GrA A800 .Rt E~6 L~ 19Q5 -'1b AUDIT REPORT LONG COUNTY BOARD OF EDUCATION LUDOWICI, GEORGIA YEAR ENDED JUNE 30, 1996 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 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 ALL GOVERNMENTAL FUND TYPES 4 C STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 8 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 22 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 24 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 26 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 27 SCHEDULES 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 28 2 CASH AND CASH EQUIVALENTS 29 3 INVESTMENTS 30 4 ACCOUNTS RECEIVABLE 31 5 DEBT SERVICE REQUIREMENTS TO MATURITY 32 SCHEDULE OF REVENUE 6 STATE 33 7 TAXES AND OTHER 34 LONG COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES SCHEDULE OF EXPENDITURES BY OBJECT 8 GENERAL AND SPECIAL REVENUE FUNDS 35 9 LOTTERY PROGRAMS 36 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 10 OVERALL 39 11 BY PROGRAM 40 12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 42 SECTIONll 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 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 LONG COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, Sow., Suite 214 Atlanta, Georgia 30334-8400 August 8, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Long County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Ladies and Gentlemen: We have audited the general purpose financial statements (Exhibits A through D) of the Long County Board of Education, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General 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 OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 96ARL-13 * The general purpose 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, 1996, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, from the Georgia Department of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30,1995, were improperly recorded in the year ended June 30, 1996. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Long County Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated August 8, 1997, on our consideration of the Board's internal control structure and a report dated August 8, 1997, on its compliance with laws and regulations. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Long County Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe 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 ofthe food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 96ARL-13 A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, CLV:dt 96ARL-13 Claude L. Vickers State Auditor LONG COUNTY BOARD OF EDUCAnON - 1- LONG COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1996 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 GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 14,530.25 $ 185,308.52 $ 163,303.45 799,228.10 449,390.50 62,716.50 97,253.01 70,122.23 12,433.25 3,109.12 Total Assets $ 876,474.85 $ 298,103.90 $ 682,816.18 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity $ 15,387.33 $ 11,547.39 75,603.52 1,015.40 149,571.80 $ 92,006.25 $ 161,119.19 $ 16,567.05 1,954.76 $ 643.39 12,433.25 3,109.12 $ 426,696.99 $ 18,521.81 $ 16,185.76 $ 426,696.99 857,953.04 189,911.89 95,000.00 $ 876,474.85 $ 206,097.65 $ 521,696.99 Total Liabilities and Fund Equity $ 876,474.85 $ The notes to the general purpose financial statements are an integral part of this statement. -2- 298,103.90 $ 682,816.18 EXHIBIT "A" DEBT SERVICE FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30,1995 $ 106,430.91 ,$ 469,573.13 $ 1,013,089.27 1,248,618.60 3,297,875.54 8,568.25 238,659.99 1,300,848.15 12,433.25 3,109.12 12,191.72 4,257.11 $ 114,999.16 114,999.16 70,629.37 2,305,000.84 2,305,000.84 2,389,370.63 $ 114,999.16 $ 2,420,000.00 $ 4,392,394.09 $ 8,088,261.79 $ 26,934.72 $ 8,162.10 75,603.52 50,049.84 1,015.40 20,272.35 915,986.07 149,571.80 350,878.19 $ 2,420,000.00 2,420,000.00 2,460,000.00 $ 2,420,000.00 $ 2,673,125.44 $ 3,805,348.55 $ 114,999.16 $ 114,999.16 0.00 $ 114,999.16 $ 16,567.05 114,999.16 $ 2,598.15 70,629.37 1,954.76 12,433.25 3,109.12 426,696.99 12,191.72 4,257.11 1,863,223.04 1,232;168.03 $ 576,403.72 $ 3,184,424.03 1! 142,864.93 1,098,489.21 $ 1?19,268.65 $ 4,282,913.24 $ 114,999.16 $ 2,420,000.00 $ 4,392,394.09 $ 8,088,261.79 . 3- LONG COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996 FUND BALANCE JUNE 30 $ 876,474.85 $ 206,097.65 $ 521,696.99 The notes to the general purpose financial statements are an integral part of this statement. -4- EXHIBIT"B" DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30,1996 JUNE 30,1995 $ 5,278,075.37 $ 7,786,613.09 845,001.62 694,030.50 $ 206,790.18 1,614,116.60 1,594,349.65 $ 206,790.18 $ 7,737,193.59 $ 10,074,993.24 $ 4,345,031.35 $ 3,113,578.88 148,284.87 189,629.18 157,344.11 140,327.22 347,994.72 102,588.07 352,038.97 404,709.61 12,765.10 551,261.80 22,237.11 3,363,299.22 148,634.32 118,417.47 157,465.62 120,648.89 282,475.07 468,107.50 275,706.00 355,485.97 14,384.73 12,515.70 391,781.64 21,679.58 3,905,458.55 $ 40,000.00 121,727.50 692.89 40,000.00 121,727.50 692.89 35,000.00 122,777.50 720.00 $ 162,420.39 $ 10,299,931.72 $ 9,544,837.42 $ 44,369.79 $ -2,562,738.13 $ 530,155.82 $ 535,613.63 $ 968,645.00 -535,613.63 -968,645.00 $ 0.00 $ 0.00 $ 44,369.79 $ -2,562,738.13 $ 530,155.82 70,629.37 4,282,913.24 3,745,105.29 241.53 -1,147.99 6,468.49 1,183.64 $ 114,999.16 $ 1,719,268.65 $ 4,282,913.24 -5- TIDS PAGE LEn BLANK LONG COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30,1996 EXHIBIT"C" REVENUES State Funds Federal Funds Taxes and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Other Sources Other Uses Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1, 1995 Adjustments GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) $ 4,216,975,00 $ 4,710,626,66 35,000,00 50,838,60 1,202,723,00 1,240,920,43 $ 5,454,698,00 $ 6,002,385.69 $ 3,680,447,00 $ 3,617,754.42 150,393,00 164,439.00 154,042.00 105,900,00 353,684.00 108,753.00 366,257,00 430,188,00 10,552,00 138,923,13 166,253.29 150,942,68 98,691.50 341,812.68 102,588,07 298,478,96 378,165,20 10,513,00 22,833.00 78,320.00 22,237.11 78,320.00 $ 5,625,808,00 $ 5,404,680.04 $ -171,110.00 $ 597,705.65 $ -530,000,00 $ $ -530,000.00 $ -535,613.63 -535,613.63 $ -701,110.00 $ 778,378.95 -14,761.28 62,092.02 814,382.83 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 651,421,00 $ 544,590,00 808,059,00 794,163,02 98,380.00 102,979.56 $ 1,557,860,00 $ 1,441,732.58 $ 859,110,15 $ 727,276,93 9,893.00 27,133,00 6,400,00 42,458.00 6,180,00 9,361.74 23,375,89 6,401.43 41,635.72 6,182,04 53,353,00 26,184.00 2,900,00 431,271,00 53,560,01 26,544.41 2,252.10 551,261,80 $ 1,464,882.15 $ 1,447,852.07 $ 92,977,85 $ -6,119.49 $ 5,613.63 $ 5,613.63 $ 92,977.85 $ -505.86 225,893.63 191,061.14 -1,589.25 FUND BALANCE JUNE 30.1996 $ 62,507.67 $ 876,474.85 $ 317,282.23 $ 190,555.28 The notes to the general purpose financial statements are an integral part of this statement. - 7- LONG COUNTY BOARD OF EDUCATION EXlllBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: 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 these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the fmancial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and fmancial reporting standards. The more significant of the Board's accounting policies are described below. REPORTING ENTITY In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification ofGovernmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity 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 of government 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 fmancial 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. -8- LONG COUNTY BOARD OF EDUCATION EXIllBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose fmancial statements. The general purpose fmancial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding. BASIS OF ACCOUNTING The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current fmancial 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. -9- LONG COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Liabilities which are expected to be fmanced from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (Le., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1996, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1996. Also, the State's portion of the compensation paid in July and August 1996 was received and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. BUDGET The Long County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. - 10- LONG COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This fmal 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 may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report: Special Revenue Fund FUND BALANCE JULY 1, 1995 $ 207,509.97 Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods -12,191.72 -4,257.11 Fund Balance July 1, 1995 (Budget Basis) $ 191,061.14 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses -505.86 FUND BALANCE JUNE 30, 1996 (Budget Basis) $ 190,555.28 CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including savings and N.O.W. accounts) in authorized [mancial 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. - 11 - LONG COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues ofinvestment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested 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, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist of grant reimbursements due from 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 1995 tax year (calendar year) on January 15, 1996 (levy date). Taxes were due on March 15, 1996. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria ofGASB codification section P70.l03. The Long County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the balance of taxes collected to the Board. - 12 - LONG COUNTY BOARD OF EDUCATION EXHIBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Tax millage rates levied for the 1995 tax year (calendar year) for the Long County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations School Bonds 13.20 mills 2.30 mills li5Qmills INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. GENERAL OBLIGATION BONDS The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized during the year bonds are issued. Issuance costs, whether or not withheld from actual net proceeds, are reported as capital project expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group. INTERFUND TRANSACTIONS The Board has the following types of interfund transactions: Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. - 13- LONG COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of anyone of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws ofthe 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 - 14- LONG COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 2: DEPOSITS AND INVESTMENTS (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank., the Federal Home Loan Bank., the Federal Intermediate Credit Bank., the Central Bank. for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank. balances were $1,077,974.89. The amounts of the total bank. balances are classified into three categories of credit risk: Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank. balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 1996, as follows: Risk Category Bank. Balance 1 $ 184,560.97 2 893,413.92 3 0.00 Total $ 1,077,974.89 CATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount of the Board's total investments was $1,248,618.60 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, 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. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments. Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories - 15 - LONG COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 4: RISK MANAGEMENT The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to natural disaster in the past three years. The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 1995 1996 Beginning of Year Liability Claims and Changes in Estimates $ 0.00 $ 593.13 $ $ 0.00 $ 0.00 $ Claims Paid End ofYear Liability 593.13 $ 0.00 0.00 $ 0.00 The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Continental Insurance Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $1,000,000.00. Note 5: GENERAL LONG-TERM DEBT GENERAL OBLIGATION BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1993 3.00% - 5.50% $ 2.420.000.00 - 16 '" LONG COUNTY BOARD OF EDUCATION EXlllBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 .Note 5: GENERAL LONG-TERM DEBT The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows: General Obligation Bonds Balance July 1, 1995 $ 2,460,000.00 Deductions Payments 40,000.00 Balance June 30, 1996 $ 2.420,000.00 At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 General Obligation Bonds 1997 1998 1999 2000 2001 2002 and thereafter $ 165,427.50 173,875.00 181,867.50 189,365.00 196,365.00 2,978,007.50 Total Principal and Interest $ 3,884,907.50 Note 6: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of$88,802.73 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$71,314.73 - 17 - LONG COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 6: ON-BEHALF PAYMENTS Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$17,488.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996. Project Unearned Executed Contracts Undistributed by Project $ 59,558.40 The amount described in this note is not reflected in the general purpose financial statements. Note 8: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. Note 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. - 18 - LONG COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 9: RETIREMENT PLANS 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 ofdeath on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $3,325,687.24; total payroll was $3,888,339.02. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%. Total contributions made during fiscal year 1996 amounted to $559,049.52, of which $392,763.97 was made by the Board and $166,285.55 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll. TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. Total unfunded pension benefit obligation ofTRS as of June 30, 1995, was as follows: - 19 - LONG COUNTY BOARD OF EDUCAnON EXlllBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Note 9: RETIREMENTPLANS Total pension benefit obligation $17,442,607,000.00 Net assets available for benefits, at cost 15,857,066,000.00 Unfunded pension benefit obligation $ 1.585.541,000.00 The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $392,763.97 was actuarially determined and represented .0647% of total contributions made by all participating employers. Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute. PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears ofcreditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement. Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. - 20- LONG COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1996 Note 9: RETIREMENT PLANS There were 53 employees covered under PSERS for the year ended June 30, 1996. PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially detennined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $1,716.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80. Note 10: 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, 1996. - 21 - LONG COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 3D, 1996 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS STATE PRESCHOOL HANDICAPPED PROGRAM ELEMENTARY AND TITLE I GRANTS TO LOCAL EDUCATIONAL MIGRANT AGENCIES EDUCATION $ 214,747,65 $ 6,867.81 $ 2,883,20 2,377.62 20,308.00 $ 57,n6.64 $ 3,197.16 12,433,25 3,109,12 $ 232,667,64 $ 27,175,81 $ 2,883.20 $ 57,n6,64 $ _ _3..,1",,9.7.._1.6. LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Expired Grant Balances! Questioned Costs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund EqUity $ 2,077.11 $ 5,728,85 $ 24,492,88 21,446,96 $ 26,569,99 $ 27,175,81 $ $ 643,39 12,433,25 3,109,12 $ 16,185,76 189,911.89 $ $ 206,097,65 $ 0,00 $ 0.00 $ $ 442,00 2,441,20 33,679,31 $ 4,743,01 19,354,32 2,883,20 $ 57,n6.64 $ 798,52 315.42 1,613.34 469,88 3,197.16 0,00 $ 0,00 $ 0,00 $ 0.00 0,00 $ 0.00 Total Liabilities and Fund EqUity $ 232,667,64 $ 27,175,81 $ 2,883,20 $ 57,n6,64 $ 3,197,16 See notes to the general purpose financial statements, - 22- EXHIBIT"E" SECONDARY EDUCATION ACT TITLE VI TITLE II INNOVATIVE EISENHOWER EDUCATION PROFESSIONAL PROGRAM DEVELOPMENT STRATEGIES INDIVIDUALS WITH DISABILITIES EDUCATION ACT PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL VOCATIONAL EDUCATION FEDERAL TOTALS JUNE 30,1996 JUNE 30,1995 $ 0.00 $ 396.96 $ 1,620.12 $ 226,515.74 $ 228,786.75 $ 6,985.00 $ 6,608.59 97,253.01 46,263.10 12,433.25 3,109.12 12,191.72 4,257.11 $ 0.0..0"= $ _ _....3.9..6..9..6... $ 6,985.00 $ . 1,620.12 $ 6,608.59 $ 339,311.12 $ 291,498.68 $ 120.80 $ 6,608.59 $ 41,207.22 $ 5,504.42 $ 396.96 1,461.22 $ 222.76 15,387.33 8,162.10 5,402.98 851.84 75,603.52 50,049.84 545.52 1,015.40 20,272.35 $ 396.96 $ 6,985.00 $ 1,620.12 $ 6,608.59 $ 133,213.47 $ 83,988.71 $ 0.00 $ $ 0.00 $ $ _ _--=~O;,;,;;.O;,;;"O $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ $ 643.39 $ 0.00 0.00 $ 12,433.25 $ 3,109.12 16,185.76 $ 189,911.89 206,097.65 $ 12,191.72 4,257.11 16,448.83 191,061.14 207,509.97 396.96 $ 6,985.00 $ 1,620.12 $ 6,608.59 $ 339,311.12 $ 291,498.68 - 23- LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30.1996 REVENUES State Funds Federal Funds Taxes and Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School 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 LOTTERY PROGRAMS STATE PRESCHOOL HANDICAPPED PROGRAM ELEMENTARY AND TITLE I GRANTS TO LOCAL EDUCATIONAL MIGRANT AGENCIES EDUCATION $ 31,964.00 $ 495,873.00 $ 415,812.38 102,979.56 $ 550,755.94 $ 495,873.00 $ 16,753.00 $ 251,701.45 $ 12,625.12 16,753.00 $ 251,701.45 $ 12,625.12 $ 403,428.98 $ 8,861.74 2,758.11 6,182.04 50,284.84 25,254.50 $ 551,261.80 $ 551,261.80 $ 496,770.21 $ $ -505.86 $ -897.21 $ 19,390.27 $ 202,294.25 $ 500.00 1,161.50 40,928.67 3,275.17 1,289.91 2,252.10 12,625.12 19,390.27 $ -2,637.27 $ 251,701.60 $ -0.15 $ 12,625.12 0.00 $ -505.86 $ 207,509.97 241.53 -1,147.99 897.21 0.00 $ 0.00 2,637.27 0.00 $ 0.00 0.15 0.00 $ 0.00 0.00 0.00 FUND BALANCE JUNE 30 $ 206,097.65 $ 0.00 $ 0.00 $ 0.00 $ ..;;O~.O~O See notes to the general purpose financial statements. - 24- EXHIBIT "F" SECONDARY EDUCATION ACT TITLE VI TITLE II INNOVATIVE EISENHOWER EDUCATION PROFESSIONAL PROGRAM DEVELOPMENT STRATEGIES INDIVIDUALS WITH DISABILITIES EDUCATION ACT PARTB SPECIAL EDUCATION FLOW THROUGH PRESCHOOL VOCATIONAL EDUCATION FEDERAL TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995 $ 8,000.00 $ $ _ _--=.8,!.=.oo::.:o;.;.:.o~0$ 13,n2.00 $ 41,416.00 $ 13,n2.00 $ 41,416.00 $ 6,597.48 $ .::.l6,~59::..;7~.4:.::..8 $ $ 44,238.59 544,590.00 $ 794,163.02 102,979.56 44,238.59 $ 1,441,732.58 $ 126,619.86 622,750.83 88,359.38 837,730.07 $ 42,376.59 $ 6,597.48 $ 40,564.24 $ 727,276.93 $ 310,643.49 $ 8,005.30 $ 6,688.63 6,401.43 15.65 691.40 4,762.35 9,361.74 23,375.89 6,401.43 41,635.72 6,182.04 53,560.01 26,544.41 2,252.10 551,261.80 900.00 4,815.49 39,730.79 21,845.76 2,070.45 1,287.83 5,606.55 2,521.48 391,781.64 $ 8,020.95 $ 13,781.46 $ 42,376.59 $ 6,597.48 $ 45,326.59 $ 1,447,852.07 $ 781,203.48 $ -20.95 $ -9.46 $ -960.59 $ 0.00 $ -1,088.00 $ -6,119.49 $ 56,526.59 20.95 9.46 960.59 $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 0.00 1,088.00 5,613.63 1.00 0.00 $ 0.00 0.00 $ 0.00 -505.86 $ 207,509.97 56,527.59 143,330.25 241.53 -1,147.99 6,468.49 1,183.64 $=_===O;;,;'O~O $======O;;,;'O~O $ 0.00 $ ..... ..0....0."'=0 $ 0.00 $ 206,097.65 $ 207,509.97 - 25- LONG COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1996 EXHIBIT"G" ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets REGULAR 1993 BOND ISSUE FUND GEORGIA STATE FINANCING AND INVESTMENT COMMISSION PROJECT 95/945-691-033 96-691-Q45 TOTALS JUNE 30,1996 JUNE 30,1995 $ 95,000.00 $ 0,00 $ 68,303.45 $ 163,303.45 $ 1,958,223.04 449,390.50 449,390.50 2,569,447,89 70,122.23 70,122.23 1.176,293.11 $ 95,000.00 $ 0.00 $ 587,816.18 $ 682,816.18 $ 5,703,964.04 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity $ 95,000.00 $ $ 95,000.00 $ Total Liabilities and Fund Equity $ 95,000.00 $ $ 1,246,708.71 $ 11,547.39 $ 11,547.39 915,986.07 149,571.80 149,571.80 350,878.19 $ 161,119.19 $ 161,119.19 $ 2,513,572.97 $ $ 0.00 0.00 $ 426,696.99 $ 426,696.99 $ $ 1,863,223.04 426,696.99 1,232,168.03 426,696.99 $ 3,095,391.07 0.00 426,696.99 $ 95,000.00 95,000.00 521,696.99 $ 3,190,391.07 0.00 $ 587,816.18 $ 682,816.18 $ 5,703.964.04 See notes to the general purpose financial statements. - 26- LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1996 EXHIBIT"H" FUND BALANCE JUNE 30 $ 95.000.00 $ 0.00 $ 426.696.99 $ 521.696,99 $ 3.190.391.07 See notes to the general purpose financial statements. - 27- LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30. 1996 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1) Total U. S. Department of Agriculture Education, U. S. Department of Direct Impact Aid Program 1994 Grant 1996 Grant Through First District Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1996 Grant Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1995 Summer 1995 Grant 1996 Summer Title II Eisenhower Professional Development 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant Total U. S. Department of Education CFDA NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10.553 $ 10.555 10.550 $ 89,On.43 (2) 278,008.29 $ 48,726.66 502,535.14 (3) 48,726.66 415,812.38 $_~5~5~1,:::26::..l1.:::.8::::..0 84.041 $ 12,733.60 (4) 84.041 38,105.00 (4) 84.011 12,625.12 $ 12,625.12 84.010 84.010 84.010 84.281 84.298 648.81 249,052.64 2,000.00 8,000.00 13,772.00 648.81 249,052.64 2,000.15 (3) 8,020.95 (3) 13,781.46 (3) 84.027 84.173 41,416.00 6,597.48 42,376.59 (3) 6,597.48 84.048 84.243 $ 18,116.76 26,121.83 429,189.24 $ 19,204.76 (3) 26,121.83 380,429.79 Total Federal Financial Assistance The Board had no major programs as defined by the Single Audit Act of 1984. $ 845,001.62 $ 931,691.59 (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program. (3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source. (4) Funds earned on this program do not require reporting of expenditures. See notes to the general purpose financial statements. - 28 - LONG COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30,1996 INTEREST BEARING ACCOUNTS The Coastal Bank, Hinesville, Georgia Money Market Account (Variable) N.OW. Accounts (1.49%) SCHEDULE "2" $ 106,430.91 363,142.22 $ 469,573.13 See notes to the general purpose financial statements. - 29 - LONG COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1996 INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (5,361%) SCHEDULE "3" $ 1,248,618,60 See notes to the general purpose financial statements. - 30 - LONG COUNlY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996 SCHEDULE "4" GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND DEBT SERVICE FUND Education, Georgia Department of Food Services National School Lunch Program $ 2,377.62 $ Vocational Education State Funds $ 10,000.00 Federal Funds 6,608.59 Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 57,776.64 Individuals with Disabilities Education Act Part B - Special Education Flow Through 6,985.00 Educational Book Brokers Sale ofTextbooks 255.00 First District Regional Educational Service Agency dlblaJ Live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 3,046.50 Georgia State Financing and Investment Commission Reimbursement on Construction Projects $ 68,156.90 Long County Tax Commissioner County Wide Bond Tax County Wide School Tax 49,228.62 $ 8,568.25 Office of School Readiness Pre-Kindergarten Program 20,308.00 State of Georgia Office of Treasury and Fiscal Services Interest 3,232.88 1,965,33 State Health Benefit Plan Vendor Overpayment 150.66 TOTAL 2,377,62 10,000.00 6,608.59 57,776.64 6,985.00 255.00 3,046.50 68,156.90 8,568.25 49,228.62 20,308.00 5,198.21 150.66 $ 62,716.50 $ 97,253.01 $ 70,122.23 $ 8,568.25 $ 238,659.99 See notes to the general purpose financial statements. - 31 - LONG COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30, 1996 SCHEDULE "5" PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TOTAL DEBT SERVICE 1993 ISSUE INTEREST PRINCIPAL $ 165,427.50 $ 120,427,50 $ 173,875.00 118,875.00 181,867,50 116,867,50 189,365.00 114,365.00 196,365.00 111,365.00 45,000.00 55,000.00 65,000.00 75,000,00 85,000.00 202,837.50 213,752.50 223,912.50 223,225.00 227,115.00 107,837.50 103,752.50 98,912.50 93,225.00 87,115.00 95,000.00 110,000.00 125,000.00 130,000.00 140,000.00 230,325.00 232,825.00 234,665.00 235,825.00 235,925.00 80,325.00 72,825.00 64,665.00 55,825.00 45,925.00 150,000.00 160,000.00 170,000.00 180,000.00 190,000.00 235,475.00 239,475.00 242,650.00 35,475.00 24,475.00 12,650.00 200,000.00 215,000.00 230,000.00 $ 3,884,907.50 $ 1,464,907.50 $ 2,420,000.00 CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired During Period Bonds Payable at June 30, 1996 1993 ISSUE $ 2,460,000.00 40,000.00 $ 2,420,000.00 MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date MAR 1 - SEPT 1 MAR 1 See notes to the general purpose financial statements. - 32 - LONG COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996 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 Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Applied Technology Labs Instructional Technology Pre-Kindergarten Program Safe Schools Grant Technology Installation Georgia State Financing and Investment Commission Reimbursement on Construction Projects Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Public School Employees Retirement GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 2,441,674.00 272,919.00 112,920.00 109,048.00 36,343.00 741,619.00 202,281.00 61,567.00 74,464.00 87,619.00 51,051.00 32,761.00 161,249.00 21,887.00 9,309.00 25,765.00 -352,323.00 381,343.00 $ 130,000.00 31,964.00 8,189.55 71,314.73 4,980.00 4,500.00 2,658.38 16,753.00 100,000.00 54,897.00 193,500.00 1,650.00 30,000.00 $ 2,441,674.00 272,919.00 112,920.00 109,048.00 36,343.00 741,619.00 202,281.00 61,567.00 74,464.00 87,619.00 51,051.00 32,761.00 161,249.00 21,887.00 9,309.00 25,765.00 -352,323.00 381,343.00 31,964.00 130,000.00 8,189.55 71,314.73 4,980.00 4,500.00 16,753.00 2,658.38 100,000.00 54,897.00 193,500.00 1,650.00 30,000.00 $ 22,858.71 115,826.00 17,488.00 22,858.71 115,826.00 17,488.00 $ 4,710,626.66 $ 544,590.00 $ 22,858.71 $ 5,278,075.37 See notes to the general purpose financial statements. - 33 - LONG COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE YEAR ENDED JUNE 30,1996 SCHEDULE "7" Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax Other Sources Interest Earned Jury Duty Fees Rents Sales Lunches and Breakfast Other GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND DEBT SERVICE FUND TOTAL $ 1,184,363,50 6,153.35 3,789.48 $ 205,590,29 $ 205,590,29 1,184,363,50 6,153,35 3,789.48 43,550.03 $ 825.00 490.00 2,863.90 $ 63,426.43 1,749.07 100,115.66 1,199.89 111,040.25 825,00 490.00 100,115.66 1,749.07 $ 1,240,920.43 $ 102,979.56 $ 63,426.43 $ 206,790.18 $ 1,614,116.60 See notes to the general purpose financial statements. - 34 - LONG COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1996 SCHEDULE "8" EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Property 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 Total Expenditures GENERAL FUND SPECIAL REVENUE FUND TOTAL $ 3,367,598,71 $ 958,290.19 11,700.94 79,871.48 6,072.87 5,233,80 7,400,11 11,000,00 70,006.52 19,610,78 5,500.00 13,528.78 337,788.82 128,468.46 70,421.31 10,910.81 1,981.45 520,740,31 $ 126,818.05 11,728.15 8,717.82 5,820.40 12,106.86 2,287.30 3,215.67 125,459.81 30,428.32 253,585.66 4,214.40 8,842.54 1,431.56 3,888,339.02 1,085,108,24 23,429.09 88,589.30 6,072,87 11,054.20 19,506,97 11,000.00 70,006.52 21,898,08 3,215,67 5,500.00 13,528.78 463,248.63 158,896,78 253,585.66 74,635.71 19,753.35 3,413.01 78,320.00 220,975.01 332,455.22 78,320.00 553,430.23 $ 5,404,680.04 $ 1,447,852.07 $ 6,852,532.11 See notes to the general purpose financial statements. - 35 - LONG COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1996 EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Water, Sewer and Cleaning Services Repair and Maintenance Services Communications Supplies Energy Books, Textbooks and Periodicals Other Expenditures Nonoperating Costs Equipment Total Expenditures APPLIED TECHNOLOGY INSTRUCTIONAL PRE-KINDERGARTEN LABS TECHNOLOGY PROGRAM $ $ 6,925,12 $ 5,017.46 93,076.60 50,202.92 155,530,23 39,029.24 1,543.34 5,100.30 2,426.40 724.47 46,012.47 30,428.32 594,63 161,10 28,131.00 $ 100,001.72 $ 55,220,38 $ ======3=:09=,6:.=8;",;,1=.5=0 See notes to the general purpose financial statements. - 36 - SCHEDULE "9" SAFE SCHOOLS GRANT TECHNOLOGY INSTALLATION TOTAL $ 155,530.23 39,029.24 1,543.34 5,100.30 2,426.40 724.47 $ 1,710.00 $ 1,199.61 60,864.66 30,428.32 594.63 161.10 28,957.00 200,367.52 $ 1,710.00 $ 30,156.61 $ 496,770.21 - 37 - TIUS PAGE LEFT BLAHK LONG COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996 SCHEDULE "10" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit Amount of Underexpenditure for Total Allotment THIRTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS $ 3,063,201.00 $ _ _--=.95=.!.,.=.;55:;..;;8.:.;:.~0 $ 2,999,749.87 338,809.54 $ _ _..,;:2=95=.!.,6.=.;8:;..;;6=.5~3 $ 3,338,559.41 -39,694.32 $ 3,298,865.09 $ 0.00 $=====0=.0=0 See notes to the general purpose financial statements. - 39 - LONG COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total- K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS RegUlar Programs Category I (*) Category II (*) Category III (*) Category IV (*) Sub-Total- Reguiar Category V (Gifted) (*) Total Special Education Programs REMEDIAL EDUCATION PROGRAM (*) Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs Total Thirteen Weighted and Media Center Programs STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development Programs (*) Identifies Thirteen Weighted Programs. ALLOTMENTS FROM DEPARTMENT OF EDUCATION ORIGINAL ~ REQUIRED ORIGINAL MID-TERM $ 290,081,00 $ 261,072,90 $ 711,702,00 640,531,80 $ 1,001,783,00 90 $ 901,604,70 $ 363,960,00 90 327,564,00 595,878,00 90 536,290,20 275,111.00 90 247,599.90 105,142.00 90 94,627.80 99,800.00 90 89,820.00 $ 2,441,674.00 $ 2,197,506.60 $ 25,000,00 25,000,00 50,000,00 30,000,00 46,640.00 126,640.00 $ 267,306,00 $ 240,575.40 $ 0.00 : $ 267,306.00 90 $ 240,575,40 $ 5,613.00 90 5,051.70 $ 272,919.00 $ 245,627.10 $ $ 112,920.00 90 $ 101,628.00 $ $ 2,827,513.00 $ 2,544,761.70 $ 0,00 0.00 0.00 126,640.00 $ 85,410.00 90 $ 23,638.00 90 $ 109,048.00 $ 76,869.00 $ 21,274.20 98,143.20 $ 0.00 0.00 $ 2,936,561.00 $ 2,642,904.90 $ 126,640.00 $ 8,980.00 27,363.00 $ 8,980.00 $ 27,363.00 $ 36,343.00 100 $ 36,343.00 $ 0.00 0.00 0.00 See notes to the general purpose financial statements. - 40 - SCHEDULE "11" TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 286,072.90 $ .. 303,601.88 $ 11,653.61 $ 315,255.49 665,531.80 657,974.11 32,064.39 690,038.50 $ 951,604.70 $ 961,575.99 $ 43,718.00 $ 1,005,293.99 $ 0.00 357,564.00 375,780.68 24,031.36 399,812.04 0.00 536,290.20 683,186.68 72,854.47 756,041.15 0.00 247,599.90 217,691.99 50,728.72 268,420.71 0.00 141,267.80 148,808.85 38,089.88 186,898.73 0.00 89,820.00 109,044.19 55,600.20 164,644.39 0.00 $ 2,324,146.60 $ 2,496,088.38 $ 285,022.63 $ 2,781,111.01 $ 240,575.40 $ 7,048.24 44,329.38 $ 235,155.15 $ 2,972.82 4,394.97 1,221.50 7,048.24 47,302.20 239,550.12 1,221.50 $ 240,575.40 $ 286,532.77 $ 8,589.29 $ 295,122.06 0.00 5,051.70 4,935.57 875.00 5,810.57 0.00 $ 245,627.10 $ 291,468.34 $ 9,464.29 $ 300,932.63 $ 101,628.00 $ 106,573.84 $ 1,199.61 $ 107,n3.45 0.00 $ 2,671,401.70 $ 2,894,130.56 $ 295,686.53 $ 3,189,817.09 $ 76,869.00 $ 105,619.31 $ 105,619.31 0.00 21,274.20 $ 43,123.01 43,123.01 0.00 $ 98,143.20 $ 105,619.31 $ 43,123.01 $ 148,742.32 $ 2,769,544.90 $ 2,999,749.87 $ 338,809.54 $ 3,338,559.41 $ 0.00 $ 8,980.00 27,363.00 $ ==.,;3~6;:;,3;;;;4;;;;3.,;;,00;;" $ 28,158.53 $ 28,158.53 8,197.20 8,197.20 $ 36,355.73 $ 36,355.73 $ _'''0..0..0. " 41 - LONG COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30,1996 SCHEDULE "12" BOARD MEMBER ADDRESS Mr. Joseph P. Dunham, Chairman (*) Route 3, Box 227 Hinesville, Georgia 31313 Ms. Florence Baggs (*) P. O. Box 231 Ludowici, Georgia 31316 Ms. Marlene 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 (*) Denotes Board Members Serving as of June 30,1996 COMPENSATION TRAVEL $ 1,119.60 1,173.60 $ 141.74 1,172.40 1,172.40 120.73 1,172.40 $ 5,810.40 $ ====2=6=2.=47= See notes to the general purpose financial statements. - 42 - SECTIONll COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 8, 1997 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board of Education and Superintendent and Members of the Long County Board of Education COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose fmancial statements of the Long County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance with laws, regulations, contracts, and grants applicable to Long County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 96CRL-I0 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:dt 96CRL-IO CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 August 8, 1997 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board of Education and Superintendent and Members of the Long County Board of Education SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Long County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have applied procedures to test the Long County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996: (1) Political Activity (5) Allowable Costs/Cost Principles (2) Civil Rights (6) Drug-Free Workplace Act (3) Cash Management (7) Audit Follow-Up/Resolution (4) Federal Financial Reports (8) Administrative Requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Long County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 96CRL-40 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Long County Board of Education had not complied, in all material respects, with those requirements. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:dt 96CRL-40 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 8, 1997 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board of Education and Superintendent and Members of the Long County Board of Education SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Ladies and Gentlemen: We have audited the general purpose financial statements of the Long County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. In connection with our audit ofthe fiscal year 1996 general purpose financial statements of the Long County Board of Education and with our consideration of the Board's internal control structure used to administer Federal [mancial assistance programs, as required by Office of Management and Budget (OMB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governmg: (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. 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 of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an 96CRL-130 immaterial instance of noncompliance with those requirements, which is described in the Schedule of Findings and Improper or Questioned Costs. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:dt 96CRL-130 Claude L. Vickers State Auditor SECTION ill INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 August 8, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education and Superintendent and Members ofthe Long County Board of Education 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 of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. The management of the 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 objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that 96ICL-3 procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose fmancial statements of the Long County Board ofEducation for the year ended June 30, 1996, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding ofthe design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report fmancial data consistent with the assertions of management in the general purpose financial statements. As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (1) Accounting Controls (Overall) (2) General Fixed Assets A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defmed above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses. These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Long County Board of Education's fmandal statements and this report does not affect our report thereon dated August 8, 1997. 96ICL-3 This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:dt 96ICL-3 Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 August 8, 1997 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Long County Board of Education SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose fmancial statements of the Long County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated August 8, 1997. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose fmancial statements and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated August 8, 1997. 96ICL-16 The management ofthe 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 ofinternal control structure policies and procedures. The objectives ofan 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 fmancial 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 ofthe design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: GENERAL REQUIREMENTS SPECIFIC REQUIREMENTS (1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (1) Types of Services Allowed or Unallowed (2) Eligibility (3) Matching, Level of Effort, and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Drug-Free Workplace Act (7) Audit Follow-UplResolution (8) Administrative Requirements (5) Applicable Special Tests and Provisions (6) Other Requirement Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1996, the Long County Board of Education had no major Federal financial assistance programs and expended 63% of its total Federal financial assistance under the following nonmajor Federal fmancial assistance programs: Food and Nutrition Program Food Services National School Lunch Program 96ICL-16 Elementary and Secondary Education Act Title I Grants to Local Educational Agencies We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness-of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor Federal financial assistance 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 certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations. As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (l) Administrative Requirements (2) Eligibility 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, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness: Administrative Requirements 96ICL-16 This report is intended solely for the use ofmanagement, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:dt 96ICL-16 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30, 1996 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,954.76 Audit Control Number 6911-94-01 The audit report for the year ended June 30, 1994, reported that the Board had underexpenditures of Quality Basic Education (QBE) funds of $1,720.36 for the salaries portion of the General and Career Grades 6-8 Program, $131.70 for the salaries portion ofthe Special Education Category V (Gifted) Program and $102.70 for the Staff Development Programs - Professional Development Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund these underexpenditures as required. The underexpenditures of $1,954.76 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 6911-93-01 The audit report for the year ended June 30, 1995, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. In the year under review, no improvement in adequate separation of employee duties was noted. This condition was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1 " of this report are affected by this finding. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6911-93-02 The audit report for the year ended June 30, 1995, noted that the management of the Long County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the -I - LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS YEAR ENDED JUNE 30, 1996 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 Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose fmancial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. GENERAL LEDGER Failure to Maintain Separate Accountability Financial Statements Nonmaterial Noncompliance Audit Control Number 6911-95-01 The audit report for the year ended June 30, 1995, stated that the capital outlay projects funded in part by the Georgia State Financing and Investment Commission, were not maintained and designated by separate project name and number. Both the instructions in Chapter 41 ofthe Financial Management for Georgia Local Units of Administration (FMGLUA) and the agreement signed by the Board to receive funding require that the Board designate those funds by separate project name and number within the Capital Projects Fund. In the year under review, the Board again failed to provide for separate accountability of capital outlay projects. This condition occurred because management disregarded the provisions ofthe FMGLUA. Correcting audit adjustments were necessary to separate revenues and required transfers, however expenditures could not be identified by project. The Board should take appropriate action to restructure their accounting records and maintain them in compliance with instructions contained in FMGLUA as required. - 2..; LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1996 CURRENT YEAR ELIGIBILITY Free and Reduced Price Meal Applications Federal Financial Assistance Non-Major Program Reportable Condition Nonmaterial Noncompliance Amount: $643.39 Audit Control Number 6911-96-01 A review of applications for free and reduced price meals was made at the Walker Elementary School lunchroom and the Long County High School lunchroom for the National School Lunch Program (CFDA 10.555). One application affecting both lunchrooms which did not meet applicable compliance and eligibility requirements was questioned. The amount of overreimbursement which was attributable to this questioned application is shown by lunchroom and category of exception as follows: Walker Elementary School Lunchroom National School Lunch Program Application approved for free and reduced price meals but income amounts indicated on the application did not meet required income levels $===4;;J;!!!2a!6~.4~8 Long County High School Lunchroom Application approved for free and reduced price meals but income amounts indicated on the application did not meet required income levels $,===~21~6~.9~1 This condition occurred because management did not sufficiently supervise the review of applications before the applicants were approved for free or reduced-price meals. The Board should develop procedures to ensure compliance with eligibility requirements for free and/or reduced price meals. In addition, refund of $643.39 should be made to the Georgia Department of Education. Note: The Long County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report. -3-