Audit report, Liberty County Board of Education, Hinesville, Georgia, year ended June 30, 1994

GA A800
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LG I C/'7 3 -iJ't
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT LIBERTY COUNTY BOARD OF EDUCATION
HINESVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

LIBERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

~

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

SCHEDULES

l SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

26

3 ACCOUNTS RECEIVABLE

27

4 DEBT SERVICE REQUIREMENTS TO MATURITY

28

SCHEDULEDF REVENUE

5

STATE FUNDS

29

6

LOCAL AND OTHER FUNDS

30

LIBERTY COUNTY BOARD OF EDUCATION TABLE OF CONTENTS

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

31

8

LOTTERY PROGRAMS

32

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

33

10

BY PROGRAM

34

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

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

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

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

SECTION I FINANCIAL

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

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

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Liberty County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Liberty County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General ofthe 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.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have
been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from
generally accepted accounting principles. These variances are described as follows:
94ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not report the deferred compensation plan assets and liabilities within the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Liberty County Board ofEducation as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Liberty County Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 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 Liberty County Board ofEducation. 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 effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
94ARL-13

A copy ofthis report has been filed as a pennanent 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,
/4_~
Claude L. Vickers State Auditor
CLV:gp 94ARL-13

LIBERTY COUNTY BOARD OF EDUCATION - 1-

LIBERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1994

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 16,027,461.23 $ 928,388.56 $ 6,862,986.96

306,507.08

304,008.91

672,537.06

61,216.54 14,482.82

$ 16,333,968.31 $ 1,308,096.83 $ 7,535,524.02

LIABILITIES AND FUND EQl,llTY
LIABILITIES
Accounts Payable Salaries Payable Expired Gren! Balances Payable Contracts Payable Retainages Payable Deferred Revenue General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Expired Gren! Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

80,961.65 $ 162,505.29

263,163.24

75,409.17

$

801,342.34

561,887.37

90,256.93

$

80 961.65 $ 591 334.63 $ 1,363,229.71

$

1,306.99

85,740.70

$

$

87,047.69 $

16 165 958.97

$ 16 253 006.66 $

61,216.54 14,482.82
$
75,699.36 $
641,062.84
716 762.20 $

444,064.36 444,064.36 5,728,229.95 6172 294.31

$ 16,333,968.31 $ 1,308,096.83 $ 7,535,524.02

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 Onl~l JUNE 30 1994 JUNE 30 1993

$

1,619.45

$ 23,820,456.20 $ 14,465,254.07

2,848.85

1,285,901.90

800,942.61

61,216.54 14,482.82

76,733.02 12,825.97

$

4,468.30

4,468.30

4,111.40

125 531.70

125,531.70

190,888.60

$

4,468.30 $

130 000.00 $ 25,312,057.46 $ 15,550,755.67

$

243,466.94 $

65,236.20

263,163.24

237,295.54

75,409.17

35,696.68

801,342.34

561,887.37

501,911.35

90,256.93

$

130 000.00

130,000.00

195 000.00

$

130 000.00 $ 2 165 525.99 $ 1,035,139.77

$

4,468.30

$

4,468.30

0.00

$

4 468.30

$

4 468.30 $

$

1,306.99 $

4,468.30

85,740.70

6,752.14 4,111.40 3,703.08

61,216.54 14,482.82 444 064.36

76,733.02 12,825.97 317 916.66

$

611,279.71 $

422,042.27

22 535 251.76 14 093 573.63

$ 23 146 531.47 $ 14,515,615.90

130,000.00 $ 25,312,057.46 $ 15,550t755.67

-3-

LlfRTY g)t INJ:Y BQARQ Of fplJCATlQN cqu91NfQ STAJFUfNT OF RfVENUES EXPfNpm IRfs AND CHANGES 1N Fl 1Np BAJ ANCES
GOVERNMENTAi AJNQ TYPES VEAR fNQEQ IUNF 30 1994

EXHIBIT"B"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS
(Memorandum OnM
YEAR ENDED
JUNE30 1994 JLJNE 30 1993

State Funds Federal Funds Local and other Funds
Total Revenues
EXPfNQITURES
cunent
Instruction support Services
Pupi Seniices lmproYement 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
FoodSeMce&Operation Other Operations of Non-Instructional
capital Outlay DeblSelvice
Principal lntere&t Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCE llJSESl
Operating Transfers In Operating Transfers out
Total Other Financing Sources ~)
Excess of Revenues and other Financing Sources over (under) Expenditures and Other Financing Uses
El IND BAI ANCE JULY 1
Food lmientory - Net Change in Period Donated Commodities Pun:hased Food

$ 25,204,982.71 $ 15,975,226.76 5 606 680.11

498,779.78 $ 3,484,631.17
751 538.66

4,220,180.70 172179.46 $

$ 46 786 889.58 $ 4 732 949.61 $ 4 392 360.16 $

$ 29,921,943.19 $ 23,879,082.30

19,459,857.93 10,166,621.02

74313.90

6 604 712.13

875451.91

74 313.90 $ 55 986 513.25 $ 39 721 155.23

$ 21,423,856.48 $ 1,627,441.52

$ 23,051,298.00 $ 20,297,640.53

1,174,207.57 569,320.05
1,104,920.29 623,463.38
2,477,727.88 100,041.13
4,976,862.08 1,839,774.71
151,747.71 32,121.00

70,248.51 112,369.69
149,305.93 5,792.59
10,122.80 73,097.32
84.38
2,593,785.12

1,244,456.08 681,689.74
1,104,920.29 772,769.31
2,483,520.47 100,041.13
4,986,984.88 1,912,872.03
151,832.09 32,121.00
2,593,785.12

969,894.27 484,365.95 847,407.24 604,354.98 2,305,232.52 116,043.34 3,038,842.87 1,582,158.80 158,256.58 13,755.35 2,373,751.81

220,450.56 183,904.00

$ 7,744,936.35

220,450.56 7,928,840.35

176,689.86 6,347,267.47

65,000.00 10,725.00
432.00

65,000.00 10,725.00
432.00

- 80,000.00 14,025.00 422.50

$ 34878396.84 $ 4642247.86 $ 7744936.35 $ - ~ 761= 57.~ 00 $ 47 341 738.05 $ 39 390 109.07

S 11 908 492.74 S

90701.75 $ -3352576.19 $ - ~-1 = 843.= 10 $ 8 644 775.20 $

331 046.16

$ -4 005 329.67 $ -4 005 329.67 $

3,129.67 $ 4,000,000.00 $

2,200.00 $ 4,005,329.67 $ 3,004,308.22

-4 005 329.67

-3 004 308.22

3129.67 $ 4000000.00 $ - ~2 = 200= .00 $

0.00 $

0.00

$ 7,903,163.07 $ 8,349,843.59

93,831.42 $ 647,423.81 $

636,790.41

5,524,870.50

-15,516.48 1 656.85

356.90 $. 8,644,775.20 $

331,046.16

4,111.40 14,515,615.90 14,179,859.59

-15,516.48 1 656.85

3,203.48 1 506.67

FUND RAI ANCE llJNf 30

$ 16 253 006.66 $ 716 762.20 $ 6 172 294.31 $

4 468.30 $ 23146 531.47 $ 14 515 615.90

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

LIBERTY COUNTY BOARD OE EDUCATION CQMB1NED STATEMENT OF REVENUES EXPENP'TlJRES ANP CHANGES IN FUND BALANCES
ACTUAL ANP BUDGET GOVERNMENTAi FUND TYPES YEAR ENPEP JUNE 30 1994

EXHIBIT"C'"

~
State Funds
Fedenll Funds
Local and Other Funds
Total Revenues
l;.llP~~QITUR~S
Current Instruction SupportPupilImprovement al Instructional Educational Media General Administration School Administration Business Administration Maintenance and Operation d Plant Student Transportation Central Support Other Support Food-Openltion Other Operations al Non-Instructional -
Capital Outlay Dol>t Service
Tolal Expenditurao
Excess of Revenues owr (under) Expenditures
Qil:tEB EINANQING SQURQE CU~El
Other Sou:es Other Uses
Total Other Financing Sourees (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing u...
FUND ~LANQE JULY l 1993
FQQQ l!!llE!!TQRY N~I ~HANG!,; N PERIQQ
Donated Commodities Purchased Food

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

29,921,943.19 $ 19,459,857.93 6,604,712.13
55,986,513.25 $

0.00 $ 29,921,943.19 $ 29,268,072.00 $

19,459,857.93

3,882,107.00

6,604,712.13

6,029,049.00

653,871.19 15,577,750.93
575,663.13

0.00 $ 55,986,513.25 $ 39,179,228.00 $ 16,807,285.25

$ 23,051,298.00 $
1,244,456.08 681,689.74
1,104,920.29 772,769.31
2,483,520.47 100,041.13
4,986,984.88 1,912,872.03
151,832.09 32,121.00 2,593,785.12 220,450.56 7,928,840.35 76,157.00
47,341,738.05 $
8,644,775.20 $

0.00 $ 23,051,298.00 $ 22,035,555.00 $ 1,015,743.00

1,244,456.08 681,689.74
1,104,920.29 772,769.31
2,483,520.47 100,041.13
4,986,984.88 1,912,872.03
151,832.09 32,121.00 2,593,785.12 220,450.56 7,928,840.35 76,157.00

1,189,256.00 616,501.00 918,063.00 601,114.00
2,415,973.00 114,615.00
3,701,134.00 1,874,998.00
69,463.00 54,386.00 2,168,923.00 179,790.00 10,605,000.00 76,267.00

-55,200.08 -65,188.74 186,857.29 171,655.31 ~.547.47 14,573.87 -1,285,850.88 -37,874.03 -82,369.09 22,265.00 -424,862.12 -40,660.56 2,676,159.65
110.00

0.00 $ 47,341,738.05 $ 46,621,038.00 $

720,700.05

0.00 $ 8,644,775.20 $ 7,441,810.00 $ 16,086,585.20

4,005,329.67 $ -4,005,329.67
0.00 $

0.00 $ 4,005,329.67 $ -4,005,329.67

0.00 $

0.00 $

0.00 $ 0.00 $

4,005,329.67 -4,005,329.67
0.00

8,644,775.20 $ 14,515,615.90

0.00 $ 8,644,775.20 $ 7,441,810.00 $ 16,086,585.20

-88,558.99 14,426,056.91 11,450,000.00

2,976,056.91

-15,516.48

15,516.48

0.00

0.00

1,656.85

1,656.85

0.00

0.00

EUNQ ~LANQE JUNE~ 1~

$ 23,146,531.47 $ -75,699.36 $ 23,070,832.11 $ 4,008,190.00 $ 19,062,642.11

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

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Liberty County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the acceptedstandard-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 Liberty County Board ofEducation.
Based upon the application of the above criteria, the Liberty County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Liberty County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set ofaccounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. 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-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

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

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
Liberty County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper
- 8-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authoriz.ed financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Liberty County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on October I I, 1993 (levy date). Taxes were due on January 12, 1994. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70. I03. The Liberty County Tax Commissioner bills and collects the property taxes for the Board ofEducation and remits the taxes collected to the Board.
Tax millage rates levied for the I993 tax year (calendar year) for the Liberty County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

- 9-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

School Operations School Bonds

13.90 mills ~mills

H...l.Q mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types ofinterfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Operating transfers are recorded for all interfund transactions other than reimbursements.

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 ofthis data.

- 10 -

LIBERTY COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

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

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

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

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

(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities

ofthe State of Georgia,

-

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $26,128,053.97. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.

- 11 -

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS

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

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

Risk Category

Bank Balance

$ 200,000.00

2

0.00

3

25 928 053.97

Total

$26 I 28 053 97

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

Note4: RISKMANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$15,141.80 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1, 1993

$ 195,000.00

Additions

0.00

Deletions Balance June 30, 1994

65 000.00 $ 130 OQQ OQ

- 12 -

LIBERTY COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

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

Fiscal Year Ended June 30
1995 1996 Total Principal and Interest
Note 6: SIGNIFICANT COMMITMENTS

General Obligation
Bonds
$ 72,150.00 68 575.00
$ 140 725 00

At June 30, 1994, the Board had encumbrances in the amount of$350,188.15 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with Lottery Programs. Lottery funds in the amount of $348,990.93 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Algebra Classrooms Computers in Classrooms Distant'Leaming Media Center and Library Equipment Safe Schools Grant

$

107.26

64,618.81

7,381.61

110,880.47

167 200.00

$ 350 188 JS

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

Project

Unearned Executed Contracts

94-689-053 Hinesville Elementary School Liberty County High School Site Expansion Midway Elementary School Fieldhouse

$ 1,890,307.03 4,454,183.29 30,025.10 82440.00

$ 6 456 955 42

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

- 13 -

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 8: DEFERRED COMPENSATION PLAN
The Board offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Board employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.
All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Board subject only to the claims of the Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant.
It is the opinion of the Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.
The Board has designated an independent plan administrator to operate and maintain the plan. The assets and liabilities of the plan are not reflected in these financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of

- 14 -

LIBERTY COUNTY BOARD OF EDUCATION

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS
creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distnbution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contnbutions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $20,567,998.14; total payroll was $23,566,839.86.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $3,663,170.87, ofwhich $2,429,084.13 was made by the Board and $1,234,086.74 was made by employees. These contributions represented I 1.81% (Board) and 6% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
Total unfunded pension benefit obligation ofTRS as of June 30, 1993, was as follows:

- 15 -

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 9: RETIREMENT PLANS

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ J 090 292 000 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $2,429,084.13 was actuarially determined and represented .4657% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half 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 256 employees covered under PSERS for the year ended June 30, 1994.

- 16 -

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 9: RETIREMENT PLANS
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contnbutions actuarially determined and approved and certified by the PSERS' Board ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $8,520.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 10: SURETY BONDS
Ms. Doris Thomson, School Superintendent through January 30, 1995, was bonded in the amount of $50,000.00 with the Hartford Insurance Company of the Southeast, Maitland, Florida, their Bond No. 20PEBLT7422.
The School Superintendent, Mr. Darryl Rabbitt, effective February 6, 1995, is bonded in the amount of $50,000.00 with the Hartford Insurance Company of the Southeast, Maitland, Florida, their Bond No. 20PEBLT7422, on which premium is paid to July 1, 1995.

- 17 -

LIBERTY COUNTY BOARP OF EQUCATION COMBINING BALANCE SHEET
SPECIAL RE\/ENUE FUND JUNE3Q 1994

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

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

ADULT EDUCATION

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

726,90022

15,049.03 $ 195,304.08 $

8,848.50

67,30325 $ 4,129.00

49,505.82

1TT.312.70

61216.54 14,482.82

Tolal Assets

$ 869,902.83 $ 4,129.00 $

15,049.03 $ 244,809.90 $

8,848.50 $

1TT,312.70

~Lmes ANQ EU~Q i;gurrv

~

Cash Overdraft Accounts Payable Salarie$ Payable Expired Grant Balanees Payable Deferred Revenue

28,493.47 124,647.16

Total Liabilities

$ 153,140.63 $

FUNDEOUITY

Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food

61216.54 14,482.82

Unreserved Undesignated

75,699.36 641,062.64 $

Total Fund Equity

716,762.20 $

4,129.00 $
4,129.00 $
0.00 $ 0.00 $

2,915.85 $ 94,974.04 $

12,133.18

59,578.93 90,256.93

15,049.03 $ 244,809.90 $

0.00 $ 0.00 $

0.00 $ 0.00 $

1,113.98 4,037.46 3,697.06

25,374.10 32,838.02 119,100.58

8,848.50 $

177,312.70

0.00 $

0.00

0.00 $

0.00

Total Liabilities and Fund Equity $ 869,902.83 $ 4,129.00 $

15,049.03 $ 244,809.90 $

8,848.50 $

1TT,312.70

See notes to the general purpose financial statements.

-18-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

STATE

CHAPTER2

PROGRAM BLOCK GRANT -

IMPROVEMENT FLOW THROUGH

mLEHEISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH

DISABILmES EDUCATION ACT

TITLEVl, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

STEWARTB. MCKINNEY HOMELESS
ASSISTANCE ACT mLEVl.B
EDUCATION FOR HOMELESS
CHILDREN AND YOUTH

TOTALS JUNE 30, 1994 JUNE 30, 1993

0.00 S

s 9,1n.s1

0.00 $

2,763.21

0.00 $ 958,037.95 $

659,750.84

5,611.85 $

14629

304,008.91

220,168.96

0.00 S

s s,1n.s1

0.00 S

8,375.06 $

146.29 S

61,216.54 14,462.82

76,733.02 12,825.97

0.00 S 1,337,746.22 $

969,478.79

579.49 8,593.42
9,1n.s1

1,590.44 6,784.62

146.29

8,375.06 $

146.29

29,649.39 162,50529 $ 263,163.24
75,409.17 90,256.93
620,984.02 $

59,696.16 237,295.54
35,696.68
332,688.38

0.00 $ 0.00 $
0.00 $

0.00 $ 0.00 $
s 9,1n.s1

0.00 $ 0.00 S

0.00 S 0.00 S

0.00 $ 0.00 $

0.00 $

8,375.06 S

146.29 $

61,216.54 $ 14,462.82

75,699.36 $

0.00

641,062.84

0.00 $ 716,762.20 $

76,733.02 12,825.97 89,558.99 547,231.42
636,790.41

0.00 $ 1,337,746.22 $

969,478.79

-19-

LIBERTY COUNTY BOARD OF EQUCATION COMBINING STATEMENT OF REVENUE; SXPENQITURES ANO CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND VEAR ENDEP JUNE; :30 1994

~
State Funds Federal Funds Local and Other Funds
Tola.I Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement al Instructional Services General Administration School Administration Maintenance and Operation d Piant Student Transportation Services Central Support Servioes Other Support Servioes Food Services Operation
Total Expenditures
Excess d Revenues over (under)
Expenditures
OTHER FINANCING SOUR!.!,
Operating Transfers In
Excess d Revenues and Other Financing Sourc,es over (under) Expenditures
EYNP BALANC~ JULY 1
Food Inventory- Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

ELEMENTARY

ADULT EDI.JCATION

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

189,042.00 $ 1,758,333.66
740,240.88

3,812.00 $ 21,188.00 11,297.78

148,345.82 $ 155,579.96 $

$ 2,687,616.54 $ 36,297.78 $ 148,345.82 $ 155,579.96 $

78,999.94 $ 1,278,716.11 78,999.94 $ 1,278716.11

28,805.40 $ 124,128.24 $ 152,on.99 $

9,561.44 888.37
1n2

1,621.n 2,638.97 3,407.82
10,543.02

2,3TT.84 538.25
590.88

$ 2,593,765.12 $ 2,593,765.12 $ 39,427.45 $ 148,345.82 $ 155,579.96 $

56,538.53 $ 1,091,965.78

8,420.47 11,864.00 2,176.94

13,929.29 102,115.09
4,Sn.65 9,531.92 56,217.00
84.38

78,999.94 $ 1,278,716.11

93,831.42 $ -3,129.67 $

0.00 $

0.00 $

0.00 $

0.00

3,129.67

93,831.42 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

636,790.41

0.00

0.00

0.00

0.00

0.00

-15,516.48 1,656.85

FUND BA~CE JUNE 30

$ 716,76220 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-20-

EXHIBIT"P

AND SECONDARY EDUCATION ACT

STATE

CHAPTER2

PROGRAM

BLOCK GRANT -

IMPROVEMENT FLOW THROUGH

TITLE 11EISENHOWER MATHEMATICS AND SCIENCE EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

STEWARTB. MCKINNEY HOMELESS ASSISTANCE ACT mLEVI.B EDUCATION FOR HOMELESS CHILDREN AND
YOUTH

TOTALS YEAR ENDED JUNE:lO, 1994 JUNE:lO, 1993

a,n9.97 $ s,n9.97 $

74,297.00 $

47,166.00 $ 190,165.85 $ 17,66129 $

74297.00 $

47,166.00 $ 190,165.85 $

17,661.29 $

9,323.35

496,779.78 $ 243,839.18

3,484,631.17 3,193,025.40

751,538.66

735,586.45

9,323.35 $ 4,732,949.61 $ 4,172,451.03

8,779.97 $

74,093.07 $
140.80 31.57 31.56

6,486.53 $
40,606.36 70.11

70,445.93 $
49,789.04 42,789.82 21,260.57

6,067.29 $ 1,020.84 10,573.16

5,880.49

8,779.97 $ 0.00 $

74,297.00 $

47,166.00 $ 190,165.85 $ 17,66129 $

0.00 $

0.00 $

0.00 $

0.00 $

8,057.79 $ 1,627,441.52 $ 1,339,270.59

1,012.55 253.01

70,248.51 112,369.69 149,305.93
5,792.59 10,122.80 73,007:32
84.38
2,593,785.12

73,588.01 73,799.00 98,190.40 4,538.12 6,590.10 24,911.61 _j5,385.00 13,755.35 2,373,751.81

9,323.35 $ 4,642,247.86 $ 4,023,780.08

0.00 $

90,701.75 $ 148,670.95

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

3,129.67

30822

0.00 $ 93,831.42 $ 148,979.17

0.00

636,790.41

483,101.09

-15,516.48 1,656.85

3,203.48 1,506.67

0.00 $ 716,762.20 $ 636,790.41

-21-

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

EXHIBIT"G"

Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 94-689-053

TOTALS JUNE 30 1994 JUNE 301 1993

$ 5,900,111.90 $

962,875.06 $ 6,862,986.96 $ 5,673,540.55

672,537.06

672,537.06

353 241.30

Total Assets

$ 5,900,111.90 $

1,635,412.12 $ 7 535,524.02 $ 6,026,781.85

LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities

154,722.52 $ 17,159.43
$ 171,881.95 $

646,619.82 $ 544,727.94

801,342.34 561,887.37 $

501 911.35

1 191,347.76 $ 1,363 229.71 $ 501 911.35

Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

444,064.36 $ 444,064.36 $ 317,916.66

$ 5 728 229.95 -----=o'--'.o~o 5 728 229.95 5 206 953.84

$ 5,728,229.95 $

444,064.36 $ 6,172,294.31 $ 5 524 870.50

Total Liabilities and Fund Equity

$ 5,900,111.90 $

1,635,412.12 $ 7,535,524.02 $ 6,026,781.85

See notes to the general purpose financial statements.

-22-

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

EXHIBIT "H"

REVENUES
State Funds Local and Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements
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

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 9~89-053

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30 1993

$

4,220,180.70 $ 4,220,180.70 $

353,241.30

$

172179.46

172179.46

258 951.73

$

172179.46 $

4220,180.70 $ 4,392,360.16 $

612,193.03

$

133,458.09

2,517,445.26 $

$ 2650 903.35 $

$ -2,478,723.89 $

$ 5 094 033.00

133,458.09 $ 7,611,478.26

511,472.46 5 835 795.01

5 094,033.00 $ 7 744 936.35 $ 6 347267.47

-873,852.30 $ -3,352,576.19 $ -5,735,074.44

3 000 000.00

1000000.00

4 000 000.00

3 000 000.00

$ 521,276.11 $ 5206 953.84

126,147.70 $

647,423.81 $ -2,735,074.44

317 916.66

5,524,870.50

8,259,944.94

FUND BALANCE JUNE 30

$ 5,728,229.95 $

444,064.36 $ 6,172,294.31 $ 5,524,870.50

See notes to the general purpose financial statements.

-23-

Ll6FRTY CO!Jt:iTY ~ABP OF El:UJ~IQN Qt:IEtn.n E QE FEC!EB.eil El~i!itjQl.eiL ~lfilANCf
YEAR l;NQl;D JUNf 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA ~

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 SeMCeS School Breakfast Program 1993 Grant 1994Grant National School Lunch Program ... 1993Grant 1994Grant Food Distribution Program (1)

10.553 10.553
10.555 10.555 10.550

317,450.92
1,236,464.89 204417.85

24,800.23 312,667.85 $
10,619.18 1,174,049.36
NIA

317,450.92
1,236,464.89 204 417.85

(2)
2,389,367.27 (4) 204417.85

Total U.S. Department of Agriculture

$ 1 758 333.66 $

1 522136.62

1 758333.66

2 593 785.12

Education, U.S. Department of Direct P. L. 81-874 1992 Grant 1993 Grant 1994 Grant Through Board of Public Education for the City of Savannah and the County of Chatham Adutt Education 1994 Grant Through Gateway Center for Human Development Drug-Free Schools and Communities Act 1994Grant Through Georgia Department of Education Drug-Free Schools and Communities Act 1983 Grant 1983 Cany-Over 1994 Grant Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Regular 1993Summer 1993 Cany-Over 1994 Regular 1994Summer State Program Improvement 1994Grant Chaple/ 2 Block Grant Fi-Through 1993 Regular 1993 Cany-Over 1994 Regular TOlell Eisenhower Mathematics and Science Education 1993 Regular 1994 Regular Individuals with Disabilities Education Act TOleVI, B Flow Through 1993 Regular 1993 Cany-Over 1994 Regular Preschool Program 1993 Regular 1994 Regular

84.041 84.041 84.041
84.002
84.186
84.186 84.186 84.186
84.010 84.010 84.010 84.010 84.010 84.218
84.151 84.151 84.151
84.164 84.164
84.027 84.027 84.027 84.173 84.173

7,508,389.84 $ 5,868,517.00 1,022,513.00

7,508,389.84 $ 5,868,517.00 1,022,513.00

7,508,389.84 5,868,517.00 1,022,513.00

21,188.00 7,857.47
3,775.00 78,922.00

17,059.00
8,369.66 3,TT5.00 78,922.00

21,188.00 7,857.47
3,TT5.00 75,224.94

166,840.00 1,094,669.00
119,999.00 14,000.00
3,658.00 70,639.00

149,506.61 108,363.41 166,840.00 826,200.00
8,TTS.97
8,601.53 3,658.00 70,639.00

108,363.41 166,840.00 1,003,512.70
8,779.97
3,658.00 70,639.00

36,193.00

10,973.00 36,193.00

10,973.00 36,193.00

17,554.00 202,120.00
23,859.00

17,191.75 17,554.00 167,000.00
1,080.00 17,515.00

17,554.00 172,611.85
17,661.29

(3) (3) (3)
39,427.45 (4)
(5)
3,TT5.00 75,224.94
108,363.41 166,840.00 1,003,512.70
8,779.97
3,658.00 70,639.00
10,973.00 36,193.00
17,554.00 172,611.85
17,661.29

24

LIBJ;RTY COUNTY BQARQ QF l;DUCATION
CHE;DUI.E OF Fl;Ql;RAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA ~

Education, U.S. Department of Through Geo,gia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant 1993 Grant 1994 Grant Consumer and Homemaking Education 1994Grant Stewart 8. McKinney Homeless Assistance Act TllleVl,B Education for Homeless Children and Youth 1993 Regular 1994 Regular Through Glynn County Board of Education Individuals with Disabiltties Education Ac1 TllleVl,B SeYerely Emotionally Disturbed 1994 Grant

84.048 84.048 84.049
84.196 84.196
84.027

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

68,184.84 638.'I0
9,997.00

23,801.77

35,293.35 $

68,184.84

(5)

638.40

638.40

(5)

-5,997.86 9,323.35

9,323.35 $

9,323.35

23112.09

13624.42

23112.09

177 785.29 (4)

Total U.S. Department of Education

16 362 625.64 $

16 194 324.20

16225,510.15 $ 1922322.25

Justice, U.S. Department of Through Office of the Governor Children and Youth Coordinating Council In-School Probation Officer 91J-05-9104-0015 92J-05-9204-0022

16.540 16.540 $

10000.00

2,015.68

6439,97 $

6439.97

(5)

Total U.S. Department of Justice
QTHE;R EEPERAL alTANQE
Defense, u. s. Department of
Through Department of the Anny Exceptional Children's Program 1994 G111nt R.O.T.C. Program 1994 Grant
Through Department of the Air Force Public Law 102-368 s mended, nd Section 386 of Public Law 102--184 1994 Grant

10000.00 $

8455.65 $

6439.97

$

829.65 $

829.65 $

829.65

(5)

20,837.50

20,837.50

20,837.50

(5)

1 447907.00

1 447907.00

1 447907.00

(5)

Total U. S. Department of Defense

1469574.15 $

1469574.15 $ 1469574.15

Total Feder I Financial Assistance

$ 19 600 533.45 $

19194 490.62 $ 19,459,857.93 $

Major Programs are kktntified by an asterisk (j in front of the CFDA number.

(1) The amounts shoYm 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 1994 National School Lunch Program.
(3) Funds earned on this program do not require reporting of expenditures. (4) Expenditures for this program include State, and/or Local and Other Funds.
Expenditures are not maintained by fund source. (5) Expenditures on this program Ylt'8re not maintained by fund source.

4516107.37

See notes to the general purpose financial statements.

- 25 -

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

SCHEDULE "2"

NONINTEREST BEARING ACCOUNT
The Coastal Bank, Hinesville, Georgia
INTEREST BEARING ACCOUNTS
The Hinesville Bank, Hinesville, Georgia
Certificates of Deposit No. 13088 (3.20%) No.13382 (3.30%) No. 13513 (3.61%)
N.O.W. Accounts (2.75%)

$

208.67

$ 2,000,000.00 2,000,000.00 1,500,000.00
18,320,247.53

23,820,247.53

$ 23,820,456.20

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

LIBERTY COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE30 1994

SCHEDULE"3"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

Board of Public Education for the City of Savannah and the County of Chatham Adult Education

$ 4,129.00

$

4,129.00

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Lottery Programs Distant Leaming Media Center and Library Equipment Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabil~ies Education Ad. TltleVl,B Flow Through Preschool Program

$ 32,891.49

4,783.07 62,415.53
2,492.94 47,012.88

177,312.70

5,611.85 146.29

4,783.07 62,415.53 32,891.49
2,492.94 47,012.88
177,312.70
5,611.85 146.29

Gateway Center for Human Development Drug-Free Schools and Commun- Ad.

7,857.47

7,857.47

Glynn County Board of Education Psychoeducational Program Severely Emotionally Disturbed

63,494.38 9,487.67

63,494.38 9,487.67

Georgia State Financing and Investment Commission Reimbursement on Construction Project

$ 672,537.06

672,537.06

Liberty County Tax Commissioner County Wide Bond Tax County Wide School Tax

192,776.07

$ 2,848.85

2,848.85 192,776.07

Various Sources NSF Checks Vendor Refund

63.00 41.65

63.00 41.65

$ 306,507.08 $ 304,008.91 $ 672,537.06 $ 2,848.85 $ 1,285,901.90

See notes to the general purpose financial statements.

- 27 -

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996

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

SCHEDULE "4"

TOTAL DEBT SERVICE

1968ISSUE

INTEREST

PRINCIPAL

$ 72,150.00 $ 68,575.00

7,150.00 $ 3,575.00

65,000.00 65,000.00

$ 140,725.00 $ 10,725.00 $ 130,000.00

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

$ 195,000.00 65,000.00
$ 130,000.00

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

FEB 1-AUG 1 FEB 1

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

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

SCHEDULE 5

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

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 Repiacement Limited English Speaking Special Instructional Assis1ance In-School Suspension Mid-term Adjustment Fiscal Year 1993 Fiscal Year 1994 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Innovative Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and Performance-Based Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms
Distant Leaming Media Center and Library Equipment Pre-Kindergarten Program

$ 14,099,151.00 1,628,754.00 471,698.00 619,965.00 215,907.00 4,411,966.00
764,435.00 229,151.00
5,294.00 228,886.00
86,917.00
4,533.00 911,565.00 -1,708,556.00 2,748,813.00
$ 261,245.74
2,600.00 24,240.00
3,000.00 11,790.31

189,042.00
148,345.82
4,467.50 55,946.76
2,492.94 47,012.88 45,659.88

$ 14,099,151.00 1,628,754.00 471,698.00 619,965.00 215,907.00 4,411,966.00
764,435.00 229,151.00
5,294.00 228,886.00 86,917.00
4,533.00 911,565.00 -1,708,556.00 2,748,813.00 189,042.00 261,245.74
2,600.00 24,240.00 148,345.82
3,000.00 11,790.31
4,467.50 55,946.76
2,492.94 47,012.88 45,659.88

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

$ 4,220,180.70

4,220,180.70

OTHER Board of Public Education for the City of Savannah and the County of Chatham
Adult Education

3,812.00

3,812.00

Glynn County Board of Education Psychoeducational Program

154,673.20

154,673.20

Human Resources, Georgia Department of Georgia Child Care Council Liberty County Board of Health

2,962.46 25992.00

2,962.46 25992.00

$ 25,204,982.71 $

See notes 1D the general purpose financial statements.

- 29 -

496 779.78 $ 4,220180.70 $ 29 921 943.19

LIBER1Y COUN1Y BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30 1994

SCHEDULE "6''

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

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

$ 5,027,959.26 7,246.88
24,007.92

$ 73,232.40 $ 73,232.40

5,027,959.26

104.27

7,351.15

345.44

24,353.36

Other Compensation for Loss of Assets Antitrust Milk Settlement Indirect Cost Special Revenue Fund Interest Earned Sales Lunches and Breakfast Tuition Other

12,726.07 $

3,787.59

26,864.04 457,118.02

16,482.55 $ 172,179.46

34,612.50 16,145.42

719,970.74 11,297.78

631.79

12,726.07 3,787.59
26,864.04 646,411.82
719,970.74 45,910.28 16,145.42

$ 5,606,680.11 $ 751,538.66 $ 172,179.46 $ 74,313.90 $ 6,604,712.13

See notes to the general purpose financial statements. - 30 -

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

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 21,490,971.86 $ 5,583,879.23 78,857.47 137,428.66 34,779.31 143,983.79 1,382,740.00 50,645.72 372,880.79 62,307.76
92,615.68 44,712.77 2,694,336.98 896,186.55
556,523.84 64,592.77
14,040.60

2,075,868.00 $ 505,946.40 21,144.61 66,398.43
7,407.27 41,546.90
2,962.00 15,693.88
5,714.54 343,325.32
56,217.00 1,265,639.12
4,198.28 13,525.00 26,864.04
8,831.23

23,566,839.86 6,089,825.63 100,002.08 203,827.09 34,779.31 151,391.06 1,424,286.90 50,645.72 372,880.79 65,269.76 15,693.88 92,615.68 50,427.31 3,037,662.30 952,403.55 1,265,639.12 560,722.12 78,117.77 26,864.04 22,871.83

183,904.00 993,009.06

180,965.84

183,904.00 1,173,974.90

Total Expenditures

$ 34,878,396.84 $ 4,642,247.86 $ 39,520,644.70

See notes to the general purpose financial statements. - 31 -

LIBERTY COUNTY BOARD OF l;QUCATIQN SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS
VEAR l;NQEQ JUNE 30 1994

SCHEDULE "8"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel Repairs and Maintenance Supplies
Nonoperating Costs Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

4,467.50 $

5,614.76

50332.00 S 2 492.94

5,534.80 24,591.08
16887.00

8,183.14 $ 1,369.11
7728
36,030.35

TOTAL
8,183.14 1,369.11
7728 5,534.80 70,703.69
69711.94

Total Expenditures

4,467.50 $

55,946.76 $

2.492.94 $

47,012.88 $

45,659.88 $ 155,579.96

See notes to the general purpose financial statements.

- 32 -

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 17,515,128.00 $

215,907.00

$ 19,874,893.90 1,531,393.09 $
$ 21,406,286.99 $

225,444.63 225,444.63

-476,144.92

$ 20,930,142.07 $

-91,575.25 133,869.38

$

0.00 $

82,037.62

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

LIBERlY CQlJN'TY RQARQ Of EQI..ICA,TION ANAi YIS OF MINIMUM fXPfNQITT IRf RfQUIRfUfNT - RY PROGRAM
GfNfRAI Fl INQ-QUAUlY BASIC EDUCATION PROGRAMS
XEARfNQEQ JlJNf;,Q 1W

GENERAL AND CARffR fQUCATION PROGRAM K;ndergarten (") Grades 1 - 3 (1 Sub-Total- K-3 Grades 4 - 5 (1 Grades 6 - 8 (1 Grades 9-12 (1 H;gh School Laboratones (1 Vocational Education Laboratories (i Total General and career Education Programs
SPFCIAL EDUCATION PROGRAMS Regular Programs catego,y I (") catego,y II (1 catego,y Ill (") C&lego,y IV (1 Itinerant Supplemental Speech Sub-Total - Regular catego,y V (Gilled) (1 TC:01 Special Education Programs
RfMfQIA\ fpt }CATION PROGRAM M
MEDIA CENTER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF Dl;VfLOPMfNT PROGRAMS (1) Cost rl Instruction Prole&&ic>nal Development
Total Slaff Development
M Identifies Thirteen Weighted Programs. Note: (1) $25,096.05 rl the allotment for Professional
Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.
See notes to the general purpose financial statements

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL ~

ORIGINAL

MID-TERM

REQUIRED

1,602,718.00 3 807,810.00 5,410,528.00 1,860,352.00 3,294,703.00 2,217,679.00
440,548.00 875 341.00 $ 14,099151.00

1,442,446.20

3,427 029.00 $

90 $ 4,869,475.20 $

90

1,674,316.80

90

2,965,232.70

90

1,995,911.10

90

396,493.20

90

787,806.90

$ 12,689,235.90 $

1,442,446.20

53422.00

3480451.00

53,422.00 $ 4,922,897.20

1,674,316.80

2,965,232.70

642,138.00

2,638,049.10

396,493.20

787 806.90

695 560.00 $ 13 384 795.90

1,474,352.00

1,326,916.80 $

0.00 $ 1,326,916.80

$ 1,474,352.00 90 $ 1,326,916.80 $

154 402.00 90

138 961.80

1 628 754.00

1,465,878.60 $

471 698.00 90 $

424 528.20 $

619,965.00 90

557 968.50

0.00 $
0.00 $ 0.00 $ 0.00

1,326,916.80 138 961.80
1 485878.60 424,528.20 557 968.50

$ 16,819,588.00

$ 15,137,611.20 $

695,560.00 $ 15,833,171.20

73,696.05 100 $ 142,210.95 100

73,696.05 $ 142,210.95

0.00 $

73,696.05 142,210.95

215,907.00

215,907.00 $

0.00 $

215,907.00

$ 17,035 475.00

$ 15,353,518.20 $

695,560.00 $ 16 049 078.20

- 34 -

SCHEDULE ''10''

REQUIRED ALLOTMENT

SALARIES ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDmJRE

FOR REQUIRED

ACTUAL

ALLOTMENT

1,402,183.80 $ 1,801,378.24

40,262.40 $

65,550.10

3 310,838.10

4430 894.92

169,612.90

224,071.50

$ 4,713,021.90 $ 6,232,273.16 $

0.00

209,875.30 $

289,621.60 $

0.00

1,617,797.70

2,312,458.00

0.00

56,519.10

86,533.95

0.00

2,868,299.10

3,481,417.22

0.00

96,933.60

135,525.48

0.00

2,541,180.30

3,008,722.87

0.00

96,868.80

302,397.06

0.00

377,325.00

418,511.59

0.00

19,168.20

38,927.25

0.00

676104.30

1123317.10

0.00

111,702.60

176,572.54

0.00

$ 12 793 728.30 $ 16 576 699.94 $

0.00

591,067.60 $ 1 029,577.88 $

0.00

39,112.20 $ 369,065.70 787,472.10
86,917.50 2,374.20 4 027.50

13,873.90 569,032.49 1,247,812.21
89,725.48

2,216.70 $ 8,735.40 23,706.00 3,289.50

1,507.24 10,162.34 36,626.46
2,252.25

1,288,969.20 $ 1,920,444.08 $

0.00

37,947.60 $

50,548.29 $

0.00

134 721.90

168054.19 $

0.00

4,239.90

4,841.38 $

0.00

1423691.10 $ 2 088 498.27

42187.50 $

55,389.67

416 538.90 $

549 480.62 $

0.00

7 989.30 $

10,530.69 $

0.00

421 573.50 $

660 215.07 $

0.00

136,395.00 $

435,894.85 $

0.00

$ 15,055,531.80 $ 19,874 893.90 $

0.00

777,639.40 $ 1,531,393.09 $

0.00

$ 15 055 531.80 $ 19 874,893.90 $

73,696.05 $ 142,210.95

165,271.30 $ 60 173.33

0.00 82,037.62

215,907.00 $

225,444.63 $

82 037.62

0.00

993,546.40 $ 1,756,837.72 $

82,037.62

- 35 -

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

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Barney H. Rocker, Chairman () 115 Harrison Drive Hinesville, Georgia 31313
Mrs. Devon D. Arnold () 325 Kuwe Trail Hinesville, Georgia 31313
Mrs. Ann F. Groover c)
P. 0. Box422 Hinesville, Georgia 31313
Mrs. Mattie M. Hicks (*) P. 0. Box66 Hinesville, Georgia 31313
Mr. Donald L. Lovette (*) P. 0. Box454 Allenhurst, Georgia 31301
Mr. Jack Shuman () 915 Mandarin Drive Hinesville, Georgia 31313
Dr. A Richard Webb (*) Route 2, Box 268-N Hinesville, Georgia 31313

COMPENSATION

TRAVEL

$

6,675.00 $

652.73

3,975.00

3,525.00

6.30

4,275.00

1,478.77

4,425.00

498.35

3,975.00

4,725.00

568.16

$

31,575.00 $

3,204.31

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

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

SECTION II COMPLIANCE

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

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

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

94CRL-10

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

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

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

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

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

94CRL-50

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

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

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

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

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

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

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

94CRL-80

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

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

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

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

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

( 1) Types of Services Allowed or Unallowed

(3) Applicable Special Tests and Provisions

(2) Eligibility

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

94CRL-120

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

SECTION III INTERNAL CONTROL

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

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

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Liberty 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 Liberty County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit ofthe general purpose financial statements of the Liberty County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Liberty County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estiniates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute,
94ICL-3

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.

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

(1) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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, reportable conditions were noted in the following control categories:

(1) Accounting Controls (Overall)

(2) General Fixed Assets

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

94ICL-3

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

CLV:gp 94ICL-3

Claude L. Vickers State Auditor

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

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

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Liberty 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 Liberty County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 12, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 12, 1995.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of 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 the general purpose financial statements are free of material misstatement and about whether the Liberty County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on
94ICL-8

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 ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated May 12, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

94ICL-8

During the year ended June 30, 1994, the Liberty County Board of Education expended 94% of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
(I) Cash Management
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation ofone or more of the Internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule ofFindings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness:
Administrative Requirements
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Liberty County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated May 12, 1995.
94ICL-8

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
t t ~ ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:gp 94ICL-8

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEARENDEDJUNE30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $3,703.08 Audit Control Number 6891-123-03
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$3,703.08 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 of $3,703.08 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Perform Annual Inventory Federal Financial Assistance Finding Resolved Audit Control Number 6891-93-05
The audit report for the year. ended June 30, 1993, stated that a review of the equipment records for the Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children Program (CFDA 84.010) found no evidence that a physical inventory of equipment had been taken. For the year under review, the Board implemented procedures to perform periodic physical inventory counts as required.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 6891-93-01
For the year ended June 30, 1993, our audit disclosed that the Board had not provided for adequate separation ofemployee duties in the performance of accounting functions and related procedures for all funds. During the year under review, our audit noted no improvement in adequate separation of employee duties. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "l" of this report are affected by this finding.

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6891-93-02
The audit report for the year ended June 30, 1993, noted that the management of the Liberty County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 6891-93-04
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in an accumulation of excessive cash balances. For the year under review, the management of the Liberty County Board of Education again failed to adequately forecast the cash needs of the program. During fiscal year 1994 the program had an average cash balance of$37,682.41 with excessive ending monthly cash balances in 6 months. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds by the Board.

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $82,037.62 Audit Control Number 6891-94-01
For the year under review, the Board reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $165,271.30 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board transferred more than 15 percent of its initial allotment offunds for Professional Development Stipends to StaffDevelopment - Cost oflnstruction Program resulting in an underexpenditure of$82,037.62 for the minimum required allotment of$142,210.95 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.
EMPLOYEE COMPENSATION Retroactive Salary Payments and Related Costs Financial Statements Nonmaterial Noncompliance Amount: $67,733.52 Audit Control Number 6891-94-02
Our audit disclosed that the Liberty County Board ofEducation Superintendent, Doris Thomson, authorized retroactive salary payments to twelve-month employees in the amount of$56,699.75 with additional related costs for fringe benefits in the amount of$11,033.77. Retroactive salary increases are a violation of Article III, Section VI, Paragraph VI of the Constitution of the State of Georgia which provides, in part, as follows:
"...the General Assembly shall not grant or authorize extra compensation to any public officer, agent, or contractor after the service has been rendered or the contract entered into".
Georgia Department ofEducation policies and procedures recognize multiple acceptable.methodologies for calculating annual salaries of extended year personnel. The Board had the option of adopting one methodology as long as the adopted method was applied on a consistent basis. The improper payments above were the result ofthe Superintendent retroactively applying a different methodology of calculating salaries of extended year personnel for selected employees than had been used by the Board during prior years.

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EMPLOYEE COMPENSATION Retroactive Salary Payments and Related Costs Financial Statements Nonmaterial Noncompliance Amount: $67,733.52 Audit Control Number 6891-94-02
It should be noted that the Georgia Department ofEducation is currently preparing a recommendation to the State Board ofEducation prescribing a single method for calculating the salary for extended year personnel.
The Board should take appropriate action to secure reimbursement of$67,733.52 from the individuals and appropriate agencies involved for deposit to the Board's General Fund.
DRUG-FREE WORKPLACE ACT Failure to Include Required Provision in Drug-Free Workplace Policy Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6891-94-03
According to provisions ofP.L. 100-690, all grantees that have been approved or awarded a direct Federal grant, are required to certify that a drug-free workplace is maintained. Such certification is a precondition of receiving a direct Federal grant. A provision of certifying a drug-free workplace is to establish a drug-free workplace policy which contains the following requirements:
(I) Statement notifying employees that the manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition.
(2) Notifying the employee in the statement that a condition of employment under the grant the employee will:
(a) Abide by the terms of the statement.
(b) Notify the employer in writing of any criminal drug statute conviction for a violation occurring in the workplace no later than five calendar days after such conviction.
The Board was awarded a grant from the U. S. Department of Education during the year under review in support ofthe Impact Aid Program (CFDA 84.041). The Board submitted a drug-free certification; however, the Board's drug-free workplace policy did not contain the requirement that employees notify the employer in writing ofany criminal drug statute conviction for a violation occurring in the workplace no later than five calendar days after such conviction. This deficiency was a result of management's failure to include all

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
DRUG-FREE WORKPLACE ACT Failure to Include Required Provision in Drug-Free Workplace Policy Federal Financial Assistance Norunaterial Noncompliance Audit Control Number 6891-94-03
requirements when the drug-free workplace policy was amended by the Board. The Board should amend its drug-free workplace policy to ensure that all compliance requirements are included within the policy.
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6891-94-04
The Board failed to submit a corrective action plan for the 1993 audit report as required by 0MB Circular A-128 to the Georgia Department ofEducation from whom the Board received Federal funds. Management stated that it did not receive a request for a corrective action plan. The Board should implement procedures to submit corrective action plans in a timely manner as required.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $3,703.08 Audit Control Number 6891-93-03
This finding resulted from incorrect information received from the Georgia Department of Education. The finding will be resolved through an increase in Board's local fair share portion of QBE allotments.
AUDIT FOLLOW-UP/RESOLUTION Failure to Perform Annual Inventory Federal Financial Assistance Finding Resolved Audit Control Number 6891-93-05
We concur with the finding. The Board will continue procedures implemented to perform periodic physical inventory counts as required.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6891-93-01
Due to current staffing limitations and budget constraints, the Board is working toward the goal of resolving this finding. The Board feels that duties have been assigned to optimize efficiency and separation to the degree possible within the staffing limitations.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6891-93-02
The Board has decided not to pursue the recording of general fixed assets on the financial statement at this time due to prohibitive costs.

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 6891-93-04
Accounting procedures are being implemented to resolve this finding.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $82,037.62 Audit Control Number 6891-94-01
Reliance was placed on incorrect information received from the Georgia Department of Education which resulted in an underexpenditure of Professional Development Stipends. This finding will be resolved by Georgia Department ofEducation through a future increase in local fair share.
EMPLOYEE COMPENSATION Retroactive Salary Payments and Related Costs Financial Statements Nonmaterial Noncompliance Amount: $67,733.52 Audit Control Number 6891-94-02
This finding has been referred to Board's attorney for resolution.
DRUG-FREE WORKPLACE ACT Failure to Include Required Provision in Drug-Free Workplace Policy Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 6891-94-03
The Board has adopted drug-free workplace policy to include compliance requirements within the policy.

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan Federal Financial Assistance Nonrnaterial Noncompliance Audit Control Number 6891-94-04
The Board did not receive a request for corrective action plan. Procedures are being implemented to insure timely answers are filed.