Audit report, Madison County Board of Education, Danielsville, Georgia, year ended June 30, 1994

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1l/'13-'l4
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT MADISON COUNTY BOARD OF EDUCATION
DANIELSVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

MADISON 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

EXIDBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES -ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

24

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

26

3 ACCOUNTS RECEIVABLE

27

4 DEBT SERVICE REQUIREMENTS TO MATURITY

28

SCHEDULE OF REVENUE

5

STATE FUNDS

29

6

LOCAL AND OTHER FUNDS

30

MADISON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

31

8

LOTTERY PROGRAMS

32

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

33

10

BY PROGRAM

34

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

36

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

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

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1995

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

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been detennined, 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 Madison County Board of Education as ofJune 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Madison County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules I through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Madison County Board ofEducation. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such infonnation is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent 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:cm 94ARL-13

MADISON COUNTY BOARD OF EDUCATION - 1-

BOARD OF EDUCATION BALANCE SHEET AND ACCOUNT GROUP

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,867,387.34 $ 340,022.21

1,331,319.46

184,962.45 $ 250,942.46

21,123.35 10,452.10

Total Assets

$ 5, 198 706.80 $ 556,560.11 $ 250,942.46

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purposes of Bond Issue For State Capltal Outlay Projects
Unreserved Designated for Contingencies Undesignated
Total Fund Equity

$ 384,961.66 $ 1,439,740.67

$ 42,820.05 166,540.48
97.15

$ 1,824 702.33 $ 209457.68 $

12,015.94
21,696.82 33 712.76

$

387.60

21,123.35 10,452.10
$

17,229.70

$
$ 183,766.00 3190 238.47
$ 3 374 004.47 $

31,963.05 $
315 139.38 347 102.43 $

17,229.70
200 000.00 217,229.70

Total Liabilities and Fund Equity

$ 5,198,706.80 S 556,560.11 $ 250,942.46

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 Onlll JUNE 30 1994 JUNE 30 1993

$

315,641.14

$ 4,523,050.69 $ 5,735,914.81

9,169.10

1,776,393.47

1,879,617.74

21,123.35 10,452.10

23,255.23 8,264.99

$

324,810.24

324,810.24

275,207.58

5 805189.76

5 805 189.76

5 324,792.42

$

3241810.24 $

6,130,000.00 $ 12 461,019.61 $ 13,2471052. 77

$

12,015.94

427,781.71 $

433,545.02

1,606,281.15

1,478,344.95

97.15

717.17

0.00

472,475.22

21,696.82

94,754.18

$

6 130 000.00

6130 000.00

5 600 000.00

$

6 130 000.00 $ 8197 872.77 $ 8 079 836.54

$

324,810.24

$

324,810.24

0.00

$

324 810.24

$

324,810.24 $

$

387.60

324,810.24 $

275,207.58

21,123.35 10,452.10 17,229.70
0.00

23,255.23 8,264.99
259,836.05 331 933.64

$

374,002.99 $

898,497.49

183,766.00 3 705 377.85

182,748.00 4 085 970.74

$ 4 263 146.84 $ 5 167,216.23

6.130,000.00 $ 12,461,019.61 $ 13,2471052.77

-3 -

Hil.P!SQN QQI MY RQABP Qf EPUCA'TION @HBINEP STATfMM OF BEYFNI JfS fXPENQITURfS AMP CHANGE$ IN Fl IND AAl ANCfS
GQYERNMENTAL FUNP JYPES YfAR fNPfP JUNE ll 199:4

EXHBT'B"

~
SlataFunds Fedetlll Funds Local and Other Fund&
TotalR~
-...-.,_sXPfNOOJ'BfS eu...nt
Support-
- -lmpro,,ement cl Instructional SeNice&
Educabonll Media SeMces General Administration School Adminiltration
MainlBnance and Operation cl Plant Studant:Transportation SeNicas c..ntnll SUpport Services Olho,-SupportFood Service5 Operation CommunitySemceOpend-
"--""-'---OlherOperations clNon-lnstrucbonll 8eMces
C.pitalOUtlay
Princ;pal
Tolal-
8audRewnua5owr(under)-
OTHER FINANCING sot JBCfS OJ.SF)
,,,_.,R_ _ Accn.:I lnlwNt on Bonds Sold
Rafunding Bond 115uancaCost
Po,V.._ .._.,BandEscrowAgent OpamngTransfetsln Operating Transfers 0ut
Tota/OIMrFlnancingSour08s(Usa)
Excess d Rewfl"'8S and Other Financing Sourc-. owr (under) Expenditures and Other F1n11ncing lJNs
fUNPBA!ANCEJULY1
Food IMiwntDry - Net Change In Period Dof'lnad Commoditi-. Pun>hModFood
Reaidual Equity Transfer

GENERAL FUND

SPECW. REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERI/ICE
FUND

TOTALS
(Memorandum Onb'.J
YEAR ENDED
JUNE30 1994 JUNE30 1993

s 10,947,703.48 S
15,362.39 2764812.93
s 13 727 678.80 S

364,837.41 S 1,601,449.03
'50365.13
2416651.57 S

1,Bn,56U8 6722.95 S
1 884 287.43 S

476161.09 476161.09 $

13,190,105.37 S 1,816,811.42 3697862.10
1s 504 ne.89 s

11,465,875.44 1,458,151.60 3714384.33
16638411.37

9,463,700.99 $
362,780.73 333,588.60 "3,753JM 310,941.58 IMS,753.55 62,863.94 970,037.75 835,876.50 138,579.49
6,150.32 98,103.90 4.702.82
2.325.30 103,315.06

876,569.13
29,682.50 58,886.18 145,934.81 23,386.82
3,146.74 3,708.60
6,121.86 1,237,300.92
1,n5.23
1,452.00 S

2,505,925.81

S 1.C082474.48 $ 2393944.79 S 2505925.81 S

-354795.88 $

22706.78 $ --621638.38 $

$ 1O,3C0,270.12 S 9,376,444.04

392,463.23 392,474.78 589,688.75 334,308.41 845,753.55
62.863.94 973,184.49 939,585.10 138,579.49 12.272.18 1,335,404.82 12,478.05
2,325.30 2,610,692.87

458,848.47 305,316.82 490,691.52 308,820.56 755,323.SB 60,481.29 867,787.90 808,348.99 136,321.57
21.50 1,267,173.34
.C,284.22
0.00 3,979,823.n

55,000.00 232,197.50 149,041.67
2127.39

55,000.00 232,197.50 149,041.67
2127.39

0.00 369,930.00
0.00 2085.54

438366.56 S 19420711.64 $ 19191703.39

37794.53 S

-915932.75 S -2553292.02

S -4.7 353.27

254.88 S

-4.7353.27 S _ __,254=.88,,_S

47,098.39

11,808.13 S ~.434.33
6,130,000.00 ....~.565.67

-17098.39 S

11808.13 S

11,808.13 ~.-434.33
6,130,000.00 .... ~.565.67
.C7,353.27 S -4.7 353.27
11,808-13 S

200,000.00 -200 000.00
0.00

S '"402,1'8.95 S 3,n,,109.17

22,961.66 $ 326,129.79

-574,539.99 S 791,769.69

49,602.66 S 275,207.58

-904, 12-1.62 $ 5,167,216.23

-2,553,292.02 7,726,488.49

2044.25

-2,131.88 2,187.11 -2044.25

-2,131.88 2,187.11

-6,222.95 242.71

FLJNQ RAl AhlCE JUNE

3 374 OOU7 S

347 102.43 S

217 229.70 S

324 810.2.C S

-1263 146.34 $

5167 216.23

The r101e5 to the general purpo&e financial Slatements are an integral part cl this statement.
--

M!CHiQ.tl ~!Hl:! SQ.68~ QE i;D.\~~IQH 9Q6Hl1Ni;C !MEMl;NI QE Bl;~EN!.!1; E~PEt:U21IUBE ANQ s;;t:tAriQI; It( ElilttQ ili!i~NQI;
AQIUAL AttQ au~EI r..Q~EBNMEtfIAL E!.!t:H2 n:eE YEAR ENQED JUNE '.'30 1Pf11

EXHIBIT"C"

ACTUAL PER
EXHIBIT"B"

ADJUSTMENTS

ACTUAL PER
BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

~
8-Funds F-Funda ~ and Olher Funds

$ 13,190,105.37 $ 1,818,811.42 3887862.10

0.00 $

13,190,105.37 $ 13,736,425.00 $ 1,818,811.42 1,628,881.00 3,687 882.10 3,105,345.00

-546,318.63 12,168.58 582 517.10

TalalR-

18,504 n8.88 $

0.00 $ 18,504 n8.88 $ 18470751.00 $

34,027.88

E.!~ENCIIYBE

Curront Instruction Support Sarvic:os Pupil Sarvic:os Improvement ol 1-..:tional Sarvic:os Educational Media Sarvic:os
General Administndion School Adminbstration Business Administration Moirunance and Operation o1 Plant Studont Tra._tation Sarvic:os Central Support Sarvic:os Olher Support Sarvic:os Food Sarvic:os Operation Co!M1unity Service Oporations Olher Oporations ol Non-lnllruclional SerkM Capital Outlay llol>IService

10,340,270.12 $
382,463.23 382,474.78 589,688.75 334,308.41 845,753.55 62,863.84 873,184.48 838,585.10 138,578.48
12,272.18 1,335,404.82
12,478.05 2,325.30 2,810,682.87 438,366.56

0.00 $

10,340,270.12 $ 10,828,678.00 $

382,463.23 382,474.78 588,688.75 334,308.41 845,753.55 62,863.84 873,184.48 838,585.10 138,578.48
12,272.18 1,335,404.82
12.478.05 2,325.30 2,610,682.87 438366.56

448,671.00 363,088.00 656,780.00 430,430.00 858,042.00 78,584.00 1,242,828.00 1,164,1'1.00 128,537.00 13,434.00 1,354,826.00 15,514.00
3,568,685.00 455388.00

488,407.88
54,207.n -9,386.78 67,091.25 86,121.58 12,288.45 16,720.06 268,744.51 224,555.90 -9,042.48 1,161.82 18,521.18 3,035.85 -2,325.30 858,002.13 17,032.44

TatalE_,.i;tures
exc.uo1R--(-) "->dlt,..

$ 18,420711.64 $ -915,832.75 $

0.00 $ 0.00 $

18,420711.64 $ 21,628,848.00 $ -915 832.75 $ -3, 158,097.00 $

2,209 136.36 2 243,164.25

Ql:t:tEB EINANQINg .2UBQE (!.!El

OlherS.WOlherU-

6,188,181.40 $ -s,1n 353.27

0.00 $ 6,188,181.40 $ -s, 1n,353.27

0.00 $ 8,188,181.40 -s,1n,353.27

Talal Olher Fonancing Sources (Usa)

11,808.13 $

0.00 $

11,808.13 $

0.00 $

11,808.13

Excess d Rwenues and Other Financing Sources OYer (under) Expenditures and Other Financing UNS

-904, 124.62 $

0.00 $

-904, 124.62 $ -3, 158,097.00 $ 2,254,872.38

FUNQ &a~NQE JULY 1 1993 6CY!.!~IMENI
Prior YNr (Not)

5,167,216.23

-31,520.22

5,135,686.01 5,652,184.66

-516,488.85

0.00

0.00

40,075.78

-<10,075.78

EQQQ IN~EHIQBY NEI Ql;:t~N~E fN PEBIQQ

Donalod Commodities PurohaNdFood

2,131.88

2,131.88

0.00

0.00

2,187.11

-2,187.11

0.00

0.00

EUNQ M,L:aNQE J!Uil; ~ 1~

$ 4,263,148.84 $ -31,575.45 $ 4,231,571.39 $ 2,533,173.44 $ 1,698,397.85

The notes to the - I purpose financial - - .,., an integral port of this -ement.
. 5.

MADISON COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Madison County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTI1Y
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 Madison County Board of Education.
Based upon the application of the above criteria, the Madison County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Madison County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 7-

MADISON COUNTY BOARD OF EDUCATION

EXJ:IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

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:
GENERAi., FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. . These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-tenn principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet.
- 8-

MADISON COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1993 and ending in early June 1994. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fiinge benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Madison County Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements.
- 9-

MADISON COUNTY BOARD OF EDUCATION

EXlilBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.

CASH AND CASH EQUIVALENTS

COMPOSmON OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authoriz.ed financial institutions. Georgia Laws authoriz.e 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 ofproceeds from bond issues in certificates ofdeposit is limited to financial institutions located within. this State.

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 Madison County Board ofCommissioners fixed the property tax levy for the 1993 tax year (calendar year) on December 14, 1993 (levy date). Taxes were due on February 28, 1994. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103.

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

School Operations School Bonds

8.80mills 1.80 mills

JQ,QQmills

- 10 -

MADISON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. 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.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 11 -

MADISON COUNTV BOARD OF EDUCATION

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists ofany one ofor any combination of the following:
(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe 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 ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $5,216,173.01. The amounts of the total bank balances are classified into three categories of credit risk:
Category I - 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.
- 12 -

MADISON cmJNTY BOARD OF EDUCATION

EXI-IlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30 1994

Note 2: DEPOSITS

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

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

Bank Balance
$ 214,061.13 5,002,111.88 0.00
$521617301

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total ofSl,665.00 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

ADVANCE REFUNDING During the year under review, the Madison County Board of Education issued $6,130,000.00 in General Obligation Refunding Bonds to advance refund $5,545,000.00 of outstanding bonds. The bond issue of $6,130,000.00 less underwriters and bond issue cost of$67,434.33 provided net proceeds of$6,062,565.67. The total net proceeds plus additional debt service funds of$149,041.67 were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on the 1991 Bond issue. As a result, the 1991 Series Bonds are considered defeased, and the liability for these bonds has been removed from the General Long-Term Debt Account Group. The Madison County Board of Education refunded the aforementioned bonds to reduce its total Debt Service payments over eighteen years beginning subsequent to fiscal year 1993 by $400,351.46 and to obtain an economic gain (difference between the present values of total debt service payments and the old and new debt) of$276,648.76.

- 13 -

MADISON COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 5: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1, 1993

$ 5,600,000.00

Additions

6,130,000.00

Deletions

5 600 000.00

Balance June 30, 1994

$ 6 )30 000 00

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

Fiscal Year Ended June 30

General Obligation
Bonds

1995 1996 1997 1998 1999 2000 and thereafter
Total Principal and Interest

$ 367,226.25 443,582.50 467,938.75 485,920.00 497,630.00
7 155 505.00
$ 9417 802 50

Note 6: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1994:

Project

Unearned Executed Contracts

Madison County High School Re-roofing

$ )605787

The amount described in this note is not reflected in the general purpose financial statements.

- 14 -

MADISON COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years ofcreditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time ofdisability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $9,026,698.53; total payroll was $10,608,110.19.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofretum on investments) was 7.50%.
- 15 -

MADISON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO 1HE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30 1994

Note 8: RETIREMENT PLANS

Total contributions made during fiscal year 1994 amounted to $1,607,654.44, ofwhich $1,066,053.69 was made by the Board and $541,600.75 was made by employees. These contributions represented 11.81% (Board) and 6% (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 of June 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12 821 722 000.00

Unfunded pension benefit obligation

$ 1 090 292 000 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$1,066,053.69 was actuarially determined and represented .2044% oftotal contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

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

- 16 -

MADISON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1994

Note 8: RETIREMENT PLANS
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 65. A member applying for service retirement with 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 of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years ofcreditable service. Death benefits are dependent upon the number of years of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. Ifa 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 125 employees covered under PSERS for the year ended June 30, 1994.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State ofGeorgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $4,240.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
The School Superintendent, Mr. James Roy Perkins, is bonded in the amount of $100,000.00 with the Selective Insurance Company of America, Branchville, New Jersey, their Bond No. B77466, on which premium was paid through July 15, 1994.

- 17 -

-- -CaohandCaoh ~ Food Donated Commoditieo Purchaoed Food

MAQISON CQLJNTV' ROARP Qf l;QUCATIQN
COURINING BALANCf SHEi;! SPECIAL REVENUE FUND JUNE30 191M

El.El,NTARY AND

SCHOOL FOOD
SERVICES __f!!!Q_

LIBRARY ~

LOTTERY ~

DRUG-FREE SCHOOI.S AND COMMUNmES ,
----'-M;=T_ _

CHAPTER!

EDUCATION OF EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS

CHILDREN

31111,121.87 $

0.00

0.00 $

0.00 $

5,21651

13,068.71

70,538.00

88,296.00

21,123.35 10"'52.10
s s 413,764.03 S--E:!!!!, 70,538.00 s_ _ _ _o_.oo._ s_ _ _ _o_.oo_ s_ _ _73~,5~12_.s..,1

LIABlbOOES ANP FUNP EOUIJY
~

Caoh""1lndl Acc:awaPayable Salaries Payable
Expired Grant -

Payable

T. . .IUabililieo
-FUNP EOUJTY Fund-
For Continuation of Federal Programs For lnwentories
Food Donated Commoditieo Purchaoed Food

17,888.88 711,1711.32 97,04920
21,123.35 10,452.10

88,078,65 1,453.76
~ $ 70,538.00

15,IM0.76 57,640.26
31.,49
73,512.51

Un-
~
TolalFundEquity

31,575.45
315,138.38 s~ s~ s_ _ _~o=.oo~s _ _ _~o=.oo~s ____o=.oo= s 346714.13 s ~ s ~ s_ _ _~o=.oo~s _ _ _~o~.oo~s _ _ _~o=.oo~

T...1Uabilitioo and Fund Equity s~ s--E:!!!!, s~ s_ _ _ _o_.oo_ s_ _ _......;o_.oo_s _ _ _73"',s""12"'.s.._1

See no&85 to the genera, purpoee financial statements.

-18-

EXHIBIT"E"

SECONDARY EDUCATION /lCT

TITLE H-

EISENHOWER

CHAPTER 2

MATHEMATICS

BI.OCK GRANT - ANO SCIENCE

FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABIUTlES EDUCATION N;T

TITLEVl,B

FLOW

PRESCHOOi.

THROUGH ~

STATE PRESCHOOi. HANDICAPPED
PROGRAM

TOTALS JUNE 30 1994 JUNE 30, 1993

0.00 $

387.80 $

1181.52 $ 3,303.36 $

0.00 $ 4011,100.86 $ 410,831.50

25,673.80

7,3110.14

184-.;

116,873.25

0.00 $

---- ----
387.80 $ ~ $ ~ $

21,123.35 10,452.10

23.255.23 8,264.99

0.00 $ 825,638.76 $ 539.2207

5.-.118 $ 2,210.66

21.1.a.06

s.sn.tw

~ ----

$ 26,655.12 $ 10,783.50

611,078.115 42,820.05 $ 166,540.48
97.15
278,538.33 $

71,638.65 140,739.38
717.17
213,095.18

387.80

387.&0

387.80
-=~ ----=o~.oo~ ----=o=.00~$___.!!:!!!!_S___.!!:!!!!_S _ _ _ 0.00
~ = ----=o=.oo~s _ _-=38~7=.80~$___.!!:!!!!_S___.!!:!!!!_S _ _ _ 0.00 $

21,123.35 $ 10,452.10 31,1163.06 $
315,139.38
347,102.43 $

23,255.23 8,264.118 31,520.22
294,609.57
326,129.79

0.00 $ 825,638.76 $ 539.2207

-19-

MAPJSQN CQl MY BOABP OE EQI. KCA"MQN MMBJNING STAWMENI Pf BEYENUfS EXfl;NPJTIJRES ANP QiANGSS IN B,JNP RAL ANCsS
SPCIA! BFYENUE EtJNP YEAR ENQEP JllNf 30 1994

ELEMENTARY ANO

SCHOOL FOOO
SERVICES ~

LIBRARY
~

LOTTERY
~

DRUG-FREE SCHOOLS AND COMMUNmEs
_ _,A,,,CTc..__

CHAPIER1

EDUCATION OF

EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS

CHILDREN

~

State Funds Federal Fund& Local and other Fund&
TotalReYef'IU86
EXPENPm.JRfS

93,940.00

$ 223,362.41

715,569.85

S

450365.13S----2J!Q_ _ _ __

$ 1 259 874.98 $ ----2J!Q_ $ 223 362.41 $

33,236.00 S

2,124.00 $

'---=-= 33 236.00

2124.00 $

596,311.51 596 311.51

Current Instruction Support SeMoe&
Pup;,_ I m - d lnstruotional SeMoe&
Educational Media Services General Administration Maintenance and Openrtion d Plant Student Tranraportation Service& eer,,,,1suppar1SeMoe&
OCothrnerrnSuunpitpyoSretM- c:e Clpen,tians Food -Clpomion Copital Outlay
Total~

0.00 S 109,474.14
$ 110,996.41
3,146.74

33,151.70 84.30

2,124.00 S

S 1,237,300.92
---- ---- ---- ----- -----

S 1 237 300.92 S ----2J!Q.. $ 223 617.29 S

33 236.00 S- - - " " -21'24.00 $

557,914.51 3,070.36 6,575.40
22,629.38
6,121.86
596311.51

EXC888dReYenue&Ot'81'(under) Expenditun,s $ 22,574.06 $

0.00 S

-254.88 S

0.00 S

0.00 S

0.00

Qll-lf;R EINANC1NG QI JBQES

Operating Transfer& In

EX0e86 d Revenues and Other Financing Sources

_, (...-) E,cpendihno

S

22,574.06 S

~ ----- ------ ------

0.00 $

0.00 S

0.00 S

0.00 S

0.00

Fl lNP BAJ ANCf JULY 1

324,085.54 2,044.25

0.00

0.00

0.00

0.00

Food Inventory. Net Change In Period Danaled Cornmodmes
-Food Residual Equity Tranlfer

2,131.88 2,187.11

FUND RAI ANCE HINF 39

s 346 714.83 S_...,2;2?.. s_...,2;2?.. s _ _ __.o,...oo_s _ _ _ _ _o.,.oo.,s _ _ _ __.o_.oo_

See notes lo the general pu(pO&e financial statements.

-20-

EXHIBIT"'F''

SECONDARY EDUCATION ACT

TITLE ll -

INDIVICUALS WllH

EISENI-IOWER OISABILmES EOLJCATION ACT

CHAPTER2

MATHEMATICS

TITLE VI B

BLOCK GRANT - AND SCIENCE

FLOW

PRESCHOOL

FLOJV THROUGH EDUCATION ~ ~

STAlE PRESCHOOL HANDICAPPED PROGRAM

TOTALS YEAR ENDED JUNE30 1994 JUNE30 1993

28,363.00 S 28 363.00 $

s
19,978.00 $ 181,520.53 S 24,346.14
---- ----
19 978.00 S 181 520.53 S 24 346.14 $

47,535.00 $ 47 535.00 S

364,837.41 $ 1,601,449.03
450 365.13

122,316.00 1,453,024.35
465 433.41

2 '116 651.57 S 20il0n3.76

28,363.00
28 363.00 S 0.00 S

s 157,296.85 S

1,n3.45
11,692.15

3,612.14 10,971.97

124.80

412.34

13,793.87 S 6,727.67
116.00 3,708.60

1,ns.za

~ 19 590.40 $ 181 520.53 $

387.60 S

0.00 S

24 346.14 $ 0.00 S

35,965.76 S 11,569.24
47 535.00 S 0.00 S

876,569.13 S 670,979.53

29,682.50 58,886.18 145,934.81 23,366.82 3,146.74 3,708.60
0.00 6,121.86
1,ns.za
1,237,300.92 1 452.00

18,538.67 40,657.03 28,902.00
21,317.11 0.00
440.20 17,535.76
21.50 0.00
1,19'1,798.26 0.00

2 393 944.79 S 1 993190.06

22,706.78 S

47,583.70

0.00 S 0.00

---- ----

387.60 S 0.00

0.00 S 0.00

0.00 S 0.00

0.00 S

---- ----
387.60 S ----2.22,.s ____,2.22.S

25488

0.00

0.00 S 0.00

22,961.66 S 326,129.79

47,583.70 284,526.33

-2,131.BS 2,187.11 -2044.25

~.222.95 242.71 0.00

0.00 S

347102.43 S 326129 79

-21-

~QI~ ~H!fD: BQABQ QE EP!.!Ci!IJQN ~Wt:IH:t~ ~L!HQE it:U~~ Q6flUiL fB~IEC'.m EUNQ JUNE :,0 1994

EXHIBIT"G"

~ Cash and Cash E q Ac:counlsR-

REGULAR

1981 BOND ISSUE
FUND

GEORGIA STATE FINANCING
INVESTMENT COMMISSION
PROJECT 93/92S-895-063

TOTALS

JUNE 30 1994

JUNE 30 1993

$ 200,000.00 $ 36.492.52

$

236,492.52 $

886,523.87

2 434.00 $

248508.48

250942.46

472475.22

Total-

200000.00 $ 38926.52 $

248508.46 $

487434.98 $ 1 358,999.09

Ll6alL lIIE 6NC! E!.!NC! !;QUID'.
~ Caoho-dratt Conlnlc:ls Payable Retai,_ Payable
Totalllabilltios
-EUNPEAUIIY FundBoloOCN F o r ~ " ' Bond luue For State Capital Outlay Prajoc:ts
UrvUndooignatad
Total Fund Equity

$ 21 696.82 21 696.82 $

17.229.70

17.229.70

200000.00 200000.00 $

0.00 $ 17229.70 $

248,508.46 $ 248 508.46 $

248,508.46 $
21 696.82
270205.28 $

472,475.22 94 754.18
567229.40

17.228.70 $ 0.00
17,229.70 $

256,836.05 331 933.64
591,768.66

0.00 0.00 $

200000.00 217229.70 $

200000.00 791 768.69

Total Uabilities and Fund Equity

200000.00 $ 38,926.52 $

248,508.46 $

487 434.98 $ 1 358,999.09

Seo no1eo to the general pulJ>OM financial statements.

-22-

Y&PIS?N QQUNTV Aru.RP OE F;QUCAT]QN
COMB\t.UNG STATEMENT 9f BEYENUES EXpENQIDJRES Nf2 CHMfGES IN EYNQ 8AL.ANCl;S
Ot'PJIAI PBOJECTS EYNQ VEAR ENPEP JUNE 30 1@@1

EXHIBIT"H"

~
SW.Funds u,c;ol and Olhor Funds
TololR_,_
EXfENDITIJRES
Capital Ou1lay Land and Land Improvements Building and Building lmprovemanlS Eq~
TOia!~
Ex<:oosdR__,ues over(under) ~itu,_
QJJ:tEB EUWIClf:Q ~lBCES C!JS!;;Sl
0po<aling T r a - In Oporaling T r a - Out
Toal Olhor Fonanc:ing Sources (Uses)
Excels d Revenues and other Fanancing Sources -(undo<) ElCl)OnditurM and Olhor Financing U...
EYNP RAI ANCE JULY 1

REGULAR

1991 BOND ISSUE
FUND

GEORGIA STATE FINANCING
INVESTMENT
COMMISSION PROJECT
93/92~

TOTALS YEAR ENDED JUNE 30 1994 JUNE30 1993

0.00 $ 0.00 $

$ 6 722.95
6722.95 $

1,8TT,5&U8 $
1 en 564.48 s

s 1,8n.564.48
6722.95
1 884.;l87.43 $

607,520.16 51782.83
659302.99

0.00 $ 249,329.30 $
0.00 $ 249 329.30 $ 0.00 $ -242 606.35 $

2,256,596.51 $
2.;l56 596.51 $ -379 032.03 $

2,505,925.81

2,722.50 3,907,047.51
31156.54

2 505 925.81 $ 3940926.55

-621 638.38 $ -3.;l81 623.56

0.00 $ -242,606.35 $ 200000.00 259836.05

47,098.38 $ 47098.38 $

47,098.38 $ 0.00
47098.38 $

448,500.12 -249500.12
200000.00

-331,833.64 $ 331933.64

-574,538.99 $ -3,081,623.56

791 769.69

387339325

FUND BAL.ANCf JUNE 30

$ 200000.00 $ 17~.70 $

0.00 $

s 211a2S.10

791 769.69

SN notes lo the general pu,pose financial s t a - .

-23-

MADISON COUNTY BOARD OE EDUCATION SCl:iEPULE QE EEQEBAL El~AtiCIAL ASSlllAtiCE
YEAR ENDED JUNE 3Q 1994

SCHEDULE "1"

FUNDING AGENCY
PRQGBAU/GBANT

Agriculture, U. S. Depa,tnew of Through Georgia Department of Education Food and Nutrition Program
FoodSenllces

School -

Program

1993Grant

1994Grant

National School Lunch Program

1993Grant

1994Grant

Food Dl&lribution Program (1)

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.553 $
10.555 10.555 10.550

$ 173,519.55
457,414.83 84835.47

6,155.67 164,974.89 $
3,699.58 453,153.46 NIA

173,519.55
457,414.83 $ 84835.47

(2)
1,152,665.45 (3) 84835.47

Total u. s. Department of Agricuftura

$ 715,569.85 $

627983.60 $ 715569.85 $ 1~7300.92

Education, U.S. Department of

Through Georgia Depar1ment of Education

Drug-Free Schools and Communities Ad.

1993Grant
1993 carry-Over

1994Grant

E - r y and Secondary Education Ad.

Chapter 1

Education of Children In Slate Schools

1994 Regular

Education of Deprived Children

1993 Regular

1993 Corry-Ow,

1994 Regular

Chapler2

--and Block Grant FlowTIYough 1994 Regular Tlllell

Education

Science

1993 Regular

1994 Regular

lndl\liduals with Di&abifrties Education Ad.

TllleVI, B

Flow Through

1993 Regular

1993 carry-Over

1994Regular

Preschool Program

1992 Corry-Ow,

1993 Regular

1993 Corry-Cl-

1994 Regular

Vocational Education Basic Grant& to States

High School Program

Basic Grant

1994Granl

Consumer and Homemaking Education

1994 Contract

84.186 84.186 $ 84.186
84.009 84.010 84.010 84.010
84.151
84.164 84.164
84.027 84.027 84.027 84.173 84.173 84.173 84.173
84.048 84.049

$ 10,875.00 29,468.00
2,124.00 93,577.00 520,478.00 28,363.00
14,940.00
13,155.00 170,824.00
3W.OO 36,150.00
9,862.48 299.91

311.00 10,875.00 $ 22,361.00

10,875.00 $ 22,361.00

10,875.00 22,361.00

2,124.00
55,055.00 93,577.00 434,470.00
28,363.00

2,124.00
93m.oo 502,734.51
28,363.00

2,124.00
93m.oo 502,734.51
28,363.00

9,075.00 10,903.00

9,075.00 10,903.00

9,075.00 10,515.40

22,261.83 13,155.00 142,754.00
680.00 7,993.00 3W.OO 13,129.00

13,155.00 168,365.53
3,827.00 20,519.14

13,155.00 168,365.53
3,827.00 20,519.14

9,862.48

9,862.48

(4)

299.91

299.91

!4)

Total U. S. Department of Education

$ 933943.39 $

881 076.22 $ 896 041.57 $

885491.58

- 24 -

MAPISON COUNTY BOARD OE EPLJCATION SCHEPULE OE EFPEBAI FINANCIAi ASSISTANCE
VEAR ENPEP JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY
PBOGBAWGBANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Health and Human Sarvices, U. S. Department of Through Georgia Department of Human Resources Inclusive Schools Grant

93.630 $

5 200.00 $

3 385.73 $

5 200.00 $

5 200.00

Total Federal Financial Assistance

$ 1 654 713.24 $ 1512445.55 $ 1616811.42 $ 2127992.50

Major Programs are identifoed by an asterisk (") in front of the CFDA number.

(1) The amcxmts shcr,om for the Food Distritxrtion 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 Braakfast Program were not maintained separately and are included in the 1994 National SChool Lunch Program.
(3) Expenditures for this program include State, and/or Local and other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 25 -

MADISON COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Bank of Danielsville, Danielsville, Georgia
Trust Company Bank, Atlanta, Georgia
INTEREST BEARING ACCOUNTS
Bank of Danielsville, Danielsville, Georgia
N.O.W. Accounts (2.60%) N.O.W. Account (2.70%)
Merchants and Farmers Bank, Danielsville, Georgia
Certificate of Deposit No. 4040 (3.35%) N.O.W. Accounts (2.55%) N.O.W. Accounts (2.60%)

$

2,253.00

11,808.13 $

14,061.13

$ 1,364,446.52 72,310.13

1,436,756.65

$

10,251.90

2,745,880.62

304,084.45

3,060,216.97

$ 4,511,034.75

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

MADISON COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30 1994

SCHEDULE "3"

Charles Black Construction Company Refund of Overpayment
Education, Georgia Department of Quality Basic Education Defan-ed Summer Salaries - FY 1994 Food Services School Breakfast Program National School Lunch Program Latl8ryProgram Computers in Classrooms Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Acl-TltieVI, B Flow Through Preschool Program
Georgia S - Financing and , , , _ eon,,-, Reimbursement on Construction Projects
Human Resrurces, Georgia Department of Jnclu&M, Schools Grant
Mad'1&011 County Tax Commissioner County Wide Bond Tax County Wide School Tax

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 2,434.00

$

2,434.00

$ 1,276,739.00 $ 8,630.39 4,436.32 70,536.00
68,296.00
25,673.60 7,390.14

1,276,739.00 8,630.39 4,436.32
70,536.00
68,296.00
25,673.60 7,390.14

1,814.27 52,766.19

248,508.46

9,169.10

248,508.46
1,814.27
9,169.10 52,766.19

$ 1,331,319.46 $ 184,962.45 $ 250,942.46 $ 9,169.10 $ 1,TT6,393.47

See notes to the general purpose financial statements.

- 27 -

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

SCHEDULE "4"

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

TOTAL DEBT SERVICE

1993 ISSUE

INTEREST

PRINCIPAL

$ 367,226.25 $ 443,582.50 467,938.75 485,920.00 497,630.00

282,226.25 $ 278,582.50 272,938.75 265,920.00 257,630.00

85,000.00 165,000.00 195,000.00 220,000.00 240,000.00

517,992.50 536,795.00 553,947.50 554,682.50 554,255.00

247,992.50 236,795.00 223,947.50 209,682.50 194,255.00

270,000.00 300,000.00 330,000.00 345,000.00 360,000.00

552,526.25 554,327.50 554,576.25 558,085.00 554,905.00

177,526.25 159,327.50 139,576.25 118,085.00
94,905.00

375,000.00 395,000.00 415,000.00 440,000.00 460,000.00

555,092.50 553,470.00 554 850.00

70,092.50 43,470.00 14 850.00

485,000.00 510,000.00 540 000.00

$ 9,417,802.50 $ 3,287,802.50 $ 6,130,000.00

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

TOTAL

1993 ISSUE

1991 ISSUE

$ 5,600,000.00 $

0.00 $ 5,600,000.00

6,130,000.00

6,130,000.00

55,000.00

55,000.00

5,545 000.00

5 545 000.00

$ 6,130,000.00 $ 6,130,000.00 $

0.00

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

See notes to the general purpose financial statements.

- 28 -

FEB 1 -AUG 1 AUG1

FEB 1 -AUG 1 AUG1

MADISON COUNTY BOARD OF EDUCATION SCHEDUI E OF STATE REVENUE YEAR ENDED JUNE 30 1994

SCHEDULE "5"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs $ Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Deferred Summer Salaries - FY 1993 Deferred Summer Salaries- FY 1994 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs lmovative Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Begiming Teachers and PerformanceBased Certification Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Leaming Media Center and Library Equipment Safe Schools Grant

6,510,164.00 1,269,443.00
155,573.00 266,576.00
96,887.00 1,990,060.00
527,151.00 131,752.00
63,617.00 64,393.00 173,694.00 -1,294,353.00 -1,230,747.85 1,276,739.00 901,557.00
$ 593.28
3,100.00 6,720.00
3,800.00 9,985.05

93,940.00
47,535.00
2,316.00 107,000.00
6,000.00 104,996.41
3,050.00

$ 6,510,164.00 1,269,443.00 155,573.00 266,576.00 96,887.00 1,990,060.00
527,151.00 131,752.00
63,617.00 64,393.00 173,694.00 -1,294,353.00 -1,230,747.85 1,276,739.00 901,557.00 93,940.00
593.28
3,100.00 6,720.00 47,535.00
3,800.00 9,985.05
2,316.00 107,000.00
6,000.00 104,996.41
3,050.00

Financing and Investment Commission, George State Reimbursement on Construction Projects

$ 1,8TT,564.48

1,8TT,564.48

CONTRACTS Education, Georgia Department of Student Information Systems Project

1 000.00

1 000.00

$ 101947,703.48 $ 364,837.41 $ 118TT,564.48 $ 13,190.105.37

See notes to the general purpose financial statements.

- 29 -

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

SCHEDULE "6"

Taxes and Allotmen1s Allotment from Madison county Board of Commissioners County Wide Bond Tax County Wide School Tax Railroad Car Tax Reai Estate Transfer Tax
Other Compensation for Loss of Assets Donations Gholston Fund Interest Earned Jury Duty Fees Recovery from Antitrust Lawsu~ Ren1s Sales Meals School Assets Shared Service Contributions Elbert County Board of Education Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 11,556.35
2,266,994.97 82.63
11,703.86

$ 11,556.35

$ 470,502.40

470,502.40

2,266,994.97

82.63

2,229.30

13,933.16

18,743.00

306,415.06 112,082.04 $
1,615.00
1,812.00

9,886.29 $ 3,504.27

6,753.34

436,930.92

3,334.50 22,207.53
1,312.65

43.65

6,722.95

3,429.39

18,743.00
306,415.06 132,120.67
1,615.00 3,504.27 1,812.00
436,930.92 6,753.34
3,334.50 22,207.53
1,356.30

$ 2,764,612.93 $ 450,365.13 $ 6,722.95 $ 476,161.09 $ 3,697,862.10

See notes to the general purpose financial statemen1s.

- 30 -

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

SCHEDULE '7"

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

Rems

Insurance

Communications

Commodity Hauling

Shared Services

Other Purchased Services

Supplies

Energy

Food Usage

Books, Textbooks and Periodicals

Dues and Fees

Other Expenditures

9,586,540.25 $ 2,642,643.54
26,174.38 18,715.05
7,772.33 46,462.62 118,227.22 67,897.55
9,711.98 27,316.49
115,581.33 97,518.12
397,377.63 482,295.30
47,435.87 5,871.25
10,369.92

1,021,569.94 $ 171,535.56 5,157.96 66,292.32
15,574.80
2,509.29 6,567.83
37,597.40 191,206.93
5,492.64 607,661.27
6,364.23 2,666.10 3,062.80

10,608,110.19 2,814,179.10
31,332.34 85,007.37
7,772.33 46,462.62 133,802.02 67,897.55
9,711.98 29,825.78
6,567.83 115,581.33 135,115.52 588,584.56 487,787.94 607,661.27 53,800.10
8,537.35 13,432.72

Nonoperating Costs Building and Building Improvements Equipment

42,354.07 332,209.58

250,685.72

42,354.07 582,895.30

Total Expenditures

$ 14,082,474.48 $ 2,393,944.79 $ 16,476,419.27

See notes to the general purpose financial statements. 31

EXPENQITURES
Oporating Cwm Repairs and Maintenance Supplies
~ngCwm Equ~
Tollll~ibns

MAQISQN CQlJNTV ROARP QF EQI PJlQN SCHEPYL EQf EXPENQITUBES BY OBJECT
LOTTERY PROGRAMS VEAR ENQEP JUNE 30 1994

SCHEDULE "8"

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

SAFE SCHOO!.S
GRANT

TOTAi.

2,406.70 $

16,235.31

90832.13 $

6000.00

$ 22,115.94
62.880.47

3,146.74 $

3,146.74 <10,757.85

179712.60

2406.70 $ 107067.44 $

6000.00 $ 104996.41 $

3146.74 $ 223617.29

See no111s 1D the general purpooe financial statements.

32

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

SCHEDULE "9"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures for Staff Development Programs in Excess of Total Staff Development Allotment for: Cost of Instruction Professional Development
Expenditures per Audit (1) (2)

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$ 8,395,450.00 $

96,887.00

$ 8,812,889.36 426,868.69 $
$ 9,239,758.05 $

96,961.45 96,961.45

-152,812.82

$ 9,086,945.23 $

-26.26 -48.19
96,887.00

Amount of Underexpendilure for Total Allotment

$

Note: (1) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guideUnes.

0.00 $=====0.=0=0

See notes to the general purpose financial statements. - 33 -

MAQISON 00 INJY BOARD PF EQl JCATIQN ANAi VSIS Pf MINIMUM EXPFNPm.JBE BEQ HBEMENTS RV PBPr.SAM
GENERAi BJNP Ql IA1 aY BASIC EQUCADON PBOOBAMS YEAR ENOOP JIJNE ;,o 1994

GENfBAI AND CAREER fQl JCATION PROGRAMS
Sub-Total K-3 G--5(') G,_6-8(') G,_9-12(") High-L.abonltoriesC, Vocational Education Laboratorie& (")
Total General and career Education Program&
PfCIAl fQI.JCATIQN ffiQGRAM
Regular Program& Category I C, Category II C, Clllegoly Ill C, Category IV C, ltinonmt Supplemental S Sub-Talal Regular
Clllegoly V (Gifted) Ci
Total Special Education Programs
REMGPIAL EQi.JCATION ffiOORAM M MEDIA CENTER PBQGRAMS
Total Thirteen Weighted and Media Center

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

ORIGINAL _.!,_

ORIGINAL

Ml~lERM

REQUIRED

697,649.00

627,8&4.10 s

1716664.00

1 544997.60

s 2,414,313.00 90 s 2,172,881.70 S

900,381.00 90

810,342.90

1,475,584.00 90

1,328,025.60

1,139,218.00 90

1,025,296.20

159,086.00 90

143,1TT.40

421 582.00 90

379 423.80

s 6 510164.00

s 5 859147.60 $

0.00 S 627,884.10

1 500.00

1 546 497.60

1,500.00 S 2,174,381.70

810,342.90

1,328,025.60

1,025,296.20

143,1TT.40

20 343.00

399 766.80

21 843.00 $ 5 880 990.60

S 1,225,298.00

S 1,102,768.20 $ 145,351.00 S 1,248,119.20

$ 1,225,298.00 90 s 1,102,768.20 $

44145.00 90

39 730.50

s 1269443.00

s 1142498.70 $

155573.00 90 s 140 015.70 s

296 576.00 90 s 257 918.40 s

145,351.00 $ 1,248,119.20 39 730.50
145 351.00 $ 1 287 849.70 0.00 $ 140 015.70
6 500.00 $ 264 418.40

s 8,221,756.00

$ 7,399,580.40 s

173,694.00 $ 7,573 274.40

STAFF PEYEI QPMf;NT PBQGR.AMS Cea d Instruction _,Clewlloprnent
Tola! Staff Clewlloprnent

21,765.00 100 $ 75122.00 100

21,765.00 s
75122.00

96 887.00

96,887.00 s

0.00 $

21,765.00 75122.00

0.00 $

96,887.00

$ 8,318,643.00

S 7,496,467.40 $ 173,694.00 S 7,670161.40

r) Identifies Thirteen Weighted Programs.
Note (1) Salary ac:crualo (July and Auguot 1SS. Deferred Salaries) reported expenditures in the General Purpose Financial Statements are not included on this analy&i& in order to comply Mh program guideline&.

(2) Salmy ac:crualo (July and August 1993 Deferred Salaries) reported as expenditUf8S in the prior year General Purpose Financial Statement& are included on this analy&i6 as required tr,, program guideline&

See notes to the general purpoae financial statements

- 34 -

SCHEDULE""IO"

REQUIRED ALLOTMENT

DISTRIBUTION BY RESPECTIVE PORTIONS
SALARIES !1 l ~l

AMOUNT OF

UNOEREXPENOITURE

FOR REQUIRED

REQUIRED

ACTUAL

ALLOTMENT

ALLOTMENT

OPERATIONS

AMOUNT OF

UNOEREXPENOITURE

FOR REQUIRED

ACTUAL

ALLOTMENT

611,690.40 S ns,009.86

16,193.70 S

18,885.82

1496630.70

1816705.30

49 866.90

51 063.83

s 2,108,321.10 S 2,591,715.16 s

0.00

66,060.60 s

69,949.65 S

0.00

785,604.60

1,055,730.18

0.00

24,738.30

29,023.96

0.00

1,2ae,n1.20

1,341,184.26

0.00

39,254.40

39,549.92

0.00

980,298.90

1,222,845.28

0.00

44,997.30

78,-.49

0.00

136,918.80

228,573.07

0.00

6,258.60

7,138.33

0.00

330 315.30

478 298.59

0.00

69 451.50

75 500.27

0.00

$ 5 630 2:19.90 $ 6 918 346.54 $

0.00

250 760.70 s 299 661.62 s

0.00

123,152.40 s
258,562.80 no,250.60
57,954.60 2,324.70 4157.10

149,240.27 242,Sn.07 847,819.93
27,642.42

6,281.10 s
5,507.10
17,955.10
1,973.70

4,295.37 9,274.51 17,437.22 1,110.12

$ 1,216,>2.20 S 1,267,579.69 $

0.00

31,717.00 $

32,117.22 S

0.00

38 636.10

85 407.29 s

0.00

1 094,40

1 793.64 S

0.00

s 1 255 038.30 S 1352986.98

32 811.40 $

33 910.86

137 583.00 s

185 615.42 $

0.00

2 432.70 S

3 347.81 $

0.00

199 486.80 S

355 940.42 s

0.00

64 931.60 s

89 948.40 s

0.00

s 7 222 338.00 S 8 812,889.36 s

0.00

350,936.40 S 426,868.69 s

0.00

21,765.00 S

21,791.26 s

0.00

75122.00

75170.19

0.00

96,887.00 s

96,961.45 S

0.00

$ 7 222 338.00 $ 8,812,889.36 $

0.00

447,823.40 $ 523,830.14 $

0.00

- 35 -

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

SCHEDULE 11

BOARD MEMBER ADDRESS
Ms. Elaine Belfield, Chairman i) Route 3, Box 3084 Danielsville, Georgia 30633
Mr. Tom Becki) Route 1, Box 76A Hull, Georgia 30646
Ms. Marion Moore i) P. 0. Box 514
Danielsville, Georgia 30633
Mr. Jimmy Patton i) Route 2, Box 78 Carlton, Georgia 30627
Mr. Craig Player i) P. 0. Box 191 Hull, Georgia 30646

COMPENSATION

TRAVEL

$

1,050.00 $

582.30

1,100.00

370.40

1,050.00

553.69

1,150.00

501.44

1,000.00

414.50

i ) Denotes Board Members Serving as of June 30, 1994

$

5,350.00 $

2,422.33

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Madison 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 Madison County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 31, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standar9. 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 Madison County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's
compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our
audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests indicate that, with respect to the items tested, the Madison County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the 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.
a e : ~ Respectfully submitted,

CLV:cm 94CRL-10

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Madison County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 31, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

94CRL-60

Material instances of noncompliance consist offailures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed a material instance of noncompliance that is described in the Schedule ofFindings and Improper or Questioned Costs.
We considered this material instance ofnoncompliance in forming our opinion on whether the Madison County Board of Education general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated July 31, 1995, on those financial statements.
Except as described above, the results ofour procedures to determine compliance indicate that, with respect to the items tested, the Madison County Board of Education, complied, in all material respects, with the requirements listed in the second paragraph ofthis report, and with respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
d , u ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:cm 94CRL-60

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Madison County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 31, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994. The management of the Madison 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.

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Madison County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Madison County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Madison 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 Madison County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 31, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing

94CRL-120

came to our attention that caused us to believe that the Madison County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
a , e - ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION III INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Madison 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 Madison County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated July 31, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit ofthe general purpose financial statements of the Madison County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Madison 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 of the general purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur
94ICL-3

and not be detected. Also, projection ofany evaluation ofthe structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

(1) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness.

94ICL-3

This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Madison County Board ofEducation's financial statements and this report does not affect our report thereon dated July 31, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
a~~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
July 31, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Madison 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 Madison County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated July 31, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 31, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Madison County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the 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 ofintemal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 31, 1995.
94ICL-7

The management of the Madison 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 ofthe structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(I} Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (5) Allowable Costs/Cost Principles

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

(6) Audit Follow-Up/Resolution (7) Administrative Requirements

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

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

During the year ended June 30, 1994, the Madison County Board of Education expended 66% of its total Federal financial assistance under major Federal financial assistance programs.

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

94ICL-7

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 descnbed 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 ofthe Madison County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated July 31, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.

CLV:cm 94ICL-7

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6951-93-0 I
The audit report for year ended June 30, 1993, noted that the management of the Madison County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. Th~ 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 ofall 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 Material Noncompliance Audit Control Number 6951-94-01
Property management records maintained by the Board for the Elementary and Secondary Education Act Chapter 1, Education ofDeprived Children program (CFDA 84.010) were incomplete and failed to meet the property management standards as set forth in Chapter 8 of Part 1 of the Georgia Financial Accounting Handbook for Local School Systems (GFAH). Accounting records maintained by the Madison County Board of Education and presented for examination that did not contain acquisition cost and date, percentage of Federal participation in the cost ofthe items, location and disposition, when applicable.
This condition occurred because management disregarded the provisions of GFAH. An inventory system should be implemented that provides for the identification of all equipment purchases as outlined in GFAH. Perpetual inventory 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 made and reconciled to the property records to ensure the accuracy of the Board's inventory records.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

MADISON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6951-93-01
This should be corrected due to reassignment ofduties of staff.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6951-94-01
We had a new coordinator and she was told she no longer had to keep the inventory cards. She had all the necessary information, but had not maintained it on one record. This has been corrected for FY 95.