Audit report, McDuffie County Board of Education, Thomson, Georgia, year ended June 30, 1995

GA A~oo
-RI
E;Jfo Ml3 1994-q5
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, 1995

MCDUFFIE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 CASH AND CASH EQUIVALENTS

26

3 INVESTMENTS

27

4 ACCOUNTS RECEIVABLE

28

5 DEBT SERVICE REQUIREMENTS TO MATURITY

30

SCHEDULE OF REVENUE

6

STATE

32

7

LOCAL AND OTHER

33

MCDUFFIE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

35

9

LOTTERY PROGRAMS

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

39

11

BYPROGRAM

40

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

42

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 ill INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESl'IONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDl10R
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 2, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the McDuffie County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE 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, 1995, 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 significantestimates 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:

95ARL-13*

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the McDuffie County Board of Education as of June 30, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated August 2, 1996, on our consideration ofthe Board's internal control structure and a report dated August 2, _1996, on its compliance with laws and regulations.
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 and F) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements ofthe McDuffie County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the 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.
95ARL-13*

A copy ofthis report has been filed as a pennanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor CLV:jy 95ARL-13*
.

MCDUFFIE COUNTY BOARD OF EDUCATION - 1-

MCDUFFIE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1995

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
lnven1Dries Food Donatacl Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

0.00

$ 2,407,017.88

160,849.35 $

439,696.31

4,108.22 7,243.56

$ 2,567,867.23 $ 451,048.09 $

0.00

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
Total Liabilities
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
Unreserved Designated for Self-Insurance Program Undesignated
Total Fund Equity

$ 314,632.47 $ 207,418.06

33,829.89

34,883.51

138,475.82

1,118.17

2,819.31

$ 349,580.53 $ 383,596.70

$

18,130.28

$

42,022.15

457.56

4,108.22 7,243.56

$

60,152.43 $

11,809.34

9,279.24

2,148,855.03

55,642.05 $

0.00

$ 2,218,286.70 $

67,451.39 $

0.00

Total Liabilities and Fund Equity

$ 2,567,867.23 $ 451,048.09 $

0.00

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

EXHIBIT-A

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS {Memorandum Onl~ JUNE 301 1995 JUNE 30, 1994

$ 295,419.91

$

295,419.91 $

293,519.97

2,407,017.88

1,870,731.00

13,867.82

614,413.48

863,409.88

4,108.22 7,243.56

8,460.41 7,325.77

$

309,287.73

309,287.73

298,860.77

3,595,712.27 25,711.54

3,595,712.27 25,711.54

3,896,139.23 92,325.43

$ 309,287.73 $

31930?11.54 $ 71258,914.59 $ 713301772.46

$

522,050.53 $

368,148.77

68,713.40

71,511.36

138,475.82

134,659.42

3,937.48

27,453.26

134,449.26

12,852.00

19,450.00

$

25,711.54

25,711.54

92,325.43

3,905,000.00

3,905,000.00

4,195,000.00

$

3,930,711.54 $ 4,663,888.77 $ 5,055,849.50

$ 309,287.73
$ 309,287.73 0.00 $
$ 309,287.73 $ $ 309,287.73 $

$

18,130.28 $

130,307.95

457.56

14,087.86

309,287.73

298,860.77

42,022.15

42,022.15

$
0.00 0.00 $

4,108.22 7,243.56
381,249.50 $
9,279.24 2,204,497.08
2,595,025.82 $

8,460.41 7,325.77 501,064.91
1,773,858.05 2,274,922.96

3 930,711.54 $ 71258,914.59 $ 71330,772.46

-3-

MCDUFFIE COUNTY BOARD OF EDUCATION CQMBJNED STATEMENT Of REVENUES. EXPENDIJURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 3Q 1995

EXHIBIT "B"

REVENUES
State Funds Federal Funds Local and Other Funds

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL
PROJECTS FUND

DEBT SERVICE
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 301 1995 JUNE 301 1994

$ 12,606,565.12 $ 52,067.54
3.851.316.19

739,429.93

$

2,242,590.90

310,203.16 $ _ ___:2:.::8.:a1::02=. $_~484=,8:.::9::::.9-::::;31.:..

13,345,995.05 $ 2,294,658.44 4,646,699.68

12,766,089.64 2,172,962.52 4,414,797.87

Total Revenues

$ 16.509.948.85 $ 3.292.223.99 $

281.02 $ 484,899.31 $ 20.287.353.17 $ 19,353,850.03

EXPENDITURES

Current

Instruction

$ 10,527,004.99 $

Support Services

Pupil Services

517,445.82

Improvement of Instructional

Services

342,122.76

Educational Media Services

507,526.80

General Administration

204,214.07

School Administration

1,183,786.15

Business Administration

143,512.40

Maintenance and Operation of

Plant

1,560,642.86

Student Transportation Services

865,038.33

Central Support Services

63,896.24

Other Support Services

23,935.86

Food Services Operation

Community Service Operations

Other Operations of Non-Instructional

Services

131,002.46

Capital Outlay

72,396.52

Debt Service

Principal

66,613.89

Interest

5,146.82

Paying Agent Fees

1,417,521.59 $
67,742.28
65,650.14 49,858.66 303,543.55
26,566.79 3,576.28 3,095.00
30,931.23 1,285,679.89
17,117.18
2,775.00

0.00 $

$ 11,944,526.58 $ 10,882,505.61

585,188.10

506,734.70

407,772.90 557,385.46 507,757.62 1,183,786.15 143,512.40

349,051.43 516,372.41 415,835.09 1,130,798.74 141,253.09

1,587,209.65 868,614.61 66,991.24 54,867.09
1,285,679.89 17,117.18

1,813,316.06 663,893.34 54,788.70 80,648.89
1,218,879.12 37,142.35

131,002.46 75,171.52

103,353.27 1,100,022.38

290,000.00 183,807.50
664.85

356,613.89 188,954.32
664.85

284,151.33 155,267.77
1 717.25

Total Expenditures

$ 16,214.285.97 $ 3,274,057.59 $

0.00 $ 474,472.35 $ 19,962,815.91 $ 19,455,731.53

Excess of Revenues over (under) Expenditures

$_---"2_95...,.6__6_2_.8_8-"-- $ _ _1_8""'.1_66=--4_0_ $ _ _ _2=8_1_.02_ $ _ _1.;.:0"-,4_2~6.a;..96a.. $ _-=3:::;24::.,:,5~3:.:,.7,=:26~ $ _ _.1_0_1,_88_1_.50_

OTHER FINANCING SOURCES {USES}

Capital Leases Operating Transfers In Operating Transfers Out

$

47,171.84

449,679.66

-449,679.66

Total Other Financing Sources (Uses)

$ _ _....;4_7"'-17~1"".84;..;.

Excess or Revenues and Other Financing

Sources over (under) Expenditures and

Other Financing Uses

$

295,662.88 $

18,166.40 $

281.02 $

10,426.96 $

324,537.26 $

-54,709.66

FUND BALANCE JULY 1 (Restated See Note 1)

1,922,342.80

53,719.39

0.00

298,860.77

2,274,922.96

2,334,362.45

Food Inventory Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer

281.02

-4,352.19 -82.21

-281.02

-4,352.19 -82.21 0.00

-5,674.54 944.71

FUND BALANCE JUNE 30

$ 2.218.286.70 $

67,451.39 $

0.00 $ 309,287.73 $ 2,595,025.82 $ 2,274,922.96

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

MCDUFFIE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1994
Adjustments Residual Equity Transfer

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 12,596,978.00 $ 12,606,565.12

69,760.00

52,067.54

31527:783.00 3,851,316.19

$ 16,1941521.00 $ 1615091948.85

$ 10,756,411.35 $ 10,527,004.99

552,030.00 351,325.00 542,180.80 217,916.00 1,217,168.00 151,363.00 1,694,584.00 970,513.00
74,708.00 27,426.00

517,445.82 342,122.76 507,526.80 204,214.07 1,183,786.15 143,512.40 1,560,642.86 865,038.33
63,896.24 23,935.86

116,423.00 78,455.20

131,002.46 72,396.52 71,760.71

$ 16,750,503.35 $ 16,214,285.97

$ -555,982.35 $ 295,662.88

1,869,029.34 1,922,342.80

-1,943.37

281.02

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 852,732.00 $ 739,429.93

1,844,479.86 2,242,590.90

326,991.00

3101203.16

$ 3,0241202.86 $ 3,292,223.99

$ 1,423,319.19 $ 1,417,521.59

91,382.00 83,478.32 25,838.00 130,485.91

67,742.28 65,650.14 49,858.66 303,543.55

11,283.90 5,185.00 3,095.00 37,262.00 1,203,023.30
2,n5.oo

26,566.79 3,576.28 3,095.00
30,931.23 1,285,679.89
17,117.18
2,n5.oo

$ 3,017,127.62 $ 3,274,057.59

$

7,075.24 $ 18,166.40

63,173.98

37,933.21

-19,217.59

FUND BALANCE JUNE 30, 1995

$ 1,311,103.62 $ 2,218,286.70

$ 51,031.63 $ 56,099.61

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

MCDUFFIE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The McDuffie County Board ofEducation (Board) was established under the laws ofthe 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 these notes, 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 ofthe 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 6-

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: 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 confonn 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 ofa 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 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 of GSFIC Project No. 92/92S-697-065 to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.

- 7-

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detemiined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recogniz.ed when suscepttble to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. 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, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for iuly and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion ofthe compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

- 8-

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prior years, the risk financing activities for the Board's unemployment compensation liabilities were reported as an expendable trust fund. This fund had a fund balance of $20,601.24 at June 30, 1994. For fiscal year 1995, this fund has been reported as a part ofthe General Fund. The fund balance at July 1, 1994 has been restated as appropriate.
BUDGET
The McDuffie County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level.- The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper 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 may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

- 9-

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note r: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Excess ofRevenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses
Fund Balance July 1, 1994
Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods
Fund Balance June 30, 1995 (Budget Basis)
CASH AND CASH EQUIVALENTS

Special Revenue
Fund
$ 18,166.40 53,719.39
-8,460.41 -7,325.77 $ 56 099.61

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (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,

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

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

(5) Prime banker's acceptances,

- 10 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(7) Repurchase agreements, and

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

RECEIVABLES

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

PROPERTY TAXES

The McDuffie County Board of Commissioners fixed the property tax levy for the 1994 tax year (calendar year) on November 7, 1994 (levy date). Taxes wei:e due on January 18, 1995. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 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 1994 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

13.73 mills 1.74 mills

15.47 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time

- 11 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 offund 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 nonroutine permanent transfers of equity.
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.
- 12 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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. The aggregate ofthe face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount ofdeposit 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 indebtedn.ess or other direct obligations ofthe United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

- 13 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $1,558,085.09. The amounts of the total bank balances are classified into three categories ofcredit risk:

Category l - 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, 1995, as follows:

Risk Category

Bank Balance

I

$ 395,419.91

2

1,162,665.18

3

0.00

Total

$ 1,558,085.09

CATEGORIZATION OF INVESTMENTS At June 30, 1995, the carrying amount of the Board's total investments was $2,407,017.88 and consisted entirely of funds in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.

- 14 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1995

Note 4: RISK MANAGEMENT

The Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

In addition, the Board has elected to self-insure for losses related to natural disaster.

The Board has elected to self-insure for all losses related to errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. In addition, the Board has not experienced any losses related to these risks in the past three years.

The Board is self-insured with regard to unemployment compensation claims. A premium is charged by the General Fund to each user fund on the basis of the fund's number of employees in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994 1995

$

0.00 $ 1,272.00 $ 1,272.00 $

0.00

$

0.00 $ 14,283.00 $ 11,322.00 $ 2,961.00

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $2_50,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more thap eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss.

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 oftheir inception.

- 15 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30. 1995

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows:

General

Capital

Obligation

Leases

Bonds

Total

Balance July I, 1994

$ 92,325.43 $ 4,195,000.00 $4,287,325.43

Deductions

66,613.89

290,000.00

356,613.89

Balance June 30, 1995

$ 2~ Zl 1.54 $ 3 2Q5 QQQ QQ $ 3 23Q Zll 54

At June 30, ~995, payments due, by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1996 1997 1998 1999 2000 200 I and thereafter

$ 16,874.04 9,843.19

$ 448,735.00 463,265.00 422,532.50 441,595.00 453,813.75
2,823,153.75

$ 465,609.04 473,108.19 422,532.50 441,595.00 453,813.75
2,823,153.75

Total Principal and Interest

$ 26,717.23 $ 5 Q53 Q25 QQ . $ 5,Q72 812 23

Deduct: Imputed Interest

1,005.69

Net Present Value of Future Minimum Lease Payments

$ 25 Zll 54

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, 1995, $3,450,000.00 of bonds are outstanding and are considered defeased.

- 16 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agericy for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 8: 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 of accumulated annual leave. See Note 1 Compensated Absences
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.

- 17 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 9: RETIREMENT PLANS

The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $11,035,132.53; total payroll was $12,815,889.09.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1995 amounted to $1,855,006.33, ofwhich $1,303,248.17 was made by the Board and $551,758.16 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure 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, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1.058.958,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. 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, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $1,303,248.17 was actuarially determined and represented .2306% oftotal contributions made by all participating employers.

- 18 -

MCDUFFIE COUNTY BOARD OF EDUCATION

EXlilBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 9: RETIREMENT PLANS
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 112 employees covered under PSERS for the year ended June 30, 1995.
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 1995 amounted to $3,848.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 10: 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, 1995.
- 19 -

~ Cash and Cash Equivalenls kcoun1s R~ble lnYantories
Food Oanatad Commodities PurchaedFood
Total A&sels

MCDUFAI; COUNTY BOAR(;! QE EOUcAIIQtl
~l;!!N!t:jg BALANCE l:!W SPECIAL BEVEN!.11; E!.lllll2 J!.11llE3Q 1995

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

AFTER SCHOOL
PROGRAM

ADULT

LOTTERY

EDUCATION PROGRAMS

DRUG-FREE SCHOOLSAND COMMUNITIES
/ICT

CHAPTER1

EDUCATION OF EDUCATION OF

CHILDRENIN

DEPRIIIEO

STATE SCHOOLS

CHILDREN

s 78,523.37 S 2,895.22

s

5.00 S

0.00

11,017.42

s 8,672.83 S 210,585.06

s

136,494.50

4,108.22 7,243.56
s 100.892.57 s 2.895.22 S 8.672.83 S 210.585.06 S

5.00 S

0.00 S

136.494.50

1.YIJIIE &:112 E!.lllll2 Eg!,l!D: I.YLIIIE

CashOwrdratt

Accounts Payable

s

Salaries Payable

Expil9d G111nt Balances Payable

Oaremld R-ue

Total Liabilities

$

f!.IND EglJ!D:

Fund Balances

R--i

For Continuation d Fedenll Prog111ms

Forlnwnllories

Food

Oanatad Commodities

s

Purchaed Food

s
Un,-,wd
Undesignated

Total Fund Equity

s

2,614.75 34,179.21
36,793.96
4,108.22 7,243.56 11,351.78 52,746.83 S 64,098.61 S

s s
2,895.22 S 2,895.22 S

8,672.83 S 201,349.06 9,236.00 S
8,672.83 S 210,585.06 S

0.00 S 0.00 S

0.00 S 0.00 S

s Total Liabilities and Fund Equity

100.892.57 S

21895.22 S

81672.83 S 2101585.06 S

5.00 5.00
0.00 S 0.00 S 5.00 S

s

40,320.83

16,492.82

79,530.50

150.55

s

136,494.50

0.00 S

0.00

0.00 S

0.00

0.00 S

1361494.50

See notes ID the general purpose financial statements.

-20-

EXHIBIT"E"

AND SECONDARY EDUCATION ACT

CHAPTER2 BLOCK GRANT INNOVATIVE FLOW THROUGH PROGRAMS

$

0.00

TITLEU-
BSENHOWER
MATHEMATICS
AND SCIENCE EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS JUNE 301 1995 JUNE 301 1994

$

81,423.59 $

88,782.05

$ 23,325.00 $

6,500.00 $

15,380.00 $

6,757.26 $

20,964.24

439,696.31

369,033.24

4,108.22 7,243.56

8,460.41 7 325.77

$

0.00 $ 231325.00 $

6500.00 $

15380.00 $

6?57.26 $

201964.24 $

5321471.68 $

4511601.47

$

7,795.80 $

2,332.76

10,610.46

2,182.03

$ 22,921.05 $

6,446.39 $ 6446.39 $

2,530.89 $ 2,752.68 9,662.91
433.52
15380.00 $

761.81 $ 1,449.50 4,492.74
53.21
6,757.26 $

20,964.24 $ 20,964.24 $

288,841.65 $ 34,883.51 138,475.82 2,819.31
465,020.29 $

180,937.00 35,382.40 134,659.42 27,453.26 19,450.00
397,882.08

$

403.95 $

53.61

$

457.56 $

14,087.86

4,108.22 7,243.56

8,460.41 7325.77

$

403.95 $

53.61

$

11,809.34 $

29,874.04

$

0.00

0.00

0.00 $

0.00 $

0.00 $

0.00

55,642.05

23,845.35

$

0.00 $

403.95 $

53.61 $

0.00 $

0.00 $

0.00 $

67,451.39 $

53,719.39

$

0.00 $ 231325.00 $

61500.00 $

15380.00 $

6?57.26 $

201964.24 $

5321471.68 $

451601.47

-21

MCDUFFIE ~ t i l l BOAR!;! QE EDUCATIQ!:i s:iQMaltlllll!.i !A~MEtll Qf BEVENUE EXPENQIIlJBE 6t!Q CHANGE It! FUND BALANCE~
SPEC!&, BEVEN!.!E E!.!tlQ
YEAB"Ef:IQEQ JVtlE 3Q 1995

a.EMENTARY

SCHOOL FOOD
SERVICES FUND

AFTER . SCHOOL
PROGRAM

ADULT EDUCATION

LOTTERY PROGRAMS

DRUG-FREE SCHOOLSAND COMMUNITIES
ACT

CHAPTER1

EDUCATION OF EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS CHILDREN

BEYBl!.!E
State Funds Federal Funds Local and Other Funds
Total Revenues

s 84,354.00
934,156.21 296,071.16 S
s 1,314,581.37 S

s
14,132.00 14,132.00 S

32,887.84 S 622,188.09

10,497.67

s

43,385.51 S 622,188.09 S

25,578.00 S 25,578.00 S

2,443.00 S 2443.00 S

755,769.95 755,769.95

EXPBjQITlJRl;S

current

Instruction

Support Services

PupllSeNlces

Improvement r:I Instructional

Services

Educational Media Services

General Administration

M a i ~ and Operation c:I

Plant

student Tran&pOltation Services

Central Support Services

other Support SeNlces

Food Services Operation

,

Community SelYice Operations

C&pital Outlay

s 1,285,679.89 s

Total Expenditures

s 1,285,679.89 S

Excess r:I Revenues a,,er (under)
Expenditures

$ 28,901.48 S

E!.!tlt:2 BALA!::IQI; JI.ILY 1

39,631.53

s
17,117.18 17117.18 $ -2,985.18 S 5,880.40

42,897.62 S 512,118.20 S

51,923.57

487.89

5,037.30 27,818.68 2,598.87

19,450.00 375.48

90.99

2,n5.oo 43,385.51 S 622, 188.09 $

0.00 $ 0.00

0.00 S 0.00

15,868.11 S 3,626.83
83.06
6,000.00
25,578.00 $ 0.00 $ 0.00

2,226.00 S 217.00

644,136.18 555.28
12,522.00 81,514.24
202.00 16,840.25

2443.00 $
0.00 $ 0.00

755,769.95
0.00 0.00

Food lnwntory - Net Change In Period Donated Commodities Purcha&ed Food

-4,352.19 -a2.21

E!.!tll:! BALA~ J!.!tll; ~

$ 641098.61 $ 21895.22 S

0.00 S

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-22-

EXHIBIT"F"

AND SECONDARY EDUCATION ACT
CHAPTER2 BLOCK GRANT- INNOVATIVE FLOW THROUGH PROGRAMS

TITLEIIEISENHOWER MATHEMATICS ANDSCIENCE EDUCATION

INDMDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

s

30,113.00 S

190,652.97 S

$----=30-,1-13.00 S 190,652.97 S

48,007.73 S 107,306.48 S 54,394.05 S 48007.73 S 107,306.48 $ 54,394.05 S

s
83,671.84
83671.84 S

739,429.93 S 2,242,590.90
310,203.16
3,292,223.99 S

661,024.97 2, 129,865.44
305,021.46
3,095,911.87

s

17,1n.66 S

78,340.39 S

28,073.46 S

76,683.97 S 1,417,521.59 S 1,152,805.08

14,478.43

785.00

67,742.28

35,397.72

s

3,596.05

s

22,039.98

73.03

181,648.97

38,901.43 82.49

1,478.64 9,914.02

22,536.79

4,875.08

65,650.14 49,858.66 303,543.55

62,403.35 26,644.64 219,226.68

7,999.99

5,004.00

3,095.00

2,998.80

2,112.79

26,566.79 3,576.28 3,095.00 30,931.23 1,285,679,89 17,117.18 2 TT5.00

289,592.22 10,151.00
55,008.58 1,218,879.12
37,142.35

s

30,113.00 S

190,249.02 S

56.161.58 $ 107,306.48 S 54,394.05 S

83671.84 S 3.274.057.59 S 3.107.250.74

s

0.00 S

403.95 $

-8,153.85 S

0.00 S

0.00 S

0.00 S

18,166.40 $ -11,338.87

0.00

0.00

8,207.46

0.00

0.00

0.00

53,719.39

69,788.09

-4,352.19 -82.21

-5,674.54 944.71

s

0.00 S

403.95 S

53.61 $

0.00 $

0.00 $

0.00 $

67 451.39 $

53 719.39

-23-

MQQ!.!EEIE QQ!.!tm'.: ~MD QE EQ!.!QAI!QN Ql:IEQ!.!LE QE ~DEB&. Ell':!l&IQI&. MSISI~QE
VEAR ENPEP J!,!NE 30. 1995

SCHEDULE 1

FUNDING AGENCY
PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1994 Contract 1995 Contract Food Services
School Breakfast Program
1994Grant 1995Grant National School Lunch Program 1994Grant 1995Grant National Education and Training Program 1995 Contract Food Distribution Program (1)

10.558 10.558 $

$ 5,401.27

10.553 10.553
10.555 10.555
10.564 10.550

197,312.18
661,156.77 5,000.00
65,285.99

22.n

5,401.27 $

5,401.27

(2)

3,471.87 193,m.63
6,273.40 653,673.90
5,000.00 NIA

197,312.18

(2)

661,156.77 $
5,000.00 65,285.99

1,220,393.90 (3)
(2) 65,285.99

Total U.S. Department of Agriculture

$ 934,156.21 $

867,620.79 $ 934,15621 $ 1,285,679.89

Corporation for National and Community Service Through Georgia Department of Education Service America 93-0874 94-718

94.004 94.004

$

-704.00

8,120.33

Total Corporation for National and Community Service

$

7416.33

Education, U. S. Department of Direct P. L. 81-874 1994 Grant 1995Grant Through Georgia Department of Education Drug-Free Schools and Communities Act 1994 Grant 1995Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994 Regular 1994 Carry-Over 1995 Regular Education of Deprived Children 1994 Regular 1994 Carry-Over 1995 Regular 1995Summer Chapter2 Block Grant Flow Through 1994 Regular 1995 Regular Innovative Programs 1994 Regular 1995 Regular 1996 Regular Title II Eisenhower Mathematics and Science Education 1994 Regular 1994 D and E Grant 1995 Regular 1995 D and E Grant

84.041 $ 84.041

389.00 $ 5,799.00

84.186 84.186

25,583.00

389.00 $ 5,799.00

389.00 5,799.00

-3.42 25,583.00

-5.00 $ 25,583.00

(5) (5)
-5.00 25,583.00

84.009 84.009 84.009
84.010 * 84.010 * 84.010 * 84.010
84.151 84.151
84.151 84.151 84.151

217.00 2,226.00
24,926.00 736,218.00 .
13,935.00
30,113.00
188,835.00 6,000.00

-0.22 . 217.00 2,226.00
113,219.64 24,926.00 594,500.00

217.00 2,226.00
24,926.00 725,008.38
5,835.57

-149.47 30,113.00
11,769.18 169,510.00

30,113.00
186,652.97 4,000.00

217.00 2,226.00
24,926.00 725,008.38
5,835.57
30,113.00
186,652.97 3,596.05

84.164 84.164 84.164 84.164

17,635.00

-0.13
7,500.00 45,000.00

-0.13
14,000.00 34,007.86

3,719.28 4,488.05 13,946.39 34,007.86

24

MCDUFFIE COUNTY BOARD OF EDUCATION
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1995

SCHEDULE 1

FUNDING AGENCY
PROGRAM/GRANT
Education, U. S. Department of Through Georgia Department of Education Individuals with Disabilities Education Act TdleVl,B Flow Through 1993 Carry-Over 1994 Regular 1994 Carry-Over 1995 Regular Preschool Program 1993 Carry-Over 1994 Regular 1994 Carry-Over 1995 Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant 1995Grant Through Augusta Technical Institute Adult Education 1994Grant 1995Grant
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 Area Employment and Training Consortium Job Training Partnership Act 09-93-16-13-613 09-93-16-47-613 09-93-20-13-189 09-94-16-13-613 09-94-20-13-189
Total U.S. Department of Labor
Total Federal Financial Assistance

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.027 84.027 84.027 $ 84.027
84.173 84.173 84.173 84.173

$ 12,190.00 113,544.00
22,590.00 35,700.00

-32.05 19,569.26 10,360.00 $ 82,000.00
-11.16 -1,653.72 20,290.00 27,400.00

12,071.38 $ 95,235.10
22,536.79 31,85726

12,071.38 95,235.10
22,536.79 31,85726

84.048 84.048

45,879.54

7,794.49

35,989.45

45,879.54

(4)

84.002 84.002

22,828.00

$ 1,304,607.54 $

7,697.07 8,120.76

10,497.67

1,248,122.68 $ 1,276,830.39 $

10,497.67 1,232,512.75

93.673

$

17,117.18 (3)

17.250 17250 17250 17250 $ 17250
$

$
eo,n8.00 49,338.00 110,066.00 $

15,440.04 7,390.18 27,752.39 $ 49,60121
100,183.82 $

13,106.39 $ 59,201.75 11,363.70
83,671.84 $

13,106.39 59,201.75 11,363.70
83,671.84

$ 2,348,829.75 $

2,223,343.62 $ 2,294,658.44 $ 2,618,981.66

Major Programs are identified by an asterisk (*) in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program, Child and Adult Care Food Program and National Education and Training Program were not maintained separately and are included in the 1995 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.

- 25 -

MCDUFFIE COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995
INTEREST BEARING ACCOUNTS
McDuffie Bank and Trust, Thomson, Georgia
N.O.W. Accounts (4.45%)

SCHEDULE "2" $ -226,630.62

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

MCDUFFIE COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30.1995
INVESTMENT POOL
State of Georgia, Office of Treasury and Fiscal Services
Local Government Investment Pool (6.032%)

SCHEDULE "3" $ 2,407,017.88

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

MCDUFFIE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "4"

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

Administrative Services, Georgia Department of Reimbursement for Supplies

$ 1,908.70

$

1,908.70

Athens Technical Institute GED Fees

30.00

30.00

Augusta Technical Institute Adult Education Federal Funds state Funds

$

2,376.91

6,295.92

2,376.91 6,295.92

Central Savannah River Area Economic Opportunity Authority, Incorporated Reimbursement for Energy Costs Job Training Partnership Act

1,027.92

20,964.24

1,027.92 20,964.24

East Central Georgia Consortium Reimbursement for Energy Costs

105.00

105.00

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Other State Programs At-Risk Summer School Program Remedial Summer School Program Lottery Programs Instructional Technology Model Technology Schools Federal Programs
ESEA - Chapter 1
Education of Deprived Children ESEA - Chapter 2
Innovative Programs ESEA-Trtlell
Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act
Trtle VI, B Flow Through Preschool

9,890.09
5,166.76 3,952.68

3,534.55 7,482.87
11,606.82 198,978.24

136,494.50 23,325.00 6,500.00

15,380.00 6,757.26

3,534.55 7,482.87 9,890.09 5,166.76 3,952.68 11,606.82 198,978.24
136,494.50 23,325.00 6,500.00
15,380.00 6,757.26

Georgia Cities in Schools, Incorporated Reimbursement for Salaries

2,195.35

2,195.35

Georgia Environmental Facilities Authority Reimbursement for Expenditures

15,292.00

15,292.00

- 28 -

MCDUFFIE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "4"

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

Georgia Training and Support in the Community Reimbursement for Energy Costs

$ 1,027.92

$

1,027.92

McDuffie County Tax Commissioner County Wide Bond Tax County Wide School Tax

102,862.96

$ 13,867.82

13,867.82 102,862.96

New Life in Christ Reimbursement for Energy Costs

50.13

50.13

Richmond County Board of Education Reimbursement for Energy Costs

4,756.54

4,756.54

State of Georgia, Office of Treasury and Fiscal Services Interest Earned

12,528.30

12,528.30

Wdkes County Department of Family and Children Services GED Fees

55.00

55.00

$ 160,849.35 $ 439,696.31 $ 13,867.82 $ 614,413.48

See notes to the general purpose financial statements.

- 29 -

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

MCDUFFIE COUNTY BOARD OF EDUCATION
DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30, 1995

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$ 448,735.00 $ 173,735.00 $

463,265.00

163,265.00

422,532.50

152,532.50

441,595.00

141,595.00

453,813.75

128,813.75

275,000.00 300,000.00 270,000.00 300,000.00 325,000.00

474,190.00 487,460.00 508,721.25 527,362.50 548,535.00

114,190.00 97,460.00 78,721.25 57,362.50 33,535.00

360,000.00 390,000.00 430,000.00 470,000.00 515,000.00

276,885.00

6,885.00

270,000.00

$ 5,053,095.00 $ 1,148,095.00 $ 3,905,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1994 Bonds Retired During Period
Bonds Payable at June 30, 1995

TOTAL

1993 ISSUE

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

290,000.00

210,000.00

$ 3,905,000.00 $ 3,805,000.00

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

SEP 1-MAR 1 SEP 1

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

SCHEDULE "5"

1993 ISSUE

INTEREST

PRINCIPAL

1973 ISSUE INTEREST PRINCIPAL

$

169,685.00 $ 225,000.00 $ 4,050.00 $ 50,000.00

161,915.00

250,000.00

1,350.00

50,000.00

152,532.50

270,000.00

141,595.00

300,000.00

128,813.75

325,000.00

114,190.00 97,460.00 78,721.25 57,362.50 33,535.00

360,000.00 390,000.00 430,000.00 470,000.00 515,000.00

6,885.00

270,000.00

s s $ 11142,695.oo 3,eos,ooo.oo $ 5,400.00 100,000.oo

1973 ISSUE

$

180,000.00

80,000.00

$====1=0=01=00=0=.o=o

SEP 1-MAR 1 SEP 1

- 31 -

MCDUFFIE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995

SCHEDULE 6''

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment School Counselors Grades 4 and 5 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Special Education Low Incidence Grant Teachers' Retirement Lottery Programs Distant Leaming Instructional Technology Media Center and Library Equipment Model Technology Schools Pre-Kindergarten Program Safe Schools Grant
Augusta Technical Institute PEACH Project (Adult Education) Adult Education
OTHER Education, Georgia Department of Reimbursement for Student Information System Supplies

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 7,626,173.00 794,153.00 262,378.00 321,554.00 101,728.00
2,194,787.00
451,337.00 142,271.00 309,036.00 192,286.00
68,493.00 277,358.00
19,971.00 -1,282,922.00 1,008,943.00
$ 11,597.53
19,107.59 4,609.79 2,070.00
45,059.99 10,952.68 10,920.00 12,701.54

$ 7,626,173.00 794,153.00 262,378.00 321,554.00 101,728.00
2,194,787.00

84,354.00

451,337.00 142,271.00 309,036.00 192,286.00 68,493.00 277,358.00
19,971.00 -1,282,922.00 1,008,943.00
84,354.00 11,597.53

19,107.59 4,609.79 2,070.00
45,059.99 10,952.68 10,920.00 12,701.54

8,287.00 21,787.17 23,993.68 198,978.24 349,692.00 19,450.00

8,287.00 21,787.17 23,993.68 198,978.24 349,692.00 19,450.00

21,050.05 11,837.79

21,050.05 11,837.79

2,000.00

2,000.00

$ 12,606,565.12 $ 739,429.93 $ 13,345,995.05

See notes to the general purpose financial statements.

- 32 -

MCDUFFIE COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

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

$ 3,581,325.37 3,960.50
10,391.29

$ 476,201.45 $ 476,201.45

3,581,325.37

469.59

4,430.09

1,310.61

11,701.90

Other After School Program Fees Donations Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Rents Sales Breakfast Lunches School Assets Shared Service Contributions Georgia Cities in Schools, Incorporated Testing Fees Tuition Other

$ 2,570.00

14,132.00

11,780.62 111,962.41
1,972.73 44,142.99

2,731.00 $

10,449.71

31,077.60 257,912.56

22,271.09 5,190.00
27,108.00 18,191.48

4,350.00

281.02

6,917.66

14,132.00 2,570.00
11,780.62 121,892.09
1,972.73 44,142.99
31,077.60 257,912.56
10,449.71
22,271.09 5,190.00
27,108.00 22,541.48

$ 3,851,316.19 $ 310,203.16 $

281.02 $ 484,899.31 $ 4,646,699.68

See notes to the general purpose financial statements.

- 33 -

MCDUFFIE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULE "8"

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

EXPENDITURES

Operating Costs

Salaries

$

Employee Benefits

Travel of Employees

Professional and Technical Services

Compensation and Travel of Board Members

Water, Sewer and Cleaning Services

Repair and Maintenance Services

Rents

Property Services

Insurance

Communications

Commodity Hauling

Shared Services

Other Purchased Services

Supplies

Energy

Food Usage

Books, Textbooks and Periodicals

Dues and Fees

Federal Indirect Costs

Other Expenditures

11,322,462.23 $ 2,375,209.44
51,081.61 61,934.02 14,469.92 43,208.52 156,363.00
4,971.09 537.13
58,930.38 54,292.55
23,225.40 9,251.11
715,505.50 485,930.54
173,521.38 47,535.47
42,131.05

1,493,426.86 $ 298,907.80 23,886.87 90,007.76
1,350.00 2,561.82 11,885.48 1,780.00
5,699.24 4,878.78 6,000.00 1,118.99 371,314.59
703,342.89 43,523.02 14,350.00 11,780.62 4,095.70

12,815,889.09 2,674,117.24
74,968.48 151,941.78
14,469.92 44,558.52 158,924.82 16,856.57
2,317.13 58,930.38 59,991.79
4,878.78 29,225.40 10,370.10 1,086,820.09 485,930.54 703,342.89 217,044.40 61,885.47 11,780.62 46,226.75

Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment

71,760.71 13,323.40 59,073.12 429,568.40

2,TT5.00 181,372.17

71,760.71 16,098.40 59,073.12 610,940.57

Total Expenditures

$ 16,214,285.97 $ 3,274,057.59 $ 19,488,343.56

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

MCDUFFIE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS. YEAR 'ENDED JUNE 30, 1995

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Communications Other Purchased Services Supplies Books, Textbooks and Periodicals Other Expencfitures
Nonoperating Costs Land and Land Improvements Equipment

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

MEDIA CENTER AND
LIBRARY EQUIPMENT

$

1,000.00 $

4,512.00

6,320.00 4,666.65 $

2,547.51

2,775.00

10,800.52

21,446.17

Total Expendib.Jres

$

8,287.00 $

21,787.17 $ ======2=3'=99=3=.6=8

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

SCHEDULE "9"

MODEL TECHNOLOGY
SCHOOLS

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$

106,197.24

92,781.00

$

198,978.24 $

171,581.86 44,379.11
1,815.61
292.09 90.99 $
92,573.02 13,161.44
90.50
25,707.38

$
1,405.00 18,045.00

171,581.86 44,379.11
1,815.61 7,320.00
292.09 1,495.99 228,541.42 13,161.44
90.50

2,775.00 150,735.07

349,692.00 $

19,450.00 $ 622,188.09

- 37 -

MCDUFFIE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1995

SCHEDULE 10

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 9,231,045.00 $

314,210.00

$ 9,367,998.54 642,470.27 $ _ _..;5;.;..70"'-',.;;.;53;.;;.3.;.;.8~7
$ 10,010,468.81

-150,795.11 $ 9,859,673.70

$

o.oo $ ===========o=.o=o

See notes to the general purpose financial statements. - 39 -

MCDUfFIE COUNTY BOARD OF EQUCAJJON ANALVSIS OF MNMJM EXPENDITURE RE0UIRBENTS - BY PBOGBHt1
GENERAL FUNQ - QUALITY BASIC EQUCAJJON f'ROGRAMS
VEAR ENDED JUNE 3Q, 1995

GENERAL !NP ~EER EDUCATION eBOGRAMS
Kindergarten (") GnaclN 1-3(")
Sub-Total - K-3 Grades 4 - 5 (") Grades8-8(") Grades 9 - 12 (") High School Labonltorle& (") Vocational Education Laboratoriell (")
Total General and Career Education Programs Se,EQI&, EDUCATION ffiOGRAMS
Regular Programs Category!(") CategoryH (") Category Ill(") Category IV(") Su~Total - Regular Category V (Gifted) (") Total Special Education Programs
RHC!I&, EDUCATION eBQGRAM 0 Total Thirt.n Weighted Programs
MEDIA CENTER eBQGRAMS Salaries Operations Total Media Center Programs
Total T h ~ Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL _,!_

ORIGINAL

MID-TERM

$

713,589.00

$

642,230.10 $

2,004,918.00

1,804,42UO

$ 2,718,505.00 90 $ 2,448,654.50 $

1,013,184.00 90

911,866.80

1,780,742.00 90

1,584,867.80

780,550.00 90

702,495.00

845,986.00 90

781,387.40

507,206.00 90

456,485.40

$ 7,826,173.00

$ 8,863,555.70 $

134,587.00 0.00
134,587.00 0.00 0.00 0.00 0.00 0.00
134,587.00

$

747,275.00

$

872,547.50 $

42,200.00

$

747,275.00 90 $

672,547.50 $

46,878.00 90

42,190.20

$

794,153.00

$

714,737.70 $

$

262,378.00 90 $

236,140.20 $

$ 8,682,704.00

$ 7,814,433.60 $

42,200.00 0.00
42,200.00 50,000.00 226,787.00

$

252,055.00 90 $

226,849.50 $

0.00

69,499.00 90

62,549.10

0.00

$

321,554.00

$

289,398.80 $

0.00

$ . 9,004,258.00

$ 8,103,832.20 $

226,787.00

STAFF DEVELOPME!fi PROGRAMS Cost ol Instruction Professional Development
Total Slaff 0eYelopmenl (") Identifies Thirteen Weighted Programs.

$

63,978.00

$

63,978.00 $

0.00

37,750.00

37,750.00

0.00

$

101,728.00 100 $

101,728.00 $

0.00

See note& to the general purpoge financial statements.

- 40 -

SCHEDULE11

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNTOF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

ne,111.10 $

837,558.<tO $

52,929.81 $

890,488.21

1,804,424.40

2,004,725.73

105,508.98

2,110,234.71

$ 2,581,241.50 $ 2,842,284.13 $

158,438.79 $ 3,000,722.92 $

0.00

911,865.60

1,172,717.93

64,767.97

1,237,485.90

0.00

1,584,867.80

1,681,802.52

125,570.63

1,807,373.15

0.00

702,495.00

802,815.79

80,029.92

862,845.71

0.00

781,387.40

895,688.50

39,023.01

934,711.51

0.00

456,485.40

404,640.73

84,131.26

488,nus

0.00

$ 6,998,142.70 $ 7,799,949.60 $

531,961.58 $ 8,331,911.18

$

714,747.50

$

245,563.40 $

443,817.94

76,202.56

s 10,213.06
4,955.40
8,540.01

255,n&.<16 448,773.34 84,742.57

s

714,747.50 $

s 765,583.90

23,708.47 $

789,292.37

0.00

42,190.20

87,456.19

1,524.91

88,981.10

0.00

$

756,937.70 s

s 853,040.09

25,233.38 $

878,273.47

$

286,140.20 $

314,596.14 $

13,338.91 $

327,935.05

0.00

$ 8,041,220.60 $ 8,967,585.83 $

570,533.87 $ 9,538,119.70

$

226,849.50 $

400,412.71

s

400,412.71

0.00

62,549.10

$

71,936.40

71,936.40

0.00

$

289,398.60 $

s 400,412.71

s 71,936.40

472,349.11

$ 8,330,619.20 $ 9,367,998.54 $

642,470.27 $ 10,010,468.81 $

0.00

$

63,978.00

37,750.00

s_ _1_01_,n_s_.oo_

$

74,432.09 $

74,432.09

39,112.41

39,112.41

$

113,544.50 $

113,544.50 s_ _ _ _ _ _o_.oo_

- 41 -

MCDUFFIE COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30, 1995

SCHEDULE 12"

BOARD MEMBER ADDRESS
r) Dr. Thomas J. Neal, Jr., Chairman
308 West Hall Street Thomson, Georgia 30824
r> Mr. Bob Keith, Jr.
P. 0. Box795 Thomson, Georgia 30824
Mr. Donald E. McCorkle, Jr. (*) Route 1, Box 208 Dearing, 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
Mr. Luther Wilson, Sr. (*) 204 Rosewood Avenue Thomson, Georgia 30824

COMPENSATION

TRAVEL

$

760.00 $

1,921.32

660.00

1,031.28

640.00

359.78

680.00

168.12

820.00

2,945.78

720.00

615.27

760.00

2,388.37

(*) Denotes Board Members Serving as of June 30, 1995

$

5,040.00 $ ======9,=4=29=.=92=

See notes to the general purpose financial statements.

- 42 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 2, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the 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 of the McDuffie County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 2, 1996. 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 ofEducation 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 ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

95CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. Tlus restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy
95CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 2, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the 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 ofthe McDuffie County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 2, 1996. 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 ofFederal Financial Assistance, for the year ended June 30, 1995:

(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 of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

95CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to itemsnot tested, nothing came to our attention that caused us to believe that the McDuffie County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,

CLV:jy 95CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 2, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the 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 ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 2, 1996. 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:

(I) 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, 1995. 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 requirements based on our audit.

95CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards. issued by the Comptroller General ofthe 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, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 95CRL-80

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 2, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe McDuffie County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 2, 1996. 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 1995 general purpose financial statements of the McDuffie County Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:

(I) Types of Services Allowed or Unallowed

(2) Eligibility

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

95CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the 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:jy
95CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 2, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the 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 ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 2, 1996. 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.
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 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.
95ICL-3

In planning and performing our audit of the general purpose financial statements of the McDuffie County Board ofEducation for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted 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 of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, 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 .ofone or more of the 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 employeesin the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable 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 ofEducation's financial statements and this report does not affect our report thereon dated August 2, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:jy 95ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 2, 1996

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 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, 1995, and have issued our report thereon dated August 2, 1996. 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 August 2, 1996.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the 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, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and

95ICL-7

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 ofthe general purpose financial statements in a separate report dated August 2, 1996.

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 of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1995, the McDuffie County Bo.ard ofEducation expended 62% ofits total Federal financial assistance under major Federal financial assistance programs.

95ICL-7

We performed tests of controls, as required by O:MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition- was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent ofthe procedures to be performed in our audit of the McDuffie County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated August 2, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 95ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

MCDUFFIECOUNTYBOARDOFEDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
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, reported that the Board had an underexpenditure ofQuality Basic Education (QBE) funds ofSlS,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 ofEducation to refund this underexpenditure as required. The underexpenditure of$15,589.24 should be returned to the Georgia Department ofEducation through an increase in the Board's lo~al fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $26,432.91 Audit Control Number 6971-94-01
The audit report for the year ended June 30, 1994, disclosed that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $26,432.91 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 $26,432.91 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.
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, 1994, noted that the management ofthe McDuffie County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board
- 1-

MCDUFFIE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
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
to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
ADMINISTRATIVE REQUIREMENTS
Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 6971-95-01
Property management records maintained by the Board for the Elementary and Secondary Education Act Chapter 1 - Education of Deprived Children Program (CFDA 84.010) were incomplete and failed to meet property management standards as set forth in Chapter 41, ofthe Financial Management for Georgia Local Units ofAdministration (FMGLUA). The inventory records as presented for audit did not contain additions for purchases made in the period under review. In addition, all equipment items included in the prior year property management records were not included in the current year inventory records, nor was there any record of equipment deletions for the year under review. This condition occurred because management did not update the inventory records for current year equipment purchases and failed to identify equipment deletions.
An inventory system should be implemented that provides for the identification ofall equipment purchased as outlined in Chapter 41, of the FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy ofinventory records.
-2-

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

MCDUFFIE COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $15,589.24 Audit Control Number 6971-93-02
We concur with this finding. This finding will be resolved by Georgia Department ofEducation through a future increase in Board's local fair share portion of QBE Allotments.
AUDIT FOLLOW-UP RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $26,432.91 Audit Control Number 6971-94-01
We concur with this finding. This finding will be resolved by Georgia Department ofEducation through a future increase in Board's local fair share portion of QBE Allotments.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6971-93-01
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 6971-95-01
We concur with this finding. The Board has implemented procedures to insure that proper records are maintained.