Audit report, McDuffie County Board of Education, Thomson, Georgia, year ended June 30, 1994

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

AUDIT REPORT MCDUFFIE COUNTY BOARD OF EDUCATION
THOMSON, GEORGIA YEAR ENDED JUNE 30, 1994

MCDUFFIE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIALSTATEMENTSANDSUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES -ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 ANALYSIS OF CASH AND CASH EQUNALENTS

28

3 INVESTMENTS

29

4 ACCOUNTSRECENABLE

31

5 DEBT SERVICE REQUIREMENTS TO MATURITY

32

SCHEDULE OF REVENUE

6

STATE FUNDS

34

7

LOCAL AND OTHER FUNDS

35

MCDUFFIE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

37

9

LOTTERY PROGRAMS

38

10

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

40

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

11

OVERALL

41

12

BY PROGRAM

42

13 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

44

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 2, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the McDuffie 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 McDuffie-county Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
94ARL-13

School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To confonn 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 on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the McDuffie County Board ofEducation as ofJune 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe McDuffie County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 13 which include the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements ofthe McDuffie County Board ofEducation. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a pennanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-13

MCDUFFIE COUNTY BOARD OF EDUCATION - 1-

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 Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,870,731.00 220,794.60 $

369,033.24 $

247,640.00

8,460.41 7,3'25.TT

Total Assets

$ 2,091 5'25.60 $ 384,819.42 $ 247640.00

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Capital Lease Agreements
General Obligation Bonds Payable
Tolal LiabDities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$ 153,655.08 $ 114,154.95 $ 100,338.74

36,128.96

35,382.40

134,659.42

27,453.26

134,449.26

12,852.00

19,450.00

$ 189,784.04 $ 331,100.03 $ 247,640.00

$ 130,307.95 $
42,022.15

14,087.86

8,460.41 7,3'25.TT

$ 172,330.10 $

29,874.04

1,729,411.46

23,845.35 $

0.00

$ 1,901,741.56 $

53,719.39 $

0.00

Total Liabilities and Fund Equity

$ 2,091,5'25.60 $

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

384,819.42 $

247640.00

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum On!}:) JUNE 30, 1994 JUNE 30 1993

$ 272,918.73 $

20,601.24

$

293,519.97 $

247,085.69

1,870,731.00

1,591,843.25

25,942.04

863,409.88

937,945.28

8,460.41 7,325.77

14,134.95 6,381.06

$

298,860.77

298,860.77

238,283.23

3,896, 139.23 92,325.43

3,896, 139.23 92,325.43

4,186,716.77 99,304.92

$ 298,860.77 $

20,601.24 $

4,287,325.43 $ 7 330,772.46 $ 7 321 695.15

$ 368,146.77 $

69,815.19

71,511.36

139,927.60

134,659.42

117,635.46

27,453.26

3,538.51

134,449.26

12,852.00

132,111.00

19,450.00

$

92,325.43

92,325.43

99,304.92

4,195,000.00

4,195,000.00

4,425,000.00

$

4,287,325.43 $ 5,055,849.50 $ 4,987,332.70

$ 298,860.77
$ 298,860.77 0.00 $
$ 298,860.77 $ $ 298,860.77 $

20,601.24 20,601.24
20601.24 $

$ 130,307.95 $

76,367.33

14,087.86

17,143.81

298,860.77

238,283.23

42,022.15

15,589.24

8,460.41 7,325.77

14,134.95 6,381.06
334122.84

$ 501,064.91 $ 702,022.46

1,773,858.05

1,632,339.99

$ 2 274,922.96 $ 2,334 362.45

4,287,325.43 $ 7,330,772.46 $ 7321 695.15

-3 -

MQPLJfFJE COUNTY BOARD Of EPLJCATIQN PQMBINEP STATEMENT Of REVENUES EXPENPITYBES ANP PHANGES IN FUND BALANCES
GO\/EBNMENTAL FUND JYPES ANP EXPENDABLE TRUST FUNDS
VEAR ENPEP JUNE 30 1994

~
State Funds Federal Funds Local and Other Funds
Total Revenues
EXfENPJILJRES
Current Instruction SupportServices PupilServiGOo Improvement of lnstruc:tional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation ServiGOo Central Support Sen/ices Other Support Services Food Services Operation Community Services Other Operations al Non-lnstruc:tiol Services
Capital Outlay Debt Service
Principal Interest ESCIOW Agent Paying Agent Fees
Total Expenditures
E>a:ess of Revenues OV8f (undOI) Expenditures
OTHER FINANCING SOURCES llJSES)
Accrued lnlelesl on Bonds Sold Proceeds from General Obligation Bonds
ParValue
Refunding Bond Issuance Cost Payments to Bond Escrow Agent Cepltal Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
BJNP BAI ANCE JULY 1
Food Inventory. Net Change In Period Donated Commodities Purchased Food
Residual Equity Transfer

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

11,853,956.93 S 661,024.97 S

43,097.08 2,129,865.44

3658880.78

305021.48

15555934.79 S 3095911.87 $

251,107.74 1089.26
252197.00

9,729,700.53 S 1,152,805.08

471,336.98 286,648.08 489,727.TT 196,608.41 1,130,798.74 141,253.09 1,523,723.84 653,742.34 54,788.70 25,640.31
102,081.27 99,140.80

35,397.72 62,403.35 26,644.64 219,226.68

289,592.22 10,151.00

55,008.58 1,218,879.12
37,142.35
s

1,000,881.58

54,151.33 7,766.19

14 967108.38 S 3107~.74 S 1000881.58 588826.41 $ -11~.87$ -748684.58

47,171.84 -449679.66 -'102 507.82

449,679.86 449679.66

186,318.59 S 1,680,305.05

-11,338.87 $ 69,788.09

-299,004.92 334,122.84

35117.92

-5,674.54 944.71

-35117.92

FUND BAI ANCE JUNE 30 The notes to the general purpose financial statements are an integral part of this statement
-4-

1901 741.56 $

53719.39 S

0.00

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE
TRUST FUND

TOTALS
{M!morandum OnM
YEAR ENDED
JUNE30 1994 JUNE30 1993

-439796,37

12,766,089.64 2,172,962.52 4 404 787.87 $

-439 796.37 $ 19 343 840.03 $

10010.00 10010.00 $

12,766,089.64 $ 2,172,962.52 4414 797.87
19 353 850.03 $

13,846,494.28 2,258,851.66 4~1~.96
20 407181.90

10,882,505.61

506,734.70 349,051.43 516,372.41 415,835.09 1,130,798.74 141,253.09 1,813,316.06 663,893,34
54,788.70 80,648.89 1,218,879.12 37,142.35 102,081.27 $ 1,100,022,38

230,000.00 147,501.58
.. 1 717.25

284,151.33 155,267.TT
1717.25

379~18.83 $ 19 454 459.53 $

805TT.54 $ -110619.50 $

10,882,505.61 $ 10,190,285.67

1,272.00

506,734.70 349,051.43 516,372.41 415,835.09 1,130,798.74 141,253.09 1,813,316.06 663,893.34 54,788.70 80,648.89 1,218,879.12
37,142,35 103,353.27 1,100,022,38

497,715,37 300,582.23 462,246.49 524,068.47 1,103,396.53 164,290.94 1,235,743.45 761.282.36 140,151.28
8,000.00 1,173,045.09
109,288.94 2,796,891.80

284,151.33 155,267.TT
1717.25

219,866.67 285,297.50 142,920.00
1~2.21

1~72.00 $ 19455 731.53 $ 20116 645.00

8 738.00 $ -101 881.50 $

290536.90

47,171.84 449,679.66 -449 679.66
47171.84

80,5TT.54 $ 238,283.23

-63,447.66 $ 2,322,499.21

-5.674.54 944.71 0.00

8,088.00

47,171.84 449,679.66 -449679.66

4,170,000.00 -93,739.11
-4,076,260.89 154,191.59 408,503.00 -408503.00

47171.84 $

162~79.59

8,738.00 $ 11,863.24

-54,709.66 $ 2,334,362.45

452,816.49 1,883,987.78

-5,674.54 944.71 0.00

465,30 -2,907.12

s 298660.n

2254321.72 $

20601.24 $ 2 274 922.96 $ 2334362.45

-5-

~Ql!EEIE QQ!.!NIX aQABQ QE EQ!.!QAIIQN QQMEUNEQ I.ATEMENI QE BE~ENYE EieENQII!.!BE ANQ Qt:tANgE lti E!.!tU2 a.!i~tfQE
~I!.!fil ANQ D!.!~EI - SiQi'.EBNMEli!a!. E!.!NC>. I!f!E YEAR ENPEQ JUNE 30 1994

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE !!,!NFAVORABL!ll

~
State Funds Federal Funds Local and Other Funds

$ 12,766,089.64 $ 2,1n,962.52 4,404, 787.87

0.00 $

12,766,089.64 $ 13,-454,731.00 $ 2,1n,962.52 2,013,233.81 4,404 787.87 4158,256.78

-688,641.36 159,n8.71 248531.09

Total Revenues

$ 19 343 840.03 $

0.00 $ 19 343 840.03 $ 19,626 221.59 $

282381.56

E~PEND!IUBES

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

$ 10,882,505.61 $
506,734.70 349,051.43 516,3n.41 415,835.09 1,130,798.74 141,253.09 1,813,316.06 663,893.34 54,788.70 80,648.89 1,218,879.12 37,142.35
102,081.27 1,100,022.38
441,136.35

0.00 $

10,882,505.61 $ 11,156,448.66 $

506,734.70 349,051.43 516,3nA1 415,835.09 1,130,798.74 141,253.09 1,813,316.06 663,893.34 54,788.70 80,648.89 1,218,879.12 37,142.35

571,704.00 390,915.00 625,531.00 342,783.77 1,137,719.00 145,908.00 1,908,460.00 734,682.00 83,776.00 78,806.00 1,171,390.95 50,526.00

102,081.27 1,100,022.38
441136.35

94,180.00 1,220,959.85
466,745.00

273,941.05
64,969.30 41,863.57 109,158.59 -73,051.32
6,920.26 4,654.91 95,143.94 70,788.66 8,987.30 -1,842.89 -17,488.17 13,383.65
-7,901.27 120,937.47 25 608.65

Total Expenditures
Excess of Revenues over (under) Expenditures

$ 19,454,459.53 $ $ -110,619.50 $

0.00 $ 0.00 $

19,454 459.53 $ 20 160,533.23 $ -110,619.50 $ -534 311.64 $

- 706,073.70 423,692.14

Qil::IEB EINANQlti!J Q!.!BQE a.!El
Other Sources Other Uses

$ 496,851.50 $ -149,679.66

0.00 $

496,851.50 $ 409,238.74 $

-149,679.66

-165,500.00

87,612.76 15,820.34

Total Other Rnancing Sources (Uses) $

47,171.84 $

0.00 $

47,171.84 $ -56,261.26 $

103,433.10

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-l;J,447.66 $

0.00 $

-l;J,447.66 $ -590,572.90 $

527,125.24

EUNQ BALANCE; J!.!LY 1 1993

2,322,499.21

-20,516.01

2,301,983.20 2,310,031.97

-ll,048.77

A~!.!.IM~NI.S Prior Year (Net)

5,328.17

-5,328.17

FQQQ INV~NIQBY. NET ~l::IANge IN eEBIQC!

Donated Commodities

-5,674.54

5,674.54

0.00

0.00

Purchased Food

944.71

-944.71

0.00

0.00

E~rnD ~LAN&;!; J~JNE ~ 1~

$ 2,254,321.n s

-15,786.18 $ 2,238,535.54 $ 1,n.787.24 s

513,748.30

The notes to the general purpose financial statements are an integral part of this statement. -6-

MCDUFFIE COUNTY BOARD OF EDUCATION

EXIBBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNfINGPOLICIES
The McDuffie County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity ofthe McDuffie County Board ofEducation.
Based upon the application of the above criteria, the McDuffie County Board ofEducation is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in McDuffie County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 7-

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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

- 8-

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be detennined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Properfy taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and
- 9-

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The McDuffie County Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the .budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,

- 10 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TifE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(4) Obligations ofany corporation of the United States government,

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

RECEIVABLES

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

PROPERTY TAXES

The McDuffie County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on November 3, 1993 (levy date). Taxes were due on January 18, 1994. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The McDuffie County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

Tax millage rates levied for the 1993 tax year (calendar year) for the McDuffie County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

13.83 mills 1.64 mills

ll,,ilmills

- 11 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonr~utine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
- 12 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount ofnot less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(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 ofindebtedness or other obligations of the counties or municipalities ofthe State ofGeorgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

- 13 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

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, 1994, the bank balances were $1,484,896.45. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Risk Category
1 2 3
Total

Bank Balance
$ 200,000.00 507,427.50 777 468.95
$ I 484 896 45

CATEGORIZATION OF INVESTMENTS At June 30, 1994, the carrying amount of the Board's total investments was $1,870,731.00 and consisted entirely offunds in the Local Government Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool.

Note 3: NON-MONETARY TRANSACTIONS

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

- 14 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 4: RISK MANAGEMENT
The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Each fund contributes their pro rata share to the Unemployment Compensation fund and claims are paid from this fund during the fiscal year. During fiscal year 1994, a total of$1,272.00 was paid in claims.
Note 5: GENERAL LONG-TERM DEBT
CAPITAL LEASES The McDuffie County Board ofEducation has entered into various lease agreements as lessee for school buses and computer labs. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$ 99,304.92 $ 4,425,000.00 $ 4,524,3~.92

Additions

47,171.84

47,171.84

Deletions

54 151.33 230 000.00 284 151.33

Balance June 30, 1994

$ 2232543 $ 412:i QQQ QQ $4 287 32:i 43

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

Fiscal Year Ended June 30
1995 1996 1997 1998 1999 2000 and thereafter
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Capital Leases

General Obligation
Bonds

Total

$ 71,760.71 $ 473,807.50 $ 545,568.21 16,874.04 448,735.00 465,609.04 9,843.19 463,265.00 473,108.19 422,532.50 422,532.50 441,595.00 441,595.00 3 276 967.50 3 276 967.50

$ 98 477.94 $ S S2 202 SQ $ S 62:i J8Q14

$ 6 152.51

$ 223254-J

- 15 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1993 the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1994, $3,585,000.00 of bonds are outstanding and are considered defeased.

Note 7: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of $55,311.03 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department ofEducation has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant

$ 10,180.35 1,687.00
23,993.68 19 450 00
$ 55 3)) 03

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: ACCUMULATED EMPLOYEES' LEAVE

Annual leave for full-time twelve month employees is earned on a fiscal year basis and is credited at the beginning ofthe fiscal year. A maximum of 10 working days ofunused leave not including designated holidays may be accumulated from one fiscal year to the next. Upon termination of employment, an employee will be .compensated at their current rate ofpay for no more than 10 days ofaccumulated annual leave. See Note I Compensated Absences

- 16 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 10: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement_System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after l Oyears of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $10,205,143.87; total payroll was $11,855,843.71.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was I 1.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $1,817,540.94, ofwhich $1,205,226.66 was made by the Board and $612,314.28 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

- 17 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 10: RETIREMENT PLANS

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

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

Total pension benefit obligation

$13,912,014,000.00

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

12 821 722 000.00
$ I 090 292 ooo oo

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $1,205,226.66 was actuarially determined and represented .2311% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

- 18 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 10: RETIREMENT PLANS
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 10 years ofservice and retires between the ages of60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 107 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $3,820.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 11: SURETY BONDS
The School Superintendent, Dr. Ed J. Grisham, is bonded in the amount of$15,000.00 with the Continental Insurance Company, New York, New York, their Bond No. 130 98 89, on which premium was paid through June 30, 1994.

- 19 -

~ cash and cash Equill"alents
, _ Accounts Receivable
Food Donated Commodities Purchased Food
Total Asset&

MCQI IFflf cot INTY ROABP OF FQLICATION CQMRININQ RAi ANCE SHFfI SPECtAL RfVENLJfAINQ
~

B.EMENTARY

SCHOOL FOOD
SERVICES ~

AFTER SCHOOL
PROGRAM

ADULT ~

LOTTERY PROORAMS

DRUG-FREE SCHOOLS ANO COMMUNITIES
_ __:;::ACT"'--

CHAPTER1

EDUCATION OF EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS

CHILDREN

53,185.53 $

5,880.40

2,711.70 $

0.22

9,767.99

12,908.03 $ 144,729.63

113,219.64

8,460.41 7325.77

2111.10 s _ _ ____,0.,.22::.,s_....:,11:a:i2:.::a-64:,,

LIABII mEs AND Fl 1r-.so f9I 11TY

C8sh"8rdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Oefenvd Revenue
Total Liabilities

2,779.18 36,328.99
$ 39108.17

12,908.03 $

89,793.05 11,068.18 $

24,418.40 19450.00

$ 12 908.03 S 144 729.63 S

477.75 2,230.53
3.42 S
2711.70 $

0.22 0.22 S

22,495.71 15,891.61 74,832.32
113219.64

FuRnd.B..a.l_an,ces
For Continuation d Federal -rams
For Inventories Food Donated Commodities Purchased Food
Un,...._, Undesignated
Total Fund Equity

5,880.40

$. 8,460.41 7325.77

15,786.18 S

5,880.40

23845.35 ---2:.QQ.. S---2:.QQ..S---2:.QQ.. S_ ___,o.,,.oo"-s _ _ ____,o.,.oo"-s _ _ _..,o,,,.oo"-
s 39 631.53 s~ s---2:.QQ.. s---2:.QQ.. s_ ___,o.,,.oo,cs _ _ ____,o.,.oo::.s _ _ _..,o,,,.oo"-

TotalLiabllitiesandFundEquity $ ~ $ ~ $ 12,908.03$ 144729.63 $

2111.10 s _ _ _....:oaa.22.,s _ _,a.:;1::::,2.aaa-.64.

See notes to the general purpose financial statements

-20-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

CHAPTER2

BLOCK GRANT-

INNOVATIVE

FLOW THROUGH

PROGRAM

TITLE//EISENHOVv'ER MATHEMATICS
AND SCIENCE EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI B

FLOW

PRESCHOOL

THROUGH

PROGRAM

149.47 $

597.79

4,256.94

12,250.00 $

10,992.14 S

19,569.26

JOB TRAINING PARTNERSHIP
ACT

SERVE AMERICA

37,476.22 S

8,120.33

TOTALS JUNE30 1994 JUNE30 1993

66,782.05 S

-66,114.07

369,033.24

258,200.94

8,-460.41 7'3'25.n

14,134.95 6381.06

149.47 $

12847.79 $

10992.14 $

19,569.26 $

4,256.94 $

37476.22 S

8120.33 $

451601.47 S

212602.88

149.47 149.47 $

$ 2,238.57 10,128.40
4S0.82
12847.79 $

2,784.68 S

8,062.98 2,282.94 S 9,191.29
32.05

2784.68 $

19569.26 $

$ 644.17 1,947.89 1,664.88
4256.94 S

37,476.22 S 37476.22 $

7,416.33 $ 704.00
a 120.33 s

180,937.00 35,382.40 S 134,659.42 27,.t53.26 19450.00
397882.08 S

21,640.80 117,635.48
3,538.51
142 81'.79

0.00 $ 0.00 S

8,207.46

0.00 0.00 $

8,207.46 0.00 $
8207.46 $

0.00 S 0.00 $

0.00 $ 0.00 $

0.00 S 0.00 $

0.00 0.00 $

1.C,087.86 S
8,460.41 7325.n 29,87,UM $ 23845.35 53719.39 $

17,143.81
14,134.95 6381.06 37,659.82 32128.27 69788.09

149.47 $

12847.79 $

10,992.14 $

19569.26 $

4256.94 $

37476.22 $

8120.33 $

451601.47 $

212602.88

-21 -

SCHOOL FOOD
SERVICES ~

AFTER SCHOOL
PROGRAM

ELEMENTARY

ADULT ~

LOTTERY ~

ORUG-FRl:E SCHOOLS AND COMMUNmES
-~CT~-

CHAPTER1

EDUCATION OF

EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS

CHILDREN

SlaloFundo
,_Fedelal Funds
Local and Other Funds
TotalR8'11911UN
f;XpfNPffiJRfS
CUm,nt
SupportSetvice& Pupil Services lmprowement d Instructional Services Educational Media Services General Administration Maintenance and Operation d Piant Student T,ansportation Services Central SUpport Servioes
Other support s.rnc:.
Food Services Operation CcmmumlySeMcoo
Total Expenditures
Excess d ReenUeS Oolel' (under} Expenditwws
OTHER FINANCING sotJRCfS
Operating Tntinsfefs In
Excess d Revenues and Other F-.nanc:in; Sources ewer (under) Expenditures
FUND 9AL.ANCI; JULY 1
Food ll'Wltl'ltDry Net Change In Period Donaled Commodities
Pu- Food

79,884.00 841,702.74' S 289209.~
$ 1210596.20 $

S 13,387.74 $ 567,973.23

459.81

21,773.52

$

38,529.58 S

2,4n.1a s

742,855.57

15812.00 - - - - - - - - - - - - - - - - - - - -

16271.81 $ 35141.26 $ 587973.23 $

38529.58 s_ _~~n=.78= 742855.57

s s 34,859.83 256,4n.69 s

281.43

22,570.99 717.'JO

280,24200

S 1,218,879.12 _ _ _ $ 12766.41

7,905.25

-8.282,92 S 3,505.40 $

0.00 S

0.00 $

22,Bn.-49 $ 4,7"9.01
66.0B
11,017.00

2,477.78 $

633,639.62
981.06 13,430.01
73,781.50 24.39
8,651.00
27,086.80

38 529.58 '--~~~n=.1= s

0.00 $

0.00 $

757594.38 -14,738.81

--- --- --- --- ---- ----- -----

-8,282.92 S 52,844.28

3,505.40 S 2.375.00

0.00 S 0.00

0.00 S 0.00

0.00 S 0.00

0.00 S 0.00

-1-4,738.81 14,738.81

-5,874.54 ~

---

---

---

----

-----

-----

FIJNP RA! A.NCI; JUNF

s 39831.53 s 5880.40 s ~ s ~ s ____o_..00.,s _ _ _~o_.00.,s _ _ _o_.00.,

See notes to the general purpose financial statements

-22-

EXHIBIT"F"

ANO SECONDARY EDUCATION ACT

CHAPTER2

BLOCK GRANT-

INNOVATIVE

FLON THROUGH

PROGRAMS

TITLE H EISENHOWER
MATHEMATICS AND SQENCE
~

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI B

JOB TRAINING

-~er~- FLOY/

PRESCHOOL PARTNERSIIP

~ ~

SERVE AMERICA

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30 1993

35,727.53$ 35727.53 $

110,97218 $

"49,263.14 $ 104,103.21 $ 38,45e.12 $

119,195.32 $

110972.18 $

<49283.14 $ 104103.21 $ 3845e.12 $

119195.32 $

$ 24,345.94
24 345.94 $

661,024.97 $ 2,129,865.44
305021.48
3 095 911.87 $

115,521.00 2,216,137.82
276 998.24
2 608 657.06

26,644.64 83.38 $
8,9Q9.53
35727.53 $ 0.00 $

105,968.18 5,(X)4.00

$
'41,017.01 38.67

74,473.71 $
10,725.67 2,148.59
16,755.24

19,002.37 $ 1,120.00
18,748.75 1,500.00

109,106.59
5,786.90 4,321.83

110972.18 $ 0.00 $

41055.88 $ 104103.21 $

8,207.48 $

0.00 $

38"59.12 $ 0.00 $

119195.32 $ 0.00 $

24 375.94 24375.94 $
-30.00 $

1,152,805.08 $ 9Q9,338.lil0

35,397.72 62,403.35 26,644.64 219,226.88 289,592.22 10,151.00
55,008.58 1,218,879.12
37142.35

'4,045.00 '47,884.54
279,950.48 7,299.13
17,854.00 56,309.13 8,000.00 1,173,045.09

3107250.74 $ 2593526.27

-11,338.87 $

15,130.79

0.00 $ 0.00

- - - - - - - - - - - - - - - - - - - - - - - - - - - ---~=00~

0.00 $ 0.00

8,207.48 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

30.00

-11,338.87 $ 69,788.09

15,133.79 57,096.12

-5,674.54

'85.30

----- ----- ---- ---- ---- ----- ----- ----='~' -2907.12

____o..o..o. s____o...o o . . , s ~ s ~s ~ s ____o"'.oo.,s ____o"'.oo.,s

53 719.39 $

69788.09

-23

MCDUFFIE COUNTY BQARP OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30 1994

EXHIBIT"G"

~ Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECTS

80/906-697-041

PROJECT

PROJECT

93/92S-697-066

92/92S-697-065

A88-697-029

TOTALS JUNE 30 1994 JUNE 30 1993

0.00

0.00 $

0.00 $

13,235.87

58,312.72

247640.00

247640.00

484204.01

0.00 $

247640.00 $

0.00 $

247,640.00 $

555752.60

LIABILITIES ANP FUND EQUITY
~
cash Overdraft
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUNPEOUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignaled
Total Fund Equity

$

100,338.74

134,449.26 12 852.00

247640.00

$ 100,338.74

$

89,518.76

134,449.26

12 852.00

132111.00

247640.00 $

221629.76

0.00 $ 0.00 $

o.oo $ _ _ _...,o:,::,00,._$ _ _ _..:0:.::.00,._

0.00 $

0.00 $

0.00 $

334,122.64 0.00
334122.84

Total Uabilities and Fund Equity $ _ _ _ _,.o_.oo.._$

247 640.00 $

0.00 $ 247 640.00 $

555752.60

See notes to the general purpose financial statements.

24

UCPYEBE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF BEYsNUES EXfENPIUBES ANP CHANGE IN BJNP BAI ANCES
QAPJTA) PROJECTS fl lNP
YEAR ENDER JtJN 30 1994

EXHIBIT"H'

GEORGIA STATE FINANCING

ANO INVESTMENT COMMISSION

PROJECTS

9000S-697-041

PROJECT

PROJECT

93192~7-066 92192S-697-065 A88-697-029

TOTALS YEAR ENDED JUNE 30 1994 JUNE 30 1993

State Funds Local and Other Funds
Total Revenues
EXPENPITVRES
Current Support Services Business Administration Other Operating Expense
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Tolal Expenditures
Excess tA Revenues over (under) ExpendfbJre:s
OTHER FINANCING SOURCE$
Operating Transfers In
Excess tA Revenues and Other Financing Sources
""' (undar) Expenditures
FUNP BAJ,ANCE JULY 1
Reimbursement for Prior Year Expenditures Residual Equity Transfer
FUNQ BALANCE JUNE 30

0.00 $

175.152.74 $ 75,955.00 $

_ _.....,_1.,,089=.2,::.6 - - - -

0.00 $

176242.00 $ 75.955.00 $

251,107.74 $ 2,331,905.63

1 08926

64 727.48

252197.00 $ 2396633.11

$ 20,500.00
20500.00 $ -20,500.00 $

618.90

7,872.48 870,311.83 $ 85170.12

$ 17,027.14

7,872.48 907,838.97
85170.12

765.00 216Sm20

963354.44 $ 17027.14 $ 1000881.58 $ 2 767156.10

-787,112.44 $ 58,927.86 $ -748,684.58 $ -370,522.99

441239.58

8440.08

449679.66

408.500.00

-20,500.00 $ 55,617.92
-35117.92

-345,872.86 $ 278,504.92

67,367.94 $
o.oo

-299,004.92 $ 334,122.84

67,367.94 ~7,367.94

0.00 -35117.92

31.9n.01 296,145.83

0.00 $

0.00 $

o.oo $

0.00 $ 334122.64

See notes to the general purpose financial statements.

-25-

~QUEEIE QQUtfi:i aQ!BQ Qf EQUCATION &1::tEQUI EQE EEQEB& El~Qli!il M~!STANC:J;;
YEAR ENDEPJUNE 30 1994

SCHEDULE 1

FUNDING AGENCY PBOGRAU/GBANT
Agriculture, U.S. Oepartment of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1994Contract Food Services Sehool Breakfast Program 1993 Grant 1994 Grant National Sehool Lunch Prog...;; 1993Grant 1994 Grant Food Distribution Program (1)
Total U. S. Oepartment of Agriculture
Education, U. S. Department of Direct P. L. 81.a74 1994 Grant Through Georgia Department of Education Orug..f'ree Schools and Communities Act 1994 Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994Regular Education of Oeprivad Children 1993Regular 1993Summer 1993 Cany-Over 1994Regular State Program Improvements 1993Regular Chapter2 Block Grant Flow Through 1993Regular 1994Regular Innovative Programs 1993 Regular 1994 Regular TrtleU Eisenhower Mathematics and Science Education 1994Regular 1994 O and E Grant 1995 O and E Grant Individuals with Disabilities Education Act TilleVl,B Flow Through 1992 Carry-Over 1993Regular 1993 Carry-Over 1994Regular Preschool Program 1993Regular 1993 Carry-Over 1994Regular Vocational Education - Basic Grants to States High Schoof Program Basic Grant 1993Grant 1994Grant Supplementary State Grants for Facilities 1994Grant

CFOA

AWAADS

NUMBER INPERIOO

FEDERAL FUNDS RECEIVEOIN PERIOO(NET OFREFUNOSl

FEDERAL REVENUE IN PERIOD

EXPENornJRES INPERIOO

10.558
10.553 10.553
10.555 10.555 10.550

816.25 $
161.578.84
599,900.16 79407.69
841702.74 $

793.53 $

816.25

(2)

10,633.17 158,106.77
5,290.08 593,626.76 NIA
768450.31 $

161,578.84
599,900.16 $ 79407.69
841702.74 $

(2)
1,139,471.<13 (3) 79407.69
1.;!18879.12

84.041 84.186

6,822.00 $ 38,533.00

84.009
84.010 84.010 84.010 84.010
84.218
84.151 84.151
84.151 84.151

2,478.00 36,835.00 728,979.00
35,877.00 111,453.00

84.184 84.184 84.184

18,871.00 19,400.00 45,000.00

84.027 84.027 84.027 84.027
84.173 84.173 84.173

15,066.00 99,430.00
19,127.00 41,934.00

84.048 84.048
84.253

34,730.08 1,545.00

6,822.00 $

6,822.00

38,533.00

38.529.58 $

(5) 38,529.58

2,478.00
144,826.60 16,365.93 36,835.00
593,900.00
-2,713.76

2,477.78
-1,099.07 36,835.00 707,119.64

-704.12 35,877.00
4,479.07 99,203.00

35,727.53 110,972.18

2,477.78 13,639.74 36,835.00 707,119.64
35,727.53 110,972.18

18,871.00 19,400.00

18,871.00 19,400.00 10,992.14

15,151.59 14,911.95 10,992.14

905.30 15.505.32 15,066.00 69,500.00
4,034.73 19,127.00 20,997.00

15,033.95 89,069.26
19,115.84 19,343.28

15,033.95 88,069.26
19,115.84 19,343.28

34,676.28

(4)

26,935.59

34,730.08

(4)

1,545.00

1,545.00

(4)

- 26

MCDUFFIE COUNTY ROABD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAi ASSISTANCE
YEARENQEPJlJNE30 1994

SCHEDlA.E 1

FUNDING AGENCY PBOGfWNGBANT
Education, U. S. Department of Through Augusta Technical lnst:ltute Adult Education 1992 Grant 1993 Grant 1994Grant
Total U. S. Department of Education
Health and Human Services, U. S. Department of Through Georgia Department of Human Resources After School Enrichment Program 427-93-31912
Labor' u. s. Department of
Through Central Savannah River Nea Employment and Training Consortium Job Training Partnership At:t. 09-2-12-13-613 09-2-12-44-194 09-2-20.13-188 09-93-11>-13-613 09-93-11>-47-613 09-93-20.13-189
Total U.S. Department of Labor

CFDA NUMBER

AWAADS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS!

FEDERAL REVENUE INPERIOD

EXPENDITURES IN PERIOD

84.002 84.002 84.002

23 353.00 1.279 433.08 $

279.45 10,629.47 14076.45 $

21773.52 $

1.247 450.31 $ 1187.258.71 $

21 773.52 1150692.98

93.673

8500.00 $

459.81 $

12 766.41 (3)

17250 17250 17250 17250 17250 17250

61,119.00 26,055.00 29082.00
116256.00 $

12,333.51 2,527.16 30,933.66 $ 43,757.76 18,155.06
107 707.15 $

18,80628 $ 59,197.80 25,54524 14646.00
119195.32 $

18,80628 59,187.80 25,54524 14646.00
119195.32

OTHER FEDERAi ASSISTANCE
Corporation for National and Community Service Through Georgia Department of Education Se<vicaAmerica 93-0874 94-718
Total Other Federal Assistance

94.011 94.011

$ 25000.00
25000.00 $

16,428.08 $ 10505.41
26 933.49 $

5,72020 $ 18625.74

5,75020 18625.74

24 345.94 $_-=2c,.4"'375=.94"-

Total Federal Financial Assistance

$ 2 262 391.82 $

2159041.26 $ 21n962.52 $ 2525909.TT

Major Programs are identifiad by an asterisk(") In front of the CFDA number.

(1) Tha amounts shown for the Food Distribution Program represents the Fadarally assignad value of nonmonetary assistance for donatad commodities roceivad and/or c:cnsumad by the system during the current fiscal yaar.
(2) Expenditures for the School Breakfast Program wwe not malntalnad saparately and are includad In the 1894 National School Lunch Program.
(3) Expenditures for this program Include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

See notes to the general purpose financial statements.

27.

MCDUFFIE COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994
INTEREST BEARING ACCOUNTS
McDuffie Bank and Trust, Thomson, Georgia
N.O.W. Account (2.50%)
Trust Company Bank of Augusta, North Augusta, Augusta, Georgia
N.O.W. Accounts (1.90%)

SCHEDULE"2"
$ 139,855.68 -214,484.48
$ -74,628.80

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

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

SCHEDULE 3 $ 1,870,731.00

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

UCPYEEIE COUNTY RQARP OF EQVCATION ACCOUNTS BECEIVARI E JUN539 1994

SCHEDUI.E "4"

Alhens Technical Institute GEOFNS
Augusta Technical Institute Adult Education
CentraJ Savannah River Area Employment and Training Consortium ... GEDFJob Training and Partnership /Id.
Education, Georgia Department or
Food Services Child and Adult Care Food Program Sc:hool Breakfast Program National Sc:hool Lunch Program
Vocational Education Federal Funds
Lottery Programs Computers in Classrooms Distant Leaming Media Center and Ubrary Equipment
Federal Programs ESEA- Chapter 1 Education of Deprived Children ESEA - Chapter 2 Innovative Program ESEA-Tlllell Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act - Trtle VI, B Flow Through ServeAmerlca
Georgia Cities in Schools, lnc:orporaled Reimbursement for Salaries
Georgia State Fmancing and Investment Commission Reimbursement on construc:tion Projects
Georgia V1CA Association Reimbursement for Registration Fees
McDuffie County Department of Family and Children Servicel GED Fees
McDuffie County Health Department Reimbursement for Use of Buses
McDuffie County Tax Commissioner County Wide Bond Tax County Wide Sc:hool Tax
Richmond County Board of Education Reimbursement for Energy Costs
Wilkes County Department of Family and Children Services GEO Fees

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

DEBT

GENERAL REVENUE PROJECTS SERVICE

_f!lliQ__ _f!lliQ__ _f!lliQ__ _f!lliQ__

~

25.00

$

25.00

12,908.03

12,908.03

60.00

37,476.22

60.00 37,476.22

7,794.49

22.72 3,471.87 6,273.40
59,563.94 4,159.37
61,006.32

22.72 3,471.87 6,273.40
7,794.49
59,563.94 4,159.37 61,006.32

113,219.64 12,250.00 10,992.14 19,569.26 6,120.33

113,219.64 12,250.00 10,992.14 19,569.26 6,120.33

2,546.64

2,548.64

$ 247,640.00

247,640.00

75.00

75.00

10.00

10.00

1,300.50

1,300.50

208,536.84

$ 25,942.04

25,942.04 208,536.84

364.13

364.13

See notes to the general purpose financial slatamenls.

- 31 -

MCDUFFIE COUN"TY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURl"TY
JUNE 30 1994

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1995 1996 1997 1998 1999
2000 2001 2002 2003 2004
2005 2006

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$ 473,807.50 $ 183,807.50 $

448,735.00

173,735.00

463,265.00

163,265.00

422,532.50

152,532.50

441,595.00

141,595.00

290,000.00 275,000.00 300,000.00 270,000.00 300,000.00

453,813.75 474,190.00 487,460.00 508,721.25 527,362.50

128,813.75 114,190.00
97,460.00 78,721.25 57,362.50

325,000.00 360,000.00 390,000.00 430,000.00 470,000.00

548,535.00 276,885.00

33,535.00 6,885.00

515,000.00 270,000.00

$ 5,526,902.50 $ 1,331,902.50 $ 4,195,000.00

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

TOTAL

1993ISSUE

$ 4,425,000.00 $ 4,170,000.00

230,000.00

155 000.00

$ 4,195,000.00 $ 4,015,000.00

MATURl"TY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date

SEP 1-MAR 1 SEP 1

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

SCHEDULE "5"

1993 ISSUE

INTEREST

PRINCIPAL

1973 ISSUE

INTEREST

PRINCIPAL

$

176,247.50 $ 210,000.00 $ 7,560.00 $

169,685.00

225,000.00

4,050.00

161,915.00

250,000.00

1,350.00

152,532.50

270,000.00

141,595.00

300,000.00

80,000.00 50,000.00 50,000.00

128,813.75 114,190.00 97,460.00 78,721.25 57,362.50

325,000.00 360,000.00 390,000.00 430,000.00 470,000.00

33,535.00 6,885.00

515,000.00 270,000.00

$ 1,318,942.50 $ 4,015,000.00 $ 12,960.00 $

180,000.00

1973 ISSUE $ - 255,000.00
75,000.00

$

180,000.00

SEP 1-MAR 1 SEP 1

- 33 -

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

SCHEDULE"6"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS

Education, Georgia Department of

Quality Basic Education

General and Career Education Programs

$ 7,341,658.00

Special Education Programs

622,616.00

Remedial Education Program

253,840.00

Media Center Programs

313,641.00

Staff Development Programs

98,241.00

Indirect Cost

2,145,518.00

Pupil Transportation

Regular

414,215.00

Bus Replacement

135,849.00

Middle School Incentive

279,442.00

Special Instructional Assistance

190,825.00

In-School Suspension

65,623.00

Mid-term Adjustment

101,993.00

Local Fair Share

-1,237,322.00

Educational Equalization Funding Grant

1,027,356.00

Food Services

$ 79,684.00

Vocational Education

18,868.94

Other State Programs

Innovative Programs

4,793.05

Mentor Teacher Program

2,880.00

Preschool Handicapped Program

44,755.00

Special Education Low Incidence Grant

15,087.00

Supervision and Assessment of Student and

Beginning Teachers and Performance-

Based Certification

1,050.00

Teachers' Retirement

12,027.94

Lottery Programs

Algebra Classrooms

2,316.00

Computers in Classrooms

96,027.94

Distant Learning

4,159.37

Media Center and Library Equipment

81,006.32

Pre-Kindergarten Program

104,221.60

Safe Schools Grant

280,242.00

$ 7,341,658.00 622,616.00 253,840.00 313,641.00 98,241.00
2,145,518.00
414,215.00 135,849.00 279,442.00 190,825.00 65,623.00 101,993.00 -1,237,322.00 1,027,356.00 79,684.00
18,868.94
4,793.05 2,880.00 44,755.00 15,087.00
1,050.00 12,027.94
2,316.00 96,027.94
4,159.37 81,006.32 104,221.60 280,242.00

Financing and Investment Commission, Georgia State Reimbursement on Construction Projects

$ 251,107.74

251,107.74

Human Resources, Georgia Department of Through Augusta Technical lnstiMe PEACH Project (Adult Education)

13,367.74

13,367.74

OTHER Education, Georgia Department of Reimbursement for Student Testing Materials

1 000.00

1 000.00

$ 11,853,956.93 $ 661,024.97 $ 251107.74 $ 12 766 089.64

See notes to the general purpose financial statements.

- 34 -

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

SCHEDULE '7"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

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

$ 3,461,937.12 93.91
11,218.49

$ 433,960.22 $ 433,960.22

3,461,937.12

11.13

105.04

1,330.16

12,548.65

Other After School Program Fees Anti-Trust Milk Settlement Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Reimbursements For Transportation Rents Revenue in Lieu of Taxes National Flood Control Funds Sales Breakfast Lunches School Assets Shared Service Contributions Georgia Cities in Schools, Incorporated Testing Fees Tuition Other

$ 15,812.00 1,293.62

13,272.59 50,020.73 2,621.76

994.63 $

10,426.60 32,294:aa

565.54

4,209.36

26,986.25 259,934.96

25,584.89 4,530.00
37,694.98 4,409.93

1,089.26

4,427.81 67.05

15,812.00 1,293.62
13,272.59 56,532.43 2,621.76
10,426.60 32,294.88
632.59
26,986.25 259,934.96
4,209.36
25,584.89 4,530.00 37,694.98 4,409.93

$ 3,658,880.78 $ 305,021.46 $ 1,089.26 $ 439,796.37 $ 4,404,787.87

See notes to the general purpose financial statements.

- 35 -

MCDUFFIE COUNTY BOARD OF EDUCeJ:ION SCHEDULE OF EXPENDITURES BY OBJECI
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE "8"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Tuition Commodity Hauling Sha~ed Services Other Purchased Services SuppHes Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expencfdures
Nonoperating Costs Principal and Interest Building and Building Improvements Equipmeni

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 10,538,879.51 $ 1,316,96420 $ 11,855,843.71

2,202,368.17

267,489.65

2,469,857.82

38,490.84

25,105.71

63,596.55

46,581.27

72,070.73

118,652.00

14,828.30

14,828.30

49,838.29

49,838.29

146,470.21

3,176.33

149,646.54

1,322.45

11,85029

13,172.74

98,445.41

98,445.41

49,306.06

9,561.16

58,867.22

7,650.00

7,650.00

5,735.84

5,735.84

23,598.00

23,598.00

1,421.25

86,473.88

87,895.13

574,523.75

291,136.71

865,660.46

472,091.28

472,09128

622,589.09

622,589.09

201,203.96

36,675.59

237,879.55

50,112.20

12,221.50

62,333.70

13,272.59

13,272.59

40,634.35

7,534.00

48,168.35

61,917.52 97,775.80 257,299.76

317,743.47

61,917.52 97,775.80 575,043.23

Total Expenditures

$ 14,967,108.38 $ 3,107,250.74 $ 18,074,359.12

See notes to the general purpose financial statements. - 37 -

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Other Purchased Services Supplies Books, Textbooks and Periodicals Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

$

7,962.60

$

2,303.05

12.95

10,133.64 $

4,159.37

77,931.70

$

2,316.00 $

96,027.94 $

4,159.37

See notes to the general purpose financial statements. - 38 -

SCHEDULE "9"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$

2,593.80

11,960.73

66,451.79

$

81,006.32 $

47,832.47 13,636.52 3,526.41
7,905.25 $ 31,280.95
40.00

$
59,479.00 136,495.00

84,268.00

47,832.47 13,636.52 3,526.41 10,556.40 67,384.25 196,332.74
12.95 40.00
228,651.49

104,221.60 $ 280,242.00 $

567,973.23

- 39 -

MCDUFFIE COUNTY BOARD OF EDUCATION

SCHEDULE "10"

SCHEDULE OF EXPENDITURES BY OBJECT

FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND

YEAR ENDED JUNE 30 1994

EXPENDITURES
Operating Costs Unemployment Claims

$ ====1,=21=2=.o=o

See notes to the general purpose financial statements. - 40 -

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

SCHEDULE "11"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$

8,633,748.00 $

98,241.00

$

8,691 ,268 .62

551,113.61 $

$

9,242,382.23 $

98,587.99 98,587.99

-142,708.38

$

9,099,673.85 $

-26,779.90 71 808.09

$

0.00 $

26 432.91

See notes to the general purpose financial statements. - 41 -

MCQI. lff1Ecot JNTY ROABP Of EDUCATION ANAi VSIS Qf MIN1MI IM ExeFNPII1 BE BEOl IIBfMENTS - BY PBOOBAM
GENERAi B NP - QllAI !TY RAS1C EDUCATIQN PBQGBAMS YEAR ENPEP l\lNE 30 1994'

GENERAi ANP QABEEB fQ!JQAIIQN PBQG~MS
Kinderga,ten (i Grades 1 3 (i
Sub-Total - K-3
Grades4-5 (")
Grades6-8 (") Grades 9 -12 (i High School Laboratories (")
Vocational Education Laboratories r)
Total General and career Education Programs
SeEQIAI fl:&!QATlQN eBQGBAM~
Regular Programs
categoiy II (i categoiy Ill (") categoiy IV (") Itinerant
Supplemental Speech
Sub-Total - Regular
categoiy V (Gifted) (")
Total Special Education Programs
~M~I ~~AIJQt:lffiQQRAM!:J: MfQIA CfNJFR PBQGRAMS

Total Thirteen Weighted and Media Center

filAFF ~ I ~M~ti! PR~RAM (1)
Costdlnstruction Profe6sional DeYelopment

Sta" Total

Development

M Identifies Thirteen Weighted Programs. Nole: (1) $11,417.10 of the allotmentfOI' Profe&&ional
Development has been transfened to Cost rl
ln&truction as authOrized by OCGA 20-2-182
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL ..lL

ORIGINAL

MID-TERM

REQUIRED

705,620.00 2 016 896.00 $ 2,722,516.00 90 1,025,054.00 90 1,632,432.00 90
997,307.00 90 522,430.00 90 441 919.00 90 7 341 658.00

s 635,058.00
1815206.40 2,<150,264.40 $
922,548.60 1,469,188.80
897,576.30 470,187.00 397 727.10 6 607 492.20 $

0.00 s

635,058.00

1815206.40

0.00 $ 2,<150,264.40

922,548.60

4,852.00

1,474,040.80

-20,000.00

8TT,576.30

117,141.00

587,328.00

397727.10

101 993.00 $ 6709 485.20

583,272.00

524,944.80 $

0.00 S

524,944.80

583,272.00 39 344.00 622 616.00 253 840.00
313 641.00

90 $ 90
90 s
90 $

524,944.80 $ 35 409.60
560 354.40 $ 228 456.00 S 282 276.90 $

0.00 S
0.00 $
0.00 s 0.00 s

524,944.80 35 409.60
560 354.40 228 456.00 282 276.90

8,531,755.00

7 678 579.50 $

s 101 993.00

7780 572.50

33,544.10 100 $ 64 696.90 100

33,544.10 $ 64 696.90

0.00 s

33,544.10 64896.90

98 241.00

98,241.00 $

0.00 S

98 241.00

$ 8,629,996.00

7TT6,820.50 s

101 993.00 S 7 878,813.50

- 42 -

SCHEDULE "12''

REQUIRED ALLOTMENT

SALARIES ACTUAL

OISlRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNOEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS

AMOUNT OF

UNOEREXPENDITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

618,913.80 $

738,146.50

16,144.20 $

18,513.39

1 759199.40

1 939 207.56

56 007.00

83 344.68

2,378,113.20 $ 2,6TT,354.06 $

0.00

72,151.20 $

101,858.07 S

0.00

894,889.80

1,129,672.78

0.00

27,658.80

53,829.59

0.00

1,426,541.40

1,583,979.03

0.00

47,499.40

121,741.98

0.00

838,891.60

840,913.70

0.00

38,684.70

100,821.79

0.00

567,142.80

725,247.11

0.00

20,185.20

22,200.82

0.00

347 092.20

375 946.06

0.00

50 634.90

56 335.79

0.00

6 452 671.00 $ 7 333112.74 $

0.00

256 814.20 $

456 788.04 $

0.00

204,443.10 $ 206,714.70
98,435.70
ns.40
1515.60

338,679.26 247,766.05
88,156.56

4,272.30 $ 5,494.50 3,289.50

6,764.59 4,584.76 2,669.69

511,888.50 S 674,601.87 $

0.00

13,056.30 S

14,019.04 $

0.00

34 452.00

70 407.08 $

0.00

957.60

1 290.67 $

0.00

546 340.50 $

745 008.95

14 013.90 $

15 309.71

224 543.70 S

231 492.22 $

0.00

3 912.30 S

4321.19 $

0.00

219 522.60 $

381 654.71 $

0.00

62754.30 $

74 694.67 $

0.00

$ 7,443,0TT.80 $ 8,691 268.62 $

0.00

337.494.70 $

551113.61 $

0.00

7,443,077.80 $ 8,691 268.62 $

33,544.10 $ 64696.90

60,324.00 S 38 263.99

0.00 26 432.91

98,241.00 $

98,587.99 $

26,432.91

0.00

435,735.70 $

649,701.60 S

26,432.91

- 43 -

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

SCHEDULE 13

BOARD MEMBER ADDRESS
Dr. Thomas J. Neal, Jr., Chairman(") 308 West Hall Street Thomson, Georgia 30824
Ms. Barbara B. Bullock 507 Fluker Street Thomson, Georgia 30824
Mr. Bob Keith, Jr. (*) P.O. Box795 Thomson, Georgia 30824
Mr. Donald E. Mccorkle, Jr. (") Route 1, Box 208 Thomson, Georgia 30808
Mr. Sammy Mccorkle (") 3011 Wrightsboro Road, N. W. Thomson, Georgia 30824
Ms. Bea Hart Moss (") 318 Betsy Scott Drive, N. W. Thomson, Georgia 30824
Mr. David L. Ruehle (") P. 0. Box571 Thomson, Georgia 30824
Ms. Joyce Wiley 620 Martin Luther King, Jr. Street Thomson, Georgia 30824
Mr. Luther Wilson, Sr. (") 204 Rosewood Avenue Thomson, Georgia 30824

COMPENSATION

TRAVEL

$

800.00 $

1,794.02

340.00

120.00

880.00

1,422.12

720.00

93.76

780.00

300.23

520.00

2,312.60

780.00

2,156.06

480.00

914.79

180.00

234.72

$
(") Denotes Board Members Serving as of June 30, 1994 See notes to the general purpose financial statements.
- 44 -

5,480.00 $

9,348.30

SECTION II COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 2, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe McDuffie County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe McDuffie County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 2, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General 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.
Compliance with laws, regulations, contracts, and grants applicable to McDuffie County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the McDuffie County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the infonnation of management, the Federal cognizant audit agency and other
, ~ Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a
matter ofpublic record.
Respectfully submitted,

CLV:cm 94CRL-10

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 2, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe McDuffie County Board ofEducation

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the McDuffie County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 2, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

94CRL-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 McDuffie 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,
~~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 2, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe McDuffie County Board ofEducation

SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the McDuffie County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 2, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the McDuffie County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

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

94CRL-80

We conducted our audit ofcompliance 111 accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB} Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the McDuffie County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the McDuffie County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.

This report is intended for the information of management, the Federal cognizant audit agency and other

Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a

matter of public record.

:z:~

Claude L. Vickers State Auditor

CLV:cm 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 2, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the McDuffie County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 2, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression ofan opinion on the McDuffie Coi,mty Board ofEducation'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

94CRL-120

came to our attention that caused us to believe that the McDuffie 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,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION ill INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 2, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe McDuffie County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the McDuffie County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 2, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of the McDuffie County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe McDuffie County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives 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, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-3

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

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

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

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

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

As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:

General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more ofthe 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 mightbe reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness.

This condition was considered in determining the nature, timing, and' extent of the procedures to be performed in our audit ofthe McDuffie County Board of Education's financial statements and this report does not affect our report thereon dated June 2, 1995.

94ICL-3

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
t:L~
Claude L. Vickers State Auditor
CLV:cm 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 2, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the McDuffie County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the McDuffie County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 2, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the McDuffie County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 2, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the McDuffie County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration ofinternal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 2, 1995.
94ICL-5

The management ofthe McDuffie County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs 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 financial assistance programs are managed in compliance with applicable laws and regulations. Because ofinherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the McDuffie County Board ofEducation expended 62% ofits total Federal financial assistance under major Federal financial assistance programs.

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

94ICL-5

are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the intemal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe intemal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-5

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

MCDUFFIE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure To Meet Expenditure Requirements Financial Statements Amount: $15,589.24 Audit Control Number 6971-93-02
The audit report for the year ended June 30, 1993, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$15,589.24 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $15,589.24 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6971-93-01
The audit report for the year ended June 30, 1993, noted that the management of the Board 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. For the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory 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.

MCDUFFIE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $26,432.91 Audit Control Number 6971-94-01
For the year under review, the Board reported to the Georgia Department of Education on DE Form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $60,324.00 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost ofInstruction Program purposes resulting in an underexpenditure of$26,432.91 for the minimum required allotment of$64,696.90 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

MCDUFFIE COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
EXPENDITURES/LIABILITIES/DISBURSEMENTS Financial Statements Nonmaterial Noncompliance Amount: $26,432.91 Audit Control Number 6971-94-01
We concur with this finding. Since the Board followed the directions that were given to school systems by the State Department ofEducation, it is assumed that the State Department of Education will resolve the issue in a manner that will not result in a loss of funds to the Board.
Note: The McDuffie County Board of Education has elected not to provide comments for inclusion in this report other than the above.