Audit report, Lee County Board of Education, Leesburg, Georgia, year ended June 30, 1995

GA
Aioo .RI E21o L4 1l9 4-C\5
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, 1995

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

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 CASH AND CASH EQUIVALENTS

28

3 INVESTMENTS

29

4 ACCOUNTS RECEIVABLE

31

5 DEBT SERVICE REQUIREMENTS TO MATURITY

32

LEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

6

STATE

34

7

LOCAL AND OTHER

35

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

36

9

LOTTERY PROGRAMS

37

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

39

11

BY PROGRAM

40

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

42

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

LEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe 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, 1995, 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.
95AR.L-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 ofthe 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 ofJune 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated May 1, 1996, on our consideration of the Board's internal control structure and a report dated May 1, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Lee County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional 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,
~
Claude L. Vickers State Auditor
CLV:gp 95ARL-13*

LEE COUNTY BOARD OF EDUCATION - 1-

LEE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1995

ASSETS Cash and Cash Equivalents Investments 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

$

769,496.81 $

231,806.56 $

16,183.88

935,467.58

5,750,000.00

1,563,787.54

66,863.30

11,670.50

13,324.71 5,983.63

$ 3,268,751.93 $

317,978.20 $ 5,777,854.38

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 EQUITY
Fund Balances Reserved For Continuation of Federal Program For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Un designated
Total Fund Equity

$ 426,609.59 $ 1,598,849.25 35.69

17,957.36 111,443.06
588.27

94,814.62

$ 2,025,494.53 $_--=22=-4;.i.;,8;;.;;0.;;.;3.;;;..3.;...1

$

$

15,620.99

$

15,620.99 $

1,227,636.41

$ 1,243,257.40 $

4,945.85

13,324.71 5,983.63 $

5,777,854.38

24,254.19 $ 68,920.70 93,174.89 $

5,777,854.38 0.00
5,777,854.38

Total Liabilities and Fund Equity

$ 3,268,751.93 $

317,978.20 $ 5,777,854.38

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

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS {Memorandum On~} JUNE 301 1995 JUNE 301 1994

$ 122,602.17

$ 1,140,089.42 $ 2,279,272.22

146,095.75

6,831,563.33

247.82

1,642,569.16

1,544,694.85

13,324.71 5,983.63

5,756.89 5,886.56

$

268,945.74

268,945.74

200,826.45

9,256,054.26

9,256,054.26

3,174,173.55

$ 268,945.74 $

9,525,000.00 $ 19,158,530.25 $ 7,210,610.52

$ 444,566.95 $ 418,211.59

1,710,292.31

1,536,234.93

623.96

44,720.85

8,770.30

21,836.70

94,814.62

7,723.20

$

9,525,000.00

9,525,000.00 3,375,000.00

$

9,525,000.00 $ 11,775,297.84 $ 5,412,497.57

$ 268,945.74
$ 268,945.74 0.00
$ 268,945.74

$

4,945.85 $

2,290.01

268,945.74

200,826.45

15,620.99

15,518.32

13,324.71 5,983.63 5,777,854.38

5,756.89 5,886.56
19,785.86

$ 6,086,675.30 $ 250,064.09

1,296,557.11

1,548,048.86

$ 7,383,232.41 $ 1?98,112.95

$ 268,945.74 $

9,525,000.00 $ 19,158,530.25 $ 7,210,610.52

-3-

LEE COUNTY BOARD Of EDUCATION COMBINED STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1995

EXHIBIT"B"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenu.

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS
(Memorandum On!Y}
YEAR ENDED JUNE 301 1995 JUNE 301 1994

$ 13,283,295.31 $ 77,871.38
3,143,143.26

563,699.61 1,039,483.07
588,786.89 $

$ 16,504,309.95 $ 2,191,969.57 $

12,927.18 $ 12,927.18 $

$ 13,846,994.92 $ 13,253,086.93

1,117,354.45

1,225,278.78

350,728.34

4,"95,585.87

3,701,119.95

350,728.34 $ 19,059,935.04 $ 18,178,486.64

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration
or Maintenance and Operation Plant
Student Transportation Services Central Support Services Other Support Services Community Service Operations Food Services Operation
or Other Operations Non-Instructional
Services Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures

$ 10,603,186.62 $
457,949.76 559,358.19 443,148.48 309,182.00 989,816.33
45,786.72 1,459,036.27 1,065,839.81
112,801.47 96,671.96
22,630.11
117,862.48 128,532.84
s 16,411,803.04 $

718,923.78 128,971.10
5,675.03 123.20
30,658.33 $
10,008.00 9,796.96 58,324.00 11,111.65 1,239,451.69
2~13,043.74 $

159,988.17
705,036.47 $
865,024.64 $

Excess of Revenues over (under) Expenditures

s

92,506.91 $ -21,074.17 $ -852,097.46 $

OTHER FINANCING SOURCl;S (!,!SES}

Accrued Interest on Bonds Sold

Proceeds from General Obligation Bonds

Par Value

Refunding Bond Issuance Cost

Proceeds of Refunding Bonds

Par Value

Discount on Bonds Sold

Payments to Bond Escrow Agent

Operating Transfers In

Operating Transfers Out

$

$ -31,002.59

$
s 6,290,000.00

2,002.59

29,000.00

Total Other Financing Sources

(Uses)

$

-31,002.59 $

2,002.59 $ 6,319,000.00 $

$ 11,322,110.40 $ 10,406,570.56

586,920.86 565,033.22 443,271.68 339,840.33 989,816.33 205,774.89 1,469,044.27 1,075,636.77 171,125.47 107,783.61
1,262,081.80

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

117,862.48 833,569.31

109,252.27 1, 145,920.24

140,000.00 175,490.00
2,338.55

140,000.00 175,490.00
2,338.55

105,000.00 211,205.00
1133.34

317,828.55 S 19,807,699.97 $ 18,367,029.87

32,899.79 $ .747 764.93 $ -187,543.23

35,219.50 $

35,219.50 $

15,227.67

6,290,000.00

-73,803.07

31,002.59 -31,002.59

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

35,219.50 $ 6,325,219.50 $

21,023.15

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY l
Food Inventory Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer (Note 10)

$

61,504.32 $ -19,071.58 $ 5,466,902.54 $

68,119.29 $ 5,577,454.57 $ -166,520.08

973,349.77

104,581.58

519,355.15

200,826.45

1,798,112.95

1,969,861.64

208,403.31

7,567.82 97.07

-208,403.31

7,567.82 97.07 0.00

-7,493.88 2,265.27

FUND BALANCE JUNE 30

$ 1,243,257.40 $

93,174.89 $ 5,777,854.38 $ 268,945.74 $ 7,383,232.41 $ 1.798.112.95

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

LEE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Local and Other Funds

$ 12,786,174.00 $ 13,283,295.31

137,343.00

n,871.38

2,970,570.00 3, 1431143.26

Total Revenues

$ 15,894,087.00 $ 16,504,309.95

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay

$ 11,095,210.00 $ 10,603,186.62

465,679.00 632,174.00 448,209.00 321,024.00 882,050.00
49,860.00 1,344,900.00 1,097,646.00
112,039.00 100,4n.OO 26,000.00
2,000.00 129,000.00 145,000.00

457,949.76 559,358.19 443,148.48 309,182.00 989,816.33
45,786.72 1,459,036.27 1,065,839.81
112,801.47 96,671.96 22,630.11
117,862.48 128,532.84

Total Expenditures

$ 16,851,268.00 $ 16,411 ,803.04

Excess of Revenues over (under) Expenditures

$ -957,181.00 $

92,506.91

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

3,000.00

-100,000.00 $

-31,002.59

Total Other Financing Sources (Uses)

$ -97,000.00 $ -31,002.59

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ -1,054,181.00 $

61,504.32

FUND BALANCE JULY 1, 1994

1,522,666.26

973,349.n

Adjustments Residual Equity Transfer

-42,692.92

208,403.31

FUND BALANCE JUNE 30, 1995

$ 425,792.34 $ 1,243,257.40

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

s $ 496,sn.oo

563,699.61

1,033,927.00 1,039,483.07

586,200.00

588?86.89

$ 211161999.00 $ 211911969.57

$ 640,502.00 $ 718,923.78

137,490.00 13,100.00
36,608.00

128,971.10 5,675.03 123.20
30,658.33

1,950.00 10,398.00 58,324.00 17,127.00 1,201,375.00

10,008.00 9,796.96 58,324.00 11,111.65 1,239,451.69

$ 2,116,874.00 $ 21213,043.74

$

125.00 $ -21,074.17

$

5.00 $

2,002.59

$

5.00 $

2,002.59

$

130.00 $

101,712.89

9,757.54

-19,071.58 92,938.13

$ 111,600.43 $ 73,866.55

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

LEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: 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 ofthe departures from generally accepted accounting principles disclosed in these notes, 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 ofEducation.
Based upon the application of the above criteria, the Lee County Board ofEducation is determined to be the lowest level ofgovernment 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

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services 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, 1995

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 1994 and ending in early June 1995. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. 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's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative 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,
- 8-

LEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

Excess ofRevenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses
Fund Balance July 1, 1994
Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods
Fund Balance June 30, 1995 (Budget Basis)
CASH AND CASH EQUIVALENTS

Special Revenue
Fund
$ -19,071.58 104,581.58
-5,756.89 -5,886.56 $ 73,866.55

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including 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 of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

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

- 9-

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES

(2) Obligations issued by the United States government,

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

(4) Obligations ofany corporation ofthe United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

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

RECEIVABLES

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

PROPERTY TAXES

The Lee County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on September 22, 1994 (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Lee County Tax Commissioner bills and collects the property taxes for the Board ofEducation.

Tax millage rates levied for the 1994 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

12.50 mills 1.40 mills

13.90 .mills

- 10 -

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations 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 of interfund 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.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 11 -

LEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTlMENTS

COLLATERALIZATION OF DEPOSITS

Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at

any time in any depository for a time longer than ten days a sum of money which has not been secured by

surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond

and the market value ofsecurities shall be equal to not less than 110 percent ofthe public funds being secured

after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding

public funds may, in his discretion, waive the requirement for security in the case of operating funds placed

in demand deposit checking accounts.



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

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

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

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $2,277,116.08. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.

- 12 -

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

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, 1995, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

2,177,116.08

3

0.00

Total

$2,277 116.08

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

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

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

At June 30, 1995, the carrying amount of the Board's total investments was $6,831,563.33 and the market value ofthese investments, excluding investments in the State of Georgia, Local Government Investment Pool, were $1,081,563.33. The investments are classified as to risk categories as follows:

Type oflnvestment
U. S. Government Local Government Investment Pools
Total Investments

Risk Categories

2

3

Carrying Amount

Market Value

$ 1 081 563 33 $

ooo s.==~oe!;,l,o~o $ 1,os1,s63.33 s 1 08156333

5,750,000.00 $ 6 83156333

- 13 -

LEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS
The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.
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 is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.
The Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.
The Board has obtained commercial insurance for errors and omissions, however the policy excludes coverage for sexual harassment and discrimination claims. The Board has not experienced any losses related to errors or omissions in the past three years.
The Board has elected to self-insure for all losses related to natural disasters. The Board has not experienced any losses related to natural disaster in the past three years.
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.
The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Continental Insurance Company to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to $1,000,000.00.

- 14 -

LEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows:

General Obligation
Bonds

Balance July 1, 1994

$ 3,375,000.00

Additions

6,290,000.00

Deductions

140,000.00

Balance June 30, 1995

$ 9,525,000.00

At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

1996 1997 1998 1999 2000 2001 and thereafter

$ 571,203.75 660,772.50 666,520.00 691,260.00 714,150.00
13,066,620.00

Total Principal and Interest

$16.3 70. 526 25

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1994, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust
account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1995, $2,385,000.00 ofbonds are outstanding and are considered defeased.

Note 7: SIGNIFICANT COMMITMENTS

At June 30, 1995, the Board had encumbrances in the amount of $94,814.62 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with Programs funded by Lottery funds. Lottery funds are available to the Board in an amount equal to these encumbrances. The

- 15 -

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: SIGNIFICANT COMMITMENTS

revenues and expenditures associated with these encumbrances will be recognized in the financial statements in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Instructional Technology Technology Installation

$ 44,814.62 50,000.00

Note 8: CONTINGENT LIABILITIES

$ 94,814.62

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

Note 9: 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 in accordance with State statute. 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 creditable service up to 40 years. The normal retirement pension is payable monthly for life. 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 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.

- 16 -

LEE COUNTY BOARD OF EDUCATION

EXlilBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 9: RETIREMENT PLANS

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $10,364,090.89; total payroll was $12,092,972.58.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $1,742,206.94, of which $1,224,000.23 was made by the Board and $518,206.71 was made by employees. These contributions represented 11.81% (Board) and 5% (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, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785.000.00

Unfunded pension benefit obligation

$ 1,058 958,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. 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.

- 17 -

LEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 9: RETIREMENT PLANS
Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565, 117,811.00. .The Board's contribution for the year ended June 30, 1995 of$1,224,000.23 was actuarially detennined and represented 00.2166% oftotal contributions made by all participating employers.
Ten year historical trend information is presented in the 1995 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 in accordance with State statute.
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe 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. If there are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 140 employees covered under PSERS for the year ended June 30, 1995.
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 1995 amounted to $4,720.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.

- 18 -

LEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 10: RESIDUAL EOIBTY TRANSFER
For the year ended June 30, 1995, a residual equity transfer in the amount of $208,403.31 was made from the Capital Projects Fund - Regular to the General Fund. This amount represents a return of funds transferred in prior years from the General Fund to the Capital Projects Fund for various projects that will now be funded from the 1995 Bond Issue Fund.
Note 11: 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-RN4-5345 l 0, on which premium is paid through January 1, 1997.

- 19 -

LEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

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

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 129,788.20 $ 94,814.62 $

1,644.17

4,543.30

46,950.00

13,324.71 5,983.63

Total Assets
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

------ $ 153,639.84 $ 94,814.62 $

48,594.17

$

4,164.30

$

61,246.50

$ 94,814.62

$ 65,410.80 $ 94,814.62 $

10,478.06 38,084.90
31.21
48,594.17

$ 13,324.71 5,983.63

$ 19,308.34

68,920.70 $

0.00 $

0.00

$ 88,229.04 $

0.00 $

0.00

Total Liabilities and Fund Equity
See notes to the general purpose financial statements. - 20-

$ 153,639.84 $

---=--- 94,814.62 $

48,594.17

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

TITLE II -

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, 1995 JUNE 30, 1994

$

0.00 $

4,945.85 $

462.78 $

150.94 $ 231,806.56 $ 194,089.92

6,874.00

8,496.00

66,863.30

78,934.66

13,324.71 5,983.63

5,756.89 5,886.56

$

0.00 $

4,945.85 $

7,336.78 $

8,646.94 $ 317,978.20 $ 284,668.03

$

1,549.88 $

1,765.12 $

17,957.36 $

30,301.06

5,345.34

6,766.32

111,443.06

97,341.34

441.56

115.50

588.27

44,720.85

94,814.62

7,723.20

$

7,336.78 $

8,646.94 $ 224,803.31 $ 180,086.45

$

4,945.85

$

4,945.85 $

2,290.01

13,324.71 5,983.63

5,756.89 5,886.56

$

4,945.85

$

24,254.19 $

13,933.46

$

0.00

0.00 $

0.00 $

0.00

68,920.70

90,648.12

$

0.00 $

4,945.85 $

0.00 $

0.00 $

93,174.89 $ 104,581.58

0.00 $

4,945.85 $

7,336.78 $

8,646.94 $ 317,978.20 $ 284,668.03

-21 -

LEE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995

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
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

ELEMENTARY

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 93,950.00 $ 469,749.61

534,987.38

$

588,786.89

$ 1,217,724.27 $ 469,749.61 $

312,420.79 312,420.79

$ 364,979.07 $
96,136.61 204.00 123.20
10,008.00

271,140.86
120.00 30,349.60

$ 1,239,451.69

301.32

$ 1,239,451.69 $ 471,752.20 $

$ -21,727.42 $ -2,002.59 $

10,810.33
312,420.79 0.00

2,002.59

$ -21,727.42 $

0.00 $

0.00

102,291.57

.0.00

0.00

7,567.82 97.07

$ 88,229.04 $

------ 0.00 $

0.00

See notes to the general purpose financial statements. - 22-

EXHIBIT"P'

AND SECONDARY EDUCATION ACT

TITLE II -

EISENHOWER

CHAPTER2

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, 1995 JUNE 30, 1994

$ 563,699.61 $ 720,947.72

$

22,842.00 $

19,626.96 $ 119,565.44 $

30,040.50

1,039,483.07

1,017,875.28

588,786.89

531,264.82

$

22,842.00 $

19,626.96 $ 119,565.44 $

30,040.50 $ 2,191,969.57 $ 2,270,087.82

$

11,605.30 $

41,158.05 $

30,040.50 $ 718,923.78 $ 778,127.32

$

22,842.00

5,351.03 14.79

9,992.49
293.94 9,796.96 58,324.00

128,971.10 5,675.03 123.20
30,658.33 10,008.00
9,796.96 58,324.00 11,111.65 1,239,451.69

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

$

22,842.00 $

16,971.12 $ 119,565.44 $

30,040.50 $ 2,213,043.74 $ 2,282,747.85

$

0.00 $

2,655.84 $

0.00 $

0.00 $

-21,074.17 $

-12,660.03

2,002.59

3,475.90

$

0.00 $

2,655.84 $

0.00 $

0.00 $

-19,071.58 $

-9, 184.13

0.00

2,290.01

0.00

0.00

104,581.58

118,994.32

7,567.82 97.07

-7,493.88 2,265.27

$ -=====0=.0=0 $

4,945.85 $ -=====0=.0=0 $ -====0.=00= $

93,174.89 $ 104,581.58

- 23-

LEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1995

EXHIBITG

ASSETS Cash and cash Equivalents
Investments Accounts Receivable
Total Assets

REGULAR

1995 BOND ISSUE
FUND

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

TOTALS JUNE 301 1995 JUNE 301 1994

$

0.00 $

16,183.88 $

0.00 $

16,183.88 $ 522,722.15

5,750,000.00

5,750,000.00

11,670.50

11,670.50

27,240.00

s_ _ _o_.oo_ s 5,777,854.38 s_____o_.oo_ s 5,777,854.38 s 549,962.15

LIABILITIES AND FUND EQUITY

LIABILITIES
Contracts Payable Retainages Payable

$ a,no.30
21,836.70

Total Liabilities

$ _ _30.;;.;;.r.,60;;....;..7.;.;;.00~

FUND EQUITY

Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated

$ 5,777,854.38

$

s_ _ _. ;. o_.oo"'""

o.oo s_______0_.0_0_

5,777,854.38 $
0.00

19,785.86 499,569.29

Total Fund Equity

$ _ _ _ _0_.00_ $ 5,777,854.38 $ ______0_.0_0 $ 5,777,854.38 $

519,355.15

s Total Liabilities and Fund Equity s_ _ _o_.oo_s 5,777,854.38 s_ _ _ _o_.oo_s 5,777,854.38

549,962.15

See notes to the general purpose financial statements.

-24-

LEE COUNTY BOARD Of EDUCATION COMBINING STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 1995

EXHIBITw

REVENUES
Local and Other Funds
EXPENDITURES
Current Support Services Business Administration Bond Issuance Cost
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES <USES)
Proceeds from General Obligation Bonds Par Value
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Residual Equity Transfer (Note 10)

REGULAR

1995 BOND ISSUE
FUND

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

TOTALS YEAR ENDED JUNE 3011995 JUNE 3011994

$ 121157.54 $

545.18 $

224.46 $

121927.18 $

51576.40

$ 159,988.17

$ 273,500.00

354,517.63 4,185.00 $

$ 273,500.00 $ 5181690.80 $

$ -2611342.46 $ -5181145.62 $

$ 72,833.84 721833.84 $

159,988.17 354,517.63 $ 350,518.84
8651024.64 $

2,455.50 307,005.50
121650.24
3221111.24

-721609.38 $ -852,097.46 $ -3161534.84

$ 6,290,000.00 6,000.00 $
$ -29,823.52
$ -291823.52 $ 612961000.00 $

$ 52,823.52

6,290,000.00 58,823.52 $ -291823.52

500,000.00

521823.52 $ 613191000.00 $ 5001000.00

s $ -291,165.98 $ 5,m,854.38

499,569.29

0.00

-2081403.31

-19,785.86 $ 5,466,902.54 $

19,785.86

519,355.15

-2081403.31

183,465.16 335,889.99

FUND BALANCE JUNE 30

s s _ _ _o_.oo_ s 5,m,854.38 s _ _ _ _ _o_.oo_ s 5,m,854.38

519,355.15

See notes to the general purpose financial statements.

-25-

LEE COUNTY BOARD Of EDUCATION
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30.1995

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 1994 Grant 1995 Grant National School Lunch Program 1994Grant 1995 Grant Food Distribution Program (1)

10.553
10.553 $
. 10.555
10.555
10.550

$ 12,356.49
425,565.93 97,064.96

n3.19

12,356.49 $ 12,356.49

(2)

14,392.06 421,285.38 N/A

425,565.93 $ 97,064.96

1,142,386.73 (3) 97,064.96

Total U. S. Department of Agriculture

$ 534,987.38 $

448,807.12 $ 534,987.38 $ 1,239,451.69

Education, U. S. Department of

Through Georgia Department of Education

Elementary and Secondary Education Act

Chapter 1

Education of Deprived Children

1994 Regular

84.010

1994 Carry-Over

84.010 $

1995 Regular

84.010

Chapter2

Block Grant - Flow Through

1995 Regular

84.151

Title II

Eisenhower Mathematics and Science

Education

1994 Regular

84.164

1995 Regular

84.164

Individuals with Disabilities Education Act

Title VI, B

Flow Through

1994 Regular

84.027

1994 Carry-Over

84.027

1995 Regular

84.027

Preschool Program

1994 Regular

84.173

1994 Carry-Over

84.173

1995 Regular

84.173

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1994 Grant

84.048

1995 Grant

84.048

Consumer and Homemaking Education

1995 Contract

84.049

Tech-Prep Education

1994 Grant

84.243

1995 Grant

84.243

$ 33,952.00 322,285.00 22,842.00
11,800.00
12,314.00 117,306.00
6,906.00 26,600.00
27,949.00 10,850.00 10,000.00

52,250.00 33,952.00 $ 231,550.00

33,952.00 $ 278,468.79

33,952.00 278,468.79

22,842.00

22,842.00

22,842.00

7,826.96 11,800.00

7,826.96 11,800.00

10,116.97 6,854.15

5,067.81 11,240.00 101,893.00
3,475.39 5,910.00 15,750.00

12,308.63 107,256.81
6,906.00 23,134.50

12,308.63 107,256.81
6,906.00 23,134.50

26,641.00

27,949.00

(4)

10,850.00

(4)

30,000.00

10,000.00

(4)

Total U.S. Department of Education

$ 602,804.00 $

560198.16 $ 553,294.69 $

501,839.85

- 26 -

LEE COUNTY BOARD Of EDUCATION
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1995

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Navy R.O.T.C. Program 1994 Grant 1995 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

$

6,949.65

$ 29,072.38

21,838.24 $ 29,072.38

(4)

$ 29,072.38 $

28,787.89 $ 29,072.38

Total Federal Financial Assistance

1 037793.17 $ 1,117,354.45 $ 1:741,291.54

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

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 27 -

LEE COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995
INTEREST BEARING ACCOUNTS
First State Bank and Trust, Albany, Georgia
N.O.W. Accounts (2.75%)

SCHEDULE "2 $ 1,140,089.42

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

LEE COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1995

SCHEDULE "3

U.S. GOVERNMENT OBLIGATIONS
First State Bank and Trust, Albany, Georgia
U.S. Treasury Bill No. 912794U28 due July 20, 1995 (6.059%) U.S. Treasury Bill No. 912794U28 due July 20, 1995 (5.679%)
INVESTMENT POOL
State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (6.032%)

$ 487,020.83 594,542.50 $ 1,081,563.33
5,750,000.00

$ 6,831,563.33

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

13\ccVL ~ \0 :SD

LEE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE 4

Bank South Securities Corporation Refund of Bond Issuance Costs
Defense, U. S. Department of Department of the Navy R.O.T.C.
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries Fiscal Year 1995 Food Services National School Lunch Program Vocational Education State Funds Federal Funds Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education kt-TrtleVI, B Flow Through Preschool Program
Lee County Tax Commissioner County Wide Bond Tax County Wide School Tax
Southwest Georgia Community Action Council Reimbursement for Head Start Program Contracted Meals

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 11,670.50

$

11,670.50

$

7,234.14

7,234.14

1,435,569.00
$
70,000.00 48,799.00

4,280.55

46,950.00

6,874.00 8,496.00

2,185.40

262.75

1,435,569.00
4,280.55
70,000.00 48,799.00

46,950.00

6,874.00 8,496.00

$

247.82

247.82 2,185.40

262.75

$ 1,563,787.54 $ 66,863.30 $ 11,670.50 $

247.82 $ 1,642,569.16

See notes to the general purpose financial statements.

- 31 -

LEE COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30, 1995

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

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$

571,203.75 $ 421,203.75 $ 150,000.00

660,772.50

500,772.50

160,000.00

666,520.00

491,520.00

175,000.00

691,260.00

481,260.00

210,000.00

714,150.00

469,150.00

245,000.00

738,930.00 772,050.00 797,825.00 831,227.50 866,827.50

458,930.00 447,050.00 432,825.00 416,227.50 396,827.50

280,000.00 325,000.00 365,000.00 415,000.00 470,000.00

864,007.50 869,727.50 877,932.50 884,022.50 892,972.50

374,007.50 349,727.50 322,932.50 294,022.50 262,972.50

490,000.00 520,000.00 555,000.00 590,000.00 630,000.00

904,432.50 916,295.00 933,882.50 947,960.00 968,527.50

229,432.50 191,295.00 148,882.50 102,960.00 531527.50

675,000.00 725,000.00 785,000.00 845,000.00 9151000.00

$ 16,370,526.25 $ 6,845,526.25 $ 9,525,000.00

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

TOTAL

1995 ISSUE

$ 3,375,000.00

6,290,000.00 $ 6,290,000.00

140,000.00

Bonds Payable at June 30, 1995

$ 9,525,000.00 $ 6,290,000.00

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

See notes to the general purpose financial statements.

- 32 -

FEB 1 -AUG 1 FEB 1

SCHEDULE "5"

1995 ISSUE

INTEREST

PRINCIPAL

1994 ISSUE

. INTEREST

PRINCIPAL

1990 ISSUE

INTEREST

PRINCIPAL

$ 264,146.25 352,195.00 352,195.00 $ 351,970.00 350,360.00

$
5,000.00 35,000.00 60,000.00

123,690.00 $ 122,570.00 121,380.00 120,120.00 118,790.00

35,000.00 $ 35,000.00 35,000.00 35,000.00 185,000.00

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

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

347,540.00 343,460.00 337,640.00 329,967.50 320,467.50

85,000.00 120,000.00 155,000.00 190,000.00 240,000.00

111,390.00 103,590.00 95,185.00 86,260.00 76,360.00

195,000.00 205,000.00 210,000.00 225,000.00 230,000.00

308,227.50 295,227.50 281,182.50 265,522.50 248,472.50

250,000.00 265,000.00 290,000.00 310,000.00 340,000.00

65,780.00 54,500.00 41,750.00 28,500.00 14,500.00

240,000.00 255,000.00 265,000.00 280,000.00 290,000.00

229,432.50 191,295.00 148,882.50 102,960.00
53,527.50

675,000.00 725,000.00 785,000.00 845,000.00 915,000.00

$ 5,474,671.25 $ 6,290,000.00 $ 1,284,365.00 $ 2,720,000.00 $ 86,490.00 $ 515,000.00

1994 ISSUE

1990 ISSUE

1975 ISSUE

$ 2,750,000.00 $ 515,000.00 $ 110,000.00

30,000.00

110,000.00

$ 2,720,000.00. $ 515,000.00 $

0.00

FEB 1 - AUG 1 FEB 1 - AUG 1 FEB 1 - AUG 1

FEB 1

FEB 1

FEB 1

- 33 -

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension School Counselors Grades 4 and 5 Mid-term Adjustment Local Fair Share Deferred Summer Salaries FY 94 Deferred Summer Salaries FY 95 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Environmental Science Program Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Distant Learning Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant
CONTRACT Education, Georgia Department of Implementation of School-Based Leadership Development Activities
OTHER Education, Georgia Department of Reimbursement for Student Information Systems Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 7,685,060.00 921,375.00 166,747.00 327,787.00 103,936.00
2,231,628.00

$ 7,685,060.00 921,375.00 166,747.00 327,787.00 103,936.00
2,231,628.00

506,134.00 161,773.00 321,606.00 49,776.00 68,060.00
21,504.00 201,920.00 1,016,569.00 -1,332,827.00 1,435,569.00 1,189,504.00
$ 75,524.00

93,950.00

506,134.00 161,773.00 321,606.00 49,776.00 68,060.00
21,504.00 201,920.00 -1,016,569.00 -1,332,827.00 1,435,569.00 1,189,504.00
93,950.00 75,524.00

13,907.89 500.00
108,000.00 30,259.00 4,502.02
4,619.40

13,907.89 500.00
108,000.00 30,259.00 4,502.02 4,619.40

5,500.00 54,887.91
123.20 401,638.50
7,600.00

5,500.00 54,887.91
123.20 401,638.50
7,600.00

1,000.00

1,000.00

2,000.00

2,000.00

See notes to the general purpose financial statements.

$ 13,283,295.31 $ 563,699.61 $ 13,846,994.92 34

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE '7"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Compensation for Loss of Assets Interest Earned Jury Duty Fees Lost and Damaged Books Sales Lunches School Assets Other 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

$ 2,976,925.63 5,882.40
22,727.61

$ 343,153.50 $ 343,153.50

2,976,925.63

653.59

6,535.99

2,545.51

25,273.12

10,819.58 60,590.69 $
1,330.00 937.75

3,232.49 $ 12,927.18

1,515.25

561,600.15 23,911.25

39,368.00 19,318.00
3,728.35

43.00

4,375.74

10,819.58 81,126.10
1,330.00 937.75
561,600.15 1,515.25
23,911.25
39,368.00 19,318.00
3,771.35

$ 3,143,143.26 $ 588,786.89 $ 12,927.18 $ 350,728.34 $ 4,095,585.67

See notes to the general purpose financial statements.

- 35 -

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULE 8

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 11,018,226.47 $ 1,074,746.11 $ 12,092,972.58

2,920,731.61

257,380.19

3, 178, 111.80

50,145.27

10,861.50

61,006.77

23,401.11

13,000.16

36,401.27

12,661.10

12,661.10

105,766.78

3,858.00

109,624.78

244,281.16

4,467.34

248,748.50

1,829.76

1,829.76

55,505.58

55,505.58

27,480.64

2,101.50

29,582.14

3,000.00

3,000.00

6,273.00

6,273.00

96,082.00

58,324.00

154,406.00

180,924.55

301.32

181,225.87

622,350.91

105,505.98

727,856.89

403,477.78

403,477.78

594,050.90

594,050.90

130,915.22

6,675.75

137,590.97

25,576.89

959.00

26,535.89

7,821.18

6,443.87

14,265.05

122,263.16 362,361.87

65,095.12

122,263.16 427,456.99

Total Expenditures

$ 16,411,803.04 $ 2,213,043.74 $ 18,624,846.78

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

LEE COU!:f[Y BOARD QE EDUCATION Qt:!EQUl,E OF EXPENDITURES BY Q.!EQT
LOTTERY PROGRAMS
YEAR ENDED JUNE 30.1995

SCHEDULE"9"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer and Cleaning Services Communications Other Purchased Services Supplies Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

MEDIA CENTER
ANO
LIBRARY EQUIPMENT

PRE-KINDERGARTEN
PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$ 2,408.00 $

11,005.58

3,092.00

45,884.92 $

123.20

276,432.30 n,369.28 7,475.19
480.00
662.35 301.32 28,219.99
6,675.75 204.00 423.32
8,395.00 $

$ 276,432.30 n,369.28 7,475.19
480.00
2,408.00 662.35 301.32
39,225.57
6,675.75 204.00 423.32

7,600.00

65,095.12

Total Expenditures

$ 5,500.00 $

56,890.50 $

123.20 $

401 638.50 $

71600.00 $ 411i7s2.20

See notes to the general purpose financial statements.

- 37 -

J3 (artk fo- 3i

LEE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1995

SCHEDULE "1 O"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries (1) (2) Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 9,302,889.00 $

365 1980.00

$ 9,479,091.95
4M~~3 $ _ _ _4~1~5~,1~5~5~~~
$ 9,973,124.24

-70,885.77 $ 9,902,238.47

Amount of Underexpenditure for Total Allotment

$

o.oo $ =====o=.o=o

Note: (1) Salary accruals (July and August 1995 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 1994 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. - 39 -

LEE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 3Q 1995

!lENERAL AND CAREER EDUCATION PROGRAMS
Kindergarten M Grade&1-3 M
Sub-Total - K-3
Grade& 4 - 5 M Grades 6 - 8 M Grades 9 - 12 M High School L.aboratorie& M Vocational Education L.aboratorie& M
Total General and Career Education Programs SeECIAL Ei;&!CATIQt:1 ffiOGRAMS
Regular Programs Category II (") Category Ill (") Category IV (") Sub-Total - Regular Category V (Gifted) (") Total Special Education Programs
REMEDIAL EDUCATIQN PROGRAM c:l
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DE:\!ELQEMEN! PROGRAMS Cost d Instruction Prdessional Development
Total Staff Development (") Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1995 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to oomply with program guidelines.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ..JL

ORIGINAL

MID-TERM

s 705,689.00

s 635,120.10 s

11877,000.00

116891300.00

s 2,582,689.00 90 s 2,324,420.10 s

1,107,588.00 90

996,829.20

1,843,698.00 90

1,659,328.20

1,091,152.00 90

982,036.80

532,613.00 90

479,351.70

527,320.00 90

474588.00

s 716851060.00'

s 61916,554,00 s

36,818.00
36,818.00 35,000.00
105,102.00 25,000.00
2011920.00

s 700,077.00

s

630,069.30 S

0.00

s 700,077.00 90 s 630,069.30 s

221,298.00 90

1991168.20

s 921,375.00

s 8291237.50 s

s

166 747.00 90 s

1501072.30 s

s 8,773,182.00

s 718951863.80 s

0.00
0.00 0.00 2011920.00

s

256,253.00 90 s

230,627.70 s

0.00

71 534.00 90

64380.60

s

3271787.00

$

295,008.30 $

0.00

$ 9,100,969.00

$ 8,190,872.10 S 201,920.00

$

24,505.00

s

24,505.00 s

0.00

79 431.00

791431,00

0.00

$

103,936,00 100 $

103,936.00 S

0.00

(2) Salary accruals (July and August 1994 Defened Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

- 40 -

SCHEDULE "11"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1 )(2) OPERATIONS

TOTAL

AMOUNTOF UNOEREXPENDl1URE
FOR REQUIRED ALLOTMENT

s 671,938.10 s

791,622.87 s

15,960.75 s

807,583.62

1,689,300.00

2,0421385.42

71 334.03

2,113,719.45

s 2,361,238.10 $ 2,834,008.29 $

87,294.78 s 2,921,303.07 s

0.00

1,031,829.20

1,171,033.29

45,998.24

1,217,031.53

0.00

1,659,328.20

1,721,157.38

58,110.42

1,TT9,267.80

0.00

1,087, 138.80

1,119,751.92

84,550.24

1,204,302.16

0.00

504,351.70

536,503.94

25,459.91

561,963.85

0.00

474 588.00

449196.02

83,758.22

532,954.24

0.00

s 7 118 474.00 s 7,831,650.84 $

385 171.81 s 8,216,822.65

$

630,069.30

$

238,559.00 $ 605,590.40
26,040.26

5,648.47 $ 11,424.84
93.36

244,207.47 617,015.24
26,133.62

$

630,069.30 $

870,189.66 $

17,166.67 $

887,356.33

0.00

199,168.20

212,806.28

12,757.42

225,563.70

0.00

$

829,237.50 $ 1,082,995.94 $

29,924.09 $ 1,112,920.03

$

150,072.30 $

244,648.83 $

59.96 $

244 708.79

0.00

$ 8,097,783.80 $ 9,159,295.61 $

415 155.86 $ 9574451.47

$

230,627.70 $

319,796.34

$

319,796.34

0.00

64,380.60

$

78 876.43

78,876.43

0.00

s

295,008.30 $

319 796.34 $

78,876.43 $

3981672.TT

$ 8,392,792.10 $ 9,479,091.95 $

494,032.29 $ 9,973,124.24 $

0.00

$

24,505.00

79 431.00

s _ _1.03..,.9_3_6_.o_o

$

54,874.18 $

54,874.18

48,959.15

48 959.15

$

103,833.33 $

103,833.33 s _ _ _ _ _1_0_2._s_1

41 -

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1995

SCHEDULE "12''

BOARD MEMBER ADDRESS
Ms. Wendy W. Martin, Chairperson (*) P. 0. Box352 Leesburg, Georgia 31763
Mr. Arthur Ford (*) 164 Story Lane Leesburg, Georgia 31763
Mr. Larry Hill (*) 109 Northwood Drive Leesburg, Georgia 31763
Mr. Ralph M. Moore (*) 185 Flowing Well Road Leesburg, Georgia 31763
Mr. Hiram Usry (*) 677 State Highway 118 East Smithville, Georgia 31787

COMPENSATION

TRAVEL

$

1,650.00 $

2,558.21

1,550.00

392.57

1,650.00

760.43

1,650.00

406.53

1,650.00

393.36

$

8,150.00 $ ===4=,51=1.1=0

(*) Denotes Board Members Serving as of June 30, 1995

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May I, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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, 1995, and have issued our report thereon dated May 1, 1996. 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.
Compliance with laws, regulations, contracts, and grants applicable to Lee County Board ofEducation is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

95CRL-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,

CLV:gp 95CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly .Members of the 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 ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 1, 1996. 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 ofits Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995:

{l) 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.

95CRL-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 ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that 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,
~
Claude L. Vickers State Auditor
CLV:gp 95CRL-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1996

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 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 of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated May 1, 1996. 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 ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995. 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.

95CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Lee County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Lee County Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 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,

CLV:gp 95CRL-80

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AI.JDl"TOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1996

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

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, 1995, and have issued our report thereon dated May 1, 1996. 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 1995 general purpose financial statements ofthe Lee County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements govemmg:

(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.

95CRL-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 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,
L,~
Claude L. Vickers State Auditor
CLV:gp 95CRL-120

SECTION Ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 1, 1996

Honorable Zell Miller, Governor Members ofthe 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 of the Lee County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated May 1, 1996. 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.
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, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

95ICL-3

In planning and perfonning our audit of the general purpose financial statements ofthe Lee County Board of
Education for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the 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, a reportable condition was noted in the following control category:
General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the 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. However, we believe that the reportable condition disclosed above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Lee County Board ofEducation's financial statements and this report does not affect our report thereon dated May 1, 1996.
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 95ICL-3

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May I, 1996

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 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 of and for the year ended June 30, 1995, and have issued our report thereon dated May I, 1996. 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 ofEducation's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 1, 1996.
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, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose :financial statements in a separate report dated May I, 1996.
95ICL-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 permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because ofinherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation ofthe structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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, 1995, the Lee County Board ofEducation expended 66% ofits total Federal financial assistance under major Federal financial assistance programs.

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

95ICL-5

are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not
be detected within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 95ICL-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. 1995
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, reported that the Board had an underexpenditure of Quality
Basic Education (QBE) funds ofSl,309.06 for the StaffDevelopment - 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. The underexpenditure ofSl,309.06 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share.
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Financial Statements Finding Resolved Audit Control Number 6881-94-01
The audit report for the year ended June 30, 1994, disclosed that the Board did not have its bank balances fully collateralized as required by the Official Code of Georgia Annotated Section 45-8-12. For the year under review, audit tests of the Board's bank balances indicated that the Board complied with the State laws governing collateralization of cash deposits.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,541.32 Audit Control Number 6881-94-02
The audit report for the year ended June 30, 1994, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$1,541.32 for the salaries portion ofthe Gifted Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure, as required. The underexpenditure of $1,541.32 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share.
- 1-

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $12,667.94 Audit Control Number 6881-94-03
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality
Basic Education (QBE) funds of$12,667.94 for the StaffDevelopment - Professional Development Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure, as required. The underexpenditure of $12,667.94 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share.
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, 1994, noted that the management ofthe 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, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
- 2-

LEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995 CURRENT YEAR EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $102.67 Audit Control Number 6881-95-01 For the year under review, the Board had underexpenditures of Quality Basic Education (QBE) funds of $102.67 for the StaffDevelopment Program. This condition occurred because the Board did not meet the minimum expenditure requirement for this QBE program. 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.
- 3-

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

LEE COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
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. This finding will be resolved by the Georgia Department ofEducation through a future adjustment in the Board's local fair share portion of QBE Allotments.
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Financial Statements Finding Resolved Audit Control Number 6881-94-01
For the year under review, audit tests ofthe Board's bank balances indicate that the Board complied with State laws governing collateralization of deposits.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,541.32 Audit Control Number 6881-94-02
We concur with this finding. This finding will be resolved by the Georgia Department of Education through a future adjustment in the Board's local fair share portion of QBE Allotments.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $12,667.94 Audit Control Number 6881-94-03
We concur with this finding. This finding will be resolved by the Georgia Department ofEducation through a future adjustment in the Board's local fair share portion of QBE Allotments.
- 1-

LEE COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
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 recommendation. Due to staffing limitations, budgetary considerations and failure of the Georgia Department of Education to provide an appropriate method of fixed asset accounting, it has been decided that the recording of fixed assets on financial statements would not be pursued. EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $102.67 Audit Control Number 6881-95-0 I We concur with this finding. This finding will be resolved by the Georgia Department ofEducation through a future adjustment in the Board's local fair share portion of QBE Allotments.
- 2-