828.64 $

27,362.39 $ 778,127.32 $ 433,317.43

$

26,363.00

2,087.01 26.08

5,385.06
242.57 9,363.48 58,331.06

110,770.49 8,644.83
90,164.15 34,890.49 48,113.20 13,000.24 58,331.06
9,333.30 1,131,372.77

32,147.00 147.37
44,548.18
8,718.90 74,339.54
1,041,870.38

$

26,363.00 $

4,584.26 $ 113,150.81 $

27,362.39 $ 2,282,747.85 $ 1,635,088.80

$

0.00 $

2,277.81 $

0.00 $

0.00 $ -12,660.03 $ -10,941.37

3,475.90

6.02

$

0.00 $

2,277.81 $

0.00 $

0.00 $

-9,184.13 $ -10,935.35

0.00

12.20

0.00

0.00

118,994.32

141,327.75

-7,493.88 2,265.27

-12,401.37 1,003.29

$

0.00 $

2,290.01 $

0.00 $

0.00 $ 104,581.58 $ 118,994.32

-21 -

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 91-688-039

TOTALS JUNE 30, 1994 JUNE 30, 1993

$ 499,569.29

23,152.86 $

522,722.15

336,320.70

27,240.00

27,240.00

161,280.57

Total Assets

$ 499 569.29 $

50,392.86 $

549,962.15 $

497,601.27

LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balancas Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

8,770.30 $ 21,836.70
30,607.00 $

8,770.30 21,836.70 $ _ _1-"6'-'1-",7-'1-'-'1.=28'-
30,607.00 $ _ _1-"6'-'1-",7-'1-'-'1.=28'-

499,569.29 499,569.29 $

19,785.86 $ 0.00
19:785.86 $

19,785.86 499,569.29 $ _--'335=cc.889=.99c-=519,355.15 $ _ _335=..:88cc9cccc99c..

499,569.29 $

50,392.86 $

549,962.1 s $ _ _49_,7_.,so.,..1..2.7.,,

See notes to the general purpose financial statements.

-22-

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

EXHIBIT "H"

REVENUES
S-Funds Local and Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
TotalE_,,cjitures
Excess of Revenues over (under) E_,,cjitures
OTHER FINANCING SOURCES /USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources aver (under) E_,,clitures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 91-688-039

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

4,177.19 $

1,399.21 $ _ _~5o.,,'57=6..:;40=..

169,776.36 23,646.87

4,177.19 $ _ _ _--'1"',399=c:2"-1

5,'576.40 $_-=2"-'13~,4.a:23=.23=-

$

0.00 $

0.00 $

$

4,177.19 $

2,455.50 $ 307,005.50
12,650.24
322,111.24 $
-320,712.03 $

2,455.50 $ 307,005.50
12,650.24

34,010.27 1,313,027.67
155,482.60

322,111.24 $ 1,502,520.54

-316,534.64 $ -1,269,097.31

$ 159,502.11 $ $ 159,502.11 $

340,497.B9 $ 340,497.B9 $

500,000.00 $ 500,000.00 $

798,338.34 -798,338.34
0.00

$ 163,679.30 335,889.99

19,785.86 $

163,465.16 $ -1,269,097.31

335,889.99

1,624,987.30

FUND BALANCE JUNE 30

$ 499 569.29 $

19785.86 $ 519,355.15 $

335889.99

Ses notes to the general purpose financial statements.

-23-

LEI; QQ!.!ti.D'. eQABC QE ECUQAIIQ~
~Q!::IEC!.!I E QF FECi;;BAL El~A~QIAL ASSISI.!~~E
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 $
10.555 10.555 10.550

9,434.04 $
404,243.22 B6306.75

8,660.85 $

9,434.04

(2)

3,006.70 389,851.16 N/A

404,243.22 $ B6306.75

1,043,066.02 (3) B6306.75

Total U.S. Department of Agriculture

$ 501984.01 $

401 518.71 $ 501 984.01 $ 11313n_11

Education, U.S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Regular 1993 Carry-Over 1994 Regular Chapter2 Block Grant - Flow Through 1994Regular Tillell Eisenhower Mathematics and Science Education 1993 Carry-Over 1994 Regular Individuals with Dlsabilllles Education Act TllleVl,B Flow Through 1993 Regular 1993 Carry-Over 1994Regular Preschool Program 1993 Regular 1993 Carry-Over 1994 Regular Vocational Education - Basic Grants to Stales High School Program Basic Grant 1993 Grant Tech-Prep Education 1993 Grant 1994Grant

84.010 84.010 $ 84.010
84.151
84.164 84.164
84.027 84.027 84.027 84.173 84.173 84.173
84.046 84.243 84.243

$ 56,403.00 319,702.00 26,363.00
13,111.00
13,983.00 109,536.00
9,687.00 24,582.00
26,641.00 30000.00

68,009.32 56,403.00 $ 233,500.00

56,403.00 $ 285,750.00

56,403.00 285,750.00

26,363.00

26,363.00

26,363.00

2,362.07 4,500.00

2,362.07 4,500.00

2,374.27 2,209.99

7,171.79 13,983.00 94,030.06
-2,770.16 9,687.00 14,200.00

13,983.00 99,167.81
9,687.00 17,675.39

13,983.00 99,167.81
9,687.00 17,675.39

26,641.00

(4)

27,832.00

30 000.00

(4}

Total U. S. Department of Education

$ 630008.00 $

555~71.08 $ 572532.27 $

513613.46

Energy, U. S. Department of Direct Institutional Conservation Program DE-FG44-92R435071

81.052 $ 112078.00 $

112 078.00 $ 112078.00

(4)

- 24 -

LEE COlJNIY BOARD Of EDUCATION SCHEDULE OE FEQERAL FINANCIAL ASSISTANCE
YEAR fNPEP JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
labor, U. S. Department of Through Southwest Georgia Regional Development Center Job Training Partnership Act JTPA -92-8-71
OTHER FEQ!;;RAL ASQJSTANCE
Defense, U. S. Department of Direct Department of the Navy R.O.T.C. Program 1993 Grant 1994 Grant
Total U. S. Department of Defense

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.250 $ 31298.00 $

5 542.09 $

5542.09 $

5542.09

$ 26,193.74 $

6,879.98

26193.74 $ 33143.39

(4)

$ 26193.74 $

33 073.72 $ 33143.39

Total Federal Financial Assistance

$ 1 301 561.75 $

1 107 483.60 $ 1 225 279.76 $ 1 650528.32

Major Programs are identified by an asterisk c> 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) Expendttures for the School Breakfast Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expendttures are not maintained by fund source.
(4) Expendttures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

25 -

LEE COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994
INTEREST BEARING ACCOUNTS
First State Bank and Trust, Albany, Georgia
Certificates of Deposit No. 28585 (3.00%) No. 28586 (3.00%) No. 28600 (2.50%)
N.O.W. Accounts (2.65%)

SCHEDULE "2"
$ 500,000.00 100,000.00 500,000.00
1,179,272.22 $ 2,279,272.22

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

LEE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE30 1994

SCHEDULE "3"

Defense, U. S. Department of Department of the Navy R.O.T.C.
Education, U. S. Department of Quality Basic Education Deferred Summer Salaries Fiscal Year 1994 Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Basic Grant Tech-Prep Education Lottery Program Computers in Classrooms Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabiltties Education Act.- Trtle VI, B Flow Through Preschool Program
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Lee County Tax Commissioner
County Wide Bond Tax County Wide School Tax
Lex Jolley and Associates Refund of Bond Issuance Cost
Terrell County Board of Education Refund of Elcpend~ures

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

6,949.65

6,949.65

1,332,827.00
26,641.00 30,000.00

773.19 14,392.06
1,949.47 52,250.00
5,500.00 4,000.00

1,332,827.00 773.19
14,392.06
26,641.00 30,000.00
1,949.47
52,250.00
5,500.00 4,000.00

23,208.80 3,978.15

27,240.00

$

2,747.68

69.94

12,167.91

27,240.00
2,747.68 23,208.80 12,167.91
4,048.09

$ 1,423,604.60 $

78,934.66 $

27,240.00 $

14,915.59 $ 1,544,694.85

See notes to the general purpose financial statements.

- 27 -

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

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

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$ 315,490.00 $ 175,490.00 $ 140,000.00

307,057.50

157,057.50

150,000.00

308,577.50

148,577.50

160,000.00

309,325.00

139,325.00

170,000.00

304,290.00

129,290.00

175,000.00

303,790.00 306,390.00 308,590.00 305,185.00 311,260.00

118,790.00 111,390.00 103,590.00
95,185.00 86,260.00

185,000.00 195,000.00 205,000.00 210,000.00 225,000.00

306,360.00 305,780.00 309,500.00 306,750.00 308,500.00

76,360.00 65,780.00 54,500.00 41,750.00 28,500.00

230,000.00 240,000.00 255,000.00 265,000.00 280,000.00

304,500.00

14,500.00

290,000.00

$ 4,921,345.00 $ 1,546,345.00 $ 3,375,000.00

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

TOTAL

1994 ISSUE

$ 3,115,000.00

2,750,000.00 $ 2,750,000.00

105,000.00

2,385,000.00

$ 3,375,000.00 $ 2,750,000.00

,MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date
See notes to the general purpose financial statements. - 28 -

FEB 1 -AUG 1 FEB1

SCHEDULE "4"

1994 ISSUE

INTEREST

PRINCIPAL

1990 ISSUE

INTEREST

PRINCIPAL

1975 ISSUE

INTEREST

PRINCIPAL

$ 134,972.50 $ 123,690.00 122,570.00 121,380.00 120,120.00

30,000.00 $ 35,000.00 35,000.00 35,000.00 35,000.00

33,367.50 33,367.50 $ 26,007.50 17,945.00
9,170.00

$ 115,000.00 125,000.00 135,000.00 140,000.00

7,150.00 $ 110,000.00

118,790.00 111,390.00 103,590.00
95,185.00 86,260.00

185,000.00 195,000.00 205,000.00 210,000.00 225,000.00

76,360.00 65,780.00 54,500.00 41,750.00 28,500.00

230,000.00 240,000.00 255,000.00 265,000.00 280,000.00

14,500.00

290,000.00

$ 1,419,337.50 $ 2.]50,000.00 $ 119,857.50 $ 515,000.00 $

7,150.00 $ 110,000.00

1990 ISSUE

1975 ISSUE

$ 2,900,000.00 $ 215,000.00

2,385,000.00

105,000.00

$ 515,000.00 $ 110,000.00

FEB 1 - AUG 1 FEB 1 - AUG 1

FEB 1

FEB 1

- 29 -

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

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Fiscal Year 1993 1994 Local Fair Share Deferred Summer Salaries - FY 1993 Deferred Summer Salaries - FY 1994 Educational Equalization Funding Grant Food Services Vocational Education other State Programs Innovative Programs Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant
OTHER Education, Georgia Department of Reimbursement for Student Information Systems Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 7,130,724.00 886,164.00 148,537.00 306,937.00 98,957.00
2,116,888.00
480,199.00 134,704.00 286,157.00
53,505.00 65,177.00

$ 7,130,724.00 886,164.00 148,537.00 306,937.00 98,957.00
2,116,888.00
480,199.00 134,704.00 286,157.00
53,505.00 65,177.00

270,195.00 277,033.00 -971,082.00 -1,237 ,602.97 1,332,827.00 1,106,642.00
$ 5,022.00
4,990.00 30,317.00

86,662.00

270,195.00 277,033.00 -971,082.00 -1,237,602.97 1,332,827.00 1,106,642.00
86,662.00 5,022.00
4,990.00 30,317.00

450.00 4,399.18

2,316.00 64,297.47
5,000.00 87,366.40 427,192.65 48,113.20

450.00 4,399.18
2,316.00 64,297.47
5,000.00 87,366.40 427,192.65 48,113.20

1,000.00

1,000.00

$ 12,532,139.21 $
See notes to the general purpose financial statements. - 30 -

720,947.72 $ 13,253,086.93

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

SCHEDULE "6"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
other Compensation for loss of Assets Indirect Cost Special Revenue Fund Interest Earned Milk Court Settlement Sales Lunches Shared Service Contributions Terrell County Board of Education Tuition other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 2,716,016.00 139.48
21,031.40

$ 324,045.19 $ 324,045.19

2,716,016.00

15.50

154.98

2,336.82

23,368.22

17,213.42

3,031.32 44,300.62 $

3,677.33 $ 814.67

526,732.82

17,391.62 10,750.00
5,111.75

40.00

5,576.40

2,895.61

17,213.42
3,031.32 56,449.96
814.67
526,732.82
17,391.62 10,750.00
5,151.75

$ 2,834,985.61 $ 531,264.82 $ 5,576.40 $ 329,293.12 $ 3,701,119.95

See notes to the general purpose financial statements.

- 31 -

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

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 9,889,902.33 $ 2,659,283.11 42,668.65 38,650.51 9,243.94 88,171.28 155,365.49 3,929.61 59,058.15 22,383.20
165,720.85 598,827.27 386,004.25
143,880.55 4,662.25
17,468.59

959,720.45 $ 226,944.47
7,943.13 8,316.20
1,240.00 6,557.41
1,409.30 6,298.16 58,579.12 183,257.09
407.95 550,293.64
18,948.15 120.00
3,031.32 3,085.35

10,849,622.78 2,886,227 .58
50,611.78 46,966.71
9,243.94 89,411.28 161,922.90
3,929.61 59,058.15 23,792.50
6,298.16 224,299.97 782,084.36 386,412.20 550,293.64 162,828.70
4,782.25 3,031.32 20,553.94

816,317.49 343,294.92

246,596.11

816,317.49 589,891.03

Total Expenditures

$ 15,444,832.44 $ 2,282,747.85 $ 17,727,580.29

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

LEE 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 Other Purchased Services Supplies Energy Books, Textbooks and Periodicals Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

2,459.55 $

1,688.64 $

5,534.60

62,608.83

$

2,459.55 $

64 297.47 $

5 534.60

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

SCHEDULE "8"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$

90,164.15

$

90 164.15 $

188,564.74 46,951.19
3,279.40 248.06
126,656.93 407.95
18,858.15 2,036.30
40,189.93 $

$

188,564.74

46,951.19

3,279.40

248.06

136,339.72

407.95

18,858.15

2,036.30

48,113.20

241,076.11

427,192.65 $

48,113.20 $ 637,761.62

- 35 -

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

SCHEDULE "9"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expendrtures for Staff Development Programs in Excess of Total Staff Development Allotment for Cost of Instruction
Expenditures per Audit (1) (2)
Amount of Underexpenditure for Total Allotment

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 8,749,395.00 $

98 957.00

$ 8,737,030.93 449,281.21 $
$ 9,186,312.14 $

98,935.54 98,935.54

-40,808.31

$ 9,145,503.83 $

-12,646.48 86,289.06

$

0.00 $

12 667.94

Note: (1) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

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

LEE cqtJNTY BQARQ OF fQlJCATIQN ANA] YSIS OF MINIMUM fXPENQITIJRf BEQI JIRfME;NTS - RY PROGRAM
GfNfRA\ FUNQ- QlJAj ITV RA'C EDI JCATlQN PRQGRAMS
YEAR ENPfQ JUNE 30 1Q94

GENERAL AND CAREER fQlJCATIQN PRQGRAM Kindergarten (1 Gradn 1-3 (1
Sub-Total - K-3 Gradn4-5(") Gradn6-8(") Gradn9-12 (") High School Laboratories C, Vocational Education Laboratone& (i
Total General and Career Education Programs SPECIAi EQlJCATIQN PROGRAMS
Regular Programs catego,y I (1 catego,y II(") catego,y Ill (1 catego,y IV (1 Itinerant Supplemental Speech Sub-Total Regular catego,y V (Gifted) (1 Total Special Education Programs
RfMfQIAI EDUCATION PROGRAM (j MEDIA CfNTfR PROGRAMS
Total Thirteen Weighted and Media Center
STAFF QfVf[ 9PMfNT PROGRAMS (1) Cost rA Instruction
TctalstaffClewlopmenl
(j Identifies Thirteen Weighted Programs Note (1) $11,503.00 rAthe allotment for Professional
Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statements

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

_!_

ORIGINAL

Ml~TERM

REQUIRED

614,216.00 1 874431.00 2,488,647.00 1,018,389.00 1,641,399.00 1,136,478.00
382,231.00 463,580.00 7130,724.00

90 $ 90 90 90 90 90

552,794.40 $ 1686987.90 2,239,782.30 $
916,550.10 1,477,259.10 1,022,830.20
344,007.90 417,222.00 6,417,651.60 $

26,471.00 $

579,265.40

1 686,987.90

26,471.00 $ 2,266,253.30

110,000.00 105,000.00

1,026,550.10
1,sa2,259.1 o

1,022,830.20

10,000.00

354,007.90

15,562.00

432 784.00

267,033.00 $ 6 684 684.60

699,119.00

629,207.10 $

0.00 $

629,207.10

699,119.00 187,045.00 886,164.00 148 537.00 306,937.00

90 $ 90
90 $ 90 $

629,207.10 $ 168,340.50 797 547.60 $ 133,683.30 $ 276,243.30 $

0.00 $ 10 000.00 10 000.00 $
0.00 $ 0.00 $

629,207.10 178 340.50 807 547.60 133 683.30 276 243.30

$ 8,472,362.00

7,625,125.80 $

277,033.00 $ 7,902,158.80

33,774.00 100 $ 65 183.00 100

33,774.00 $ 65,183.00

98,957.00

98,957.00 $

0.00 $

33,774.00 65183.00

0.00 $

98,957.00

8,571,319.00

7,724,082.80 $

277,033.00 $ 8,001,11580

(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines

- 38 -

SCHEDULE "1 O''

REQUIRED ALLOTMENT

SALARIES
ACTUAL (2)(3)

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

563,139.00 $ 1634663.70 2,197,802.70 $
988,891.30 1,534,096.90
978,458.40 329,142.60 363 788.10 6 392180.00 $

722,753.69 1847643.74 2,570,397.43 $ 1,114,054.61 1,616,816.91 1,024,624.46
464,200.84 447548.14 7,237 642.39 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

16,126.40 $ 52 324.20 68,450.60 $ 37,658.80 48,162.20 44,371.80 24,865.30 68,995.90 292,504.60 $

16,717.16 63 713.45 80,430.61 $ 40,213.00 49,128.62 64,652.05 26,700.74 82 061.63 343,186.65 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00

21,996.90 $ 203,052.60 363,689.10
19,554.30

3,417.31 239,913.26 567,456.70
11,902.88

608,292.90 $ 163 758.60 772 051.50 $ 131 382.00 $ 213 972.30 $

822,690.15 $ 162 217.28 $ 984 907.43 232 712.69 $ 281 768.42 $

$ 7,509,585.80 $ 8,737,030.93 $

0.00 1541.32
0.00 0.00
1,541.32

1,108.80 $ 4,272.30 9,733.50
657.90 1,936.80 3,204.90
20,914.20 $
14,581.90
35,496.10 $
2,301.30 $
62,271.00 $

18.45 3,912.05 17,277.15 1,231.72
22,439.37 $ 15 278.30 $ 37 717.67 2 400.00 $ 65 976.89 $

392,573.00 $

449,281.21 $

0.00 0.00
0.00 0.00
0.00

7,509 585.80 $ 8,737,030.93 $

1,541.32

{3) Salary accruals (July and August 1993 Deferred
Salaries) reported as expenditures in the prior
year General Purpose Financial Statements are included on this analysis as required by
program guidelines.

33,774.00 $ 65,183.00

46,420.48 $ 52 515.06

98,957.00 $

98,935.54 $

491,530.00 $

548,216.75 $

- 39 -

0.00 12,667.94 12,667.94
12,667.94

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mrs. Wendy W. Martin, Chairperson () P. 0. Box352 Leesburg, Georgia 31763
Mr. James I. Davidson, Jr. 119 Firetower Road Leesburg, Georgia 31763
Mr. Arthur Ford () 164 Story Lane Leesburg, Georgia 31763
Mr. Larry Hill () 109 Northwood Drive Leesburg, Georgia 31763
Mr. Douglas Mitchell P. 0. Box 12 Smithville, Georgia 31787
Mr. Ralph M. Moore() 185 Flowing Well Road Leesburg, Georgia 31763
Mr. Richard T. Morgan 1901 State Highway 195 Leesburg, Georgia 31763
Mr. Hiram Usry () 677 State Highway 118 East Smithville, Georgia 31787

COMPENSATION

TRAVEL

$

1,150.00 $

1,766.11

500.00

313.62

650.00

263.37

550.00

412.84

500.00

1,150.00

912.62

250.00

650.00

175.38

$

5,400.00 $

3,843.94

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

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 9, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Lee 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 Lee County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Lee County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the Lee County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the 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-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 9, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Lee 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 Lee County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

94CRL-40

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 9, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Lee 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 Lee County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

94CRL-80

We conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Lee County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Lee 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 granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
t7~~
Claude L. Vickers State Auditor
CLV:gp 94CRL-80

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 9, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Lee 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 Lee County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) Types of Services Allowed or Unallowed

(2) Eligibility

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

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Lee County Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~/4-/A
Claude L. Vickers State Auditor
CLV:gp 94CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 9, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Lee County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Lee County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General 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.
In planning and performing our audit of the general purpose financial statements of the Lee County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Lee County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estiniates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-4

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

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

(I) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

For all ofthe internal control categories listed above, we obtained an understanding of the design ofrelevant 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:

Cash and Cash Equivalents

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-4

However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness:
General Fixed Assets
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Lee County Board of Education's financial statements and this report does not affect our report thereon dated June 9, 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-4

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 9, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Lee 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 Lee County Board ofEducation as ofand for the year ended June 30, 1994, and have issued our report thereon dated June 9, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Lee County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 9, 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 Lee County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 9, 1995.
94ICL-5

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

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

GENERAL REQUIREMENTS (!) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (5) Allowable Costs/Cost Principles

SPECIFIC REQUIREMENTS
(!) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level ofEffort, and/or Earmarking
(4) Reporting

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

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

For all of the internal control structure categories listed above, we obtained an understanding of the design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk.
During the year ended June 30, 1994, the Lee County Board of Education expended 61 % of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by 0MB Circular A- I28, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which

94ICL-5

are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course ofperfonning their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
d~~
Claude L. Vickers State Auditor
CLV:gp 94ICL-5

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,309.06 Audit Control Number 6881-93-02
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$1,309.06 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required.
These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Delinquent Completion Reports Federal Financial Assistance Audit Control Number 6881-93-03 Finding Resolved
The audit report for the year ended June 30, 1993, reported that the Board failed to submit program completion reports in a timely manner for several Federally funded programs. During the year under review, the Board implemented appropriate procedures to ensure that program completion reports were submitted by the specified due date.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6881-93-01
The audit report for the year ended June 30, 1993, noted that the management of the Lee County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost,

LEE COUNTY-BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6881-93-01
location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 6881-94-01
As of June 30, 1994, the Board 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 of such surety bond, the face or par value of securities pledged, and the amount of deposit insurance shall be equal to not Jess than 110 percent of the public funds being secured...after the deduction of the amount of deposit insurance".
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Lee County Board ofEducation should implement adequate procedures to monitor the collateralization of bank balances to ensure compliance at all times with State Jaws governing deposits and investments.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $1,541.32 Audit Control Number 6881-94-02
For the year under review, the Board had an underexpenditure of Quality Basic Education (QBE) funds of $1,541.32 for the salaries portion of the Gifted Program. This condition occurred because the Board

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $1,541.32 Audit Control Number 6881-94-02
did not spend sufficient funds to meet 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.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $12,667.94 Audit Control Number 6881-94-03
For the year under review, the Board reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $46,420.48 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost oflnstruction Program purposes resulting in an underexpenditure of$12,667.94 for the minimum required allotment of$65,183.00 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,309.06 Audit Control Number 6881-93-02
We concur with this finding. It will be resolved by the Georgia Department of Education through a future adjustment in the QBE Allotment.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6881-93-01
We concur with this finding. Due to staffing and budgetary considerations, we did not pursue the recording of fixed assets on the financial statements. However, we do maintain a computerized inventory of land, buildings and equipment owned by the Boardwhich includes date acquired, cost, location and description.
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 6881-94-01
We concur with this finding. We have discussed with bank officials procedures that can be implemented to ensure that deposits are fully collateralized.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $1,541.32 Audit Control Number 6881-94-02
We concur with this finding. The finding will be resolved by the Georgia Department of Education through future adjustments in the QBE Allotment.

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $12,667.94 Audit Control Number 6881-94-03
We concur with the finding. This finding resulted from reliance on incorrect information provided by the Georgia Department of Education and will be resolved by that department through future QBE Allotment adjustments.