GA 
A?>oo 
 R\ E:;.b IV\ \<3 
1994-95 
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, 1995 
 
 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 
 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
5 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
7 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
20 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
22 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
24 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
25 
 
SCHEDULES 
 
1 . SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
 
26 
 
2 CASH AND CASH EQUIVALENTS 
 
28 
 
3 ACCOUNTS RECEIVABLE 
 
29 
 
4 DEBT SERVICE REQUIREMENTS TO MATURITY 
 
30 
 
SCHEDULE OF REVENUE 
 
5 
 
STATE 
 
31 
 
6 
 
LOCAL AND OTHER 
 
32 
 
 MADISON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
SCHEDULE OF EXPENDITURES BY OBJECT 
 
7 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
33 
 
8 
 
LOTTERY PROGRAMS 
 
34 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
9 
 
OVERALL 
 
35 
 
10 
 
BY PROGRAM 
 
36 
 
11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
 
38 
 
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 
 
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 
 
 MADISON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
 
 SECTION I FINANCIAL 
 
 CLAUDE L. VICKERS 
STATE AUDllOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 3, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Madison County Board ofEducation 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
Ladies and Gentlemen: 
We have audited the general purpose financial statements (Exhibits A through D) of the Madison County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. 
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also 
includes assessing the accounting principles used and 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. 
95ARL-13* 
 
 * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Madison County Board of Education as of June 30, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated July 3, 1996, on our consideration of the Board's internal control structure and a report dated July 3, 1996, on its compliance with laws and regulations. 
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Madison County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements ofthe Madison County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24. 
Respectfully submitted, 
~ 
Claude L. Vickers State Auditor 
CLV:gp 95ARL-13* 
 
 MADISON COUNTY BOARD OF EDUCATION - 1- 
 
 MADISON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
All FUND TYPES AND ACCOUNT GROUP 
JUNE 30, 1995 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food 
Donated Comrnocflties 
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 
 
$ 2,Sn,637.06 $ 371,667.83 $ 113,578.04 
 
1,418,444.24 
 
224,182.60 
 
25,563.59 14,407.65 
 
Total Assets 
 
$ 4,296,081.30 $ 635,821.n $ 113,578.04 
 
LIABILITIES AND FUND EQUl!Y 
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 Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purposes of Bond Issue 
Unreserved Designated for Equipment Purchases Undesignated 
Total Fund Equity 
 
$ 475,761.99 $ 1,576, 183.80 
 
112,529.73 176,608.04 
287.54 $ 
 
$ 2,051,955.79 $ 289,425.31 $ 
 
64,247.15 14,m.10 
79,024.25 
 
$ 
 
163.91 
 
35.00 
 
25,563.59 14,407.65 
 
$ 
$ 159,785.00 2,084,340.51 
$ 2,244,125.51 $ 
 
40,170.15 
306,226.31 $ 346,396.46 $ 
 
34,553.79 34,553.79 
 
Total liabilities and Fund Equity 
 
$ 4,296,081.30 $ 
 
The notes to the general purpose financial statements are an integral part of this statement. 
 
-2- 
 
s_ _ 63s,a21.n 
 
11_a_,57_a_.04_ 
 
 EXHIBITA 
 
DEBT SERVICE 
FUND 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS (Memorandum Only) JUNE 30, 1995 JUNE 30, 1994 
 
$ 365,447.44 
 
$ 3,728,330.47 $ 4,523,050.69 
 
8,532.71 
 
1,651,159.55 
 
1,n6,'393.47 
 
25,563.59 14,407.65 
 
21,123.35 10,452.10 
 
$ 
 
373,980.15 
 
373,980.15 
 
324,810.24 
 
5,671,019.85 
 
5,671,019.85 
 
5,805,189.76 
 
$ 373,980.15 $ 
 
6,045,000.00 $ 111464,461.26 $ 12,461,019.61 
 
$ 
 
12,015.94 
 
$ 
 
588,291.72 
 
427,781.71 
 
1,752,801.84 
 
1,606,281.15 
 
287.54 
 
97.15 
 
64,247.15 
 
14,m.10 
 
21,696.82 
 
$ 
 
6,045,000.00 
 
6,045,000.00 
 
6,130,000.00 
 
$ 
 
6,045,000.00 $ 8,465,405.35 $ a,191,a12.n 
 
$ 373,980.15 
$ 373,980.15 0.00 
$ 373,980.15 
 
$ 
 
163.91 $ 
 
387.60 
 
373,980.15 
 
324,810.24 
 
35.00 
 
25,563.59 14,407.65 
 
21,123.35 10,452.10 17,229.70 
 
$ 
 
414,150.30 $ 
 
374,002.99 
 
159,785.00 2,425,120.61 
 
183,766.00 3,705,3n.85 
 
$ 2,999,055.91 $ 4,263,146.84 
 
$ 373,980.15 $ 
 
6,045,000.00 $ 11,464,461.26 $ 12,461,019.61 
 
-3 - 
 
 MADISON COUNTY BOARD Of EDUCATION CQMBINEQ STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1995 
 
EXHIBIT "B" 
 
REVENUES 
Slate Funds Federal Funds Local and Other Funds 
Tolal R8Y811UN 
EXPENDITURES 
Current Instruction Suppo!t Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Suppo!t Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services 
Capital Outlay Debt Service 
Principal Interest Escrow Agent Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
QTHER FINANCING SOURCES (!.!SES) 
Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds 
Par Value Payments to Refunded Bond Escrow 
Agent Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
EUND BALANQE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS 
FUND 
 
DEBT 
SERVICE FUND 
 
TOTALS (Memorandum On!Y} 
YEAR.ENDED JUNE 301 1995 JUNE 301 1994 
 
$ 11,655,297.32 $ 380,732.81 
 
25,108.70 1,609,473.94 
 
2,n81634.83 
 
449,626.13 $ 
 
$ 14,459,040.85 $ 2,439,832.88 $ 
 
$ 12,036,030.13 $ 13,190,105.37 
 
1,634,582.64 
 
1,818,811.42 
 
1,489.84 $ 420,791.86 
 
3,650,522.88 
 
31897,862.10 
 
1,489.84 $ 420,791.86 $ 17,321,135.43 $ 181504,n8.89 
 
$ 10,316,496.34 $ 982,607.34 
 
$ 11,299,103.68 $ 10,340,270.12 
 
437,162.71 336,926.17 480,081.79 371,367.50 936,6n.47 
68,322.92 1,120,958.85 
958,595.25 153,411.47 25,n1.19 92,150.69 
4,380.85 
 
29,300.88 55,452.54 23,853.00 13,998.26 
2,533.24 
13,314.33 1,317,344.52 
10,563.62 
 
466,483.58 392,378.71 503,934.79 385,365.76 936,6n.47 88,322.92 1,120,958.85 961,128.49 153,411.47 39,085.52 1,409,495.21 
14,944.47 
 
392,483.23 392,474.78 589,688.75 334,308.41 845,753.55 82,863.94 973,184.49 939,585.10 138,579.49 12,272.18 1,335,404.82 12,478.05 
 
118,667.48 167,916.04 
 
$ 184,145.75 
 
118,667.48 352,061.79 
 
2,325.30 2,810,692.87 
 
$ 85,000.00 282,226.25 
4,395.70 
 
85,000.00 282,226.25 
4,395.70 
 
55,000.00 232,197.50 149,041.67 
2,127.39 
 
$ 15,588,886.72 $ 2,448,967.73 $ 184,145.75 $ 371,621.95 $ 18,593,622.15 $ 19,420,711.64 
 
$ 1 I1291845.87 $ 
 
-9,134.85 $ -182,675.91 $ 49,169.91 $ -1J72,486.72 $ -915,932.75 
 
$ 
 
33.09 
 
$ 
 
-33.09 
 
$ 
 
-33.09 $ 
 
33.09 
 
$ 
 
11,808.13 
 
-67,434.33 
 
6,130,000.00 
 
-6,062,565.67 
 
$ 
 
33.09 
 
47,353.27 
 
-33.09 
 
-47,353.27 
 
$ 
 
0.00 $ 
 
11,808.13 
 
$ -1,129,878.96 $ 3,374,004.47 
 
-9,101.76 $ -182,675.91 $ 49,169.91 $ -1,272,486.72 $ -904,124.62 
 
347,102.43 217,229.70 324,810.24 
 
4,263,146.84 
 
5,167,216.23 
 
4,440.24 3,955.55 
 
4,440.24 3,955.55 
 
-2,131.88 2,187.11 
 
EUNQ BALANQE JUNE 30 
 
$ 2,2441125.51 $ 346,396.46 $ 
 
The notes to the general purpose financial statements are an integral part of this statement. 
 
34,553.79 $ 373,980.15 $ 219991055.91 $ 4;263.146.84 
 
-4- 
 
 MADISON COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1995 
 
EXHIBIT c- 
 
REVENUES 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services 
Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Other Sources Other Uses 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1, 1994 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASISl 
 
$ 11,467,824.09 $ 11,655,297.32 25,108.70 
2,387,000.00 2,778,634.83 
$ 13,854,824.09 $ 14,459,040.85 
 
$ 10,470,843.09 $ 10,316,496.34 
 
435,350.00 349,049.00 557,347.00 432,989.00 923,585.00 
74,504.00 1,275,032.00 1,203,012.00 
148,958.00 6,060.00 
108,300.00 5,383.00 
127,937.00 160,000.00 
 
437,162.71 336,926.17 480,081.79 371,367.50 936,677.47 
68,322.92 1,120,958.85 
958,595.25 153,411.47 25,771.19 
92,150.69 4,380.85 
118,667.48 167,916.04 
 
$ 16,278,349.09 $ 15,588,886.72 
 
$ -2,423,525.00 $ -1, 129,845.87 
 
$ 
 
-33.09 
 
$ 
 
-33.09 
 
$ -2,423,525.00 $ -1,129,878.96 3,912,710.08 3,374,004.47 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS} 
 
$ 550,663.00 $ 380,732.81 
 
1,260,179.00 1,609,473.94 
 
7751266.00 
 
4491626.13 
 
$ 2,5861108.00 $ 214391832.88 
 
$ 2,485,627.00 $ 
45,958.00 62,069.00 23,853.00 14,582.00 
 
982,607.34 
29,300.88 55,452.54 23,853.00 13,998.26 
 
48,328.00 14,562.00 10,458.00 
 
2,533.24 
13,314.33 1,317,344.52 
10,563.62 
 
$ 2,705,437.00 $ 21448,967.73 
 
$ -119,329.00 $ 
 
-9,134.85 
 
$ 
 
33.09 
 
$ 
 
33.09 
 
$ -119,329.00 $ 362,478.69 
 
-9,101.76 315,526.98 
 
FUND BALANCE JUNE 30, 1995 
 
$ 1,489,185.08 $ 2,244,125.51 
 
$ 243,149.69 $ 306,425.22 
 
The notes to the general purpose financial statements are an integral part of this statement. -5- 
 
  MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 1: SUMJ\.1ARY OF SIGNIFICANT ACCOUNTING POLICIES 
The Madison County Board ofEducation (Board) was established under the laws ofthe State ofGeorgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards. 
The more significant ofthe Board's accounting policies are described below. 
REPORTING ENTITY 
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity ofthe Madison County Board ofEducation. 
Based upon the application of the above criteria, the Madison County Board ofEducation is determined to be the lowest level ofgovernment 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 ofGovernmental 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. 
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
 
- 7- 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXI-IlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\IBNTS 
 
JUNE 30, 1995 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. 
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's general activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board ofeducation. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities. 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding. 
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 STATEMENTS 
 
JUNE 30, 1995 
 
Note 1: SUM:M,ARY 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 ofavailable spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Governmental funds are accounted for using the modified accrual basis ofaccounting under which: 
Revenues are 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 ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end. 
Expenditures are generally recognized when the related fund liability is incurred. 
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1994 and ending in early June 1995. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share ofthese 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's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe 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, 
- 9- 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
ExmBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS 
 
JUNE 30, 1995 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
 
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report: 
 
Excess ofRevenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses 
Fund Balance July 1, 1994 
Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods 
Fund Balance June 30, 1995 (Budget Basis) 
CASH AND CASH EQUIVALENTS 
 
Special Revenue 
Fund 
$ -9,101.76 347,102.43 
-21,123.35 -10,452.10 $ 306 425 22 
 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates of deposit 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. 
 
- 10 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXIDBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
PROPERTY TAXES 
 
The Madison County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on January 1, 1995 (levy date). Taxes were due on March 20, 1995. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-erid are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70. l 03. The Madison County Tax Commissioner bills and collects the property taxes for the Board ofEducation and remits the taxes collected to the Board. 
 
Tax millage rates levied for the 1994 tax year (calendar year) for the Madison County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations School Bonds 
 
8.80 mills 1.50 mills 
 
.liLl..Q mills 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
 
GENERAL OBLIGATION BONDS 
 
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. 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 of interfund 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. 
 
- 11 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS 
 
JUNE 30, 1995 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
 
MEMORANDUM ONLY - TOTAL COLUMNS 
 
Total columns on the general purpose :financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
 
Note 2: DEPOSITS 
 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount 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 ofoperating funds placed in demand deposit checking accounts. 
 
Acceptable security for deposits consists of any one of or any combination ofthe following: 
 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
 
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities 
 
ofthe State of Georgia, 
 
 
 
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
 
- 12 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXlilBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 2: DEPOSITS 
 
(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, 1995, the bank balances were $4,220,273.47. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1995, as follows: 
 
Risk Category 
 
Bank Balance 
 
I 
 
$ 565,427.63 
 
2 
 
3,654,845.84 
 
3 
 
0.00 
 
Total 
 
$ 4,220,273.47 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
Note 4: RISK MANAGEMENT 
 
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; 
errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation. 
 
- 13 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXIIlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 4: RISK MANAGEMENT 
 
The Board has obtained commercial insurance for risk of loss associated with torts, assets, errors and omissions and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. 
 
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
Beginning ofYear Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
EndofYear Liability 
 
1994 1995 
 
$ 
 
0.00 $ 
 
1.665.00 $ 
 
1,665.00 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Continental Insurance Company to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to $1,000,000.00. 
 
Note 5: GENERAL LONG-TERM DEBT 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1995, were as follows: 
 
General Obligation 
Bonds 
 
Balance July 1, 1994 
 
$6,130,000.00 
 
Additions 
 
0.00 
 
Deductions 
 
85.000.00 
 
Balance June 30, 1995 
 
$ 6,045,000.00 
 
- 14 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXIIlBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 5: GENERAL LONG-TERM DEBT 
 
At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
 
General Obligation 
Bonds 
 
1996 1997 1998 1999 2000 2001 and thereafter 
 
$ 443,582.50 467,938.75 485,920.00 497,630.00 517,992.50 
6,637,512.50. 
 
Total Principal and Interest 
 
. $ 9,050,576.25 
 
Note 6: PRIOR YEAR DEFEASEMENT OF DEBT 
 
In fiscal year 1994, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1995, $5,465,000.00 ofbonds are outstanding and are considered defeased. 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
At June 30, 1995, the Board had commitments in the amount of $131,424.89 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with Programs funded by Lottery funds. Lottery funds are available to the Board in the amount of $128,742.89 to fund these commitments. The revenues and expenditures associated with these commitments will be recognized in the financial statements in the subsequent fiscal year. Commitments outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These commitments are identified by Lottery Program as follows: 
 
Instructional Technology Safe Schools Technology Installation 
 
$ 30,395.68 46,472.00 54,557.21 
 
$ 131,424.89 
 
- 15 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1995. 
 
Project 
 
Unearned Executed Contracts 
 
Colbert Elementary Renovations 
 
$ 13,190.30 
 
The amounts described in this note are not reflected in the general purpose financial statements. 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
Note 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS). 
 
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
 
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time of disability or death. 
 
- 16 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 9: RETIREMENT PLANS 
 
Members become fully vested after ten years of service. If a member tenninates 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, 1995, was $9,974,538.71; total payroll was $11,617,528.55. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%. 
 
Total contributions made during fiscal year 1995 amounted to $1,676,719.59, ofwhich $1,177,992.02 was made by the Board and $498,727.57 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll. 
 
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers. 
 
Total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, was as follows: 
 
Total pension benefit obligation 
 
$15,313,743,000.00 
 
Net assets available for benefits, at cost 
 
14,254,785,000.00 
 
Unfunded pension benefit obligation 
 
$ 1 058.958 000.00 
 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. 
 
- 17 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 9: RETIREMENT PLANS 
Total contributions from all employers to TRS. for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, I995 of$I, I77,992.02 was actuarially determined and represented .2085% oftotal contributions made by all participating employers. 
Ten year historical trend information is presented in the I995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due. 
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS) 
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute. 
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with IO years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. 
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has I5 or more years ofcreditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee1s contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life halfofwhat the employee would have received upon retirement. 
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. 
There were 132 employees covered under PSERS for the year ended June 30, 1995. 
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $4,348.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00. 
 
- 18 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXIDBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1995 
 
Note 10: 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, 1995. 
 
- 19 - 
 
 MADISON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995 
 
~ 
Cash and Cash Equivalents Accounts Receivable Inventories 
Food Donated Commodities Purchased Food 
Total Assets 
 
SCHOOL FOOD 
SERVICES FUND 
 
STATE PRESCHOOL HANDICAPPED 
PROGRAM 
 
LOTTERY PROGRAMS 
 
DRUG-FREE SCHOOLS AND COMMUNmEs 
Ac:T 
 
EDUCATION OF CHILDREN IN STATE SCHOOLS 
 
$ 391,310.42 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
0.00 
 
12,708.46 
 
$ 85,121.89 
 
25,563.59 14,407.65 
 
$ 443,990.12 $ 
 
0.00 $ 85,121.89 $ 
 
0.00 $ 
 
0.00 
 
LIABILmES AND FUND EOUCTY 
 
UABIUTIES 
 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable 
Total Liabilities 
 
$ 18,265.66 79,612.00 
$ s1,an.66 
 
$ 17,232.25 67,804.55 
$ 85,036.80 
 
FUND Eaurry 
 
Fund Balances 
 
R~rved 
 
For Continuation of Federal Programs 
 
For Expired Grant Balances/Questioned Costs 
 
For Inventories 
 
Food 
 
Donated Commodities 
 
$ 
 
Purchased Food 
 
25,563.59 14,407.65 
 
Unreserved Undesignated 
Total Fund Equity 
 
$ 39,971.24 
 
306,141.22 $ 
 
0.00 $ 
 
85.09 $ 
 
0.00 $ 
 
0.00 
 
$ 346,112.46 $ 
 
0.00 $ 
 
85.09 $ 
 
o:oo $ 
 
0.00 
 
Total Liabilities and Fund Equity 
 
$ 443,990.12 $ 
 
0.00 $ 85,121.89 $ 
 
0.00 $ 
 
0.00 
 
See notes to the general purpose financial statements. 
 
-20- 
 
 EXHIBIT "E 
 
ELEMENTARY ANO SECONDARY EDUCATION Ac:T 
 
TITLE fl. 
 
CHAPTER 1 
 
EISENHOWER 
 
EDUCATION OF 
 
CHAPTER2 
 
MATHEMATICS 
 
DEPRIVED 
 
BLOCK GRANT AND SCIENCE 
 
CHILDREN 
 
FLOW THROUGH EDUCATION 
 
$ 
 
0.00 $ 
 
163.91 
 
INDMDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
TITLEVI, B 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
TOTALS JUNE 301 1995 JUNE 301 1994 
 
$ 391,474.33 $ 4">9,100.86 
 
$ 
 
82,035.25 
 
$ 
 
27,444.00$ 
 
16,873.00 
 
224,182.60 
 
184,962.45 
 
25,563.59 14,407.65 
 
21,123.35 10,452.10 
 
$ 
 
s2.035.25 s _ _ _ _ _o_.oo_s _ _ _1_63_._91_s 
 
27,444.00 $ 
 
16,873.00 $ 655,628.17 $ 625,638.76 
 
$ 
 
1,016.53 
 
17,254.58 
 
63,455.64 
 
273.50 
 
$ 
 
82,000.25 
 
$ 
 
532.44 $ 
 
1,025.18 $ 
 
19,806.40$ 
 
69,078.65 
 
5,839.74 
 
3,365.20 
 
112,529.73 
 
42,820.05 
 
21,058.50 13.32 
 
12,481.90 
o.n 
 
176,608.04 287.54 
 
166,540.48 97.15 
 
$ 
 
27,444.00 $ 
 
16,873.00 $ 309,231.71 $ 278,536.33 
 
$ 
 
35.00 
 
$ 
 
35.00 
 
0.00 $ 
 
$ 
 
35.00 $ 
 
$ 
 
82,035.25 $ 
 
$ 
$ 0.00 0.00 $ 0.00 $ 
 
163.91 
163.91 0.00 $ 
163.91 $ 
 
0.00 $ 0.00 $ 
 
$ 
 
163.91 $ 
 
387.60 
 
35.00 
 
$ 0.00 0.00 $ 
 
25,563.59 14,407.65 
40,170.15 $ 306,226.31 
346,396.46 $ 
 
21,123.35 10,452.10 31,963.05 315,139.38 
347,102.43 
 
163.91 $ 27,444.00 $ 16,873.00 $ 655,628.17 $ 625,638.76 
 
-21  
 
 MADISON COUNTY BOARD OF EDUCATION 
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND 
YEAR ENDED JUNE 30 1995 
 
REVENUES 
State Funds Federal Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Service Operations 
Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES 
Operating Transfers In 
Excess of Revenues and Other Financing Sources over (under) Expenditures 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period 
Donated Commodities Purchased Food Residual Equity Transfer 
 
SCHOOL FOOD 
SERVICES FUND 
 
STATE PRESCHOOL HANDICAPPED 
PROGRAM 
 
LOTTERY PROGRAMS 
 
DRUG-FREE SCHOOLS AND COMMUNITIES 
ACT 
 
EDUCATION OF CHILDREN IN 
STATE SCHOOLS 
 
$ 97,856.00 $ 760,864.23 449,626.13 
$ 1,308,346.36 $ 
 
47,675.00 $ 235,201.81 $ 
47,675.00$ 235,201.81 $ 
 
28,001.00$ 28,001.00$ 
 
2,094.00 2,094.00 
 
$ 
 
31,082.85 $ 235,116.72 
 
$ 
 
9,952.24 6,639.91 
 
$ 
 
27,928.69 
 
72.31 
 
$ 1,317,344.52 
 
$ 1,317,344.52 $ $ -8,998.16 $ 
 
47,675.00 $ 235,116.72 $ 
 
0.00 $ 
 
85.09 $ 
 
28,001.00 $ 0.00 $ 
 
2,094.00 
21094.00 0.00 
 
$ -8,998.16 $ 346,714.83 
4,440.24 3,955.55 
 
0.00 $ 0.00 
 
85.09 $ 0.00 
 
0.00 $ 0.00 
 
0.00 0.00 
 
FUND BALANCE JUNE 30 
 
$ 346,112.46 $ 
 
0.00 $ 
 
85.09 $ 
 
0.00 $ 
 
0.00 
 
See notes to the general purpose financial statements. 
 
- 22- 
 
 EXHIBITF" 
 
ELEMENTARY AND SECONDARY EDUCATION ACT 
 
TITLE II- 
 
CHAPTER 1 
 
EISENHOWER 
 
EDUCATION OF 
 
CHAPTER2 
 
MATHEMATICS 
 
DEPRIVED 
 
BLOCK GRANT - AND SCIENCE 
 
CHILDREN 
 
FLOW THROUGH EDUCATION 
 
INDIVIDUALS WITH 
 
DISABILITIES EDUCATION ACT 
 
TITLEVI, B 
 
FLOW 
 
PRESCHOOL 
 
THROUGH 
 
PROGRAM 
 
TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 
 
$ 
 
534,116.75 $ 
 
23,853.00 $ 
 
$ 
 
534,116.75 $ _ _-=23;;.:.,8"-'5~3.;..;;.00...c....$ 
 
10,263.00 $ 195,705.68 $ 10,263.00 $ 195,705.68 $ 
 
$ 54,576.28 
 
380,732.81 $ 1,609,473.94 
449,626.13 
 
364,837.41 1,601,449.03 
450,365.13 
 
54,576.28 $ 2,439,832.88 $ 2,416,651.57 
 
$ 
 
504,859.38 
 
724.04 2,206.19 
$ 12,977.81 
 
13,314.33 
 
$ 
 
534,081.75 $ 
 
$ 
 
35.00 $ 
 
$ 23,853.00 
23,853.00 $ 0.00 $ 
 
$ 
1,304.56 9,172.16 
43.06 
 
166,864.29 $ 
8,332.89 9,505.59 
439.29 
 
10,563.62 
 
10,519.78 $ -256.78 $ 
 
195,705.68 $ 0.00 $ 
 
42,590.10 $ 982,607.34 $ 876,569.13 
 
8,987.15 
465.79 2,533.24 
 
29,300.88 55,452.54 23,853.00 13,998.26 
2,533.24 13,314.33 1,317,344.52 10,563.62 
 
29,682.50 58,886.18 145,934.81 23,366.82 
3,146.74 3,708.60 6,121.86 1,237,300.92 7,775.23 1,452.00 
 
54,576.28 $ 2,448,967.73 $ 2,393.944.79 
 
0.00 $ 
 
-9,134.85 $ 
 
22,706.78 
 
$ 
 
35.00 $ 
 
0.00 
 
0.00 $ 0.00 
 
33.09 
-223.69 $ 387.60 
 
0.00 $ 0.00 
 
33.09 
 
254.88 
 
0.00 $ 0.00 
 
-9,101.76 $ 347,102.43 
 
22,961.66 326,129.79 
 
4,440.24 3,955.55 
 
-2, 131.88 2,187.11 -2,044.25 
 
$ 
 
35.00 $ 
 
0.00 $ 
 
163.91 $ 
 
0.00 $ 
 
0.00 $ 346,396.46 $ 347,102.43 
 
-23- 
 
 MADISON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND 
JUNE 30, 1995 
 
EXHIBIT G" 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
Total Assets 
 
REGULAR 
 
1991 BOND ISSUE 
FUND 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
PROJECT 
931925-695-063 
 
TOTALS JUNE 301 1995 JUNE 301 1994 
 
$ 113,578.04 $ 
 
0.00 $ 
 
0.00 $ 113,578.04 $ 236,492.52 
 
250,942.46 
 
$ 113,578.04 $ 
 
s o.oo s _ _ _...,;;;o..o..o. s 113,578.04 
 
487,434.98 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
 
Cash Overdraft Contracts Payable Retainages Payable 
Total Liabilities 
 
$ 64,247.15 141m.10 
$ 79,024.25 
 
FUND EQUITY 
 
Fund Balances Reserved For Purposes of Bond Issue Unreserved Undesignated 
 
$ 34,553.79 $ 
 
Total Fund Equity 
 
$ 34,553.79 $ 
 
Total Liabilities and Fund Equity 
 
$ 113,578.04 $ 
 
$ 248,508.46 
 
$ 64,247.15 
 
14,m.10 
 
21,696.82 
 
$ 79,024.25 $ 270,205.28 
 
0.00 $ 0.00 $ 
 
0.00 $ 0.00 $ 
 
$ 34,553.79 34,553.79 $ 
 
17,229.70 
200,000.00 
217,229.70 
 
o.oo s_____o_.o_o_ s 113,578.04 s 487,434.98 
 
See notes to the general purpose financial statements. 
 
-24- 
 
 MADISON COUNTY BOARD OF EDUCATION 
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND 
YEAR ENDED JUNE 30, 1995 
 
EXHIBIT H" 
 
REVENUES 
State Funds Local and Other Funds 
Total Revenues 
EXPENDITURES 
Capital Outlay Building and Building Improvements 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
 
REGULAR 
 
1991 BOND ISSUE 
FUND 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
PROJECT 931925-695-063 
 
TOTALS YEAR ENDED JUNE 3011995 JUNE 3011994 
 
$ 
 
0.00 $ 1_469.84 $ 
 
$ 
 
0.00 $ 11469.84 $ 
 
0.00 $ 0.00 $ 
 
$ 1,STT,564.48 
 
11469.84 
 
s-722.95 
 
11469.84 $ 11884,287.43 
 
$ 157.710.88 $ 22.784.87 $ $ -157.710.88 $ -211315.03 $ 
 
31650.00 $ 1841145.75 $ 215051925.81 -31650.00 $ -182,675.91 $ -6211638.38 
 
$ 4,085.33 $ $ -7.735.33 
$ -7.735.33 $ 4,085.33 $ 
 
3,650.00 $ 
 
7,735.33 $ -7.735.33 
 
47,098.39 
 
3,650.00 $ 
 
0.00 $ 
 
471098.39 
 
$ -165,446.21 $ -17,229.70 $ 
 
2001000.00 
 
17.229.70 
 
0.00 $ -182,675.91 $ 
 
0.00 
 
217.229.70 
 
-574,539.99 791.769.69 
 
FUND BALANCE JUNE 30 
 
$ 34,553.79 $ 
 
0.00 $ 
 
0.00 $ 34,553.79 $ 217,229.70 
 
See notes to the general purpose financial statements. 
 
-25- 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FtNANCtAL ASSISTANCE 
YEAR ENDED JUNE 30 1995 
 
FUNDING AGENCY 
PBOGRAM{GRANT 
 
CFDA NUMBER 
 
AWARDS IN PERIOD 
 
FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS) 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agriculture, U. S. Department of, 
 
Through Georgia Department of Education 
 
Food and Nutrition Program 
 
Food Services 
 
School Breakfast Program 
 
1994Grant 
 
10.553 
 
1995 Grant 
 
10.553 $ 
 
National School Lunch Program 
 
1994Grant 
 
 10.555 
 
1995 Grant 
 
 10.555 
 
National Education and Training Program 
 
1995 Contract 
 
10.564 
 
Food Distribution Program (1) 
 
10.550 
 
$ 1n,S21.44 
478,845.37 
5,000.00 101 1511.37 
 
8,630.39 172,856.25 $ 
4,436.32 473,788.15 
N/A 
 
1n,S21.44 
478,845.37 $ 2,986.05 
101 1511.37 
 
(2) 
1,215,833.15 (3) (2) 
1011511.37 
 
Total U. S. Department of Agriculture 
 
$ 7621878.18 $ 
 
659-711.11 $ 7601864.23 $ 113171344.52 
 
Education, U. S. Department of 
 
Through Georgia Department of Education 
 
Drug-Free Schools and Communities Act 
 
1994 carry-Over 
 
84.186 $ 
 
1995 Grant 
 
84.186 
 
Elementary and Secondary Education Act 
 
Chapter1 
 
Education of Children In State Schools 
 
1994 carry-Over 
 
84.009 
 
1995 Regular 
 
84.009 
 
Education of Deprived Children 
 
1994 Regular 
 
 84.010 
 
1994Summer 
 
* 84.010 
 
1994 Carry-Over 
 
* 84.010 
 
1995 Regular 
 
* 84.010 
 
1995Summer 
 
* 84.010 
 
Chapter2 
 
Block Grant - Flow Through 
 
1995 Regular 
 
84.151 
 
Trtle II 
 
Eisenhower Mathematics and Science 
 
Education 
 
1994 Regular 
 
84.164, 
 
1995 Regular 
 
84.164 
 
Individuals with Disabilities Education Act 
 
Title VI, B 
 
Flow Through 
 
1994 Regular 
 
84.027 
 
1994 Carry-Over 
 
84.027 
 
1995 Regular 
 
84.027 
 
Preschool Program 
 
1994 Regular 
 
84.173 
 
1994 Carry-Over 
 
84.173 
 
1995 Regular 
 
84.173 
 
Vocational Education - Basic Grants to States 
 
High School Program 
 
Basic Grant 
 
1995 Grant 
 
84.048 
 
Consumer and Homemaking Education 
 
1995 Contract 
 
84.049 
 
7,107.00 $ 20,894.00 
186.00 1,908.00 
5,875.00 24,055.00 532,305.00 10,661.00 
23,853.00 
16,056.00 
5,602.00 198,360.00 
15,630.00 46,900.00 
24,908.61 200.09 
 
7,107.00 $ 20,894.00 
 
7,107.00 $ 20,894.00 
 
7,107.00 20,894.00 
 
186.00 1,908.00 
68,264.51 5,875.00 
24,055.00 422,425.00 
23,853.00 
 
186.00 1,908.00 
5,875.00 24,055.00 497,993.50 
6,193.25 
23,853.00 
 
186.00 1,908.00 
5,875.00 24,055.00 497,958.50 
6,193.25 
23,853.00 
 
4,037.00 6,226.00 
 
4,037.00 6,226.00 
 
4,457.69 (3) 6,062.09 
 
25,611.53 5,602.00 
162,673.00 
7,390.14 15,630.00 22,074.00 
 
5,602.00 190,103.68 
15,630.00 38,946.28 
 
5,602.00 190,103.68 
15,630.00 38,946.28 
 
24,908.61 
 
24,908.61 
 
(4) 
 
200.09 
 
200.09 
 
(4) 
 
Total U. S. Department of Education 
 
$ 934,500.70 $ 
 
8481919.88 $ 873-718.41 $ 
 
8481831.49 
 
- 26 - 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 
YEAR ENDED JUNE 30. 1995 
 
FUNDING AGENCY 
PROGRAM/GRANT 
Health and Human Services, U. S. Department of Through Georgia Department of Human Resources Inclusive Schools Grant 1994 Grant 
 
CFDA NUMBER 
93.630 
 
AWARDS IN PERIOD 
 
FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS) 
 
$_ _ _1...,_,8_1_4=.'ZT-- 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Total Federal Financial Assistance 
 
$ 1,697,378.88 $ 
 
1,510,445.26 $ 1,634,582.64 $ 2,166,176.01 
 
Major Programs are Identified by an asterisk (*) in front of the CFDA number. 
 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for the School Breakfast Program and the Nutrition Education and Training Program were not maintained separately and are included in the 1995 National School Lunch Program. 
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source. 
(4) Expenditures on this program were not maintained by fund source. 
 
See notes to the general purpose financial statements. 
 
- 27 - 
 
 MADISON COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995 
 
SCHEDULE "2" 
 
NONINTEREST BEARING ACCOUNTS 
Bank of Danielsville, Danielsville, Georgia 
INTEREST BEARING ACCOUNTS 
Bank of Danielsville, Danielsville, Georgia 
N.O.W. Accounts (2.60%) 
Merchants and Farmers Bank, Comer, Georgia 
Certificate of Deposit No. 010-0004040 (5.00%) N.O.W. Accounts (2.75%) Money Market Account (Variable) 
 
$ 
 
2,486.00 
 
$ 1,825,038.41 
 
10,686.34 1,526,449.50 
363,670.22 
 
3,725,844.47 
 
$ 3,728,330.47 
 
See notes to the general purpose financial statements. - 28 - 
 
 MADISON COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995 
 
SCHEDULE 3" 
 
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries- FY 1995 Food Services School Breakfast Program National School Lunch Program Nutrition Education and Training Program Other State Program At-Risk Summer School Lottery Programs lnstructionai Technology Technology Installation Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act Title VI, B Flow Through Preschool Program 
Madison County Tax Commissioner County Wide Bond Tax County Wide School Tax 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
DEBT 
 
GENERAL 
 
REVENUE 
 
SERVICE 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 1,361,880.00 $ 
8,062.38 
 
4,665.19 5,057.22 2,986.05 
81,813.89 3,308.00 
 
$ 1,361,880.00 
4,665.19 5,057.22 2,986.05 
8,062.38 
81,813.89 3,308.00 
 
82,035.25 
 
82,035.25 
 
27,444.00 16,873.00 
 
27,444.00 16,873.00 
 
48,501.86 
 
$ 
 
8,532.71 
 
8,532.71 48,501.86 
 
$ 1,418,444.24 $ 224,182.60 $ 
 
8,532.71 $ 1,651,159.55 
 
See notes to the general purpose financial statements. 
 
- 29 - 
 
 MADISON COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY 
JUNE 30, 1995 
 
SCHEDULE4 
 
PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30 
1996 1997 1998 1999 2000 
2001 2002 2003 2004 2005 
2006 2007 2008 2009 2010 
2011 2012 
 
TOTAL DEBT SERVICE 
 
1993 ISSUE 
 
INTEREST 
 
PRINCIPAL 
 
$ 443,582.50 $ 278,582.50 $ 165,000.00 
 
467,938.75 
 
272,938.75 
 
195,000.00 
 
485,920.00 
 
265,920.00 
 
220,000.00 
 
497,630.00 
 
257,630.00 
 
240,000.00 
 
517,992.50 
 
247,992.50 
 
270,000.00 
 
536,795.00 553,947.50 554,682.50 554,255.00 552,526.25 
 
236,795.00 223,947.50 209,682.50 194,255.00 177,526.25 
 
300,000.00 330,000.00 345,000.00 360,000.00 375,000.00 
 
554,327.50 554,576.25 558,085.00 554,905.00 555,092.50 
 
159,327.50 139,576.25 118,085.00 .94,905.00 70,092.50 
 
395,000.00 415,000.00 440,000.00 460,000.00 485,000.00 
 
553,470.00 5541850.00 
 
43,470.00 141850.00 
 
510,000.00 5401000.00 
 
$ 9,050,576.25 $ 3,005,576.25 $ 6,045,000.00 
 
CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1994 Bonds Retired During Period 
Bonds Payable at June 30, 1995 
 
TOTAL $ 6,130,000.00 
851000.00 
$ 6,045,000.00 
 
MATURITY DATES Semi-Annual Interest Payment Oates Annual Debt Retirement Date 
 
FEB 1-AUG 1 AUG1 
 
See notes to the general purpose financial statements. - 30 - 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "5" 
 
AGENCY/FUNDING 
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Special Instructional Assistance In-School Suspension Mid-term Adjustment School Counselors Grades 4 and 5 Local Fair Share Deferred Summer Salaries - FY 94 Deferred Summer Salaries - FY 95 Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Environmental Science Program Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' -Retirement Lottery Programs Alternative School Program Distant Leaming Instructional Technology Technology Installation 
CONTRACTS Education, Georgia Department of Student Information Systems Project 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 6,821,284.00 
1,347,049.00 238,541.00 300,620.00 100,283.00 
2,061,366.00 
554,007.00 134,719.00 78,722.00 67,041.00 133,545.00 
19,971.00 -1,281,523.00 -1,276,739.00 1,361,880.00 
946,239.00 $ 
1,265.00 
14,312.38 500.00 
5,000.00 8,280.00 
5,778.71 11,156.23 
 
$ 6,821,284.00 
1,347,049.00 238,541.00 300,620.00 100,283.00 
2,061,366.00 
 
97,856.00 
 
554,007.00 134,719.00 78,722.00 67,041.00 133,545.00 
19,971.00 -1,281,523.00 -1,276,739.00 1,361,880.00 
946,239.00 97,856.00 
1,265.00 
 
18,941.00 47,675.00 
 
18,941.00 14,312.38 
500.00 5,000.00 8,280.00 47,675.00 5,778.71 11,156.23 
 
124,538.92 6,600.00 
81,813.89 3,308.00 
 
124,538.92 6,600.00 81,813.89 3,308.00 
 
2,000.00 
 
2,000.00 
 
$ 11,655,297.32 $ 
 
380,732.81 $ 12,036,030.13 
 
See notes to the general purpose financial statements. - 31 - 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE 
YEAR ENDED JUNE 30, 1995 
 
SCHEDULE "6" 
 
Taxes and Allotments Allotment from Madison County Board of Commissioners County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax 
Other Donations Gholston Fund Interest Earned Jury Duty Fees Lost and Damaged Books Reimbursements for Salaries University of Georgia Rents Sales Breakfast Lunches Other School Assets Tuition Other 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE PROJECTS 
 
FUND 
 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTAL 
 
$ 10,849.56 
2,325,392.23 2,977.50 8,924.00 
 
$ 10,849.56 
 
$ 413,542.88 
 
413,542.88 
 
2,325,392.23 
 
507.53 
 
3,485.03 
 
1,521.13 
 
10,445.13 
 
313,934.00 86,050.91 $ 1,470.00 335.49 
 
10,054.87 $ 
 
5,405.84 665.00 
 
233.00 22,397.30 
 
10,849.30 381,307.26 
47,403.50 
11.20 
 
1,469.84 
 
5,220.32 
 
313,934.00 102,795.94 
1,470.00 335.49 
5,405.84 665.00 
10,849.30 381,307.26 
47,403.50 233.00 
22,397.30 11.20 
 
$ 2,778,634.83 $ 449,626.13 $ 1,469.84 $ 420,791.86 $ 3,650,522.66 
 
See notes to the general purpose financial statements. 
 
- 32 - 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1995 
 
SCHEDULE"'T' 
 
EXPENDITURES 
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Commocfity Hau6ng Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures 
Nonoperating Costs Building and Building Improvements Equipment 
 
GENERAL 
FUND 
 
SPECIAL REVENUE 
FUND 
 
TOTAL 
 
$ 10,487,995.56 $ 2,953,128.83 29,140.00 42,949.91 9,341.42 52,324.28 108,444.02 88,436.82 33,142.42 31,029.40 
132,654.50 93,539.56 490,652.33 542,028.87 
96,074.80 12,060.00 6,175.93 
 
1,129,532.99 $ 197,005.80 6,311.14 19,833.25 
8,083.64 
2,423.34 6,885.63 
44,642.40 211,579.97 
3,264.04 666,529.29 
2,917.66 5,351.00 3,268.74 
 
11,617,528.55 3,150,134.63 
35,451.14 62,783.16 
9,341.42 52,324.28 116,527.66 88,436.82 33,142.42 33,452.74 6,885.63 132,654.50 138,181.96 702,232.30 545,292.91 666,529.29 98,992.46 17,411.00 9,444.67 
 
71,811.40 307,956.67 
 
141,338.84 
 
71,811.40 4491295.51 
 
Total Expenditures 
 
$ 151588,886.72 $ 2,448,967.73 $ 181037,854.45 
 
See notes to the general purpose financial statements. - 33 - 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT 
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995 
 
SCHEDULEe- 
 
EXPENDITURES 
OperatingCos1s Salaries Employee Benefits Travel of Employees Professional and Technical Services Communications Supplies 
Nonoperating Cos1s Equipment 
 
ALTERNATIVE SCHOOL 
PROGRAM {1} 
 
INSTRUCTIONAL TECHNOLOGY 
 
DISTANT LEARNING 
 
TECHNOLOGY INSTALLATION 
 
$ 
 
14,548.06 
 
$ 
 
4,389.58 
 
3.36 
 
12,784.02 472.78 
81,094.58 $ 
 
$ 12,210.04 
 
1,904.64 4,810.27 $ 
 
3,308.00 
 
50,187.58 
 
89,803.85 
 
TOTAL 
14,548.06 4,389.58 
3.36 14,688.66 
472.78 81,222.89 
119,791.41 
 
Total Expenditures $ 
 
143,479.92 $ 
 
(1) Includes State - Alternative Program funds in the amount of $18,941.00. 
 
81,813.89 $ 
 
8,514.91 $ 
 
3,308.00 $ 
 
235,118.72 
 
See notes to the general purpose financial statements. 
 
- 34 - 
 
 MADISON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1995 
 
SCHEDULE "9" 
 
Minimum Expenditure Requirements (Total Allotment) 
Expenditures on Combined Program Basis Salaries (1) (2) Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
 
THIRTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS 
 
$ 8,841,039.00 $ 
 
322,188.00 
 
$ 9,637,006.85 502,073.76 $ 
$ 10,139,080.61 
 
392,610.04 
 
-176, 166.85 $ 9,962,913.76 
 
Amount of Underexpenditure for Total Allotment 
 
$ 
 
o.oo s=====o=.o=o 
 
Note: (1) Salary accruals (July and August 1995 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 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
See notes to the general purpose financial statements. - 35 - 
 
 MADISON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PBQGRAM 
GENERAL FUND OUAL[TY BASIC EDUCATION PBQGRAMS 
VEAR ENQEP JUNE 3Q 1995 
 
GENERAi, Atilt:! ~BE:EB EDUCATION eBQ!:zRAMS 
Kindergarten M Gl'llde81 -3M 
Sub-Total - K-3 Grades4-5 M Grades6-8 M Grades 9 -12 M High School Laboratories M Vocational Education Laboratories M 
Total General and career Education Programs 
SeEQIAI. EDUCATION PROGRAMS 
Regular Programs categoiyl M category II (") category Ill (") categoiy IV M Sub-Total - Regular categoiy V (Gifted) (") Total Special Education Programs 
REMEQIAL EQUCATIQN PROGRAM (~ Total Thirteen Weighted Programs 
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs 
Total Thirteen Weighted and Media Center Programs 
STAFF ~~L.OPMENT PROGRAMS Cost c:l Instruction Professional Development 
Total Staff Development (") Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1995 Deferred 
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. 
See notes to the general purpose financial statements. 
 
ALLOTMENTS FROM DEPARTMENT OF EOUCATION 
 
REQUIRED 
 
ORIGINAL ~ 
 
ORIGINAL 
 
MID-TERM 
 
s 706,311.00 
1I81sIsa1.oo 
s 2,523,298.00 
 
s 90 s 
 
835,679.90 
s 118351288.30 s 2,270,968.20 
 
924,382.00 90 
 
831,943.80 
 
1,538,691.00 90 
 
1,384,821.90 
 
1,118,254.00 90 
 
1,006,428.60 
 
221,148.00 90 
 
199,033.20 
 
4951511.00 90 
 
4451959.90 
 
s &I821 1284.00 
 
s $ 611391155.60 
 
1001000.00 100,000.00 
1001000.00 
 
s 1,275,315.00 
 
s 1,147,783.50 S 
 
33,545.00 
 
s s 1,275,315.00 90 
 
1,147,783.50 $ 
 
11-734.00 90 
 
641560.60 
 
s 113471049.00 
 
s s 112121344.10 
 
s s 2381541.00 90 s 2141688.90 
 
s 814061874.00 
 
s s 715661186.60 
 
33,545.00 
331545.00 0.00 
1331545.00 
 
s 
 
s 234,556.00 90 
 
s 211,100.40 
 
0.00 
 
66064.00 90 
 
59457.60 
 
s 
 
300,620.00 
 
s s 2701558.00 
 
0.00 
 
s 8,707,494.00 
 
s 7,836,744.60 S 
 
133545.00 
 
s 
 
23,601.00 
 
s 
 
s 23,601.00 
 
0.00 
 
76,682.00 
 
76,682.00 
 
0.00 
 
s 
 
s 100,283.00 100 
 
100,283.00 S 
 
0.00 
 
(2) Salary accruals (July and August 1994 Deferred 
Salaries) reported as expenditures in the prior 
year General Purpose Financial Statements 
are included on this analysis as required l7t' 
program guidelines. 
 
- 36 - 
 
 SCHEDULE "10" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES (1 )(2) OPERATIONS 
 
TOTAL 
 
AMOUNTOF UNDEREXPENDll\JRE 
FOR REQUIRED ALLOTMENT 
 
$ 635,679.90 $ 
 
784,648.58 $ 
 
25,132.74 $ 809,781.32 
 
1.735,288.30 
 
2,045,307.78 
 
86194.16 
 
2,131,501.94 
 
$ 2,370,968.20 $ 2,829,956.36 $ 111,326.90 $ 2,941,283.26 $ 
 
0.00 
 
831,943.80 
 
1,056,396.91 
 
48,192.51 
 
1,104,589.42 
 
0.00 
 
1,384,821.90 
 
1,508,641.05 
 
24,967.95 
 
1,533,609.00 
 
0.00 
 
1,006,428.60 
 
1,318,848.49 
 
45,220.13 
 
1,364,068.62 
 
0.00 
 
199,033.20 
 
225,349.15 
 
11,812.48 
 
237,161.63 
 
0.00 
 
445,959.90 
 
542,453.65 
 
10116n.12 
 
650,131.37 
 
0.00 
 
$ 6,239,155.60 $ 7,481,645.61 $ 349197.69 $ 7,830,843.30 
 
$ 1,181,328.50 $ 
$ 1,181,328.50 $ 64560.60 
$ 1,245,889.10 $ $ 214,686.90 $ $ 7,699.731.60 $ 
 
169,197.79 $ 268,349.39 936,902.30 15,092.54 
1,389,542.02 $ 
90,699.31 
1,480,241.33 $ 
307.796.78 $ 
9,269,683.72 $ 
 
5,661.39 $ 5,145.92 24,327.11 2,664.96 
 
174,859.18 273,495.31 961,229.41 
17 757.50 
 
37,799.38 $ 1,427,341.40 
 
1 726.87 
 
92,426.18 
 
39,526.25 $ 1,519.767.58 
 
3 886.10 $ 311,682.88 
 
392,610.04 $ 9,662,293.76 
 
0.00 0.00 
0.00 
 
$ 
 
211,100.40 $ 
 
367,323.13 
 
$ 367,323.13 
 
0.00 
 
59457.60 
 
$ 109 463.72 
 
109,463.72 
 
0.00 
 
$ 270,558.00 $ 
 
367,323.13 $ 109,463.72 $ 476786.85 
 
$ 7,970,289.60 $ 9.637,006.85 $ 502,073.76 $ 10,139,080.61 $ 
 
0.00 
 
$ 
 
23,601.00 
 
76682.00 
 
$ 100,283.00 $ 
 
$ 
 
30,667.30 $ 
 
30,667.30 
 
69,699.88 
 
69,699.88 
 
0.00 $ 100,367.18 $ 100,367.18 s _ _ _ _ _ _o_.oo_ 
 
- 37 - 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 
YEAR ENDED JUNE 30. 1995 
 
SCHEDULE "11" 
 
BOARD MEMBER ADDRESS 
Mr. Marion Moore, Chairman (*) 
P. 0. Box514 
Danielsville, Georgia 30633 
Mr. Tom Beck Route 1, Box 76A Hull, Georgia 30646 
Ms. Elaine Belfield (*) Route 3, Box 3084 Danielsville, Georgia 30633 
Mr. Robert Haggard (*) Route 1, Box 79D Hull, Georgia 30646 
Mr. Jimmy Patton (*) Route 2, Box 105 Carlton, Georgia 30627 
Mr. Craig Player (*) 
P. 0. Box 191 
Hull, Georgia 30646 
 
COMPENSATION 
 
TRAVEL 
 
$ 
 
1,150.00 $ 
 
286.28 
 
650.00 
 
1,350.00 
 
699.80 
 
600.00 
 
638.77 
 
1,400.00 
 
627.67 
 
1,350.00 
 
588.90 
 
$ 
 
6,500.00 $===2=,8=4=1=.4=2 
 
(*) Denotes Board Members Serving as of June 30, 1995 
 
See notes to the general purpose financial statements. - 38 - 
 
 SECTION II COMPLIANCE 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 3, 1996 
 
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, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
Compliance with laws, regulations, contracts, and grants applicable to Madison County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. 
 
95CRL-10 
 
 This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
 
CLV:gp 95CRL-I0 
 
Claude L. Vickers State Auditor 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 856-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 3, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Madison County Board ofEducation 
 
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REOUIRE:MENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the Madison County BoardofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
We have applied procedures to test the Madison County Board ofEducation's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995: 
 
(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 ofManagement and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 
 
95CRL-70 
 
 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 material instances of noncompliance that are described in the Schedule ofFindings and Improper or Questioned Costs. 
f,,, 
We considered these material instances of noncompliance in forming our opinion on whether the Madison County Board ofEducation 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 3, 1996, on those financial statements. 
Except as descnbed above, the results of our 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. Additionally, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements which is also described in the Schedule of Findings and Improper or Questioned Costs. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
c::t~~ 
Claude L. Vickers State Auditor 
CLV:gp 95CRL-70 
 
 CLAUDE L~ VICKERS 
STATE AUDllOR 
(404) 856-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 3, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Madison County Board ofEducation 
 
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
 
Ladies and Gentlemen: 
 
We have audited the general purpose financial statements of the Madison County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
We have also audited the 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, 1995. 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. 
 
95CRL-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 Board'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, 1995. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
Respectfully submitted, 
~ 
Claude L. Vickers State Auditor 
CLV:gp 95CRL-80 
 
 L. CLAUDE VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 3, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe 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 of the Madison County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
 
In connection with our audit of the fiscal year 1995 general purpose financial statements of the Madison County Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements 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. 
 
95CRL-120 
 
 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the 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. 
Respectfully submitted, 
 
CLV:gp 95CRL-120 
 
Claude L. Vickers State Auditor 
 
 SECTION Ill INTERNAL CONTROL 
 
 L. CLAUDE VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 3, 1996 
 
Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe 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 ofthe Madison County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. 
The management ofthe 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 ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
 
95ICL-3 
 
 In planning and performing our audit ofthe general purpose financial statements ofthe Madison County Board ofEducation for the year ended June 30, 1995, we obtained an understanding ofthe internal control structure. With respect to the internal control structure, we obtained an understanding ofthe design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 
 
We noted 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 ofCertified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. 
 
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category: 
 
General Fixed Assets 
 
A material weakness is a reportable condition in which the design or operation of one or more of the internal 
 
control structure elements does not reduce to a relatively low level the risk that errors or irregularities in 
 
amounts that would be material in relation to the general purpose financial statements being audited may occur 
 
and not be detected within a timely period by 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. 
 
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 3, 1996. 
 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. 
 
Respectfully submitted, 
 
CLV:gp 95ICL-3 
 
. 
Claude L. Vickers State Auditor 
 
 CLAUDE L. VICKERS 
STATE AUDllOR 
(404) 656-2174 
 
.DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 3, 1996 
 
Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe 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 ofthe Madison County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Madison County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 3, 1996. 
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Madison County Board ofEducation complied with-laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. 
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and 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 3, 1996. 
95ICL-7 
 
 The management ofthe 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, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial .assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 
 
For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: 
 
GENERAL REQUIREMENTS 
 
SPECIFIC REQUIREMENTS 
 
(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports 
 
(I) Types of Services Allowed or Unallowed 
(2) Eligibility 
(3) Matching, Level ofEffort, and/or Earmarking 
 
(5) Allowable Costs/Cost Principles 
 
(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, 1995, the Madison County Board of Education expended 62% ofits total Federal financial assistance under major Federal financial assistance programs. 
 
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which 
 
95ICL-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 certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations. 
As descnbed in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were 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 conditions described above are also considered to be material weaknesses. 
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Madison County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated July 3, 1996. 
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. 
Respectfully submitted, 
~~ 
Claude L. Vickers State Auditor 
CLV:gp 95ICL-7 
 
 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, 1995 
PRIOR YEAR/CURRENT YEAR 
GENERAL FIXED ASSETS 
Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6951-93-01 
The audit report for the year ended June 30, 1994, noted that the management ofthe Madison County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the -general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6951-94-01 
The audit report for the year ended June 30, 1994, stated that the Board's property management records for the Elementary and Secondary Education Act - Chapter 1, Education ofDeprived Children Program (CFDA 84.010) were incomplete and failed to meet property standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units ofAdministration (FMGLUA). For the year under review, the LEA's property management records again failed to meet Federal requirements. The records as presented for audit did not contain a manufacturers serial or other identifying number, one equipment item could not be located (existence) and one equipment item did not have an equipment record available for inspection (completeness). This condition occurred because management disregarded the provisions ofFMGLUA and did not ensure that all equipment purchases were included in property management records. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41, of the FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy ofinventory records. 
- 1- 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1995 
CURRENT YEAR 
ALLOWABLE COSTS/COST PRINCIPLES Expired Grant Balance/Questioned Cost Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $35.00 Audit Control Number 6951-95-01 
The Board expended $35.00 for a floral arrangement from the Elementary and Secondary Education Act Chapter 1, Education ofDeprived Children Program, 1995 Regular project (CFDA 84.010). This payment does not appear to be a proper expenditure ofFederal assistance funds in accordance with cost allowability criteria defined in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA). This condition occurred because management chose to disregard Federal expenditure 
allowability criteria as defined in FMGLUA An audit adjustment excluding this expenditure from the Chapter 
1 program is included in the financial statements of this report. The resulting unexpended grant balance of $35.00 should be refunded to the Georgia Department ofEducation. 
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6951-95-02 
Property management records maintained by the Board for the National School Lunch Program (CFDA 10.555) were incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA) or as outlined in 7 CFR 3015.169. Accounting records maintained by the Madison County Board of Education and presented for examination did not contain acquisition cost and date, percentage ofFederal participation in the cost ofthe items, and title holder, when applicable. This condition occurred because management disregarded the 
provisions ofFMGLUA and 7 CFR 3015.169. An inventory system should be implemented that provides for the identification ofall equipment purchased as outlined in Chapter 41, ofthe FMGLUA and 7 CFR 3015.169. 
Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records. 
- 2- 
 
 SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
 
 MADISON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
YEAR ENDED JUNE 30, 1995 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6951-93-01 
We concur with this recommendation. Due to current staffing limitations and budgetary conditions prohibiting 
the hiring ofadditional administrative statI: the Board has decided not to pursue the recording ofgeneral fixed 
assets on the financial statements. 
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 6951-94-01 
We concur with this finding; however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations, this finding cannot be totally resolved. 
ALLOWABLE COSTS/COST PRINCIPLES Expired Grant Balance/Questioned Cost Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $35.00 Audit Control Number 6951-95-0 I 
We concur with this finding; however, we offer the following information received by the Madison County Title I Director from the State Department ofEducation: 
According to the Title I State Consultant for Madison County, Mr. Albert G. Myers, it was permissible to purchase a floral arrangement to be used at the Annual Title I Parent Meeting as long as the arrangement was given away as a door prize as an incentive for parents to attend the meeting. 
We can assure you that Title I funds will not be used to purchase a floral arrangement in the future. The Title I Director has been notified that in the future Title I funds will not be used in this manner. 
- 1- 
 
 MADISON COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS 
YEAR ENDED JUNE 30, 1995 
ADMINISTRATIVE REQUIREMENTS 
Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6951-94-0 I We concur with this finding; however, we offer the following information in response to this finding: A complete inventory is kept at each school in the coordinator's office for each piece ofthe over 400 items of Title I equipment according to specification V-41-110 of FMGLUA. An annual physical inventory is performed each year and documentation is on file. The auditor has requested that memory and/or hard drive upgrades be kept and recorded on inventory. According to FMGLUA this is not a required part of the inventory. This has never been mentioned as an inventory requirement by auditors in the past. The auditor cited that one piece ofequipment, a printer, could not be located on record. Actually, according to the Title I Director, the printer was listed and physically present, but the serial number had been omitted when the inventory card was completed. Also cited was a missing computer. This computer was located in the next room. It was shown to the auditor and explained that it had been used the prior week during a summer computer day camp for students at that school, some of whom were Title I eligible. It is our understanding that this is a legitimate use of Title I equipment. The fact that the audit occurred during the summer months when the staff is out of the building and equipment is moved for summer maintenance has resulted in findings that may have been avoided. We will make every effort to update our records and to continue to monitor this program to ensure accountability. 
- 2-