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AUDIT REPORT LffiERTY COUNTY BOARD OF EDUCATION 
lllNESVILLE, GEORGIA YEAR ENDED JUNE 30, 1996 
 
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WASH I NGTON STREET 
ATLANTA, GEORGIA 30334-8400 
 
 LffiERTYCOUNTYBOARDOFEDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
EXlllBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
3 
 
C 
 
STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
5 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
6 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
20 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
22 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
24 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
25 
 
SCHEDULES 
 
1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
26 
 
2 CASH AND CASH EQUIVALENTS 
 
28 
 
3 ACCOUNTS RECEIVABLE 
 
29 
 
SCHEDULE OF REVENUE 
 
4 
 
STATE 
 
31 
 
5 
 
TAXES AND OTHER 
 
32 
 
SCHEDULE OF EXPENDITURES BY OBJECT 
 
6 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
33 
 
7 
 
LOTTERY PROGRAMS 
 
34 
 
 LffiERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
8 
 
OVERALL 
 
37 
 
9 
 
BY PROGRAM 
 
38 
 
10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
 
40 
 
SECTION II 
COMPLIANCE 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
 
SECTION ill 
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 
 
 SECTION I FINANCIAL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
August 18, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members ofthe Liberty County Board of Education 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
Ladies and Gentlemen: 
We have audited the general purpose fmancial statements (Exhibits A through D) ofthe Liberty County Board of Education, as of and for the year ended June 30, 1996, 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 ofManagement and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB 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 fmancial 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, 1996, 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: 
96ARL-13 
 
 * The general purpose fmancial 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 fmancial 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 fmancial statements. 
* The Board did not recognize as expenditures, in the year ended June 30, 1996, a portion of salaries 
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department of Education for the State's share ofthese 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 30,1995, were improperly recorded in the year ended June 30, 1996. 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 fmancial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects of such 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 pu.1'ose financial statements present fairly, in all material respects, the financial position of the Liberty County Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted 
accounting principles. In accordance with Government Auditing Standards, we have also issued a report 
dated August 18, 1997, on our consideration of the Board's internal control structure and a report dated August 18, 1997, on its compliance with laws and regulations. 
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Liberty County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements of the Liberty County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the 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 ofthe 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. 
96ARL-13 
 
 A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully .submitted, 
~ 
Claude L. Vickers State Auditor 
CLV:dt 96ARL-13 
 
 LIBERTY COUNTY BOARD OF EDUCATION - 1- 
 
 LIBERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1996 
 
EXHIBIT "A" 
 
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 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30,1995 
 
$ 4,030,764.38 $ 179,801.32 $ 675,271.74 $ 41,141.79 $ 4,926,979.23 $ 15,5n,460.02 
 
231,648.76 
 
639,334.70 
 
223,456.70 
 
1,579.79 
 
1,096,019.95 
 
2,408,528.89 
 
109,639,12 17,261.58 
 
109,639.12 17,261.58 
 
85,228.55 17,789.42 21,513.11 
43,486.89 
 
Total Assets 
 
$ 4,262.413.14 $ 946,036.72 $ 898?28.44 $ 42,721.58 $ 6,149,899.88 $ 18,154,006.88 
 
LIABILITIES AND FUND EqUITY 
LIABILITIES 
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue General Obligation Bonds Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Debt Service For Expired Grant Balances! Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects 
Unreserved Undesignated 
Total Fund Equity 
 
$ 
 
3,705.60 $ 
 
7,056.04 
 
$ 
 
10,761.64 $ 
 
$ 
 
28,754.00 
 
82,037.62 $ 
 
$ 110,791.62 $ 4,140,859.88 
$ 4,251,651.50 $ 
 
125,460.59 371,597.37 
9,191.31 $ 
 
28,549.67 292,926.92 
 
506,249.27 $ 321,476.59 
 
109,639.12 17,261.58 $ 
 
577.251.85 
 
126,900.70 $ 577,251.85 
 
312,886.75 
 
0.00 $ 
 
439,787.45 $ 577,251.85 $ 
 
$ 
 
129,166.19 $ 
 
172,996.61 
 
371,597.37 
 
310,458.99 
 
16,247.35 
 
13,798.69 
 
28,549.67 
 
26,865.87 
 
292,926.92 
 
6,720.23 
 
65,000.00 
 
$ 
 
838,487.50 $ 
 
595,840.39 
 
$ 
 
28,754.00 
 
$ 
 
82,037.62 
 
996.34 21,513.11 
85,740.70 
 
109,639.12 17,261,58 
577,251.85 
 
85,228.55 17,789.42 1,196,085.28 
 
$ 
 
814,944.17 $ 1.407,353.40 
 
42,721.58 
 
4.496.468.21 
 
16,150,813.09 
 
42,721.58 $ 5,311.412.38 $ 17,558,166.49 
 
Total Liabilities and Fund EqUity $ 4,262.413.14 $ 946,036.72 $ 898?28.44 $ 42,721.58 $ 6,149,899.88 $ 18,154,006.88 
 
The notes to the general purpose financial statements are an integral part of this statement. -2 
 
 The notes to the general purpose financial statements are an integral part of this statement. -3- 
 
 THIS PAGE LEFT BLANK 
 
 LIBERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30.1996 
 
EXHIBIT"C" 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
REVENUES 
 
State Funds Federal Funds Taxes and Other Funds 
 
$ 29,038,852.00 $ 30,510,168.55 
 
1,129,850.00 
 
781,188.16 
 
5,622,686.00 
 
7,027,312.20 
 
Total Revenues 
 
$ 35,791,388.00 $ 38,318,668.91 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services 
Capital Outlay 
 
$ 28,119,544.00 $ 29,179,051.95 
 
1,578,601.00 879,846.00 
1,072,481.00 511,716.00 
3,191,639.00 137,432.00 
5,610,164.00 1,962,023.00 
348,597.00 35,310.00 
 
1,616,982.89 920,237.89 
1,506,013.78 584,384.62 
3,375,708.73 121,195.47 
4,747,840.91 2,049,046.40 
330,574.35 36,370.26 
 
232,050.00 124,000.00 
 
234,819.49 
 
Total Expenditures 
 
$ 43,803,403.00 $ 44,702,226.74 
 
Excess of Revenues over (under) Expenditures 
 
$ -8,012,015.00 $ -6,383,557.83 
 
OTHER FINANCING SOURCES (USES) 
 
Other Sources Other Uses 
 
$ -3,287,000.00 $ -4,574,965.40 
 
Total Other Financing Sources (Uses) 
 
$ -3,287,000.00 $ -4,574,965.40 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -11,299,015.00 $ -10,958,523.23 
 
FUND BALANCE JULY 1, 1995 
 
14,919,881.62 15,210,174.73 
 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 381,798.00 $ 1,756,142.60 
 
3,603,252.00 4,257,351.36 
 
765,623.00 
 
870,069.35 
 
$ 4,750,673.00 $ 6,883,563.31 
 
$ 1,456,173.00 $ 2,999,147.22 
 
110,648.00 65,182.00 
 
160,717.46 110,737.42 
 
184,514.00 
 
175,746.12 12,677.53 
 
6,000.00 
 
29,970.87 10,950.00 
 
100,000.00 3,251,915.00 
 
130,882.12 3,403,068.01 
 
753.55 
 
$ 5,174,432.00 $ 7,034,650.30 
 
$ -423,759.00 $ -151,086.99 
 
$ 
 
0.00 $ 
 
14,796.00 
 
$ 
 
0.00 $ 
 
14,796.00 
 
$ -423,759.00 $ -136,290.99 
 
752,880.97 
 
552,195.71 
 
24,410.57 -527.84 
 
FUND BALANCE JUNE 30,1996 
 
$ 3,620,866.62 $ 4,251,651.50 
 
$ 329,121.97 $ 439,787.45 
 
The notes to the general purpose financial statements are an integral part of this statement. - 5- 
 
 LffiERTY COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
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 d school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. 
The more significant ofthe Board's accounting policies are described below. 
REPORTING ENTITY 
In evaluating how to defme the governmental unit for financial reporting purposes, management has 
considered the criteria set forth in GASB Codification ofGovernmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity ofthe Liberty County Board of Education. 
Based upon the application of the above criteria, the Liberty County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in 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 to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. 
A fund is a separate accounting entity with a self-balancing set of accounts. 
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 
 
JUNE 3D. 1996 
 
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, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all fmancial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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. 
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 of resources for, and the payment of, general long-term principal, interest and paying agent fees. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
 
-7- 
 
 LffiERTY COUNTY BOARD OF EDUCATION 
 
EXlDBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be detennined 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 ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. 
Expenditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1996, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30,1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. 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 
The Liberty County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
-8- 
 
 LffiERTY COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
CASH AND CASH EQUIVALENTS 
 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State. 
 
RECEIVABLES 
 
Receivables consist of grant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are re~orded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose fmancial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Liberty County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on September 11, 1995 (levy date). Taxes were due on December 20, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.103. The Liberty County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board. 
 
Tax millage rates levied for the 1995 tax year (calendar year) for the Liberty County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations School Bonds 
 
13.90 mills ----1Q mills 
 
14.10 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 (first-in, first-out). 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 
 
- 9- 
 
 LffiERTY COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1996 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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. 
INTERFUND TRANSACTIONS 
The Board has the following types of interfund transactions: 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the 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 anyone of or any combination of the following: 
(l) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
- 10- 
 
 LffiERTY COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 2: DEPOSITS 
 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia, 
 
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $8,407,063.26. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1996, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 100,000.00 
 
2 
 
7,853,448.34 
 
3 
 
453,614.92 
 
Total 
 
$ 8.407,063.26 
 
- 11 - 
 
 LmERTY COUNTY BOARD OF EDUCATION 
 
EXlllBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
Note 4: RISK MANAGEMENT 
 
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. 
 
The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. 
 
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. 
 
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
1995 1996 
 
Beginning ofYear Liability 
 
Claims and Changes in Estimates 
 
$ 
 
0.00 $ 
 
10,211.00 $ 
 
$ 
 
0.00 $ 
 
8,066.00 $ 
 
Claims Paid 
 
End ofYear Liability 
 
10,211.00 $ 
 
0.00 
 
8,066.00 $ 
 
0.00 
 
The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Continental Insurance Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $1,000,000.00. 
 
Note 5: GENERAL LONG-TERM DEBT 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows: 
 
- 12 - 
 
 LmERTY COUNTY BOARD OF EDUCATION 
 
EXlllBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1996 
 
Note 5: GENERAL LONG-TERM DEBT 
 
General Obligation 
Bonds 
 
Balance July 1, 1995 
 
$ 65,000.00 
 
Deductions Payments 
Balance June 30, 1996 
 
65.000.00 
$,==~o~.o~o 
 
Note 6: ON-BEHALF PAYMENTS 
 
The Board has recognized revenues and expenditures in the amount of $630,107.64 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. 
 
Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$513,118.18 
 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$12,955.46 
 
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $104,034.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996. 
 
- 13- 
 
 LffiERTY COUNTY BOARD OF EDUCATION 
 
EXlllBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
Project 96/95S-689-051 
 
Unearned Executed Contracts 
$ 383.306.69 
 
The amount described in this note is not reflected in the general purpose fmancial statements. 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall fmancial position. 
 
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. 
 
Nore9: SUBSEQUENT EVENTS 
 
On March 18, 1997, the voters of Liberty County voted in favor of a Special Purpose Local Option Sales Tax referendum for education purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot of Liberty County, is as follows: 
 
"Shall a one percent sales and use tax be imposed in the Liberty County School District for a period of time not to exceed twenty consecutive calendar quarters and for the raising of not more than $24,000,000 for the acquisition, construction, and equipping ofthe following capital outlay projects: 
 
(a) Modify and upgrade the heating and air conditioning system at Bradwell Institute at a total cost of approximately $1,300,000.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of$I,300,000. 
(b) Construction of a new elementary school costing approximately $6,817,440.00 with special local option sales tax collections to be applied as partial payment in an amount not to exceed the sum of $5,486,055.00 and the balance to be paid from State of Georgia Capital Outlay and local funds. 
(c) Construction of a new middle school costing approximately $11,275,678.00 with special local option sales tax collections to be applied as partial payment in an amount not to exceed the sum of $4,775,678.00 and the balance to be paid from State of Georgia Capital Outlay and local funds. 
 
- 14- 
 
 LIBERTY COUNTY BOARD OF EDUCAnON 
 
EXHIBIT liD" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1996 
 
Note 9: SUBSEQUENT EVENTS 
(d) Construction of a ROTC classroom building at Bradwell Institute at a total cost of approximately $390,000.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of $390,000.00. 
(e) Technology network, wiring, retrofitting, at Button Gwinnett, Lyman Hall, Joseph B. Martin, Jordye Bacon, Frank Long, Snellson-Golden, Liberty County High School, and Bradwell Institute schools at a total cost ofapproximately $865,735.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of$865,735. 
(f) Paving at Bradwell Institute at a total cost of approximately $390,000.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of $390,000. 
(g) Construction of an addition at Liberty County High School at a total cost of approximately $952,380.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of $952,380. 
(h) Construction of storage buildings at Taylor's Creek, Frank Long, Snellson-Golden, and Lewis Frasier schools at a total cost of approximately $442,000.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of $442,000. 
(i) Renovation of Button Gwinnett, Lyman Hall, Jordye Bacon, and Bradwell Institute schools at a total cost of approximately $4,290,000.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of $4,290,000. 
G) Modification of Jordye Bacon and Bradwell Institute schools at a total cost of approximately $754,000.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of $754,000. 
(k) Reroofing at Button Gwinnett, Lyman Hall, Jordye Bacon, and Bradwell Institute schools at a total cost of approximately $2,059,954.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of$2,059,954. 
(1) Art rooms at Button Gwinnett and Joseph B. Martin schools at a total cost of approximately $156,000.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of$156,000. 
(m) Construction of a music room at Button Gwinnett school at a total cost of approximately $78,000.00 with special local option sales tax collections to be applied as payment in an amount not to exceed the sum of $78,000? 
If imposition of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of the Liberty County School District in the principal amount of $18,280,000 for the above capital outlay purposes." 
Note 10: 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 
- 15 - 
 
 LIBERTY COUNTY BOARD OF EDUCAnON 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 10: DEFERRED COMPENSAnON PLAN 
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 of compensation 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 11: RETIREMENT PLANS 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). 
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution 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. 
- 16- 
 
 LIBERTY COUNTY BOARD OF EDUCAnON 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 11: RETIREMENT PLANS 
 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. 
 
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $28,091,757.67; total payroll was $31,804,265.40. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%. 
 
Total contributions made during fiscal year 1996 amounted to $4,722,235.63, of which $3,317,636.60 was made by the Board and $1,404,599.03 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll. 
 
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the 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, 1995, was as follows: 
 
Total pension benefit obligation 
 
$17,442,607,000.00 
 
Net assets available for benefits, at cost 
 
15,857,066,000.00 
 
Unfunded pension benefit obligation 
 
$ 1.585,541.000.00 
 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. 
 
- 17 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1996 
 
Note 11: RETIREMENT PLANS 
Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $3,317,636.60 was actuarially determined and represented .5463% of total contributions made by all participating employers. 
Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. 
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) 
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System ofGeorgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute. 
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution 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. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. 
Members become fully vested after ten years of service. 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 267 employees covered under PSERS for the year ended June 30, 1996. 
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees of the Board made during fiscal year 1996 amounted to $9,212.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30,1996, was $9,817,769.80. 
- 18 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1996 
 
Note 12: SURETY BONDS 
The School Superintendent, Dr, Don O'Neil, 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, 1997. 
 
- 19- 
 
 LIBERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1996 
 
Cash and Cash Equivalents Accounts Receivable Inventories 
Food Donated Commodities Purchased Food 
Total Assets 
 
SCHOOL FOOD 
SERVICES FUND 
 
FAMILY CONNECTION 
FUND 
 
LOTTERY PROGRAMS 
 
STATE PRESCHOOL HANDICAPPED 
PROGRAM 
 
ELEMENTARY TITLE I 
GRANTS TO LOCAL 
EDUCATIONAL AGENCIES 
 
$ 494,315.74 $ 3,466.16 
 
$ 
 
1,118.46 
 
47,875,11 
 
$ 86,966.06 
 
$ 265,365,25 
 
109,639.12 17,261.58 
 
$ 669,091.55 $ 3,466.16 $ 86,966.06 $ 
 
1,118.46 $ 265,365.25 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Program For Inventories Food Donated Commodities Purchased Food 
Unreserved Undesignated 
Total Fund EqUity 
 
$ 68,369.30 160,934.80 $ 
 
$ 3,466.16 
 
2,990.52 18,062.88 65,534.17 
378.49 $ 
 
$ 229,304.10 $ 3,466.16 $ 86.966.06 $ 
 
$ 1,118.46 
 
109,117.59 32,938.70 123,130.45 
178.51 
 
1,118.46 $ 265.365.25 
 
$ 109,639.12 17,261.58 
 
$ 126.900.70 
 
312,886.75 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
$ 439,787.45 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
Total Liabilities and Fund EqUity 
 
$ 669.091.55 $ 3,466.16 $ 86.966.06 $ 
 
1.118.46 $ 265.365.25 
 
See notes to the general purpose financial statements. 
 
- 20- 
 
 EXHIBIT"E" 
 
AND SECONDARY EDUCATION ACT 
 
TITLE VI 
 
TITLE II 
 
INNOVATIVE 
 
EISENHOWER 
 
EDUCATION 
 
PROFESSIONAL 
 
PROGRAM 
 
DEVELOPMENT STRATEGIES 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
PARTB 
 
SPECIAL EDUCATION 
 
FLOW 
 
THROUGH 
 
PRESCHOOL 
 
SAFE AND DRUG-FREE SCHOOLS 
 
VOCATIONAL 
 
EDUCATION 
 
TOTALS 
 
FEDERAL JUNE 30, 1996 JUNE 30,1995 
 
$ 498,900.36 $ 525,037.90 
 
$ 
 
774.77 $ 
 
16,247.49 $ 22,733.34 $ 
 
5,173.89 $ 
 
9,531.87 $ 184,666.92 
 
639,334.70 
 
724,989.04 
 
109,639.12 17,261.58 
 
85,228.55 17,789.42 
 
$ 
 
774.77 $ 
 
16,247.49 $ 22,733.34 $ 
 
5,173.89 $ 
 
9,531.87 $ 184,666.92 $ 1,265,135.76 $ 1,353,044.91 
 
$ 
 
774.77 $ 
 
3,872.80 $ 7,390.09 $ 
 
754.48 $ 
 
9,531.87 $ 184,666.92 $ 319,099.04 $ 392,105.32 
 
1,802.61 
 
3,079.43 
 
1,207.67 
 
125,460.59 
 
77,765.97 
 
6,574.56 
 
12,220.89 
 
3,202.50 
 
371,597.37 
 
310,458.99 
 
3,997.52 
 
42.93 
 
9.24 
 
9,191.31 
 
13,798.69 
 
6,720.23 
 
$ 
 
774.77 $ 
 
16,247.49 $ 22,733.34 $ 
 
5,173.89 $ 
 
9,531.87 $ 184,666.92 $ 825,348.31 $ 800,849.20 
 
$ -------""-0.=00- $ $ -------""-0= .00- $ 
 
0.00 $ 0.00 $ 
 
0.00 $ 0.00 $ 
 
$ 
 
774.77 $ 
 
16,247.49 $ 22,733.34 $ 
 
0.00 $ 0.00 $ 
 
0.00 $ 0.00 $ 
 
$ 
 
996.34 
 
$ 
$ 0.00 0.00 $ 
 
109,639.12 17,261.58 
126,900.70 $ 312,886.75 439,787.45 $ 
 
85,228.55 17,789.42 
104,014.31 448,181.40 552,195.71 
 
5,173.89 $ 
 
9,531.87 $ 184,666.92 $ 1,265,135.76 $ 1,353,044.91 
 
- 21 - 
 
 See notes to the general purpose financial statements. 
 
- 22- 
 
 EXHIBIT "F" 
 
AND SECONDARY EDUCATION ACT 
 
TITLE VI 
 
TITLE II 
 
INNOVATIVE 
 
EISENHOWER 
 
EDUCATION 
 
PROFESSIONAL 
 
PROGRAM 
 
DEVELOPMENT STRATEGIES 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
PARTB 
 
SPECIAL EDUCATION 
 
FLOW 
 
THROUGH 
 
PRESCHOOL 
 
SAFE AND DRUG-FREE SCHOOLS 
 
VOCATIONAL EDUCATION 
FEDERAL 
 
TOTALS YEAR ENDED JUNE 30. 1996 JUNE 30.1995 
 
$ 1,756,142~60 $ 1,280,483.70 
 
$ 
 
11,939.54 $ 124,190.07 $ 206,314.96 $ 
 
19,681.84 $ 41,911.06 $ 184,666.92 4,257,351.36 3,816,374.32 
 
870,069.35 
 
784,846.99 
 
$ 
 
11,939.54 $ 124,190.07 $ 206,314.96 $ 
 
19,681.84 $ 41,911.06 $ 184,666.92 $ 6.883,563.31 $ 5,881,705.01 
 
$ 
 
35.00 $ 
 
67,474.49 $ 81,165.43 $ 
 
19,177.13 $ 37,219.85 $ 171,494.89 $ 2,999,147.22 $ 2,242.199.29 
 
12,857.84 43.04 
 
5,537.24 38,692.80 
12,485.54 
 
64.564.43 7,663.47 
52,921.63 
 
150.00 354.71 
 
4.691.21 
 
12,916.80 255.23 
 
160,717.46 110,737.42 
175,746.12 12,677.53 29,970.87 10,950.00 
130,882.12 3.403,068.01 
753.55 
 
86,958.23 86,281.27 4,951.39 159,990.41 
5,128.58 231,800.12 
98,684.84 12,346.39 3.149,551.98 
 
$ 
 
12,935.88 $ 124.190.07 $ 206.314.96 $ 
 
19.681.84 $ 41,911.06 $ 184,666.92 $ 7,034.650.30 $ 6.077,892.50 
 
$ 
 
-996.34 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ -151,086.99 $ -196,187.49 
 
$ 
 
-996.34 $ 
 
996.34 
 
0.00 $ 0.00 
 
0.00 $ 0.00 
 
0.00 $ 0.00 
 
0.00 $ 0.00 
 
14.796.00 
 
4,302.39 
 
0.00 $ 0.00 
 
-136,290.99 $ -191,885.10 
 
552.195.71 
 
716,762.20 
 
24,410.57 -527.84 
 
24,012.01 3,306.60 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 439,787.45 $ 552.195.71 
 
- 23- 
 
 ASSETS Cash and Cash Equivalents Accounts Receivable 
Total Assets 
 
LIBERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1996 
 
EXHIBIT"G" 
 
REGULAR 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
PROJECT 94-689-053 
 
LOTIERY PROJECT 96/9550689-051 
 
TOTALS JUNE 30,1996 JUNE 30,1995 
 
$ 28,549.67 $ 
 
403,553.93 $ 
 
243,168.14 $ 675,271.74 $ 578,197.66 
 
223,456.70 
 
223,456.70 
 
1,235,006.56 
 
$ 28,549.67 $ 
 
403,553.93 $ 
 
466,624.84 $ 898,728.44 $ 1,813,204.22 
 
Total Liabilities and Fund Equity $ 28,549.67 $ 
 
403,553.93 $ 
 
466,624.84 $ 898,728.44 $ 1,813,204.22 
 
See notes to the general purpose financial statements. 
 
-24- 
 
 LIBERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30,1996 
 
EXHIBIT"H" 
 
FUND BALANCE JUNE 30 
 
$ 
 
0.00 $ 
 
403,553,93 $ 173,697,92 $ 577,251,85 $ 1,774,282.94 
 
See notes to the general purpose financial statements. 
 
- 25- 
 
 LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
YEAR ENDED JUNE 30. 1996 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1996 Contract Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1) 
Total U. S. Department of Agriculture 
Education, U. S. Department of Direct 
P. L. 81-874 
1994 Grant 1996 Grant Through Georgia Department of Education Elementary and Secondary Education Act Title I 
Grants to Local Educational Agencies 1996 Grant 
Title II Eisenhower Professional Development 1995 Regular 1996 Grant 
Title VI Innovative Education Program Strategies 1996 Grant 
Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant 
Safe and Drug-Free Schools 1996 Grant 
Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Consumer and Homemaking Education 1996 Contract Tech-Prep Education 1996 Grant 
Total U. S. Department of Education 
Health and Human Services, U. S. Department of Through Georgia Department of Human Resources Governor's Council on Developmental Disabilities 1996 Contract 
 
CFDA NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
10.558 $ 
 
47,303.00 
 
(2) 
 
* 10.553 
 
376,240.36 
 
* 10.555 * 10.550 
 
1,424,037.19 $ 308,675.46 
 
$ 2,156,256.01 $ 
 
(2) 
3,094,392.55 (3) 308,675.46 
3,403,068.01 
 
* 84.041 $ 
 
5,841.00 
 
(4) 
 
* 84.041 
 
700,759.00 
 
(4) 
 
* 84.010 
 
1,512,390.96 $ 1,512,390.96 
 
84.281 84.281 
 
-996.34 12,935.88 
 
12,935.88 
 
84.298 
 
124,190.07 
 
124,190.07 
 
84.027 84.173 84.186 
 
206,314.96 19,681.84 41,911.06 
 
206,314.96 19,681.84 41,911.06 
 
84.048 
 
122,745.32 
 
84.049 
 
5,971.97 
 
84.243 
 
55,949.63 
 
$ 2,807,695.35 $ 
 
122,745.32 5,971.97 
55,949.63 2,102,091.69 
 
93.630 $ 
 
10,776.30 $ 
 
10,776.30 
 
- 26 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
YEAR ENDED JUNE 30,1996 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Justice, U. S. Department of Through Office of the Governor Children and Youth Coordinatin~ Council In-School Probation Officer 94J-05-9404-0007 
OTHER FEDERAL ASSISTANCE 
Defense, U. S, Department of Direct Department of the Army R.O,T,C. Program 1996 Grant P. L. 102-484 1996 Grant 
Total U. S. Department of Defense 
 
CFDA NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
16,540 $ 
 
5,000,00 
 
(5) 
 
$ 
 
41,110.18 
 
(5) 
 
17,701.68 
 
(5) 
 
$ 
 
58,811.86 
 
Total Federal Financial Assistance Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
$ 5,038,539.52 $ 5,515,936.00 
 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for these programs were not maintained separately and are included in the 1996 National School Lunch Program. 
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source. 
(4) Funds earned on this program do not require reporting of expenditures. (5) Expenditures on this program were not maintained by fund source. 
 
See notes to the general purpose financial statements. 
 
- 27 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30.1996 
INTEREST BEARING ACCOUNTS 
The Hinesville Bank, Hinesville, Georgia 
Certificate of Deposit No. 14944 (5.80%) N.O.W. Accounts (2.10%) 
 
SCHEDULE "2" 
$ 1,000,000.00 
3,926,979.23 
$ 4,926,979.23 
 
See notes to the general purpose financial statements. 
 
- 28 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996 
 
SCHEDULE "3" 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
DEBT SERVICE 
FUND 
 
Bryan County Board of Education 
 
Shared Services 
 
$ 
 
5,260.33 
 
$ 
 
Defense, U. S. Department of Department of the Army R.O.T,C. Program 
P. L. 102-484 
 
10,372.29 4,315.00 
 
Education, Georgia Department of Food services Child and Adult Care Food Program School Breakfast Program National School Lunch Program Vocational Education State Funds Federal Other State Programs Innovative Programs Remedial Summer School Program Lottery Programs Alternative School Program Distant Learning Exceptional Growth-Capital Outlay Instructional Technology Model Technology Schools Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Safe and Drug-Free Schools 
 
$ 
 
205.63 
 
27,535.87 
 
20,133.61 
 
2,321.80 
 
184,666.92 
 
5,000.00 4,116.06 
 
931.56 3,898.99 
$ 929,00 40,090.97 
 
222,039.20 
 
265,365,25 774,77 
16,247.49 
22,733.34 5,173.89 9,531.87 
 
Glynn County Board of Education Reimbursement for Expenditures 
 
79,679.36 
 
Human Resources, Georgia Department of Governor's Council on Developmental Disabilities Federal Funds 
 
5,322.97 
 
Liberty County Superior Court County Wide Bond Tax County Wide School Tax 
 
10,174.49 
 
$ 
 
146.43 
 
Liberty County Tax Commissioner County Wide Bond Tax County Wide School Tax 
 
97,953,71 
 
1,433.36 
 
Office of School Readiness Pre-Kindergarten Program 
 
36,981.57 
 
TOTAL 
5,260.33 
10,372.29 4,315.00 
205.63 27,535.87 20,133.61 
2,321.80 184,666.92 
5,000,00 4,116,06 
931.56 3,898.99 222,039.20 
929.00 40,090.97 
265,365.25 774.77 
16,247.49 
22,733.34 5,173.89 9,531,87 
79,679.36 
5,322.97 
146.43 10,174.49 
1,433,36 97,953.71 
36,981.57 
 
- 29 - 
 
 Treasury, U. S. Department of Reimbursement for Excise Tax 
Various Sources Reimbursement for Expenditures Vendor Overpayment 
 
LIBERTY COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996 
 
SCHEDULE "3" 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTAL 
 
$ 6,980.81 
 
$ 
 
6,980.81 
 
151.94 
----$ 
 
4,133.97 $ _ _1"",4.;.;1:.;.7.:;:;.5.=.,0 
 
151.94 5,551.47 
 
$ 231,648.76 $ 639,334.70 $ 223,456.70 $ 1,579.79 $ 1,096,019.95 
 
See notes to the general purpose financial statements. 
 
- 30 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1996 
 
SCHEDULE "4" 
 
AGENCY/FUNDING 
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Training Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs At-Risk Summer School Family Connection Hands on Science Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Alternative School Program Distant Learning Exceptional Growth-Capital Outlay Instructional Technology Model Technology Schools Pre-Kindergarten Program Safe Schools Grant Technology Installation 
Office of School Readiness Pre-Kindergarten Program 
Office of Treasury and Fiscal Services Public School Employees Retirement 
CONTRACT Human Resources, Georgia Department of Job Coaching Services 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 16,844,386.00 1,828,203.00 790,030.00 732,253.00 249,178.99 4,859,763.00 
801,389.00 239,252.00 
21,064.00 660,988.00 460,825.89 
96,517.00 54,552.00 77,295.00 744,694.00 -1,966,358.00 3,162,601.00 
$ 6,011.80 
128,761.67 50,809.82 
4,273.43 513,118.18 
16,380.00 
16,203.31 12,955.46 
 
$ 16,844,386.00 1,828,203.00 790,030.00 732,253.00 249,178.99 4,859,763.00 
 
241,448.00 
 
801,389.00 239,252.00 
21,064.00 660,988.00 460,825.89 
96,517.00 54,552.00 77,295.00 744,694,00 -1,966,358.00 3,162,601.00 241,448,00 
6,011.80 
 
56,946.63 157,548.65 
 
128,761.67 50,809.82 56,946.63 4,273.43 
513,118.18 16,380.00 
157,548,65 16,203,31 12,955.46 
 
44,000.00 80,419.44 
$ 156,117.47 229,185.33 425,913.84 -14,796.00 100,000,00 
 
1,442,428.56 
 
44,000.00 80,419.44 1,442,428.56 156,117.47 229,185.33 425,913.84 -14,796.00 100,000.00 
 
279,359.24 
 
279,359.24 
 
104,034.00 
 
104,034.00 
 
987.00 
 
987.00 
 
See notes to the general purpose financial statements, 
 
$ 30,510,168.55 $ 1,756,142.60 $ 1,442,428.56 $ 33,708,739.71 - 31 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE 
YEAR ENDED JUNE 30,1996 
 
SCHEDULE "5" 
 
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 
 
$ 6,139,217.76 
7,950,61 34,995.76 
 
$ 89,591,75 $ 
 
89,591.75 
 
6,139,217.76 
 
7,950.61 
 
34,995,76 
 
Other Sources Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Milk Court Settlement Reimbursements for Salaries Various Sources Sales Adult Meals Breakfast and Lunch Other Supplemental School Assets Shared Service Contributions Various Sources Tuition Other 
 
23,994.01 524,024.38 $ 
963.25 
 
9,448.44 $ 12,674.66 665.58 
 
200,581.41 
 
6,358.50 
 
141,998.56 710,003.37 
1,655.10 6,298.30 
 
27,020.33 31,786.92 30,419.27 
 
531.72 
 
23,994.01 546,679,20 
963.25 665.58 
200,581.41 
141,998.56 710,003.37 
1,655,10 6,298.30 6,358.50 
27,020.33 31,786.92 30,419.27 
 
$ 7,027,312.20 $ 870,069,35 $ 12,674.66 $ 90,123.47 $ 8,000,179.68 
 
See notes to the general purpose financial statements. - 32 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "6" 
 
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 Property Services 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 Equipment 
Total Expenditures 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
TOTAL 
 
$ 28,995,951.95 $ 2,808,313,45 $ 31,804,265.40 
 
8,118,147.98 
 
688,960.89 
 
8,807,108.87 
 
71,697.79 
 
55,419.62 
 
127,117.41 
 
244,738.16 
 
82,057.01 
 
326,795.17 
 
47,041.n 
 
47,041.n 
 
160,071.64 
 
26,957.40 
 
187,029.04 
 
669,529.74 
 
163,959.20 
 
833,488.94 
 
103,671.43 
 
1,336.17 
 
105,007.60 
 
321.00 
 
321.00 
 
139,555.00 
 
139,555.00 
 
98,534.20 
 
5,763.62 
 
104,297.82 
 
21,610.04 
 
21,610.04 
 
35,309.50 
 
35,309.50 
 
75,154.50 
 
22,000.24 
 
97,154.74 
 
2,755,973.04 
 
700,278.73 
 
3,456,251,77 
 
1,203,570.53 
 
1,203,570.53 
 
1,530,142.48 
 
1,530,142.48 
 
743,874.93 
 
38,599,82 
 
782,474.75 
 
39,052.11 
 
23,662.49 
 
62,714.60 
 
23,994.01 
 
23,994.01 
 
12,564.61 
 
2,647.40 
 
15,212.01 
 
1,187,787.86 
 
838,626.73 
 
2,026,414.59 
 
$ 44,702,226.74 $ 7,034,650.30 $ 51,736,8n.04 
 
See notes to the general purpose financial statements. - 33 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT 
LOTTERY PROGRAMS YEAR ENDED JUNE 30. 1996 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefits Travel of Employees Water. Sewer and Cleaning Services Repair and Maintenance Services Communications Other Purchased Services Supplies Books, Textbooks and Periodicals Dues and Fees 
Nonoperating Costs Building and BUilding Improvements EqUipment 
 
ALTERNATIVE SCHOOL PROGRAM 
 
DISTANT LEARNING 
 
EXCEPTIONAL GROWTHCAPITAL OUTLAY 
 
$ 
 
1,440.66 $ 
 
5.263.97 37.295.37 
 
480.20 31,159.24 
 
$ 6,390,171.78 48,780.00 
 
Total Expenditures 
 
$ 
 
44,000.00 $ 
 
80,419.44 $ 6,390,171.78 
 
See notes to the general purpose financial statements. - 34 - 
 
 SCHEDULE '7" 
 
MODEL 
 
INSTRUCTIONAL TECHNOLOGY 
 
TECHNOLOGY 
 
SCHOOLS 
 
PRE-KINDERGARTEN PROGRAM 
 
TECHNOLOGY INSTALLATION 
 
TOTAL 
 
$ 
 
$ 
 
30,780.48 $ 
 
52,116.58 
 
125,336.99 
 
177,068.75 
 
$ 
 
156,117.47 $ 229,185.33 $ 
 
439,693.95 115,709.46 
6,098.44 23,937.40 
$ 1,883.47 19,196.75 95,891.20 
555.76 607.00 
 
$ 100,000.00 
 
439,693.95 115,709.46 
6,098.44 23,937.40 101,920.86 
1,883.47 19,196.75 215,211.47 37,851.13 
607.00 
 
1,699.65 
 
6,390,171.78 352,885.39 
 
705,273.08 $ 100,000.00 $ 7,705,167.10 
 
- 35 - 
 
 TJDS PAGE LEn BLANK 
 
 LIBERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1996 
 
SCHEDULE "8" 
 
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 per Audit 
Amount of Underexpenditure for Total Allotment 
 
THIRTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS 
 
$ 20,783,414.00 $ 
 
755,230.00 
 
$ 26,029,032.93 2,206,744.25 $ 
$ 28,235,7n.18 
 
1,560,482.95 
 
-754,769.62 $ 27,481,007.56 
 
$ 
 
0.00 $=====O,;,;;'O:=:O 
 
See notes to the general purpose financial statements. - 37 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REqUIREMENTS - BY PROGRAM 
GENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996 
 
GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1  3 (*) Sub-Total- K-3 Grades 4 - 5 (*) Grades 6  8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs 
SPEC~LEDUCATIONPROGRAMS 
Regular Programs Category I C*) Category II (i Category III (*) Category IV C*) Sub-Total- Regular Category V (Gifted) C*) Total Special Education Programs 
REMED~L EDUCATION PROGRAM C*) Total Thirteen Weighted Programs 
MED~ CENTER PROGRAMS Salaries Operations Total Media Center Programs 
Total Thirteen Weighted and Media Center Programs 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
Total Staff Development Programs C*) Identifies Thirteen Weighted Programs. 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
ORIGINAL ...:L 
 
ORIGINAL 
 
MID-TERM 
 
$ 1,892,543,00 4,490,041.00 
$ 6,382,584,00 2,096,260.00 3,875,138.00 2,623,170.00 723,341.00 1.143,893.00 
$ 16.844,386.00 
 
$ 1,703,288,70 
 
4,041,036.90 $ 
 
90 $ 5,744,325.60 $ 
 
90 
 
1,886,634,00 
 
90 
 
3,487,624.20 
 
90 
 
2,360,853.00 
 
90 
 
651,006.90 
 
90 
 
1,029,503.70 
 
$ 15.159,947.40 $ 
 
684,290.00 684,290.00 
684,290.00 
 
$ 1,651,755.00 
 
$ 1,486,579.50 $ 
 
0.00 
 
$ 1,651,755.00 
 
176.448.00 
 
$ 1,828,203.00 
 
$ 
 
790,030.00 
 
$ 19,462,619.00 
 
90 $ 1,486,579.50 $ 
 
90 
 
158,803.20 
 
$ 1,845,382.70 $ 
 
90 $ 
 
711,027.00 $ 
 
$ 17,516,357.10 $ 
 
0.00 
0.00 -95,748.00 588,542.00 
 
$ 
 
566,198.00 90 $ 
 
509,578,20 $ 
 
0.00 
 
166,055.00 90 
 
149,449.50 
 
$ 
 
732,253.00 
 
$ 
 
659.027.70 $ 
 
0.00 
 
$ 20,194.872.00 
 
$ 18,175,384.80 $ 
 
588.542.00 
 
$ 
 
63,018.00 
 
$ 
 
63,018.00 $ 
 
0.00 
 
186,160.99 
 
186,160.99 
 
0.00 
 
$ 
 
249.178.99 100 $ 
 
249.178.99 $ 
 
0.00 
 
See notes to the general purpose financial statements. 
 
 38  
 
 SCHEDULE "9" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 1,703,288.70 $ 2,372,755.46 $ 
 
101,275.40 $ 2,474,030.86 
 
4,725,326.90 
 
6,327,061.64 
 
304,888.77 
 
6,631,950.41 
 
$ 6,428,615.60 $ 8,699,817.10 $ 
 
406,164.17 $ 9,105,981.27 $ 
 
0.00 
 
1,886,834.00 
 
3,167,758.07 
 
162,809.00 
 
3,330,567.07 
 
0.00 
 
3,487,624.20 
 
4,107,788.06 
 
156,150.79 
 
4,263,938.85 
 
0.00 
 
2,360,853.00 
 
3,746,631.99 
 
207,031.55 
 
3,953,663.54 
 
0.00 
 
851,006.90 
 
802,445.50 
 
28,831.10 
 
831,276.60 
 
0.00 
 
1,029,503.70 
 
1,370,782.53 
 
397,516.98 
 
1,768,299.51 
 
0.00 
 
$ 15,844,237.40 $ 21,895,223.25 $ 1,358,503.59 $ 23,253,726.84 
 
$ 1,486,579.50 $ 
 
23,461.24 $ 718,696.79 1,414,689.41 271,190.77 
 
3,490.26 $ 7,494.85 43,606.65 2,429.09 
 
26,951.50 726,191.64 1,458,296.06 273,619.86 
 
$ 1,486,579.50 $ 2,428,038.21 $ 
 
57,020.85 $ 2,485,059.06 
 
0.00 
 
158,803.20 
 
237,557.43 
 
22,741.99 
 
260,299.42 
 
0.00 
 
$ 1,645,382.70 $ 
 
2,665,595.64 $ 
 
79,762.84 $ 2,745,358.48 
 
$ 
 
615,279.00 $ 
 
627,452.72 $ 
 
122,216.52 $ 
 
749,669.24 
 
0.00 
 
$ 18,104,899.10 $ 25,188,271.61 $ 1,560,482.95 $ 26,748,754.56 
 
$ 
 
509,578.20 $ 
 
840,761.32 
 
$ 
 
840,761.32 
 
0.00 
 
149,449.50 
 
$ 
 
646,261.30 
 
646,261.30 
 
0.00 
 
$ 
 
659,027.70 $ 
 
840,761.32 $ 
 
646,261.30 $ 1,487,022.62 
 
$ 18,763,926.80 $ 26,029,032.93 $ 2,206,744.25 $ 28,235,m.18 $ 
 
0.00 
 
$ 
 
63,018.00 
 
186,160.99 
 
$ _ ...2.4.9..,1..7,;;,8.;;;,9.9. 
 
$ 
 
139,210.77 $ 
 
139,210.77 
 
109,968.22 
 
109,968.22 
 
$ 
 
249,178.99 $ 
 
249,178.99 $ 
 
...;0;;;.0;;.0 
 
- 39 - 
 
 LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
YEAR ENDED JUNE 30,1996 
 
SCHEDULE "10" 
 
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 (*) P. O. Box 422 Hinesville, Georgia 31313 
Mrs. Mattie M. Hicks (*) P, O. Box 66 Hinesville, Georgia 31313 
Mr. Donald L. Lovette (*) P. O. Box 454 Allenhurst. Georgia 31301 
Mr. Jack Shuman (*) 915 Mandarin Drive HineSVille, Georgia 31313 
Dr. A. Richard Webb (*) 8953 Highway 196, West Hinesville, Georgia 31313 
(*) Denotes Board Members Serving as of June 3D, 1996 
 
COMPENSATION 
 
TRAVEL 
 
$ 
 
6,900,00 $ 
 
1,501.05 
 
4,800.00 
 
714.65 
 
5,100.00 
 
849.01 
 
5,700.00 
 
1,462.49 
 
5,175.00 
 
1,095.42 
 
5,175.00 
 
1,160.42 
 
6,000.00 
 
1,408.73 
 
$ 
 
38,850.00 $ =====8=,1=9"",1,=77= 
 
See notes to the general purpose financial statements. 
 
- 40 - 
 
 SECTIOND COMPLIANCE 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w.. Suite 214 Atlanta, Georgia 30334-8400 
August 18, 1997 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education 
and Superintendent and Members ofthe Liberty County Board of Education 
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS 
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements ofthe Liberty County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 18, 1997. 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, 1996, 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 fmancial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 
96CRL-I0 
 
 This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
 
CLV:dt 96CRL-IO 
 
Claude L. Vickers State Auditor 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
August 18, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members ofthe Liberty County Board of Education 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements ofthe Liberty County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 18, 1997. 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 of Education's compliance with the following requirements applicable to each of its Federal fmancial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996: 
 
(l) Political Activity 
 
(5) Allowable Costs/Cost Principles 
 
(2) Civil Rights 
 
(6) Drug-Free Workplace Act 
 
(3) Cash Management 
 
(7) Audit Follow-Up/Resolution 
 
(4) Federal Financial Reports 
 
(8) Administrative Requirements 
 
Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Liberty County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 
 
96CRL-60 
 
" 
 
 Material instances of noncompliance consist of failures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed a material instance of noncompliance that is described in the Schedule of Findings and Improper or Questioned Costs. 
We considered this material instance ofnoncompliance in forming our opinion on whether the Liberty County Board of Education general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated August 18, 1997, on those fmancial statements. 
Except as described above, the results of our procedures to determine compliance indicate that, with respect to the items tested, the Liberty County Board of Education, complied, in all material respects, with the requirements listed in the second paragraph of this report, and 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. 
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:dt 96CRL-60 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
August 18, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the 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 of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 18, 1997. 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 of Effort, 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, 1996. 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. 
 
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 
 
96CRL-90 
 
 of the United States; and Office of Management and Budget (OMB) Circular A-128, "Audits of State and 
Local Governments". Those standards and OMB 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, 1996, 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. 
The results of our audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above which are described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph. 
In our opinion, the 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 fmancial assistance programs for the year ended June 30, 1996. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~ 
Claude 1. Vickers State Auditor 
CLV:dt 96CRL-90 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
August 18, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education 
and Superintendent and Members of the Liberty County Board of Education 
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 
Ladies and Gentlemen: 
We have audited the general purpose fmancial statements ofthe Liberty County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 18, 1997. 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 fmancial statements. 
In connection with our audit ofthe fiscal year 1996 general purpose financial statements ofthe Liberty County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements govermng: 
Types of Services Allowed or Unallowed 
Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Liberty County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 
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. 
96CRL-120 
 
 This report is intended for the infonnation 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:dt 96CRL-120 
 
 SECTION ill INTERNAL CONTROL 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
August 18, 1997 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board of Education 
and Superintendent and Members of the Liberty County Board of Education 
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
. Ladies and Gentlemen: 
We have audited the general purpose fmancial statements ofthe Liberty County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated August 18, 1997. 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 perfonn 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, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
The management of the Liberty County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that 
96ICL-3 
 
 procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
In planning and performing our audit ofthe general purpose financial statements ofthe Liberty County Board ofEducation for the year ended June 30, 1996, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. 
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: 
(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. 
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable 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 of Education's fmancial statements and this report does not affect our report thereon dated August 18, 1997. 
96ICL-3 
 
 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, 
c?~ 
Claude L. Vickers State Auditor 
CLV:dt 96ICL-3 
 
 CLAUDE L. VICKERS 
STATE AlJDllOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
August 18, 1997 
 
Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Liberty County Board of Education 
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
Ladies and Gentlemen: 
We have audited the general purpose financial statements ofthe Liberty County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 18, 1997. 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 requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated August 18, 1997. 
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 of Management and Budget COMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB 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, 1996, 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, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies 
96ICL-7 
 
 and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated August 18, 1997. 
 
The management of the Liberty County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. 
The objectives en 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 of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
 
For the 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 of Effort, and/or Earmarking 
 
(5) Allowable Costs/Cost Principles 
 
(4) Reporting 
 
(6) Drug-Free Workplace Act (7) Audit Follow-UplResolution (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. 
 
During the year ended June 30, 1996, the Liberty County Board of Education expended 86% of its total Federal financial assistance under major Federal financial assistance programs. 
 
96ICL-7 
 
 We performed tests of controls, as required by OMB 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 of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. 
 
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: 
 
(1) Administrative Requirements 
 
(2) Applicable Special Tests and Provisions 
 
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that 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 ofperforming their assigned functions. 
 
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses. 
 
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Liberty County Board of Education's compliance with requirements applicable to its major Federal fmancial assistance programs for the year ended June 30, 1996, and this report does not affect our report thereon dated August 18, 1997. 
 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
 
Respectfully submitted, 
~ 
Claude L. Vickers State Auditor 
 
CLV:dt 96ICL-7 
 
 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 LffiERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
PRIOR YEAR 
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 6891-93-03 
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$3,703.08 for the Staff-Development - Professional Development Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. 
AUDIT FOLLOW-UP/RESOLUTION Failure To Meet Expenditure Requirements Financial Statements Amount: $82,037.62 Audit Control Number 6891-94-01 
The audit report for the year ended June 30, 1994, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $82,037.62 for the StaffDevelopment 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 $82,037.62 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
AUDIT FOLLOW-UP/RESOLUTION Retroactive Salary Payments and Related Costs Financial Statements Amount: $67,733.52 Audit Control Number 6891-94-02 
The audit report for the year ended June 30, 1994, disclosed that the Board Superintendent, Doris Thomson, authorized retroactive salary payments to twelve-month employees in the cumulative amount of $56,699.75 with additional related costs for fringe benefits in the amount of$II,033.77. Retroactive salary increases are a violation ofArticle ill, Section VI, Paragraph VI ofthe Constitution ofthe 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 of Education policies and procedures recognizes 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 
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,' 
 
 LffiERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30. 1996 
PRIOR YEAR 
AUDIT FOLLOW-UPIRESOLUTION Retroactive Salary Payments anc Related Costs Financial Statements Amount: $67,733.52 Audit Control Number 6891-94-02 
were the result of the Superintendent retroactively applying a different methodology of calculating salaries ofextended year personnel for selected employees than had been used by the Board during prior years. The Georgia Department ofEducation has recommended to the State Board ofEducation that a single method for calculating the salary for extended year personnel be established. 
During fiscal year 1995, the Board's attorney was consulted and efforts to secure reimbursement were unsuccessful. 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. 
AUDIT FOLLOW-UPIRESOLUTION Excessive Lottery Cash Balance Financial Statements Finding Resolved Audit Control Number 6891-95-01 
The audit report for the fiscal year 1995, disclosed that cash draws for Instructional Technology program were made in advance of immediate cash needs, resulting in the accumulation of a excessive cash balance of $6,720.23. During the year under review, the Board had no excessive Lottery cash balances. 
AUDIT FOLLOW-UPIRESOLUTION Failure to Submit Audit Reports to Grantor Agencies on a Timely Basis Federal Financial Assistance Finding Resolved Audit Control Number 6891-95-02 
The audit report for the year ended June 30, 1995, noted that the Board failed to submit copies of the 1994 audit report to the Federal grantor agencies within thirty (30) days of issuance as required by Paragraph 13 ofOMB Circular A-128. During the year under review, the Board submitted copies of the audit report for the year ended June 30, 1995, to Federal grantor agencies within thirty days of issuance as required. 
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 LffiERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
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 
The audit report for the year ended June 30, 1995, stated that the Board did not provide for adequate separation ofduties in the perfonnance of accounting functions and related procedures for all funds. For the year under review, no improvement in adequate separation ofemployee duties was noted. This condition was a result of management's decision to limit the number ofadministrative staff made responsible for accounting functions. Management should periodically review this decision to detennine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. 
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1 " of this report, are affected by this finding. 
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, 1995, noted that the management of the Liberty County Board of Education has chosen not to maintain a system-wide General Fixed Assets Account Group within the fonnal 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 fonnal 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 ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
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 LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
CURRENT YEAR 
INVENTORIES Inadequate Inventory Records Financial Statements Nonmaterial Noncompliance Audit Control Number 6891-96-01 
Property records maintained by the Board for Lottery Programs were incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). Inventory records as presented for audit did not contain all the additions for purchases made in the period under review. Equipment additions were understated by $325,032.39. This condition occurred because management did not ensure that all equipment purchases were included in property management records and a reconciliation was not prepared reconciling the property management 
records to the purchases as recorded in the accounting records. An inventory system should be implemented 
that provides for identification of all equipment purchased as outlined in Chapter 41, of the FMGLUA. Perpetual records should include historical infonnation regarding additions and deletions made to equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be perfonned and reconciled to property records to ensure accuracy. 
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6891-96-02 
Property management records maintained by the Board for the Elementary and Secondary Education Act Title I program (CFDA 84.010) were incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). The following deficiencies were noted: 
1. Inventory records as presented for audit did not contain all the additions for purchases made in the period under review. As a result, equipment additions were understated by $126,401.32. 
2. A sample of 142 Title I inventory items from three schools revealed 45 items that could not be located. Additionally, our testing revealed 21 items identified as Title I equipment which were not on the inventory records. 
These conditions occurred because management did not ensure that all equipment purchases were included in property management records and a reconciliation was not prepared reconciling the property management 
records to the purchases as recorded in the accounting records. An inventory system should be implemented 
that provides for identification of all equipment purchased as outlined in Chapter 41, of the FMGLUA. Perpetual records should include historical infonnation regarding additions and deletions made to the 
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 LffiERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
CURRENT YEAR 
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6891-96-02 
equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be perfonned and reconciled to the property records to ensure accuracy. The Board should implement procedures to ensure that all equipment is properly accounted for and maintained. 
APPLICABLE SPECIAL TEST AND PROVISIONS Failure to Maintain Documentation for Schoolwide Project Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Amount: $12,338.69 Audit Control Number 6891-96-03 
Title I, A - Section 1015 ofthe Elementary and Secondary Education Act ofl965 (CFDA 84.010) authorizes local education agencies to upgrade their entire education program in schools which meet certain requirements. This situation is referred to as a "Schoolwide" project. According to infonnation provided by the Georgia Department of Education, Liberty County Board of Education was approved for "Schoolwide" projects at Liberty and Lyman Hall Elementary Schools. However, the Board could not provide documentation to support the calculation of maintenance of effort for these projects. In addition, documentation was not available to support the expenditures for each "Schoolwide" project. As a result of the Board's failure to meet the requirements for "Schoolwide" projects, travel for non-Title I employees became an unallowable expenditure resulting in questioned cost of$12,338.69. 
These conditions occurred because of management's misunderstanding ofthe requirements for "Schoolwide" projects. The unallowable cost of$12,338.69 should be refunded to Georgia Department of Education. 
Note: The Liberty County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report. 
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