Audit report, Long County Board of Education, Ludowici, Georgia, year ended June 30, 1994

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

AUDIT REPORT LONG COUNTY BOARD OF EDUCATION
LUDOWICI, GEORGIA YEAR ENDED JUNE 30, 1994

LONG COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS- OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

26

3 INVESTMENTS

27

4 ACCOUNTS RECENABLE

28

5 DEBT SERVICE REQUIREMENTS TO MATURITY

29

LONG COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

6

STATE FUNDS

30

7

LOCAL AND OTHER FUNDS

31

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

32

9

LOTTERY PROGRAMS

33

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

35

11

BY PROGRAM

36

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

38

SECTION IT
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 REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 1, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Long County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Long County Board of Education, as of and for the year ended June 30, 1994, as listed in the table ofcontents. 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 of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estiniates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
94ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion ofsalaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Long County Board of Education as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Long County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules I through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Long 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 of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
94ARL-13

A copy ofthis report has been filed as a perinanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:djf 94ARL-13

Cl~ State Auditor

LONG COUNTY BOARD OF EDUCATION - 1-

LONG COUNTY BOARD OF EDI /CATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1994

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

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

36,993.66 $

174,159.04 $

86,723.03

1,003,552.85

2,315,581.05

80,524.37

43,597.13

17,547.27

5,723.23 3,073.47

$ 1,121,070.88 $

226,552.87 $ 2 419,851.35

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved 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
Total Liabilities and Fund Equity

$

315.00 $

40,588.34 $

41,131.23

1,503.05

80.31

$

315.00 $

83 222.62 $ _ _ _..=8:::.0-,.:::3.:..1

$

1,954.76

$

$

1,954.76 $

1118801.12

$ 1120 755.88 $

5,723.23 3,073.47
$
8,796.70 $
134 533.55
143,330.25 $

2,324,771.04 2,324,771.04
95 000.00 2.419 771.04

$ 1,121,070.88 $

226,552.87 $ 2,419,851.35

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

EXHIBIT"A"

TYPES DEBT
SERVICE FUND

$

61,248.12

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS !Memorandum Onlll JUNE 30 1994 JUNE 30 1993

$

359,123.85 $

893,548.41

3,319,133.90

141,668.77

56,243.42

5,723.23 3,073.47

$

61,248.12

61,248.12

2,433,751.88

2 433,751.88

14,287.56 2,119.20

$

61 248.12 $

2,495,000.00 $ 6,323,723.22 $

966,198.59

$

40,983.65 $

8,357.39

41,131.23

36,898.76

1,503.05

11.89

$

2,495,000.00

2,495,000.00

$

2,495,000.00 $ 2 578,617.93 $

45 268.04

$

61,248.12

$

61,248.12

0.00

$

61,248.12

$

61,248.12 $

$

61,248.12

1,954.76

5,723.23 $ 3,073.47 2,324,771.04
$ 2,396,770.62 $
1,348 334.67
$ 3,745,105.29 $

14,287.56 2,119.20 3,786.23
20,192.99
900 737.56
920,930.55

2,495,000.00 $ 6,323,723.22 $

966,198.59

- 3-

I ONG COUNTY BOARD OF fnucATION COMBINFQ STATEMENT Of RfVFNUfS FXPfNQITURf~ AND CHANG.ES IN FLJNP RAIANCES
[-OYfRNMfNIAI FUNQ D'.PfS YfA8 fNPfP II JNf ;Kl 1$94

EXHIBIT"'B"

GENERAL FUND

SPECW. REVENUE
FUND

CAPITAi. PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

lMernorandum 0n1n YEAR ENDED

JUNE30 1994

JUNE30 1993

Slate Funds Federal Funds Local and Other Funds
TOlal Revenues
fXPENDfTIJRfS
, _ Cu-
Support Services Pupil Services Improvement d 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
-0ther Operations d Non-instructional Services
Capital outlay OobtSeMce
Paying Agent Fees
Total Expenditures
Excess d Revenues over (under) Expenditures
OTHER FINANCING SOURCE (USE~)
Proceeds from General Obligation Bonds Par Value
Accrued Interest on Bonds Sold Operating Transfers In Operating Transfers 0ut
Total Other Financing Sources (Uses)
Excess d Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JUI v 1
Food lnY&ntcry - Net Change in Period Donated Commodities Purchased Food

s 3,247,966.00 S
93,804.96 1104161.92
s 4 445 932.88 $

78,377.00 602,863.71 84837.15 $
766077.86 S

44062.96 $ 44062.96 S

S 2,471,682.94 S
126,375.82 100,990.39 111,180.52 90,595.31 274,790.26 97,032.66 '166,787.70 368,978.33
5,500.00 4,986.19
17,880.29 95,233.15

279,625.34
1,935.00 8,500.00 8,698.91 17,974.17
s
18,315.30 25,757.43
1,876.64 367,762.52

73,844.48 63,410.81

$ 4 032 013.56 $ 413919.32 $

730 445.31 $ 35632.55 $

137255.29 $ -93192.33 $

s
-25185.52
-25185.52 $

$ 185.52 185.52 $

2,495,000.00
s
-55822.86 2439177.14 $

388,733.80 S 732,022.08

35,818.07 $ 115,122.24

2,345,984.81 $ 73,786.23

-8,564.33 954.27

908.20 908.20 $

3,326,343.00 S 696,668.67
1233970.23
5256981.90 $

2,856,235.<0l 579,237.68
1 032821.00
4468294.08

30,694.38 20.02
30 714.40 $
-29 806.20 $

2,751,308.28 S
128,310.82 109,490.39 119,879.43 108,569."8 274,790.26 170,877.14 285,103.00 394,735.76
5,500.00 6,862.83 367,762.52 17,880.29 158,643.96
30,694.38 20.02
4 930 428.56 $
326 553.34 $

2,486,934.35
121,535.70 33,410.99 110,114.28 1n,101.02 267,368-29 81,306.21 319,337.67 282,458.33 6,363.89 6,704.08 281,798.39 17,117.90
299."5
4192 450.55
275 843.53

s
10,231.46 80,822.86
91 054.32 $

2,495,000.00 10,231.46 81,008.38 S -81008.38

25,611.25 -25611.25

2 505 231 46 s_ _~=00~

61,248.12 $ 0.00

2,831,784.80 $ 920,930.55

275,843.53 640,352.86

-8,564.33 954.27

4,814.82 -80.66

BJNQ BA1 ANCf JUNE 30

s 1120155.88 s

143330.25 s 2419n1.04 s

61248.12 $

3745105.29 S

920930.55

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


I QH~ QQ!JHIX a:QARQ QF EQ!JQMI~
~6IHEQ SI!IEMEt{I QE RE~N!..!1; EtSPE~QII!JRE AHQ Q!::IAH~E IN EYNQ ~LAHQES
AQn~AL ANQ El!.!~ET ~ ~V~RNMENTAL F!,,!tjg IYfES
VEAR ENDEQ .JUNE; 30 1994

EXHIBIT"C-

ACTUAL PER
EXHIBIT"B"

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~
State Funds Federal Funds Local and Other Funds

$ 3,326,343.00 $ 696,668.67
1,233,970.23

0.00 $

3,326,343.00 $ 2,933,844.00 $

696,868.67

626,569.00

1,233,970.23 1,120,404.00

392,699.00 70,099.67
113,566.23

Total Revenues

5,256,981.90 $

0.00 $ 5,256,981.90 $ 4,680,617.00 $

576,364.90

~l!;PENDITURES

Cummt 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
CepitalOutlay Debi Service

2,751,308.28 $
128,310.82 109,490.39 119,879.43 108,569.48 274,790.26 170,877.14 285,103.00 394,735.76
5,500.00 6,862.83 367,762.52 17,880.29 158,643.96 30,714.40

0.00 $ 2,751,308.28 $ 2,969,547.00 $

128,310.82 109,490.39 119,879.43 108,569.48 274,790.26 170,877.14 285,103.00 394,735.76
5,500.00 6,862.83 367,762.52 17,880.29 158,643.96 30,714.40

148,007.00 119,717.00 139,180.00 121,414.00 307,389.00 94,314.00 334,005.00 315,360.00
14,739.00 344,529.00
20,309.00

218,238.72
19,696.18 10,226.61 19,300.57 12,844.52 32,598.74 -76,563.14 48,902.00 -79,375.76 -5,500.00 7,876.17 -23,233.52 2,428.71 -158,643.96 -30,714.40

Total Expenditures

4,930,428.56 $

0.00 $ 4,930,428.56 $ 4,928,510.00 $

-1,918.56

Excess of Revenues over (under) Expenditures

326,553.34 $

0.00 $ 326,553.34 $ -247,893.00 $

574,446.34

OTHER FINANCING 0!:!RC!;S (USl;S}

Other Sources Other Uses

2,586,239.84 $ .a1,008.38

0.00 $ 2,586,239.84 $ .a1,008.38

25,000.00 $ -25,000.00

2,581,239.84 -56,008.38

Total Other Financing Sources (Uses}

2,505,231.48 $

0.00 $ 2,505,231.48 $

0.00 $

2,505,231.48

Excess of Revenues and Other Financing Sources <Ner (under) Expenditures and Other Financing Uses $ 2,831,784.80 $

0.00 $ 2,831,784.80 $ -247,893.00 $

3,079,677.80

FUND BALANCE JULY 1 1993

920,930.55

-16,406.76

904,523.79

896,545.24

7,978.55

ADJUSTMENTS

Prior Year (Net)

17,834.92

-17,834.92

FOOQ INVENTORY - NET CHANGE IN PERIOD

Donated Commodities Purchased Food

.a,564.33

8,564.33

0.00

0.00

954.27

-954.27

0.00

0.00

FUND BAbt,NCE JUNE 30 1994

$ 3,745,105.29 $

.a,796.70 $ 3,736,308.59 $ 886,287.16 $

3,070,021.43

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

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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

- 7-

LONG COUNTY BOARD OF EDUCATION

ExmBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

- 8-

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Long County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (mcluding savings 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

- 9-

LONG COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(4) Obligations of any corporation ofthe United States government,

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

RECEIVABLES

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

PROPERTY TAXES

The Long County Board of Commissioners fixed the property tax levy for the 1993 tax year (cale9dar year) on October 20, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70. l 03. The Long County Tax Commissioner bills and collects the property taxes for the Board ofEducation and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1993 tax year (calendar year) for the Long County Board ofEducation was as follows (a mill equals $1 per thousand dollars ofassessed value):

School Operations

15 00mills

INVENTORIES

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

- 10 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount ofnot less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

- 11 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS

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

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

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $892,332.90. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category
1 2 3
Total

Bank Balance
$ 100,000.00 0.00
792 332.90
$ 892 332 90

- 12 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS AND INVESTMENTS

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

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

At June 30, 1994, the carrying amount of the Board's total investments was $3,319,133.90 and consisted entirely offunds in the Local Government Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$7,774.89 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1, 1993

$

0.00

Additions

2 495 000.00

Balance June 30, 1994

$ 2 495 000 00

- 13 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 5: GENERAL LONG-TERM DEBT

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

Fiscal Year Ended June 30

General Obligation
Bonds

1995 1996 1997 1998 1999 2000 and thereafter

$ 157,777.50 161,727.50 165,427.50 173,875.00 181,867.50
3 363 737.50

Total Principal and Interest

$ 4 204412 50

Note 6: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$81,909.50 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. Lottery funds in the amount of $80,884.00 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Computers In Classrooms Distant Education Media Center and Library Equipment

$ 44,333.00 2,000.00
35 576.50
$ 81 909 50

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

Note 7: CONTINGENT LIABILITIES

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

- 14 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $2,424,619.55; total payroll was $2,848,226.04.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $431,824.24, of which $286,347.05 was made by the Board and $145,477.19 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

- 15 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accunrulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost Unfunded pension benefit obligation

12 821 722 000.00
$ I 090 292 ooo 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$286,347.05 was actuarially determined and represented .0549% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETmEMENT SYSTEM OF GEORGIA (PSERS)

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

- 16 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with IO years ofservice and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 39 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $1,364.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Ms. Janet M. Watford, is bonded in the amount of$20,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 13657410, on which premium was paid to July 1, 1994.

- 17 -

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

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

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 150,792.73

$

0.00 $

18,787.39

3,905.81 $

1,000.00

38,691.32

5,723.23 3,073.47

Total Assets

$ 163,495.24 $

1,000.00 $

0.00 $

57,478.71

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$

$

1,661.55

18,503.44

$ 20,164.99 $

$

5,723.23

3,073.47

$

8,796.70

134,533.55 $

$ 143,330.25 $

1,000.00 1,000.00
0.00 $ 0.00 $

$

38,228.06

19,170.78

79.87

$

57,478.71

0.00 $ 0.00 $

0.00 0.00

Total Liabilities and Fund Equity

$ 163,495.24 $

1,000.00 $

0.00 $

57,478.71

See notes to the general purpose financial statements.

-18-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

MIGRANT PROGRAM

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE 11EISENHOWER MATHEMATICS AND SCIENCE EDUCATION

INDIVIDUALS WITH
DISABILITIES EDUCATION ACT
TITLE VI, B FLOW
THROUGH

TOTALS JUNE 30, 1994 JUNE 30, 1993

$

2,907.44 $

0.00 $

0.00 $

2,671.48 $

175,159.04 $

122,535.68

43,597.13

21,280.71

5,723.23 3,073.47

14,287.56 2,119.20

$

2,907.44 $

0.00 $

0.00 $

2,671.48 $

227,552.87 $

160,223.15

$

261.27

1,320.00

1,326.17

$

2,907.44

$

1,000.00

$

437.46

40,588.34 $

8,190.26

2,137.01

41,131.23

36,898.76

97.01

1,503.05

11.89

$

2,671.48 $

84,222.62 $

45,100.91

$

0.00 $

$

0.00 $

$

2,907.44 $

0.00 $ 0.00 $
0.00 $

0.00 $ 0.00 $

$
$ 0.00 0.00 $

5,723.23 $ 3,073.47
8,796.70 $ 134,533.55 143,330.25 $

14,287.56 2,119.20
16,406.76
98,715.48 115,122.24

0.00 $

2,671.48 $

227,552.87 $

160,223.15

-19-

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

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

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

ELEMENTARY
CHAPTER1 EDUCATION OF
DEPRIVED CHILDREN

$ 24,478.00 $ 294,265.44 84,837.15
$ 403,580.59 $

1,000.00 $

52,899.00 $

1,000.00 $ 52,899.00 $

246,923.45 246,923.45

$
$ 367,762.52 $ 367,762.52 $ $ 35,818.07 $

11.85 $ 11,478.71 $

988.15

16,865.30 24,643.50

1,000.00 $ 0.00 $

52,987.51 $ -88.51 $

224,122.64
1,500.00 17,974.17
1,450.00
1,876.64
246,923.45 0.00

$ 35,818.07 $ 115,122.24
-8,564.33 954.27

0.00 $ 0.00

88.51
0.00 $ 0.00

0.00 0.00

FUND BALANCE JUNE 30

$ 143,330.25 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-20-

EXHIBIT"P'

AND SECONDARY EDUCATION ACT

MIGRANT PROGRAM

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLEIIEISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH
DISABILITIES EDUCATION ACT
TITLE VI, B FLOW
THROUGH

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

9,571.83 $

$

9,571.83 $

9,644.00 $ 9,644.00 $

7,000.00 $ 7,000.00 $

$ 35,458.99
35,458.99 $

78,377.00 $ 602,863.71
84,837.15
766,077.86 $

25,588.00 485,249.68
71,934.05
582,771.73

$

9,571.83 $

$

9,571.83 $

$

0.00 $

819.31 $
8,698.91 125.78
9,644.00 $ 0.00 $

$ 7,000.00
7,000.00 $ 0.00 $

33,621.00 $ 1,935.00
35,556.00 $ -97.01 $

279,625.34 $
1,935.00 8,500.00 8,698.91 17,974.17 18,315.30 25,757.43
1,876.64 367,762.52
730,445.31 $
35,632.55 $

250,171.17
11,760.08 5,811.85
17,894.96 406.49 863.89
281,798.39 568,706.83
14,064.90

$

0.00 $

0.00

$

0.00 $

0.00 $ 0.00
0.00 $

0.00 $ 0.00
0.00 $

97.01
0.00 $ 0.00

185.52
35,818.07 $ 115,122.24
-8,564.33 954.27

611.25
14,676.15 95,711.93
4,814.82 -80.66

0.00 $

143,330.25 $

115,122.24

-21-

LONG COUNTY BOARP OF EPUCATJQN COUB1NING BALANCe SHEET CAPITAL PROJECTS FUND
JUNE ;ig 1994

EXHIBIT"G"

,!ISgTS Cash and Cash Equivalenls lnwstments A<:counts Receivable
Total Assets

REGULAR

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

91-W1-040

95/94S-691-033

TOTALS JUNE 30 1994 JUNE 30 1993

25,000.00 $

0.00 $

61,723.03 $

86,723.03 $

73,786.23

70,000.00

2,2"15,581.05

2,315,581.05

17547.27

17547.27

95,000.00 $

0.00 $ 2,324,651.35 $ 2,419,651.35 $

73,786.23

LIABILITIES ANP FUND EQUITY

~

A<:counts Payable

FUND EQUITY

Fund Balances Reserwd For Stale Capital Outlay Projects

Unreserved

Undesigneted

$

Total Fund Equity

95000.00 $ _ _ _--=0,:,00,c. 95 000.00 $ _ _ _--=0,:,00,,_ $

80.31 $ _ _ _ _80=.3~1

2,324,n1.04 s 2,324,n1.04 s

3,786.23

0.00
s 2324n1.04

95000.00

70000.00

2419n1.04 s _ _~73=786=.23"'

Total Liabilities and Fund Equity

95,000.00 s_____o..o..o. s s 2,324.651.35 2,419,651.35 s_ _=73==1as-=.23=

See notes to the general purpose financial statements.

-22-

LONG COUNTY BOAR OF EQUCAJJQN COMBINING STATEMENT OF BFVENUES EXPENDITURES ANP CHANGES IN FUND RALANCES
CAptTAJ PROJECTS FUNQ
YEAR ENQED JUNE 30 1994

EXHIBIT"H"

BEllENW
Local and Other Funds
ExeENPITYRFS
Current Support Services Business Administration Professional and Technical Services Dues and Fees
Capital Outlay Building and Building Improvements
Total~itures
Excess of Revenues over (under) ExpendmJres
OTH~R FINANCING Q!JRCES (llSESl
Proceeds from General Obligation Bonds Par Value
Operating Transfers In Operating Transfur.; Out
Total Other Financing Sources (Uses)
Excess rA Revenues and Other Financing Sourc:es over (under) ExpendibJres and Other Financing Uses
FUND BAl ANCE JULY 1
Residual Equity Transfer

REGULAR

GEORGIA STATE ANANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

91-691-040 95/94S-691--033

TOTALS YEAR ENDED JUNE 30 1994 JUNE30 1993

0.00 $

0.00 $

44~.96 $

44~.96 $

0.00

0.00 $

0.00 $

73,844.48 $

73,844.48 $

0.00

,438.22

,438.22

62972.59

62972.59

0.00 $

0.00 $

137~55.29 $

137255.29 $

0.00

0.00 $

0.00 $

-93192.33 $

-93192.33 $

0.00

25,000.00 25000.00

2,"'95,000.00 $ -a0822.86
24141TT.14 $

2,"'95,000.00 25,000.00 $ -a0822.86
2 439177.14 $

25,000.00 25000.00

25,000.00 $ 70,000.00

0.00 $ 3,786.23 -3 786.23

2,320,984.81 $ 0.00
3786.23

2,345,984.81 $ 73,786.23 0.00

25,000.00 48,786.23

FUND BALANCE JUNE 30

95000.00 $

0.00 $

2 324 771.04 $ 2419771.04 $

73786.23

See notes to the general purpose financial statements.

-23-

LQN!.2 CQLltHY BQABC QE EC!.!CAIIQN
l!Qtllatl!.ILla QE Fl;Q~RAL FJt,IAt,IQIAL Al!l!ll!TAl:!IQla
Yl;AR laNQlatl J!,INI; 30 1994

SCHEDULE "1"

FUNDING AGENCY PRQGRAM/GRAt,IT
Agriculture, U. s. Department of
Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1993 Grant 1994Grant National School Lunch Program 1993 Grant 1994Grant Food Distribution Program (1)

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.553 $

$ 57,093.76

10.555 10.555 10.550

211,659.57 25512.11

1,327.37 55,522.27 $

57,093.76

1,633.40 209,325.25 NIA

211,659.57 $ 25512.11

(2)
342,250.41 (3) 25512.11

Total U. S. Department of Agriculture

$ 294265.44 $

267808.29

294265.44 $

367762.52

Education, U.S. Department of Direct P. L. 81-874 1993Grant 1994Grant Through First Diolrlct Regional Educational Service Agency d/1>/a LiW! 0ak Migrant Education Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1994 Regular Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Regular 1993 carry-ever 1994Regular Chapter2 Block Grant - Flow Through 1994 Regular Tillell Eisen- Mathematics and Science Education 1994Regular Individuals with Disabilities Education Act Tltle VI, B Flow Through 1992 car,y-0ver 1993 Regular 1993 car,y-OVer 1994Regular

84.041 $ 84.041
84.011
84.010 84.010 84.010 84.151
84.164
84.027 84.027 84.027 84.027

20,482.00 41,024.00 $
13,026.00
34,595.00 223,447.00
9,644.00 7,000.00
1,000.00 34,556.00

$ 20,482.00

(5)

41.024.00

41,024.00

(5)

10,898.00

9,571.83 $

9,571.83

15,273.05 14,049.00 194,263.00

34,595.00 212,328.45

9,644.00

9,644.00

34,595.00 212,328.45
9,644.00

7,000.00

7,000.00

7,000.00

1,005.00 2,021.22 1,000.00 34,556.00

1,000.00 34,458.99

1,000.00 34,556.00 (3)

- 24 -

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U.S. Department of

Through Georgia Department of Education

Vocational Education Basic Grants to States

High School Program

Basic Grant

1993Grant

84.048

$

11,405.00

1994Grant

84.048

3,473.00

2,900.00 $

3,473.00

(4)

Tech-Prep Education

1994Grant

84.243

28825.96

21905.20

28825.96

(4)

Total U.S. Department al Education

417072.96

366943.47 $ 402403.23 $

308695.28

Talal Federal Financial Assistance

$ 711338.40 $

The Board had no major programs as defined by the Single Audit Act of 1984.

634 751.76 $ 696668.67 $

676457.80

(1} The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary asai&tance for donatad commodities received and/or con&1Jmed by the system during the current flSCal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994
National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds.
Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

See notes to the general purpooe financial statements.

25.

LONG COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994
INTEREST BEARING ACCOUNTS
Coastal Bank, Hinesville, Georgia
Money Market Account (Variable) N.O.W. Accounts (3.15%)

SCHEDULE "2"
$ 61,248.12 297,875.73
$ 359,123.85

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

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

SCHEDULE "3" $ 3,319,133.90

See notes to the general purpose financial statements. - 27 -

LONG COUNlY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "4"

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Federal Program ESEA- Chapter 1 Education of Deprived Children
Education, U.S. Department of P.L. 81-874
First District Regional Educational Service Agency State Preschool Handicapped Program
Lex Jolley and Company Reimbursement for overpayment
Long County Tax Commissioner County Wide School Tax
State of Georgia Office of Treasury and Fiscal Services Local Government Investment Pool Interest Earned
Revenue, Georgia Department of Railroad Car Tax

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 1,571.49 2,334.32
$ 7,493.76

$ 1,571.49 2,334.32
7,493.76

38,691.32

38,691.32

20,482.00

20,482.00

1,000.00

1,000.00

$ 9,516.00

9,516.00

43,183.70

43,183.70

3,764.05 5,600.86

8,031.27

11,795.32

5,600.86

$ 80,524.37 $ 43,597.13 $ 17,547.27 $ 141,668.77

See notes to the general purpose financial statements.

- 28 -

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

SCHEDULE "5"

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

TOTAL DEBT SERVICE

1994 ISSUE

INTEREST

PRINCIPAL

$ 157,777.50 $ 122,777.50 $

161,727.50

121,727.50

165,427.50

120,427.50

173,875.00

118,875.00

181,867.50

116,867.50

35,000.00 40,000.00 45,000.00 55,000.00 65,000.00

189,365.00 196,365.00 202,837.50 213,752.50 223,912.50

114,365.00 111,365.00 107,837.50 103,752.50
98,912.50

75,000.00 85,000.00 95,000.00 110,000.00 125,000.00

223,225.00 227,115.00 230,325.00 232,825.00 234,665.00

93,225.00 87,115.00 80,325.00 72,825.00 64,665.00

130,000.00 140,000.00 150,000.00 160,000.00 170,000.00

235,825.00 235,925.00 235,475.00 239,475.00 242,650.00

55,825.00 45,925.00 35,475.00 24,475.00 12,650.00

180,000.00 190,000.00 200,000.00 215,000.00 230,000.00

$ 4,204,412.50 $ 1,709,412.50 $

2,495,000.00

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

1994 ISSUE

$

0.00

2,495,000.00

Bonds Payable at June 30, 1994

s_=...;2~,4;;;9;.;;s...:,o;.;;o;;o.;;;00;;.

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

MARCH 1 - SEPT 1 MARCH 1

See notes to the general purpose financial statements.

- 29 -

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

SCHEDULE ''6''

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs Govemo~s Emergency Funds (1) Mentor Teacher Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Lottery Programs Algebra Classrooms Computers in Classrooms Safe Schools Grant
First District Regional Educational Service Agency State Preschool Handicapped Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 1,723,598.00 244,435.00 91,220.00 78,250.00 26,537.00 542,853.00
173,329.00 44,287.00 75,571.00 47,556.00 29,810.00
282,327.00 -370,308.00 217,011.00
$
40,000.00 1,440.00

$ 24,478.00

1,723,598.00 244,435.00 91,220.00 78,250.00 26,537.00 542,853.00
173,329.00 44,287.00 75,571.00 47,556.00 29,810.00
282,327.00 -370,308.00 217,011.00
24,478.00
40,000.00 1,440.00

50.00

2,316.00 9,116.00 41,467.00

50.00
2,316.00 9,116.00 41,467.00

1 000.00

1 000.00

(1) For Building Improvements -Additional Classrooms

$ 3,247,966.00 $

78,377.00 $ 3,326,343.00

See notes to the general purpose financial statements.

- 30 -

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
other Donations Interest Earned Jury Duty Fees Lost and Damaged Books Sales Lunch and Breakfast School Assets other

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

SCHEDULE'?"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 1,052,727.66 5,733.66 2,567.92

$ 1,052,727.66 5,733.66 2,567.92

2,000.00 34,921.89 $
370.00 1,273.47

3,032.07 $ 44,062.96 $

325.51 4,241.81

81,513.08 292.00

908.20

2,000.00 82,925.12
370.00 1,273.47
81,513.08 617.51
4,241.81

$ 1,104,161.92 $ 84,837.15 $ 44,062.96 $

908.20 $ 1,233,970.23

See notes to the general purpose financial statements.

31 -

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

SCHEDULE s

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 Insurance Communications Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 2,554,378.88 $ 647,638.12 11,583.35 49,445.07 6,181.57 5,953.60 15,710.57 60,412.75 12,230.62
5,500.00 6,895.42 160,804.13 132,493.54
74,141.79 1,675.00
13,888.76

293,847.16 $ 62,182.75 1,351.24 3,817.64
1,537.95 6,789.41
1,005.36 1,917.28
80,161.86
185,083.42 2,197.10 2,190.81 318.33

2,848,226.04 709,820.87 12,934.59 53,262.71 6,181.57 7,491.55 22,499.98 60,412.75 13,235.98 1,917.28 5,500.00 6,895.42 240,965.99 132,493.54 185,083.42 76,338.89 3,865.81 14,207.09

92,651.15 180,429.24

88,045.00

92,651.15 268,474.24

Total Expenditures

$ 4,032,013.56 $ 730,445.31 $ 4,762,458.87

See notes to the general purpose financial statements. - 32 -

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

SCHEDULE "9"

EXPENDITURES Operating Costs Supplies Other Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

SAFE SCHOOLS
GRANT

TOTAL

$

2,341.07 $

1,088.64 $

29,799.80 $

33,229.51

140.00

140.00

8 049.00

11 569.00

19 618.00

$

2,341.07 $

9,137.64 $

41,508.80 $

52,987.51

See notes to the general purpose financial statements.

- 33 -

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

SCHEDULE "1 o

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 2,351,311.00 $

26,537.00

$ 2,242,226.69 179,579.91 $
$ 2,421,806.60 $

26,558.80 26,558.80

-15,287.54

$ 2,406.519.06 $

-124.50 26,434.30

$

0.00 $

102.70

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

I ONG COUNTY RQARD 9f EDLICATION
ANALYSIS OF MINIM! JM fX'PfNDITLJRf RFQUIRfUfNTS - BY PROGRAM
GENERAi FlJNP- QI.JAi ITV BASIC EDUCATION PROGRAMS YEAR ENPEP HINE 30 1Q94

GfiN~RAI ANP ~REfR f~,!QATI~ EBQQRAMS l(j-rlen(1 Grades1-3(1 Sub-Total - K-3 Grades 4- 5 (") Grades 6- 8 (") Grades 9 -12 (") HighSchoa<La-(") Vocational Education Laboratories (1 Total General and Career Education Programs
S~QIAI f;DUCATION eBQQRAMS Regular Programs cat~l(1 ~II(") ~Ill(") cat~IV(") Itinerant Supplemental Speech Sub-Total - Regular cat~ V (G"8d) (1 Total Special Education Prc)(Jrams
REM;;DIAL EDUCATION PROGRAM (j MEDIA CENTER PROGRAMS
Total Thirteen Weighted and Media Center
STAFF QE'.!!EI OPMftn: PRQQRAM (1) Cost cl Instruction Prolessional Development
Tolalsta!IDeYelopment
(1 Identifies Thirteen Weighted Programs Nole: (1) $3,085.00 d the allotment for Professional
Development haS been transferred to Cost cl Instruction as authorized by OCGA 20-2-182
See notes to the general purpose financial statements.

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

_.:!L

ORIGINAL

MID-TERM

REQUIRED

196,119.00

176,507.10

539147.00 735,266.00

90 s

485 232.30 $ 661,739.40 $

259,996.00 90

233,996.40

358,492.00 90

322,642.80

207,288.00 90

186,559.20

66,515.00 90

59,863.50

96 041.00 90

86 436.90

1723598.00

1 551 238.20 $

176,507.10

13 425.00

498 657.30

13,425.00 $

675,164.40

233,996.40

130,383.00

453,025.80

70,000.00

256,559.20

59,863.50

86 436.90

213 808.00 $ 1 765046.20

239,315.00

215,383.50 $

a.co $

215,383.50

239,315.00 5120.00
244 435.00 91,220.00 78 250.00

90 $ 90
90 $ 90 $

215,383.50 $ 4608.00
219 991.50 $ 82,098.00 $ 70,425.00 $

a.co s
0.00 0.00 $
a.co $
0.00 $

215,383.50 4 608.00
219,991.50 82,098.00 70,425.00

$ 2,137 503.00

1,923,752.70 $

213,808.00 $ 2,137,560.70

9,055.00 100 $ 17 482.00 100

9,055.00 $ 17 482.00

0.00 $

9,055.00 17 482.00

26,537.00

26 537.00 $

0.00 $

26,537.00

2,164,040.00

1,950,289.70 $

213,808.00 $ 2,164,097.70

- 36 -

SCHEDULE "11"

REQUIRED ALLOTMENT

SALARIES ACTIJAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNOEREXPENOITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNDEREXPENDITURE

FOR REQUIRED

ACTIJAL

ALLOTMENT

171,683.10 $ 482 553.60 654,236.70 $ 226,308.60 432,378.30 247,747.30
57,047.40 744TT.70 1 692 196.00 $

213,673.26 516 085.76 729,759.02 $ 266,821.72 430,657.94 249,185.90
71,703.63 105119.64 1853247.85 $

0.00 0.00 1,720.36 0.00 0.00 0.00 1 720.36

4,824.00 $ 16103.70 20,927.70 $
7,687.80 20,647.50
8,811.90 2,816.10 11 959.20 72,850.20 $

9,404.81 36124.93 -45,529.74 S 30,069.37 34,357.20 23,072.01 6,526.36 12 317.58 151 872.28 S

0.00 0.00 0.00 0.00 0.00 0.00 0.00

16,768.80 S 37,149.30 144,878.40
8,942.40 432.90 865.80

19,959.43 TT,164.62 97,761.54 27,942.85

923.40 $ 855.00 4,239.00 328.50
0.00 0.00

1,124.05 1,356.97 3,831.27
725.71

209,037.60 $

222,828 44 $

0.00

6,345.90 $

7,038.00 $

0.00

4,471.20

4 339 50

131.70

136.80

140.50 S

0.00

213,508.80 $

227 167.94 $

131.70

6 482.70 $

7178.50 $

0.00

80 586.00 $

86,822 04 $

0.00

1 512.00 $

1 980.45 s

0.00

53 971.20 $

74 988 86 $

0.00

16 453.80 $

18 548.68 $

0.00

2 040 262.00 $ 2,242,226 69 $

1,852.06

97,298.70 $

179,579.91 $

0.00

2,040,262.00 $ 2,242,226.69 $

1,852.06

9,055.00 $ 17,482.00

9,179.50 $ 17 379.30

26,537.00 $

26,558.80 $

123,835.70 $

206138.71 $

0.00 102.70 102.70
102.70

37 -

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

SCHEDULE "12''

BOARD MEMBER ADDRESS
Mr. Joseph P. Dunham, Chairman (*) Route 3, Box 227 Hinesville, Georgia 31313
Ms. Florence Baggs (*) P.O. Box231 Ludowici, Georgia 31316
Ms. Ma~ene Manning (*) Route 2, Box 181 Ludowici, Georgia 31316
Ms. Kathy Walter (*) Route 2, Box 236A Ludowici, Georgia 31316
Ms. Billie Ann Wingate (*) Route 1, Box 83 Ludowici, Georgia 31316

COMPENSATION

TRAVEL

$

1,200.00 $

96.32

1,200.00

1,200.00

1,200.00

85.25

1,200.00

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

$

6,000.00 $

181.57

See notes to the general purpose financial statements.

- 38 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 1, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Long County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Long County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated August 1, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Long County Board ofEducation is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

94CRL-10

The results of our tests indicate that, with respect to the items tested, the Long County Board ofEducation complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

CLV:djf 94CRL-I0

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 1,1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Long County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated August 1, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) 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 Long County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Long County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~/~
Claude L. Vickers State Auditor
CLV:djf 94CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 1, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Long County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated August 1, 1995. Thisreport was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

94CRL-120

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

SECTION Ill INTERNAL CONTROL

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

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

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Long County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Long County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August I, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit of the general purpose financial statements of the Long County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Long 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
94ICL-3

objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

(1) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement

(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation (8) General Ledger (9) General Fixed Assets

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

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

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

(1) Accounting Controls (Overall)

(2) General Fixed Assets

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

941CL-3

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of 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 ofthe Long County Board ofEducation's financial statements and this report does not affect our report thereon dated August 1, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:djf 94ICL-3

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
August 1, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Long County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Long County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated August 1, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Long County Board of Education complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We
94ICL-15

have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated August 1, 1995.

The management of the Long County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection 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-Up/Resolution (8) Administrative Requirements

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

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

During the year ended June 30, 1994, the Long County Board of Education had no major Federal financial assistance programs and expended 70% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs:

94ICL-15

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act - Chapter I Education ofDeprived Children
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements, and specific requirements, as descnbed above that are applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute 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, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation 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 of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This 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 ofthis report which is a matter of public record.
Respectfully submitted,
ti~~
Claude L. Vickers State Auditor
CLV:djf 94ICL-15

SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Excessive Cash Balances Federal Financial Assistance Finding Resolved Audit Control Number 6911-93-03
The audit report for the year ended June 30, 1993, stated that a review of cash management procedures for the E.S.E.A - Chapter 1 - Education ofDeprived Children Program (CFDA 84.010) disclosed that cash draws utilizing DE Form 0147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. For the year under review, audit test of cash management procedures revealed no excessive cash balance accumulations by the Board.
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Financial Statements Finding Resolved Audit Control Number 6911-93-05
The audit report for the year ended June 30, 1993, disclosed that the Long County Board ofEducation did not have its bank balances fully collateralized as required by the Official Code of Georgia Annotated Section 45-8-12. For the year under review, audit tests of the Board's bank balances indicated that the Board complied with the State laws governing collateralization of cash deposits.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6911-93-01
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "l" of this report are affected by this finding.

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6911-93-02
The audit report for year ended June 30, 1993 noted that the management of the Long County Board of Education had chosen not to maintain a system wide General Fixed Asset Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of the General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Asset Account Group.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $1,954.76 Audit Control Number 6911-94-01
For the year under review the Board had underexpenditures of Quality Basic Education (QBE) funds of $1,720.36 for the salaries portion ofthe General and Career Education Grades 6 - 8 Program, $131.70 for the salaries portion ofthe Special Education Category V (Gifted) Program and $ 102.70 for the Staff Development - Professional Development Program. These underexpenditures are the result of management expending less than the minimum expenditure requirement for these QBE programs. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
GENERAL LEDGER Detail of Salaries Not Reconciled Financial Statements Nonmaterial Noncompliance Audit Control Number 6911-94-02
The detail listing ofsalary payments made to employees as submitted by the Board to the Georgia Department of Audits was not reconciled with the general ledger as presented for audit. The unreconciled difference of $1,983.22 for the Special Revenue Fund is reflected in a separately issued report titled "Independent Auditor's Combined Report on Supplementary Information - Summary and Schedule of Salaries and Travel". The unreconciled difference was the result of the Board's failure to correctly report salaries to the Georgia Department of Audits.
Procedures should be established by the Board to ensure that the detailed listing of salary is reconciled to the accounting records prior to submission to the Georgia Department of Audits.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

LONG COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADM1NISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6911-93-01
We concur with this finding, however due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board believes it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding cannot be totally resolved.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6911-93-02
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $1,954.76 Audit Control Number 6911-94-01
We concur with this finding. This finding will be resolved by Georgia Department of Education through a future increase in Board's local fair share portion ofQ.B.E. allotments.
GENERAL LEDGER Detail of Salaries Not Reconciled Financial Statements Nonmaterial Noncompliance Audit Control Number 6911-94-02
We concur with this finding even though we have never been instructed to perform this procedure in prior years. A detailed listing of salaries will be reconciled to the accounting records prior to submission to the Georgia Department of Audits.