Audit report, Mitchell County Board of Education, Camilla, Georgia, year ended June 30, 1995

GA
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.RI
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Mb'3 1994-96
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT MITCHELL COUNTY BOARD OF EDUCATION
CAMILLA, GEORGIA YEAR ENDED JUNE 30, 1995

MITCHELL 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

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

6

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

29

MITCHELL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

30

2 CASH AND CASH EQUIVALENTS

32

3 INVESTMENTS

33

4 ACCOUNTS RECEIVABLE

34

5 DEBT SERVICE REQUIREMENTS TO MATURITY

35

SCHEDULE OF REVENUE

6

STATE

36

7

LOCAL AND OTHER

37

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

39

9

LOTTERY PROGRAMS

40

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

43

11

BYPROGRAM

44

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

46

SECTION TI
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

MITCHELL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION ID INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 21, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Mitchell 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 F) of the Mitchell 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:

95ARL-13*

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not report the deferred compensation plan assets and liabilities within the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Mitchell County Board of Education as of June 30, 1995, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards. we have also issued a report dated August 21, 1996, on our consideration of the Board's internal control structure and a report dated August 21, 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 Mitchell County Board ofEducation taken as a whole. The combining statements (Exhibits G through J) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Mitchell County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
95ARL-13*

A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
/4e--~x~
Claude L. Vickers State Auditor
CLV:gp 95ARL-13*

MITCHELL COUNTY BOARD OF EDUCATION - 1-

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2,119,700.36 $ 789,487.81 $ 1,302,812.84

2,249,712.30

287,898.79

196,866.09

412,250.16

28,009.05 5,724.34

Total Assets

$ 2,407,599.15 $ 1,0'20,087.29 $ 3,964,775.30

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Debt Service For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$

43,508.92

187,309.94

7,880.48

$ 205,421.48

276,033.94

$ 238,699.34 $ 481,455.42

$

19,898.49

$

3,064.27

9,359.30

$

29,257.79 $

2,378,341.36

$ 2,407,599.15 $

28,009.05 5,724.34 $
36,797.66 $ 744,590.29 781,387.95 $

3,275,828.79 183,648.96
3,459,477.75
23,842.13
3,483,319.88

Total Liabilities and Fund Equity

$ 2,407,599.15 $

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

-2-

1,020,087.29 $

3,964,775.30

EXHIBITA

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

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

$ 140,084.08 $

14,679.23

$ 4,366,764.32 $ 2,767,597.25

2,249,712.30

50.91

897,065.95

1,182,614.n

814.61

814.61

28,009.05 5,724.34

$

140,898.69

140,898.69

25,168.70 6,996.07

$ 1401898.69 $

3,739,101.31 10,745.63

3,739,101.31 10,745.63

14,685.48

14 730.14 $

31890?45.63 $ 111438,836.20 $ 31997,062.27

$

43,508.92 $ 298,929.38

187,309.94

1TT,989.66

7,880.48

12,892.79

205,421.48

118,158.62

276,033.94

131,714.59

2,316.00

$

10,745.63

10,745.63

14,685.48

3,880,000.00

3,880,000.00

$

3,890,745.63 $ 4,610,900.39 $ 756,686.52

$ 140,898.69 $
$ 140,898.69 $ 0.00
$ 140,898.69 $ $ 140,898.69 $

10,000.00
10,000.00 4 730.14 14 730.14

$

19,898.49 $

563.00

3,064.27

4,060.43

140,898.69

10,000.00

10,000.00

9,359.30

9,359.30

28,009.05 5,724.34
3,275,828.79 183,648.96

25,168.70 6,996.07
751,824.32

$ 3,676,431.89 $ 807,971.82

3,151,503.92 2,432,403.93

$ 6,827,935.81 $ 3,240,375.75

14,730.14 $

3,890,745.63 $ 11,438,836.20 $ 3,997,062.27

-3 -

M!I.Q!::IEU. QQ!.!tfil'. BOARQ QF EQ!.!QAT!Qt,l
QQM~INEQ SIAT!i;M!iNT QE RraN!.!li;, EXPENQIT!.!BES ANQ QHAN~ES IN FUNQ BALANQES
&.I. ~O~RNM!i~T&, FUNQ TYPE YEAB ENQEP J!,!NE 3Q 1995

EXHIBIT "B"

RE~NUES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS m!!emorandum On!Y)
YEAR ENDED JUNE 301 1995 JUNE 30, 1994

State Funds Federal Funds Local and Other Funds

$ 8,528,698.65 $ 360,419.88 $ 1,826,664.53

137,867.54 2,159,460.72

3,668,947.17

194,716.17

104,315.97 $

$ 10,715,783.06 $

2,297,328.26

1,693.72

3,969,673.03

9,784,197.77 2,246,069.32 3,389,242.65

Total Revenues

$ 12,335,513.36 $ -2,714,596.77 $ 1,930,980.50 $

1,693.72 $ 16,982,784.35 $ 15,419,509.74

EXPENDITURES

Current

Instruction

$ 7,396,535.25 $ 1,227,920.62

$ 8,624,455.87 $ 8,393,726.53

Support Services

Pupil Services

307,975.08

19,113.66

327,088.74

304,860.17

Improvement of Instructional

Services

414,917.99

46,176.85

461,094.84

457,244.79

Educational Media Services

237,181.14

61,348.22

298,529.36

265,755.32

General Administration

263,642.06

82,734.73

346,376.79

413,993.18

School Administration

789,487.15

789,487.15

768,437.86

Business Administration

59,457.49

$ 123,656.10

183,113.59

Maintenance and Operation of

Plant

1,083,299.31

68,630.54

1,151,929.85

1,185,121.80

Student Transportation Services

667,124.22

27,671.89

694,796.11

694,098.88

Central Support Services

13,162.30

13,162.30

11,610.67

Other Support Services

10,500.00

35,213.25

45,713.25

59,589.14

Food Services Operation

1,104,384.26

1,104,384.26

1,029,236.51

Community Service Operations

2,800.00

2,800.00

Other Operations of Non-Instructional

Services

111,610.36

111,610.36

110,970.16

Capital Outlay

3,070,828.84

3,070,828.84

1,960,875.86

Debt Service

Principal

3,939.85

$ 115,000.00

118,939.85

3,348.84

Interest

1,122.27

61,394.48

62,516.75

1,277.78

Total Expenditures

$ 11,362,754.47 $ 2,673,194.02 $ 3,194,484.94 $ 176,394.48 $ 17,406,827.91 $ 15,660,147.49

Excess of Revenues over (under) Expenditures

$ 972,758.89 $ 41,402.75 $ -1,263,504.44 $ -174,700.76 $ -424,043.56 $ -240,637.75

QTHER FINANCING SOURCES (YSES}

Accrued Interest on Bonds Sold

Proceeds from General Obligation Bonds

Par Value

Capital Leases

Operating Transfers In

Operating Transfers Out

$

-301,084.00

$ 14,515.45 $

14,515.45

$ 3,995,000.00

301,084.00

3,995,000.00 $
301,084.00 -301,084.00

11,117.00 317,460.00 -317,460.00

Total Other Financing Sources

(Uses)

$

-301,084.00

$ 3,995,000.00 $ 315,599.45 $ 4,009,515.45 $

11,117.00

Excess of Revenues and Other Financing

Sources over (under) Expenditures and

Other Financing Uses

$

671,674.89 $

41,402.75 $ 2,731,495.56 $ 140,898.69 $ 3,585,471.89 $ -229,520.75

FUND BALANCE JU!.Y 1

1,735,924.26

738,416.58

751,824.32

0.00

3,226,165.16

3,464,464.40

Food Inventory - Net Change in Period Donated Commodities Purchased Food

2,840.35 -1,271.73

2,840.35 -1 271.73

-10,836.07 2,057.58

FUND BALANCE JUNE 30

$ 2,407,599.15 $ 781,387.95 $ 3,483,319.88 $ 140,898.69 $ 6,813,205.67 $ 3,226,165.16

The notes to the general purpose financial statements are an integral part of this statement. -4-

MITCHELL COUNTY BOARD OF EDUCATION TATEMEt:!T QF REVENUES, EXPENDITURES ANQ CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

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

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 8,421,537.00 $ 8,528,698.65

15,560.00

137,867.54

310491609.00 31668,947.17

$ 111486?06.00 $ 121335,513.36

$ 7,490,080.00 $ 7,396,535.25

342,458.00 422,297.00 272,278.00 260,290.00 805,094.00 65,2n.OO 1,163,080.00 715,997.00 14,900.00 10,500.00

307,975.08 414,917.99 237,181.14 263,642.06 789,487.15 59,457.49 1,083,299.31 667,124.22
13,162.30 10,500.00
2,800.00

104,454.00

111,610.36 51062.12

$ 11,666?05,00 $ 111362,754.47

$ -179,999.00 $ 972,758.89

$ -914,089.00 $ -3011084.00
$ -1,094,088.00 $ 671,674.89 1,520,247.83 1,735,924.26 921670.63

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 175,023.00 $ 360,419.88

2,123,399.00 2,159,460.72

1811100.00

194?16.17

$ 214791522.00 $ 2,1141596.n

$ 1,290,754.68 $ 1,227,920.62

29,189.00 36,890.00 54,394.45 97,245.00

19,113.66 46,176.85 61,348.22 82,734.73

74,645.00 27,500.00
42,216.00
1,361,907.00

68,630.54 27,671.89
35,213.25
1,104,384.26

$ 31014,741.13 $ 21673,194.02 $ -535,219.13 $ 41,402.75

$ -535,219.13 $ 896,216.86 11,966.73

41,402.75 706,251.81

FUND BALANCE JUNE 30, 1995

$ 518,830.46 $ 2,407,599.15

$ 372,964.46 $ 747,654.56

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

MITCHELL COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 30, 1995

EXHIBIT D

OPERATING REVENUES Donations
OPERATING EXPENSES Current Instruction Operating Income
NONOPERATING REVENUE Interest Earned Total Income
EUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
C. M. STRIPLING VOCATIONALEDUCATIONAL SCHOLARSHIP

TOTALS (Memorandum Onli2
YEAR ENDED
JUNE 30, 1995 JUNE 30, 1994

$

1,000.00 $

1,000.00 $

800.00

$

937.74 $

937.74 $

513.38

$

62.26 $

62.26 $

286.62

457.29

457.29

326.60

$

519.55 $

519.55 $

613.22

14,210.59

14,210.59

13,597.37

$

------ 14,730.14 $

14,730.14 $

14,210.59

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

MITCHELL COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1995

Cash Flows from Operating Activities: Cash Received from Donations Cash Paid for Scholarships Net Cash Provided (Used) by Operating Activities
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

ENDOWMENT FUND
C. M. STRIPLING VOCATIONAL EDUCATIONAL SCHOLARSHIP

TOTALS (Memorandum Onll!
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

1,000.00 $

1,000.00 $

800.00

-937.74

-937.74

-513.38

$

62.26 $

62.26 $

286.62

$

406.38 $

406.38 $

326.60

$

468.64 $

468.64 $

613.22

$

14,210.59 $

14,210.59 $

13,597.37

__ __......

$

14,679.23 $

14,679.23 $

14,210.59

The notes to the general purpose financial statements are an integral part of this statement.
-7-

MITCHELL COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Mitchell County Board ofEducation (Board) was established under the laws of the State of Georgia and . operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception 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 of the Mitchell County Board ofEducation.
Based upon the application ofthe above criteria, the Mitchell County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Mitchell County, Georgia, excluding that area encompassed by the City ofPelham. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, except for the Superintendent who was also elected, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 9-

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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

- 10 -

MITCHELL COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note l; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the
- 11 -

MITCHELL COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion ofthe compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Mitchell 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 ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" ofthis report:

- 12 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Excess ofRevenues and Other Financing Sources 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
$ 41,402.75 738,416.58
-25,168.70 -6,996.07
$ 747,654.56

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits (including certificates of deposit, savings 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 of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

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

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

(5) Prime banker's acceptances,

- 13 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(7) Repurchase agreements, and

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

RECEIVABLES

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

PROPERTY TAXES

The Mitchell County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on September 13, 1994 (levy date). Taxes were due on December 20, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Mitchell County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1994 tax year (calendar year) for the Mitchell County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

112 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 offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

- 14 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMJvfARY OF SIGNIFICANT ACCOUNTING POLICIES
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1995, are recorded as prepaid items.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
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, results of operations or cash flows 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.
- 15 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $4,983,239.43. 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.
- 16 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

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

1

$ 200,715.25

2

2,555,398.96

3

2,227,125.22

Total

$ 4 983,239.43

CATEGORIZATION OF INVESTMENTS At June 30, 1995, the carrying amount of the Board's total investments was $2,249,712.30 and this entire amount consisted ofUnited States Treasury Notes which were insured or registered, or securities held by the Board or the Board's agent in the Board's name. The market value of these investments was $2,249,712.30.

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 ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.

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

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

- 17 -

MITCHELL COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\IBNTS

JUNE 30, 1995

Note 4: RISK MANAGEl\IBNT

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 $

5,412.00 $

5,412.00 $

0.00

$

0.00 $ 11,808.05 $ 11,808.05 $

0.00

The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the 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: OPERATING LEASES

Mitchell County Board ofEducation has entered into a lease as lessee for a copying machine. This lease is considered for accounting purposes to be an operating lease. Lease expenditures for the year ended June 30, 1995, amounted to $11,423.04. Future minimum lease payments for this lease are as follows:

Year Ending 1996 1997 Total
Note 6: GENERAL LONG-TERM DEBT

Amount $ 11,423.04
3,807.68
$ 15,230.72

CAPITAL LEASES The Mitchell County Board ofEducation has entered into various lease agreements as lessee for a copying machine and a two-way radio system. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

- 18 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: GENERAL LONG-TERM DEBT

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1994

$ 14,685.48 $

0.00 $ 14,685.48

Additions

3,995,000.00 3,995,000.00

Deductions

3 939.85

115,000.00

118,939.85

Balance June 30, 1995

$ 10,745.63 $ 3,880,000.00 $ 3,890,745.63

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

Capital Leases

General Obligation
Bonds

Total Debt

1996 1997 1998 1999 2000 2001 and thereafter

$ 5,062.12 $ 308,950.84 $ 314,012.96

3,837.56

310,610.00

314,447.56

2,613.00

321,868.75

324,481.75

435.33

327,420.63

327,855.96

332,235.63

332,235.63

5,496,600.04 5,496,600.04

Total Principal and Interest

$ 11,948.01 $7,097 685,89 $ 7,109,633.90

Deduct: Imputed Interest

1,202.38

Net Present Value ofFuture Minimum Lease Payments

$ 10 745,63

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.

- 19 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

93/94-701-055 94/94S-701-036

$ 811,012.01
230,439.14

$ 1,041 451 15

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 grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.
Note 9: DEFERRED COMPENSATION PLAN

The Board offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Board employees, permits them to defer a portion oftheir salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.
All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Board subject only to the claims of the Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant.
It is the opinion of the Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims ofgeneral creditors in the future.
The Board has designated an independent plan administrator to operate and maintain the plan. The assets and liabilities of the plan are not reflected in these financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.

- 20 -

MITCHELL COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE1\1ENTS

JUNE 30, 1995

Note 10: ACCUMULATEDEMPLOYEES'LEAVE
The Board's employees earn sick leave based upon classification of employees up to a maximum accumulation of 70 days for professional personnel and 35 days for non-certified staff. Upon retirement, employees with five consecutive years service in the system immediately preceding retirement are eligible for compensation for unused leave up to a maximum of45 days at the current substitute teacher daily rate of pay. See Note 1 -
Compensated Absences
Note 11: RETIRE1\1ENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting 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 $7,895,350.55; total payroll was $8,982,841.15.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their 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
- 21 -

MITCHELL COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30; 1995

Note 11: RETIREMENT PLANS

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 $1,327,213.77, ofwhich $932,441.30 was made by the Board and $394,772.47 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 of June 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 of June 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $932,441.30 was actuarially determined and represented .165% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

- 22 -

MITCHELL COUNTY BOARD OF EDUCATION

EXIIlBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 11: RETIREMENT PLANS
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.
P SERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number of.years of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 82 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $2,912.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 12: SURETY BONDS
Mr. Bobby Tabb, School Superintendent through May 31, 1996, was bonded in the amount of $30,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60104103.
The School Superintendent, Mr. David A. Forehand, effective May 31, 1996, is bonded in the amount of $30,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 13657887, on which premium is paid through January 1, 1997.
- 23 -

6.fil cash and cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

MIIQtlELL ~!.!tm'.: aQABQ QE EQ!.!CADQN
~MBININ~ eAL6NQE StlEEI
seEQIAL BE~ENUE EUNQ
JUNE 30. 1995

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

CHAPTER 1

EDU~ATION OF EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS

CHILDREN

$ 801,870.25 $

0.00 $

0.00 $

0.00

10,784.04

$

?47,538.00

28,009.05 5,724.34

$ 846,387.68 $

0.00 $

0.00 $

0.00 $

147,538.00

LIABILIIIES AND E!.!tH:! EOUID'.
LIABILIIIES
cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EOUID'.
Fund Balances Reserved For Continuation of Federal Program For Inventories
Food
Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity

$ 13,812.12 54,251.88
$ 68,064.00
$ 28,009.05 5,724.34
$ 33,733.39 744,590.29 $
$ 778,323.68 $

Total Liabilities and Fund Equity

$ 846,387.68 $

0.00 $ 0.00 $
0.00 $

0.00 $ 0.00 $
0.00 $

$

1,710.58

26,003.54

111,943.40

7,880.48

$

1471538.00

0.00 $

0.00

0.00 $

0.00

0.00 $

147,538.00

See notes to the general purpose financial statements.

-24-

EXHIBIT "G

SECONDARY EDUCATION ACT TITLE II
EISENHOWER CHAPTER 2 - MATHEMATICS -B-L"'"'OC___,,K_G_R__-A.N...T...._- AND SCIENCE
FLOW THROUGH EDUCATION

$

0.00 $

3,064.27

INDIVIDUALS WITH

DISABILmES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS JUNE 30, 1995 JUNE 301 1994

$ 804,934.52 $ 749,849.78

$

9,844.13 $

10,287.99 $

18,411.93

196,866.09

194,369.n

s _ _ _ _ _o_.oo_s

28,009.05 s,n4.34

25,168.70 6,996.07

3,064.27 $

9,844.13 $

10,287.99 $

18,411.93 $ 1,035,534.00 $ 976,384.27

$

6,255.63 $

1,928.71 $

5,551.79 $

15,446.71 $

11,843.33

795.66

1,505.62

1,391.98

43,508.92

34,562.54

2,792.84

6,853.66

11,468.16

187,309.94

1n,989.66

7,880.48

11,256.16

2,316.00

$

9,844.13 $

10,287.99 $

18,411.93 $ 254,146.05 $ 237,967.69

$

3,064.27

$

3,064.27 $

4,060.43

28,009.05 5,724.34

25,168.70 6,996.07

$

3,064.27

$

36,797.66 $

36,225.20

$

0.00

0.00 $

0.00 $

0.00 $

0.00

744,590.29

702,191.38

$

0.00 $

3,064.27 $

0.00 $

0.00 $

0.00 $ 781,387.95 $ 738,416.58

$

0.00 $

3,064.27 $

9,844.13 $

10,287.99 $

18,411.93 $ 1,035,534.00 $ 976,384.27

-25-

MITCHELL 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
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer

SCHOOL FOOD
SERVICES FUND

ELEMENTARY AND

STATE PRESCHOOL HANDICAPPED PROGRAM

LOTTERY PROGRAMS

CHAPTER 1

EDUCATION OF EDUCATION OF

CHILDREN IN

DEPRIVED

STATE SCHOOLS CHILDREN

$ 78,092.00 $ 873,975.00 194?16.17
$ 11146?83,17 $

32,729.00 $ 249,598.88 $
321729.00 $ 249,598.88 $

380.00 $ 1,030,636.52 380.00 $ 110301636.52

$

32,729.00 $ 109,068.43 $

$ 11104,384.26 $ 1,104,384.26 $ $ 42,398.91 $
734,356.15

52,364.45
62,666.00 25,500.00

32,729.00 $ 249,598.88 $

0.00 $

0.00 $

0.00

0.00

2,840.35 -1,271.73

380.00 $

894,942.19

12,146.19
82,273.46 5,964.54 96.89
35,213.25

380.00 $ 0.00 $ 0.00

1,030,636.52 0.00 0.00

FUND BALANCE JUNE 30

s na,323.68 s

0.00 $

o.oo s_____o_.oo_s _____o_.oo_

See notes to the general purpose financial statements.

-26-

EXHIBIT H"

SECONDARY EDUCATION ACT

TITLE II

EISENHOWER

CHAPTER2

MATHEMATICS

BLOCK GRANT AND SCIENCE

FLOW THROUGH EDUCATION

INDMDUALS WITH

DISABILmEs EDUCATION ACT

mLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 360,419.88 $ 122,755.46

$

27,617.00 $

20,639.00 $ 132,018.17 $

28,433.99 $

45,761.04

2,159,460.n 2,137,536.48

194,716.17

195.513.33

$

27.617.00 $

20,639.00 $ 132,018.17 $

28,433.99 $

45,761.04 $ 2.714,596.77 $ 2,455,805.27

$

15,453.23

$ 103,633.07 $

28,028.66 $

43,686.04 $ 1,227,920.62 $ 1,131,177.86

3,040.00 $ 8,983.77
140.00

21,588.19 46.97

18,708.33 9,402.47
274.30

405.33

2,075.00

19,113.66 46,176.85 61,348.22 82,734.73 68,630.54 27,671.89 35,213.25 1,104,384.26

17,822.89 51,156.06 13,496.00 91,697.89 11,738.97
2,137.00 46,573.20 110291236.51

$

27,617.00 $

211635.16 $ 132,018.17 $

28,433.99 $

45,761.04 $ 216731194.02 $ 21395,036.38

$

0.00 $

-996.16 $

0.00 $

0.00 $

0.00 $

41,402.75 $

60,768.89

0.00

4,060.43

0.00

0.00

0.00

738,416.58

686,951.43

2,840.35 -1,271.73

-10,836.07 2,057.58
-525.25

$

0.00 $

3,064.27 s____o_.oo_s ____o_.oo_s ____o_.oo_s 781,387.95 $ 738,416.58

-27 -

MITCHELL COUNTY BQABP OF EDUCATION COMBINING BALANCE SHEET
CAPITAL PROJECTS FUND JUNE3Q 1995

EXHIBITT

MS.m
Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

1994 BOND ISSUE
FUND

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

93/94-701-055 94/94S-701-036

TOTALS JUNE 301 1995 JUNE 301 1994

$ 23,842.13 $ 1,026,116.49 $

63,982.86 $

188,871.36 $ 1,302,812.84 $ 632,597.30

2,249,712.30

2,249,712.30

310,137.31

102,112.85

412,250.16

633,467.07

Total Assets

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Contracts Payable Retainages Payable

$ 110,791.44 $ 263,328.73

Total Liabilities

$ 374,120.17 $

FUND EQUITY

Fund Balances

Reserved

For Purposes of Bond Issue

$ 3,275,828.79

For State Capital Outlay

Projects

$

Unreserved Undesignated

$ 3,275,828.79

$

$ 23,842.13

0.00 $ _ _ _ _ 0.0_0

Total Fund Equity

$ 23,842.13 $ 3,275,828.79 $ _ _ _..0..;.;.0;.;0;.~ $

94,630.04 $ 12i7os.21

$ 205,421.48 276,033.94

264,366.84 118,158.62 131,714.59

107,335.25 $ 481,455.42 $ 514,240.05

$ 3,275,828.79

183,648.96

183,648.96 $ 751,824.32

183,648.96 $ 3,459,4n.75 $ 751,824.32

0.00

23,842.13

0.00

183,648.96 $ 3,483,319.88 $ 751,824.32

Total Liabilities and Fund Equity

See notes to the general purpose financial statements.

-28-

MITCHELL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"J'

REVENUES
State Funds Local and Other Funds

REGULAR

1994 BOND ISSUE
FUND

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

93/94-701-055 94/94S-701-036

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

$ 23,906.13 $

$ 1,688,289.80 $

77,014.31

3,395.53

138,374.73 $ 1,826,664.53 $ 1,413,077.31

104,315.97

15,728.65

Total Revenues

$ 23,906.13 $ 77,014.31 $ 1,691,685.33 $ 138,374.73 $ 1,930,980.50 $ 1,428,805.96

EXPENDITURES

Current Support Services Business Administration Bond Issuance Cost Dues and Fees
Capital Outlay Land and Land Improvements Building and Building Improvements

$ 123,592.10

$

64.00

$ 123,592.10 64.00

$ 272,185.77

272,185.77 $ 306,430.77

$ 2,798,643.07

2,798,643.07

1,547,807.75

Total Expenditures

$

64.00 $ 123,592.10 $ 2,798,643.07 $ 272,185.77 $ 3,194,484.94 $ 1,854,238.52

Excess of Revenues over (under) Expenditures

$ 23,842.13 $ -46,577.79 $ -1,106,957.74 $ -133,811.04 $ -1,263,504.44 $ -425,432.56

OTHER FlNANCING SOURCES CUSES}

Proceeds from General Obligation Bonds Par Value
Operating Transfers In Operating Transfers Out

$ 3,995,000.00 $
-672,593.42

672,593.42

$ 3,995,000.00 672,593.42 $ -672,593.42

475,837.88 ~158,377.88

Total Other Financing Sources (Uses)

$ 3,322,406.58 $ 672,593.42

$ 3,995,000.00 $ 317,460.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

$ 23,842.13 $ 3,275,828.79 $

-434,364.32 $ -133,811.04 $ 2,731,495.56 $

-107,972.56

FUNQ BALANCE JUl,.Y 1

0.00

0.00

434,364.32

317,460.00

751,824.32

859,796.88

EUNQ BALANCE JUNE 30

$ 23,842.13 $ 3,275,828.79 $

0.00 $ 183,648.96 $ 3,483,319.88 $ 751,824.32

See notes to the general purpose financial statements.

-29-

MITCHELL CQUNJY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1995

SCHEDULE "1

FUNDING AGENCY
PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 10.553 $
* 10.555 * 10.555
10.550

$ 1n,611.39
612,213.94 841089.67

9,006.03 1n,399.57 $
6,575.98 605,138.37 N/A

1n,611.39
612,213.94 $ 841089.67

(2)
1,020,294.59 (3) 841089.67

Total U. S. Department of Agriculture

$ 8731975.00 $

7981119.95 $ 8731975.00 $ 111041384.26

Education, U. S. Department of

Through Georgia Department of Education

Elementary and Secondary Education Act

Chapter 1

Education of Children in State Schools

1994 Carry-Over

84.009 $

1995 Regular

84.009

Education of Deprived Children

1993 Carry-Over

* 84.010

1994 Regular

* 84.010

1994 Carry-Over

* 84.010

1995 Regular

* 84.010

Chapter2

Block Grant Flow Through

1995 Regular

84.151

Trtlell

Eisenhower Mathematics and Science

Education

1994 Regular

84.164

1995 Regular

84.164

Individuals with Disabilities Education Act

TrtleVl,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

1994 Grant

84.048

1995 Grant

84.048

Tech-Prep Education

1994 Grant

84.243

1995 Grant

84.243

Through Chattahoochee-Flint Regional Educational

Service Agency

d/b/a Two Rivers Migrant Education Agency

Elementary and Secondary Education Act

Chapter 1

Migratory Education Program

1994 Regular

84.011

62.00 $ 318.00
337,350.00 843,081.00
27,617.00
20,639.00
32,570.00 112,176.00
6,485.00 23,100.00
70,861.00 42,500.00

Total U.S. Department of Education

$ 11516,759.00 $

62.00 $ 318.00

62.00 $ 318.00

12,572.49 118,100.30 335,768.00 555,211.00

337,350.00 693,286.52

62.00 318.00
337,350.00 693,286.52

27,617.00

27,617.00

27,617.00

20,639.00

20,639.00

4,060.43 17,574.73

12,724.52 32,570.00 89,604.04
4,880.28 6,485.00 11,661.00

32,570.00 99,448.17
6,485.00 21,948.99

32,570.00 99,448.17
6,485.00 21,948.99

47,394.85

53,227.79

70,837.93

(4)

29,237.20

19,256.12

42,412.57

(4)

21652.00 113791980.59 $ 113521975.18 $

11240, 720.84

- 30 -

MO:CHELL COUNTY BOARD OF EDUCATION
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1995

FUNDING AGENCY PROGRAM/GRANT
Labor, U.S. Department of Through Southwest Georgia Regional Development Center Job Training Partnership Act 93-B-80 1994Summer 1995Summer
Total U. S. Department of Labor
Qit!ER FEDERAL ASSISTAt:lCE
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program 1994 Grant 1995Grant
Total U.S. Department of Defense

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.250 17.250 $
$

$ 471080.00
471080.00 $

41,581.73 $ 411581.73 $

27,349.11 $ 181411.93
451761.04 $

27,349.11 181411.93
45.761.04

$

1,846.00

$ 241617.04

181321.85 $ 241617.04

(4)

$ 241617.04 $

201167.85 $ 241617.04

Total Federal Financial Assistance

$ 2,462,431.04 $

2,239,850.12 $ 2,297,328.26 $ 2,390,866.14

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 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.

31

MITCHELL COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS
JUNE 30, 1995

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Planters and Citizens Bank, Camilla, Georgia
INTEREST BEARING ACCOUNTS
Bank of Camilla, Camilla, Georgia
Certificates of Deposit
No. 4916 (4.95%) No. 5018 (4.55%) No. 5037 (4.55%) No. 5000723 (5.45%) N.O.W. Account {2.75%)
Planters and Citizens Bank, Camilla, Georgia
N.O.W. Accounts (2.75%) Money Market Account (3.25%)

$

715.25

$ 100,000.00 100,000.00 50,000.00 10,000.00
2,106,428.72

1,859,536.27 140,084.08

4,366,049.07

$ 4,366,764.32

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

MITCHELL COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1995
U.S. GOVERNMENT OBLIGATIONS
Bank South Securities Corporation Atlanta, Georgia
U.S. Treasury Notes No. 912827L59 due July 31, 1995 (4.25%) No. 912827L91 due August 31, 1995 (3.87%) No. 912827M33 due September 30, 1995 (3.875%) No. 912827M58 due October 31, 1995 (3.875%) No. 912827M90 due November 30, 1995 (4.25%) No. 912827N32 due December 31, 1995 (4.25%) No. 912827N57 due January 31, 1996 (4.00%) No. 912827N99 due February 29, 1996 (4.625%) No. 912827P30 due March 31, 1996 (5.125%) No. 912827P55 due April 30, 1996 (5.50%) No. 912827P97 due May 31, 1996 (5.875%)

SCHEDULE "3"
$ 201,539.37 200,677.51 198,274.90 197,052.53 195,537.09 204,457.80 202,358.62 202,949.12 202,043.27 200,861.46 243,960.63
$ 2,249,712.30

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

MITCHELL COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1995

Baker County Board of Education Tuition
Defense, U.S. Department of Department of the Ajr Force R.O.T.C. Program
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Vocational Education Federal Funds Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act - Trtle VI, B Flow Through Preschool Program
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Mitchell County Tax Commissioner County Wide School Tax
Revenue, Georgia Department of Local Option Sales Tax
Southwest Georgia Psychoeducational Services Reimbursement for Expenses
Southwest Georgia Regional Development Center Job Training Partnership Act
Various Sources Interest Earned

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

TOTAL

$ 52,023.90

$ 52,023.90

6,295.19

6,295.19

$ 40,766.59

271.82 7,075.57

147,538.00

9,844.13 10,287.99

271.82 7,075.57 40,766.59
147,538.00
9,844.13 10,287.99

85,352.10 98,961.01

$ 412,250.16

4,500.00

18,411.93

3,436.65

$

412,250.16 85,352.10 98,961.01

4,500.00

18,411.93

50.91

3,487.56

s 2a1.aea.1e s 196,866.09 s 412,2so.1s s-=............- ..s..o..._e_1 s 897,065.95

See notes to the general purpose financial statements.

- 34 -

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

SCHEDULE 5

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 2013 2014

TOTAL DEBT SERVICE

1994 ISSUE

INTEREST

PRINCIPAL

$ 308,950.84 $ 310,610.00 321,868.75 327,420.63 332,235.63

243,950.84 $ 240,610.00 236,868.75 232,420.63 227,235.63

65,000.00 70,000.00 85,000.00 95,000.00 105,000.00

341,291.25 344,516.25 356,823.75 363,038.75 368,131.25

221,291.25 214,516.25 206,823.75 198,038.75 188,131.25

120,000.00 130,000.00 150,000.00 165,000.00 180,000.00

377,066.25 384,656.25 395,706.25 400,095.00 412,676.57

177,066.25 164,656.25 150,706.25 135,095.00 117,676.57

200,000.00 220,000.00 245,000.00 265,000.00 295,000.00

423,215.63 431,684.38 438,165.63 4591532.83

98,215.63 76,684.38 53,165.63 341532.83

325,000.00 355,000.00 385,000.00 425.000.00

$ 7,097,685.89 $ 3,217,685.89 $ 3,8801000.00

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

1994 ISSUE

$

0.00

3,995,000.00

1151000.00

$ 3,880,000.00

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

See notes to the general purpose financial statements.

- 35 -

MAR 1-SEPT 1 MAR1

MITCHELL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 1995

SCHEDULE "6"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Special Instructional Assistance In-School Suspension School Counselors Grades 4 and 5 Superintendent's Base Salary Mid-term Adjustment Migrant Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Programs At-Risk Summer School Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Algebra Classrooms Alternative School Program Distant Leaming Instructional Technology Media Center and Library Equipment Safe Schools Grant
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 4,939,018.00 1,067,648.00 234,830.00 216,537.00 74,287.00 1,515,309.00
429,408.00 136,486.00 248,371.00 68,086.00 19,971.00
2,950.00 23,476.00
1,en.00 -1,091,113.00
492,386.00 $
57,629.00
48,950.00 13,347.82 8,740.00
8,466.49 12,238.34

78,092.00
32,729.00
1,819.50 54,591.00 6,072.00 46,585.93 52,364.45 88,166.00

$ 4,939,018.00 1,067,648.00 234,830.00 216,537.00 74,287.00 1,515,309.00
429,408.00 136,486.00 248,371.00 68,086.00 19,971.00
2,950.00 23,476.00
1,en.00 -1,091,113.00
492,386.00 78,092.00 57,629.00
48,950.00 13,347.82 8,740.00 32,729.00 8,466.49 12,238.34
1,819.50 54,591.00 6,072.00 46,585.93 52,364.45 88,166.00

- - - - $ 1,826,664.53

1,826,664.53

$ 8,528,698.65 $ 360,419.88 $ 1,826,664.53 $ 10,715,783.06

See notes to the general purpose financial statements.

- 36 -

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

SCHEDULE '7"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

Taxes County Wide School Tax Local Option Sales Tax Railroad Car Tax Real Estate Transfer Tax

$ 2,159,480.27 1,222,941.52 5,412.34 11,800.11

$ 2,159,480.27 1,222,941.52 5,412.34 11,800.11

Other Compensation for Loss of Assets Donations Indirect Cost Special Revenue Fund Interest Earned Lost and Damaged Books Sales Adult Meals Banquets Canning Plant Lunches School Assets Other Shared Service Contributions Thomas County Board of Education Tech-Prep Reimbursements Thomas Technical Institute Tuition Other

623.03 675.00

9,741.33 52,988.86 $
547.37

23,451.45 $ 104,315.97 $

2,408.70 36.00

46,866.92 8,382.14
101,006.86
14,940.60

4,500.00

6;700.00 187,023.90
4,068;74

68.20

1,693.72

623.03 675.00
9,741.33 182,450.00
547.37
46,866.92 8,382.14 2,408.70
101,006.86 36.00
14,940.60
4,500.00
6,700.00 187,023.90
4,136.94

$ 3,668,947.17 $ 194,716.17 $ 104,315.97 $ 1,693.72 $ 3,969,673.03

See notes to the general purpose financial statements.

- 37 -

5}avt~
1~~ ~D

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

SCHEDULE "8"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Property Services Insurance Communications Tuition Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures
Nonoperating Costs Principal and Interest Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 7,793,644.55 $ 1,189,196.60 $ 8,982,841.15

1,796,677.86

289,747.84

2,086,425.70

30,803.04

16,022.17

46,825.21

205,717.97

74,255.03

279,973.00

9,447.85

9,447.85

25,156.74

3,195.00

28,351.74

211,527.83

43,139.80

254,667.63

1,195.15

600.00

1,795.15

1,663.82

1,663.82

28,480.11

28,480.11

49,108.41

2,371.83

51,480.24

1,500.00

1,500.00

3,000.00

5,627.00

5,627.00

10,500.00

10,500.00

62,474.89

2,871.61

65,346.50

366,103.03

240,038.08

606,141.11

368,733.78

18,000.00

386,733.78

469,419.83

469,419.83

91,283.61

8,203.22

99,486.83

27,332.44

8,867.35

36,199.79

9,741.33

9,741.33

24,015.58

3,770.37

27,785.95

5,062.12 253,989.51

284,963.14

5,062.12 538,952.65

Total Expenditures

$ 11,362,754.47 $ 2,673,194.02 $ 14,035,948.49

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

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

EXPENDITURES Operating Costs Professional and Technical Services Supplies Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

ALTERNATIVE SCHOOL PROGRAM

DISTANT LEARNING

$

1,819.50

$

- - - - - $ _ _5_4.._,5_9_1_._00_

6,072.00

$

1,819.50 $

54,591.00 $ ========6'=01=2=.o=o

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

SCHEDULE "9"

INSTRUCTIONAL TECHNOLOGY

MEDIA CENTER AND
LIBRARY EQUIPMENT

SAFE SCHOOLS
GRANT

TOTAL

$

21,820.14 $

21,820.14

$

8,587.67 $

16,076.45

19,290.08

51,845.70

37,998.26

36,288.00

47,055.78

175,933.04

$

46,585.93 $

52,364.45 $

88,166.00 $ 249,598.88

- 41 -

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

SCHEDULE "1 O"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 61481,509.00 $

2171173.00

$ 6,506,830.06

--------- 455,384.04 $

410,747.87

$ 6,962,214.10

-14,164.14 $ 6,948,049.96

$

0.00 $ =====0.=00

See notes to the general purpose financial statements. - 43 -

MITCHELL COUNTY BQABP OF EDUCATION ANALVSIS OF MINIMUM EXfENDIJURE REOUlREMENTS BY PROGRAM
GENERAL FUND OUALIJY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 3Q 1995

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (") Grades 1 3 r) Sub-Total K-3 Grades4-5(") Grades6-8(") Grades 9-12 (") High School Laboratories (") Vocational Education Laboratories (") Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I(") Category II(") Category Ill(") Category r,/ (") Sub-Total Regular Category V (Gifted) (") Total Special Education Programs
REMEQIAL EQ!&AIION PROGRAM 0
Total Thirteen Weighted Programs MEDIA CENIEB PROGRAMS
Salaries Operations
Total Media Canter Programs
Total Thirteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

Ill,

ORIGINAL

MID-TERM

$

420,438.00

$

378,394.20

1,073,175.00

965,857.50 $

$ 1,493,613.00 90 $ 1,344,251.70 $

643,029.00 90

578,726.10

1,292,585.00 90

1,163,326.50

814,486.00 90

733,037.40

339,821.00 90

305,838.90

355,484.00 90

319,935.60

$ 4,939,018.00

$ 4,445,116.20 $

87,169.00 87,169.00
87,169.00

$ 1,023,954.00

$

921,558.60 $

0.00

$ 1,023,954.00 90 $

921,558.60 $

43,694.00 90

39,324.60

$ 1,067,648.00

$

960,883.20 $

$

234,830.00 90 $

211,347.00 $

$ 6,241,496.00

$ 5,617,346.40 $

0.00
0.00 -63,693.00 23,476.00

$

168,300.00 90 $

151,470.00 $

0.00

48,237.00 90

43,413.30

$

216,537.00

$

194,883.30 $

0.00

$ 6,458,033.00

$ 5,812,229.70 $

23,476.00

SIAfFQE\/ELOPMENTPBOGRAMS Cost of Instruction Professional Development
Total Staff Development (") Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements.

$

39,222.56

$

39,222.56 $

0.00

35,064.44

35,064.44

0.00

$

74,287.00 100 $

----=- 74,287.00 $

0.00

44.

SCHEDULE "11

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNTOF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

378,394.20 $

527,141.24 $

14,883.21 $

542,024.45

1,053,026.50

1,196,221.52

31,901.36

1,228,122.88

$ 1,431,420.70 $

1,723,362.76 $

46,784.57 $ 1,TT0,147.33 $

0.00

578,726.10

647,639.70

22,027.33

669,667.03

0.00

1,163,326.50

1,286,345.58

46,304.63

1,332,650.21

0.00

733,037.40

904,915.55

100,761.49

1,005,6TT.04

0.00

305,838.90

318,082.80

8,546.21

326,629.01

0.00

319,935.60

339,547.15

61,482.66

401,029.81

0.00

$ 4,532,285.20 $ 5,219,893.54 $

285,906.89 $ 5,505,800.43

$

921,558.60

$

24.72 520,175.09 $ 384,586.38

$ 18,918.89
1,500.00 92,501.56

24.72 539,093.98 386,086.38
92,501.56

$

921,558.60 $

904,786.19 $

112,920.45 $ 1,017,706.64

0.00

39,324.60

33,310.90

8,717.36

42,028.26

0.00

$

960,883.20 $

938,097.09 $

121,637.81 $ 1,059,734.90

$

147,654.00 $

162,TT4.46 $

3,203.17 $

165,9TT.63

0.00

$ 5,640,822.40 $ 6,320,765.09 $

410,747.87 $ 6,731,512.96

$

s_ _ 151,470.00 $

186,064.97

43,413.30 ________

$ ....;44..;.~636~.1~1

186,064.97 44,636.17

0.00 0.00

$

194,883.30 $

186,064.97 $

44,636.17 $ _ _2_3_0_,_70_1_.1_4

$ 5,835,705.70 $ 6,506,830.06 $

s 455,384.04 6,962,214.10 s-======o.=oo...

$

39,222.56

35,064.44

s_ _ _14....=2a=1=_00_

$

39,222.56 $

39,222.56

35,064.44

35,064.44

$

74,287.00 $

74,281.00 s-====......=-=o.o...o...

45

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

SCHEDULE "12"

BOARD MEMBER ADDRESS
Ms. Emmie Lewis, Chairperson (*) Route 2, Box 345 Camilla, Georgia 31730
Mr. James Keaton {*) 113 Morgan Street Camilla, Georgia 31730
Dr. Harry Lee Kemp {*)
P. 0. Box272
Camilla, Georgia 31730
Mr. Scott Morrell (*) 354 Sylvester Road Camilla, Georgia 31730
Mr. Randy Rigsby(*) Route 4, Box 418 Camilla, Georgia 31730
Mr. Charlie Williams (*) 37 New Street Camilla, Georgia 31730
Mr. Herman Wilson {*)
P. 0. Box 167
Baconton, Georgia 31716

COMPENSATION

TRAVEL

$

1,300.00

1,200.00

1,200.00

1,200.00

1,200.00

1,200.00 $

659.02

1,400.00

88.83

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

$

8,700.00 $ ====74=7.8=5

See notes to the general purpose financial statements. - 46 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 21, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Mitchell County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Mitchell County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 21, 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 ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Mitchell 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-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 21, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Mitchell County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 21, 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 Mitchell County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office ofManagement and Budget's "Compliance Supplement for Single Audits ofState 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 of failures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed a material instance of noncompliance that is described in the Schedule ofFindings and Improper or Questioned Costs.

We considered this material instance ofnoncompliance in forming our opinion on whether the Mitchell County Board of Education general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated August 21, 1996, on those financial statements.

Except as described above, the results of our procedures to determine compliance indicate that, with respect to the items tested, the Mitchell County Board of Education, complied, in all material respects, with the requirements listed in the second paragraph of this 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 ofour procedures disclosed immaterial instances of noncompliance with those requirements which are also described in the Schedule ofFindings and Improper or Questioned Costs.

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

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

matter of public record:



Respectfully submitted,
~~:;.~
Claude L. Vickers
State Auditor

CLV:gp 95CRL-70

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 21, 1996

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

SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REOUIRE:tvffiNTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Mitchell County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 21, 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 Mitchell 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 Mitchell 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 Mitchell 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,

CLV:gp 95CRL-80

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 21, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Mitchell County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 21, 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 Mitchell County Board of Education 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 ofan opinion on the Mitchell County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

95CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing
came to our attention that caused us to believe that the Mitchell 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,
?!'~rr:~
Claude L. Vickers State Auditor
CLV:gp 95CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 21, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Mitchell 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 Mitchell County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 21, 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 of the Mitchell 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 ofthe design and operation of policies and procedures may deteriorate.

95ICL-3

In planning and peifonning our audit ofthe general purpose financial statements of the Mitchell County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to detennine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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, reportable conditions were noted in the following control categories:

(1) Accounting Controls (Overall)

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more of the 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 peiforming 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 conditions disclosed above are also considered to be material weaknesses.

These conditions were considered in determining the nature, timing, and extent of the procedures to be peiformed in our audit ofthe Mitchell County Board ofEducation's financial statements and this report does not affect our report thereon dated August 21, 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,
4'~~
Claude L. Vickers State Auditor

CLV:gp 95ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 21, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Mitchell County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Mitchell County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated August 21, 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 Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated August 21, 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 ofState and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Mitchell 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 ofexpressing 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 August 21, 1996.
95ICL-7

The management ofthe Mitchell County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

For all of the internal control structure categories listed above, we obtained an understanding ofthe design 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 Mitchell County Board of Education expended 71% of its total Federal financial assistance under major Federal financial assistance programs.

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

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 described 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 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 Mitchell 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 August 21, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:gp 95ICL-7

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

MITCHELL COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION
Failure to Meet Expenditure Requirements Financial Statements Amount: $1,354.35 Audit Control Number 7011-93-04
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure ofQuality Basic Education (QBE) funds of $1,354.35 for the salaries portion of the Special Education Programs Category V (Gifted) Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $1,354.35 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION
Failure to Meet Expenditure Requirements Financial Statements Amount: $4,660.30 Audit Control Number 7011-93-05
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $4,660.30 for the StaffDevelopment - Professional Development Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $4,660.30 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION
Failure to Meet Expenditure Requirements Financial Statements Amount: $537.65 Audit Control Number 7011-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $537.65 for the salaries portion of the Special Education Programs Category V (Gifted) Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$537.65 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
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MITCHELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $2,807.00 Audit Control Number 7011-94-02
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure ofQuality Basic Education (QBE) funds of$2,807.00 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$2,807.00 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Include all Bank Accounts in Accounting Records Financial Statements Finding Resolved Audit Control Number 7011-94-03
The audit report for the year ended June 30, 1994, reported that the Board had failed to record the School Food Service-Banquet account transactions and balances within the Board's accounting records. During the year under review, the School Food Service - Banquet account transactions and balances were included in the Board's accounting records.
AUDIT FOLLOW-UP/RESOLUTION Failure to Obtain Drug-Free Certification Federal Financial Assistance Finding Resolved Audit Control Number 7011-94-04
The audit report for the year ended June 30, 1994, reported that the Board had not complied with U. S. Department ofDefense nonprocurement suspension and debarment regulations as contained in 32 CFR 280 in order to certify a drug-free workplace in support ofthe Air Force R.O.T.C. Program. For the year under review, the Board certified to the U. S. Department ofDefense that it maintains a drug-free workplace as required.
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MITCHELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan Federal Financial Assistance Finding Resolved Audit Control Number 7011-94-06
The audit report for the year ended June 30, 1994, disclosed that the Mitchell County Board ofEducation failed to submit a corrective action plan to the Georgia Department ofEducation for the 1993 audit report in a timely manner. In the year under review, a corrective action plan for the 1994 audit report was submitted on a timely basis as required.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements. ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7011-93-01
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures. In the year under review, no improvement in adequate separation of employee duties was noted. This deficiency was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff.
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "1" ofthis report, are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7011-93-02
The audit report for the year ended June 30, 1994, noted that the management ofthe Mitchen 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 of a General Fixed Assets Account
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MITCHELL 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 7011-93-02
Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 7011-93-03
The audit report for the year ending June 30, 1994, stated that the Board's property management records for the Elementary and Secondary Educational Act - Chapter 1 Program (CFDA 84.010) 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). For the year under review, the LEA's property management records again failed to meet Federal requirements as follows:
(1) The inventory records as presented for audit did not contain additions for purchases made in the period under review.
(2) The inventory records did not accurately reflect the physical location of equipment items.
These conditions occurred because manage~ent failed to ensure that property management records were properly maintained. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41, ofthe FMGLUA. Perpetual inventory records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year, when applicable. Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of the Board's inventory records.
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MITCHELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

PRIOR YEAR/CURRENT YEAR
DRUG-FREE WORKPLACE ACT Failure to Implement a Drug Awareness Program Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7011-94-05

The audit report for the year ended June 30, 1994, noted that the Board failed to implement a Drug-F_ree Awareness Program as required by Federal Regulation (32 CFR 280) for the Department ofDefense R.O.T.C. Program. For the year under review, no improvement was noted regarding implementation ofa Drug-Free Awareness Program. For the grantee to be certified as a drug-free workplace, a drug awareness program must be established. This program must inform employees of the dangers of drug abuse in the workplace, ofthe grantee's policy for maintaining a drug-free workplace and of any available drug rehabilitation and employee assistance programs. This condition occurred because management was unaware that all required provisions of the Drug-Free Awareness Program had not been implemented. The Board should develop a Drug-Free Awareness Program that includes all the required elements.
CURRENT YEAR

AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7011-95-01

The Board failed to submit a copy of the 1994 audit report to the following entities that provided Federal financial assistance:

Grantor

Program

Chattahoochee-Flint Regional Educational Service Agency
U. S. Department ofDefense

Chapter 1 Migratory Education Program (CFDA 84.011) Air Force R.O.T.C. Program

Paragraph 13fofO:MB Circular A-128 requires that recipients ofFederal financial assistance submit copies ofsingle audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing ofthe audit report distribution responsibilities by the Department of Audits, management failed to perform the distribution requirement. Procedures should be implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements.

Note: The Mitchell County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.

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