Audit report, Murray County Board of Education, Chatsworth , Georgia, year ended June 30, 1996

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AUDIT REPORT MURRAY COUNTY BOARD OF EDUCATION
CHATSWORTH, GEORGIA YEAR ENDED JUNE 30, 1996

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

MURRAY 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

6

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

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

28

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

32

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

34

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

36

L

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUHDS

37

~YCOUNTYBOARDOFEDUCATION
- TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

38

2 CASH AND CASH EQUNALENTS

40

3 ACCOUNTS RECEIVABLE

41

4 DEBT SERVICE REQUIREMENTS TO MATURITY

42

SCHEDULE OF REVENUE

5

STATE

43

6

TAXES AND OTHER

44

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

45

8

LOTTERY PROGRAMS

46

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

47

10

BY PROGRAM

48

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

50

SECTIONll
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

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

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
May 21, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Murray County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through F) of the Murray County Board of Education, as of and for the year ended June 30, 1996, 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 OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
96ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. "
* The 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, 1996, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1996. Also funds received, subsequent to June 30, 1996, 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, 1995, were improperly recorded in the year ended June 30, 1996. 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 Murray County Board of Education as of June 30, 1996, 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 May 21, 1997, on our consideration ofthe Board's internal control structure and a report dated May 21, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Murray County Board of Education taken as a whole. The combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Murray County Board of Education. 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.
96ARL-13

A copy ofthis report has been filed as a pennanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
CLV:cm 96ARL-13

MURRAY COUNTY BOARD OF EDUCAnON
- 1-

MURRAY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1996

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,552,038.77 $

372,965.62 $ 3,412,097.47

145,543.09

229,674.38

25,803.86 22,314.47

Total Assets

$ 1,697,581.86 $

650,758.33 $ 3,412,097.47

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs 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

$ 700,626.48 $

32,122.95

1,678.34

185,837.17

4,997.09

$

702,304.82 $ _-=22:::2::..!,;,9:;.:5:..:..7.:=.2:....:....1

$

4,960.46

$

11,272.48

25,803.86 22,314.47
$

39,529.01 3,290,579.91

$

11,272.48 $

53,078.79 $ 3,330,108.92

984,004.56

374,722.33

81,988.55

995,277.04 $

427,801.12 $ 3,412,097.47
'\

Total Liabilities and Fund Equity

$ 1,697,581.86 $

650,758.33 $ 3,412,097.47

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

EXHIBIT "A"

" DEBT
SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

538,680.82 $

42,852.37

11,635.87

1,594.39

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30,1996

JUNE 30, 1995

$ 5,918,635.05 $ 6,453,415.63

388,447.73

366,301.65

25,803.86 22,314.47

26,301.20 20,676.33

$

550,316.69

550,316.69

442,040.82

2,999,683.31

2,999,683.31

3,242,959.18

$

550,316.69 $

44,446.76 $

3,550,000.00 $ 9,905,201.11 $ 10,551,694.81

$

732,749.43 $

23,982.34

187,515.51

152,952.75

4,997.09

31,782.61

151,284.00

$

6,546.91

6,546.91

4,829.86

$

3,550,000.00

3,550,000.00

3,685,000.00

$

6,546.91 $

3,550,000.00 $ 4,481,808.94 $ 4,049,831.56

$

550,316.69

$

$ 550,316.69 $ 0.00
$ 550,316.69 $
$ 550,316.69 $

22,000.00 .
22,000.00 15,899.85 37,899.85 44,446.76 $

$

5,269.34

$

4,960.46

3,120.21

550,316.69

442,040.82

22,000.00

22,000.00

11,272.48

16,765.94

25,803.86 22,314.47 39,529.01 3,290.579.91

26,301.20 20,676.33 2,247,376.00

$ 3,966,776.88 $ 2,783,549.84

1,456,615.29

3,718,313.41

$ 5,423,392.17 $ 6.501,863.25

3,550.000.00 $ 9.905,201.11 $ 10,551.694.81

-3-

MURRAY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

$ 18,092,296.83 $
165,647.46 6,301,435.18

900,304.00 $
1,694,620.07 834,352.04

$ 24,559,379.47 $ 3,429,276,11 $

707,202.03 79,664.80
786,866.83

$ 16,740,351.31 $ 1,207,798,10

577,544.21 554,341,83 667,077.98 350,625.27 1,408,177.60 153,589.04 1,926,428.55 1,149,989.01 473,533.34
97,391.20 138,352.19 861,920.81

92,031,98 71,713.97
36,556.41
32,871.56 52,289.70
26,947.44 1,957,423.73
2,500.00
$ 1,385,811.62

$ 25,099,322.34 $ 3,480,132.89 $ .1,385,811.62

$ -539,942.87 $

-50,856.78 $ -598,944.79

$ $ -1,759,095.62
$ -1,759,095.62 $

11,429.36 $ 1,747,666.26 11,429.36 $ 1,747,666.26

$ -2,299,038.49 $
3,291,851.50

-39,427.42 $ 1,148,721.47

468,551.77

2,263,376.00

2,464.03

-497.34 1,638.14 -2,464.03

FUND BALANCE JUNE 30

$

995,277.04 $

427,801.12 $ 3,412,097.47

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

EXHIBIT"B"

" DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 1996

JUNE 30, 1995

$ 19,699,802.86 $ 16,394,487.09

1,860,267.53

1,860,294.78

$ 461,640.49

7,677,092.51

7,271,761.05

$ 461,640.49 $ 29,237,162.90 $ 25,526,542.92

$ 17,948,149.41 $ 15,383,278.83

669,576.19 626,055.80 667,077.98 387,181.68 1,408,177.60 153,589.04 1,959,300.11 1,202,278.71 473,533.34
26,947.44 1,957,423.73
97,391.20 140,852.19 2,247,732.43

606,417.09 563,593.18 751,188.17 298,668.13 1,293,784.57 130,014.23 1,812,839.04 942,620.39 262,567.47
4,822.12 1,851,422.12
95,071.00 126,872.29
71,189.29

$

135,000.00

216,652.50

1,712.12

135,000.00 216,652.50
1,712.12

115,000.00 222,912.50
1,712.88

$

353,364.62 $ 30,318,631.47 $ 24,533,973.30

$

108,275.87 $ -1,081,468.57 $

992,569.62

$ 1,759,095.62 $ -1,759,095.62

$

0.00 $

11,000.00 -11,000.00
0.00

$

108,275.87 $ -1,081,468.57 $

992,569.62

442,040.82

6,465,820.09

5,483,969.56

-497.34 1,638.14

-14,424.69 3,705.60

$ 550,316.69 $ 5,385,492.32 $ 6,465,820.09 - 5-

MURRAY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes and Other Funds

$ 17,086,385,34 $ 18,092,296,83

104,000.00

165,647.46

5,615,315.00 6,301,435.18

Total Revenues

$ 22,805,700.34 $ 24,559,379.47

EXPENDITURES

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

$ 16,510,451.34 $ 16,740,351.31

575,475.00 539,599.00 683,296.00 384,000.00 1,500,150.00 176,500,00 1,915,475.00 1,257,125.00 521,611.00

577,544.21 554,341.83 667,077.98 350,625.27 1,408,177.60 153,589.04 1,926,428.55 1,149,989.01 473,533.34

8,900.00 138,000.00 170,000.00

97,391.20 138,352.19 861,920.81

Total Expenditures

$ 24,380,582.34 $ 25,099,322.34

Excess of Revenues over (under) Expenditures

$ -1,574,882.00 $ -539,942.87

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -1,782,071.00 $ -1,759,095.62

Total Other Financing Sources (Uses)

$ -1,782,071.00 $ -1,759,095.62

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -3,356,953.00 $ -2,299,038.49

FUND BALANCE JULY 1. 1995

3,152,305.07 3,291,851.50

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

-8,262.20

2,464.03

FUND BALANCE JUNE 30,1996

$ -212,910.13 $ 995,277.04

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 729,044,00 $ 900,304.00

1,774,119.00 1,694,620.07

844,166.00

834,352.04

$ 3,347,329.00 $ 3,429,276.11

$ 1,167,625.28 $ 1,207,798.10

111,518.00 98,246.72

92,031.98 71,713.97

83,944.00

36,556.41

26,226.00 18,914.00
36,041.00 2,097,879.00
2,507.00

32,871.56 52,289.70
26,947.44 1,957,423.73
2,500.00

$ 3,642,901.00 $ 3,480,132.89 $ -295,572.00 $ -50,856.78

$ 298,150.98 $ -258,549.98
$ 39,601.00 $

11,429.36 11,429.36

$ -255,971.00 $ 582,170.17 15,764.16

-39,427.42 468,551.77
-497.34 1,638.14 -2,464.03

$ 341,963.33 $ 427,801.12
....

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

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 3D. 1996

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded
NONOPERATING REVENUES Interest Earned Total Income
FUND BALANCE JULY 1

ENDOWMENT FUND
FRED L. AND MINNIE B. DUNN
TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1996 JUNE 3D, 1995

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

$

1,856.69 $

1,856.69 $

1,851.55

$

1,856.69 $

1,856.69 $

1,851.55

36,043.16

36,043.16

34,191.61

FUND BALANCE JUNE 30

$

37,899.85 $

37,899.85 $==,,;,,36=:,0=4=3=.1=6

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

MURRAY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30.1996

EXHIBIT"E"

Cash Flows from Investing Activities: Interest Received on Investments
Cash and Cash Equivalents - July 1

ENDOWMENT FUND
FRED L. AND MINNIE B. DUNN
TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

1,851.55 $

1,851.55 $

1,851.55

34,453.91

34,453.91

32,602.36

Cash and Cash Equivalents - June 30

$

36,305.46 $

36,305.46 $====34=,4=5:=3:=:.9=1

The notes to the general purpose financial statements are an integral part of this statement. - 8-

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

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, Taxes 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 educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all fmancial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources .obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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..
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 TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLETRUSTFUND Fred L. and Minnie B. Dunn Trust Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used as designated by the Board.
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.
- 10-

MURRAY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note"1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detennined 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-Tenn Debt Account Group.
All 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 of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
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, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1996, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1995 and ending in early June 1996. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1996, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1996, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30,1996. Also, the State's portion of the compensation paid in July and August 1996 was received
- 11 -

MURRAY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
and recorded as revenue in the fiscal year subsequent to June 30, 1996. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1995, were recorded in the year ended June 30, 1996. 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 of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Murray County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the function 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 of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

- 12 -

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note" 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist of grant reimbursements due from 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 Murray County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on October 21, 1995 (levy date). Taxes were due on December 20, 1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.l03. The Murray County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

Tax millage rates levied for the 1995 tax year (calendar year) for the Murray County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

11.5 mills
-.l.J2 mills

12.5 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 (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

- 13 -

MURRAY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, the dollar value 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. Bond premiums and discounts, as well as issuance costs, are recognized during the year bonds are issued. Issuance costs, whether or not withheld from actual net proceeds, are reported as capital project expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures/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.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial positiOl~, 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.
- 14 -

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note"2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 11 0 percent ofthe public fimds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public fimds may, in his discretion, waive the requirement for security in the case of operating fimds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any 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.
CATEGORlZATION OF DEPOSITS At June 30, 1996, the bank balances were $6,632,447.28. 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.
- 15 -

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS

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 fmancial 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, 1996, as follows:

Risk Category 1 2 3 Total
Note 3: NON-MONETARY TRANSACTIONS

Bank Balance
$ 200,000.00 3,957,421.35 2,475,025.93
$ 6,632.447.28

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

Note 4: RISK MANAGEMENT

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

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

The Board has designated an independent contractor to operate a risk management program for Workers' Compensation. Claims paid by the contractor are reimbursed by the Board's General Fund. Each fund budgets for estimated claims based on known claims and prior experience. Reimbursement to the General Fund is made from each fund based on actual claims paid. During the year under review, the Board's General Fund incurred expenditures of $154,175.78 for claims and related expenses incurred by the contractor. Additional insurance coverage is provided through a policy with Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Board in excess of $225,000.00 loss per occurrence, up to the statutory limit. Also should losses within the retained limit of $225,000.00 aggregate to more th~ $700,200.00, the policy with Midwest Employers Casualty Company will pay the next $1,000,000.00.

- 16-

MURRAY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note"4: RISK MANAGEMENT

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

1995 1996

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 164,109.60 $ 164,109.60 $

0.00

$

0.00 $ 154,175.78 $ 154,175.78 $

0.00

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

1995 1996

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.00 $

8,772.00 $

8,772.00 $

0.00

$

0.00 $

1,482.00 $

1,482.00 $

0.00

Note 5: GENERAL LONG-TERM DEBT

GENERAL OBLIGAnON BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1991

5.25% - 6.5%

$ 3,550,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1996, were as follows:

Balance July 1, 1995
Deductions Payments
Balance June 30, 1996

General Obligation
Bonds $ 3,685,000.00
135,000.00 $ 355000000

- 17 -

MURRAY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 5: GENERAL LONG-TERM DEBT

At June 30, 1996, payments due, by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
1997 1998 1999 2000 2001 2002 and thereafter
Total Principal and Interest

General Obligation
Bonds
$ 369,010.00 384,861.25 399,137.50 416,582.50 436,896.25
3,042.395.00
$ 5,048,882.50

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $566,860.49 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies,

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $500,942.49

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$65,918,00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1996, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

95/96S-705-048

$ 4.467,913.56 $ 2,061.335,97 "

The amounts described in this note are not reflected in the general purpose financial statements.

- 18 -

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note"8: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 9: SUBSEQUENT EVENTS
On March 18, 1997 the voters of Murray County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition of the tax by the voters, as stated on the Official Ballot of Murray County, is as follows:
"Shall a one percent sales and use tax be imposed in the Murray County School District for a period of time not to exceed twenty consecutive calendar quarters and for the raising of not more than $13,600,000 for the purpose of acquiring, constructing and equipping the following capital outlay projects at total maximum cost of $10,191,479: (a) new classrooms and other facilities together with renovations at Chatsworth Elementary, Northwest Elementary, Gladden Middle, Bagley Middle, and Spring Place Elementary Schools, (b) an addition to the central school offices, (c) renovations at the old Eton School, and (d) computers and technology equipment for all schools, AND the retirement of all previously incurred general obligation debt of the school system in a maximum amount of$3,408,521?
If imposition of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of the Murray County School District in the principal amount of$ll,630,000 for the above purposes."
Note 10: 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 of their 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 of compensation 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 of general creditors in the future.
- 19 -

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 10: DEFERRED COMPENSATION PLAN
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. Tb conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
Note 11: ACCUMULATED EMPLOYEES' LEAVE
The Board's professional personnel earn one and one-quarter days of sick leave each month with a maximum accumulation of 60 days. Personnel who retire through the Teachers Retirement System or Public School Employees Retirement System are granted $10.00 per day for accumulated sick leave to a maximum of $750.00. See Note 1 - Compensated Absences
Note 12: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded witp interest.
The Board's payroll for employees covered by TRS for the year ended June 30,1996, was $15,656,450.78; total payroll was $17,674,622.02.
- 20-

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note" 12: RETIREMENT PLANS

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 1996 that rate for employer contributions was 11.81%. Theinterest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1996 amounted to $2,631,849.93, of which $1,849,026.82 was made by the Board and $782,823.11 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 of the 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, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. 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, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $1 ,849,026.82 was actuarially determined and represented .3045% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 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.

- 21 -

MURRAY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 12: 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.
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. 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"Yhat 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 157 employees covered under PSERS for the year ended June 30, 1996.
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 of the Board made during fiscal year 1996 amounted to $5,060.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 13: SURETY BONDS
Dr. Michael E. McNeill, School Superintendent through June 30, 1996, was bonded in the amount of "-
$25,000.00 with the Continental Insurance Company, New York, New York, their Bond No. 3478786.

- 22-

MURRAY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note" 13: SURETYBONDS
Mr. Gary Garland, Interim School Superintendent effective July 1,1996 through September 15,1996, was
bonded in the amount of$15,000.00 with the Continental Insurance Company, New York, New York, their Bond No. 1371581.
The School Superintendent, Mr. Donald M. Turknett, effective September 16, 1996, is bonded in the amount
of$25,000.00 with the American Manufacturers Mutual Insurance Company, Long Grove, Illinois, their Bond No. 3SE894887-00, on which premium is paid through September 15, 1999.

- 23 -

MURRAY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET
SPEC~LREVENUEFUND
JUNE 30,1996

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$ 360,475.48

118,522.30 $

50,462.00

25,803.86 22,314.47

$ 527,116.11 $===5=,0,=46=2=.0=0

See notes to the general purpose financial statements.

- 24-

EXHIBIT"G" Page 1

F.O.C.U.S. 2000
PROGRAM

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

STATE

TITLE II

INNOVATIVE

LOCAL

SCHOOL

EISENHOWER EDUCATION

EDUCATIONAL IMPROVEMENT PROFESSIONAL PROGRAM

AGENCIES

GRANTS

DEVELOPMENT STRATEGIES

GOALS 2000

$

0.00 $

283.85 $

0.00 $

1,460.46 $

0.00 $

3,500.00

49,194.66

$

0.00 $

49,478.51 $

0.00 $

1,460.46 $

0.00 $

3,500.00

$

10,034.47

39,444.04

$

49,478.51

$

1,460.46

$

3,500.00

$

0.00 $

$

0.00 $

0.00 $ 0.00 $

$

0.00 $

49,478.51 $

$
----:o..o.:.O~O
0.00 $

1,460.46
0.00 $ 1,460.46 $

0.00 $ ====1,=46=0.4=6 $

$
O...:..O~O 0.00 $

3,500.00 0.00
3,500.00

0.00 $

3,500.00

- 25-

MURRAY COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
SPEC~LREVENUEFUND
JUNE 30,1996

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$

6,212.77

2,295.42 $

9,200.00

Total Assets

$

8,508.19 $ ===9,;;,,:,2:=0=0=.0==0

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

$

2,332.01

5,875.08

301.10

$

8,508.19 $

4,531.47 1,255.88 3,397.66
14.99
9,200.00

$

0.00 $

$

0.00 $

$

8,508.19 $

0.00 0.00
9,200.0"-0

See notes to the general purpose financial statements.

- 26-

EXHIBIT"G" Page 2

"
SAFE AND DRUG-FREE SCHOOLS

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

TOTALS JUNE 30,1996 JUNE 30, 1995

$

6,698.46 $

0.00 $

0.00 $

378,631.02 $

684,574.30

229,674.38

119,650.53

25,803.86 22,314.47

26,301.20 20,676.33

$

6,698.46 $

0.00 $

0.00 $

656,423.73 $

851,202.36

$

395.34

1,622.12

4,681.00

$

6,698.46

$

5,665.40 $

22,648.89

32,122.95

23,982.34

185,837.17

152,952.75

4,997.09

31,782.61

151,284.00

$

228,622.61 $

382,650.59

$

0.00 $

$

0.00 $

$

6,698.46 $

0.00 $ 0.00 $
0.00 $

$

4,960.46 $

3,120.21

$ 0.00 0.00 $

25,803.86 22,314.47
53,078.79 $ 374,722.33
427,801.12 $

26,301.20 20,676.33 50,097.74 418,454.03 468,551.77

0.00 $

656,423.73 $==8=51==,2=0=2=.3=6

- 27-

MURRAY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 3D, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer
FUND BALANCE JUNE 30
See notes to the general purpose financial statements. - 28-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 137,276.00 $
977,807.04 795,152.54
$ 1,910,235.58 $

763,028.00 763,028.00

$

649,156.17

46,057.83 6,930.30 3,731.02
31,638.70 30,010.00

$ 1,953,967.28

3,456.45

$ 1,953,967.28 $ $ -43,731.70 $

770,980.47 -7,952.47

$ -43,731.70 $ 465,431.56
-497.34 1,638.14

7,952.47
0.00 0.00

...

$ 422,840.66 $

0.00

EXHIBIT"H" Page 1

F.O.C.U.S. 2000
PROGRAM

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

STATE

TITLE II

INNOVATIVE

LOCAL

SCHOOL

EISENHOWER

EDUCATION

EDUCATIONAL IMPROVEMENT PROFESSIONAL

PROGRAM

AGENCIES

GRANTS

DEVELOPMENT STRATEGIES

GOALS 2000

$

1,496.30 $

39,199.50

$ 40,695.80 $

331,194.66 $ 331,194.66 $

24,275.00 $ 24,275.00 $

25,652.00 $
25,652.00 $

29,153.00 $

8,000.00

29,153.00 $

8,000.00

$ 33,392.31 $

302,365.33 $

1,232.86 3,606.60

250.00 1,631.89
26,947.44

2,221.64 22,053.36 $

$
27,282.68 29.07

29,087.36

$ 65.64

4,500.00

$ 38,231.77 $

$

2,464.03 $

331,194.66 $ 0.00 $

24,275.00 $ 0.00 $

27,311.75 $ -1,659.75 $

29,153.00 $ 0.00 $

4,500.00 '3,500.00

$

2,464.03 $

0.00

-2,464.03

$

0.00 $

0.00 $ 0.00
0.00 $

0.00 $ 0.00

-1,659.75 $ 3,120.21

0.00 $ 0.00

3,500.00 0.00

0.00 $

1,460.46 $

0.00 $

3,500.00

- 29-

MURRAY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1996

REVENUES
State Funds Federal Funds Taxes and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer
FUND BALANCE JUNE 30

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$ 181,994.32 $ $ 181,994.32 $

41,990.01 41,990.01

$ 102,763.42 $
24,535.61 8,697.63
27,324.56
18,673.10

34,615.11
2,756.75 2,000.00 2,618.15

$ 181,994.32 $

$

0.00 $

41,990.01 0.00

$

0.00 $

0.00

0.00

0.00

"-

$

0.00 $

0.00

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

EXHIBIT"H" Page 2

SAFE AND DRUG-FREE SCHOOLS

VOCATIONAL EDUCATION
FEDERAL

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 20,926.00 $

40,000.00 $

$ 20,926.00 $

40,000.00 $

$ 12,131.74
12,131.74 $

900,304.00 $ 1,694,620.07
834,352.04
3,429,276.11 $

566,245.85 1,636,429.14
803,482.61
3,006,157.60

$

1,647.17 $

15,622.75

1,156.08

43,476.89 $

2,500.00

$ 20,926.00 $

$

0.00 $

43,476.89 $ -3,476.89 $

9,072.70 $ 3,059.04
12,131.74 $ 0.00 $

1,207,798.10 $
92,031.98 71,713.97 36,556.41 32,871.56 52,289.70
26,947.44 1,957,423.73
2,500.00
3,480,132.89 $
-50,856.78 $

952,503.20
129,832.44 35,432.27 29,159.21 1,862.62 24,916.80 169.02 1,757.64
1,851,422.12
3,027,055.32
-20,897.72

3,476.89

$

0.00 $

0.00

0.00 $ 0.00

11,429.36

0.00 $ 0.00

-39,427.42 $ 468,551.77

-20,897.72 500,168.58

-497.34 1,638.14 -2,464.03

-14,424.69 3,705.60

$

0.00 $

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

427,801.12 $

468,551.77

- 31 -

MURRAY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1996

ASSETS Cash and Cash Equivalents
FUND EQUITY Fund Balances
Reserved For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

REGULAR

1991 BOND ISSUE
FUND

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

95/96S-705-048 97/96S-705-034

$ 81,988.55 $

39,529.01 $ 2,457,249.91 $ ===4=00=,9=4=0='0==0

$

39,529.01

-----$

$

39,529,01 $

2,457,249.91 $ _ _.;.;4.:;.00;.1.,9.:;.4.;.;0.;.;.0;..:;.0

2,457,249.91 $

400,940.00

$ 81,988.55

0.00

0.00

0.00

$ 81,988.55 $

39,529,01 $ 2,457,249.91 $ ===4=00=,9=4=0=.0==0

See notes to the general purpose financial statements.

- 32-

EXHIBIT "I"

LOTIERY

PROJECT

PROJECT

96/955-705-054

97-705-037

TOTALS JUNE 30.1996 JUNE 30.1995

$

0.00 $

432.390.00 $ 3,412.097.47 $ 2,263.376.00

$ $ _ _....:.43=.:2"".3::.;:9:.;;0.;;.::.0=..0

$

432.390.00 $

39.529.01 $ 3,290,579.91
3.330.108.92 $

1.939.761.00 307,615.00
2.247.376.00

$

-=O.;.;:.O=..O

0.00

81,988.55

16,000.00

$

0.00 $

432,390.00 $ 3,412,097.47 $ 2.263.376.00

- 33-

MURRAY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30.1996

REGULAR

1991 BOND ISSUE
FUND

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

95/96S-705-048

97/96S-705-034

REVENUES

State Funds Taxes and Other Funds

$

384,216.03 $

0.00

$ 2,900.00 $

76,764.80

Total Revenues

$ 2,900.00 $

76,764.80 $

384,216.03 $

0.00

EXPENDITURES

Capital Outlay

Land and Land Improvements

$

0.00 $

137,088.00 $

0.00

Building and Building Improvements

$ 18.709.45

474,489.91

Total Expenditures

$ 18,709.45 $

0.00 $

611,577.91 $

0.00

Excess of Revenues over (under) Expenditures

$ -15,809.45 $

76,764.80 $

-227,361.88 $

0.00

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 81,798.00 $

35,887.00 $

-2,012,883.79

2,412,883.79 $

400,940.00

Total Other Financing Sources (Uses)

$ 81,798.00 $ -1,976,996.79 $

2,412,883.79 $

400,940.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 65,988.55 $ -1,900,231.99 $

2,185,521.91 $

400,940.00

FUND BALANCE JULY 1

16,000.00

1,939,761.00

271,728.00

0.00

FUND BALANCE JUNE 30

$ 81,988.55 $

39,529.01 $

2,457,249.91 $===4=0=0=,9=4=0.=00=

See notes to the general purpose financial statements.

- 34-

EXHIBIT"J"

LOTIERY

PROJECT

PROJECT

96/955-705-054

97-705-037

TOTALS

YEAR ENDED

JUNE 30,1996

JUNE 30, 1995

$

322,986.00 $

$

322,986.00 $

0.00 $ 0.00 $

707,202.03
79,664.80 $ _ _-=6.::J31~50::..:4~.5:=..3
786,866.83 $ _ _-=6..;;.J3,=50::..;4:.;.;:.5:=,3

$

745,559.26 $

$

745,559.26 $

$

-422,573.26 $

$ 9,965.00
9,965.00 $
-9,965.00 $

137,088.00 $ 1,248,723.62
1,385,811.62 $
-598,944.79 $

4,427.50 1,347.34
5,774.84
57.729.69

$

386,686.26 $

442,355.00 $ 3,760,550.05 $

342,048.52

-2,012,883.79

-331 ,048.52

$

386,686.26 $

442,355.00 $ 1,747,666.26 $

11,000.00

$

-35,887.00 $

432,390.00 $ 1,148,721.47 $

68,729.69

35,887.00

0.00

2,263,376.00

2,194,646.31

$

0.00 $

432,390.00 $ 3,412,097.47 $ 2,263,376.00

- 35-

MURRAY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30.1996

EXHIBIT"K"

ASSETS Cash and Cash Equivalents Accounts Receivable

NONEXPENDABLE TRUST FUND FRED L. AND
MINNIE B. DUNN TRUST FUND

AGENCY FUNDS

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

36,305.46 $

6,546.91 $

42,852.37 $

39,283.77

1,594.39

1,594.39

1,589.25

Total Assets

$

37,899.85 $

6,546.91 $

44,446.76 $===4""0=,8=7,,,,3=.0=2

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

$
22,000.00 15,899.85 $ 37,899.85 $

6,546.91 $

6,546.91 $

4.:.J.;,8~2=9.:.;;.8~6

$
---"'O=.O~O
0.00 $

22,000.00 $

22,000.00

15,899.85

14,043.16

37,899.85 $ _ _....;3:::.:6:.z..:,O::..;4~3:..:..1=-6

Total Liabilities and Fund Equity $

37,899.85 $

6,546.91 $

44,446.76 $ ===4~0;.:,;,8;;,7,;;,3=.0,;;,2

See notes to the general purpose financial statements.

- 36-

MURRAY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1996

EXHIBIT "L"

COUNSELORS' WORKSHOP
ASSETS Cash and Cash Equivalents

BALANCE JULY 1,1995

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1996

$

189.04 $

600.00 $

618.89 $

170.15

LIABILITIES Funds Held for Others
STAFF DEVELOPMENT FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
SOCIAL WORKERS' FUND ASSETS
Cash and Cash Equivalents

$

189.04 $

600.00 $

618.89 $===1=7=0=.1,;;,,5

$

2,317.08 $

1,285.10 $

2,616.05 $ =====9=8=6.=1,;;,,3

$

2,317.08 $

1,285.10 $

2,616.05 $ =====9=8=6.=1=03

$

2,323.74 $

16,851.00 $

13,784.11 $===5~,3=9=0.=6=o3

LIABILITIES Funds Held for Others

$

2,323.74 $

16,851.00 $

13,784.11 $===5~,3=9=0.=6,;;,,3

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents

$

4,829.86 $

18,736.10 $

17,019.05 $===6=,5=4=6.=9=1

LIABILITIES Funds Held for Others

$

4,829.86 $

18,736.10 $

17,019.05 $ ===6~,5:;,,4;,,;;6=9.=1

See notes to the general purpose financial statements.

- 37-

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30,1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Through Office of Treasury and Fiscal Services National Forest Reserve Funds Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1996 Contract Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1996 Grant State School Improvement Grants 1996 Grant Title" Eisenhower Professional Development 1995 Regular 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Safe and Drug-Free Schools 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant Through Gilmer County Board of Education Goals 2000 State and Local Education Systemic Improvement Grants 1996 Grant
Total U. S. Department of Education

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.665 $

24,205.23

(5)

10.558

8,480.28

(2)

10.553

189,644.66

* 10.555 10.550

649,352.84 $ 130,329.26

$ 1,002,012.27 $

(2)
1,823,638.02 (3) 130,329.26
1,953,967.28

* 84.010 $ 84.218

331,194.66 $ 24,275.00

331,194.66 24,275.00

84.281 84.281

3,075.00 22,577.00

6,195.21 21,116.54

84.298

29,153.00

29,153.00

84.027 84.173 84.186

181,994.32 41,990.01 20,926.00

181,994.32 41,990.01 20,926.00

84.048

79,626.00

(4)

84.243

38,000.00

(4)

84.276 $

8,000.00 780,810.99 $

4,500.00
...
661,344.74

- 38 -

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30.1996

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Through Georgia Department of Human Resources F.O.C.U.S. 2000 Program Early Childhood Development 1995 Contract
Labor, U. S. Department of Through North Georgia Private Industry Council Job Training Partnership Act Contract No. 95010104
OTHER FEDERAL ASSISTANCE
Appalachian Regional Commission Direct GA-1156-94-1-302-0328
Defense, U. S. Department of Direct Department of the Army R.OTC. Program
Total Other Financial Assistance
Total Federal Financial Assistance

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.040 $

1,496.30 $

38,231.77 (3)

17.250 $

12,131.74 $

12,131.74

$ 39,899.83

(4)

23,916.40

(4)

$ 63,816.23

$ 1,860,267.53 $ 2,665,675.53

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 Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

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

MURRAY COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1996

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
Cohutta Banking Company, Chatsworth, Georgia
Certificates of Deposit No. 1873 (6.00%) No. 16854 (5.00%)
N.O.W. Account (4.878%)
First National Bank of Chatsworth, Chatsworth, Georgia
Certificate of Deposit No. 11980 (5.50%) N.O.W. Accounts (Variable)

$ 23,127.10 100,000.00
1,584,254.18 $ 1,707,381.28

$ 100,000.00 4,111,253.77

4,211,253.77

$ 5,918,635.05

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

MURRAY COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "3"

Creative Arts Guild, Incorporated Grassroots Program
Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool
Governor, Office of the Georgia Challenge Program
Human Resources, Georgia Department of Children's Trust Fund
Murray County Tax Commissioner County Wide Bond Tax County Wide School Tax
Office of School Readiness Pre-Kindergarten Program
Prudent Risk Management, Incorporated Security Deposit
Various Sources Interest Earned

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL REVENUE

SERVICE

FUND

FUND

FUND

FIDUCIARY FUND TYPE TRUST FUND

TOTAL

$

160.00

$

160.00

$ 33,562.42 84,959.88

33,562.42 84,959.88

49,194.66

2,295.42 9,200.00

3,405.00

3,200.73

137,777.36

$ 11,635.87

50,462.00

1,000.00

$

49,194.66

2,295.42 9,200.00

3,405.00

3,200.73

11,635.87 137,777.36

50,462.00

1,000.00

1,594.39

1,594.39

$ 145,543.09 $ 229,674.38 $ 11,635.87 $

1,594.39 $ 388,447.73

See notes to the general purpose financial statements.

- 41

MURRAY COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30, 1996

SCHEDULE "4"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

TOTAL DEBT SERVICE

1991 ISSUE

INTEREST

PRINCIPAL

$ 369,010.00 $ 209,010.00 $

384,861.25

199,861.25

399,137.50

189,137.50

416,582.50

176,582.50

436,896.25

161,896.25

449,992.50

144,992.50

451,245.00

126,245.00

455,820.00

105,820.00

458,520.00

83,520.00

459,295.00

59,295.00

462,935.00

32,935.00

304,587.50

9,587.50

160,000.00 185,000.00 210,000.00 240,000.00 275,000.00 305,000.00 325,000.00 350,000.00 375,000.00 400,000.00 430,000.00 295,000.00

$ 5,048,882.50 $ 1,498,882.50 $ 3,550,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1995 Bonds Retired During Period
Bonds Payable at June 30,1996

1991 ISSUE $ 3,685,000.00
135,000.00
$ 3,550,000.00

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

MAR 1 - SEP 1 SEP 1

See notes to the general purpose financial statements. - 42 -

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

AGENCYIFUNDING
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 Technology Training Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teacher Program Mentoring Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Distant Learning Exceptional Growth-Capital Outlay Pre-Kindergarten Program Safe Schools Grant Technology Installation
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Governor, Office of the Georgia Challenge Program
Human Resources, Georgia Department of Children's Trust Fund
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 10,069,753,00 1,696,052,00 444,628,00 441,979,00 146,149,00 2,881,476,00

$ 10,069,753,00 1,696,052,00 444,628,00 441,979,00 146,149,00 2,881,476,00

541,364,00 170,572,00
51,530,00 8,394,00
406,593,00 666,302,00 107,257.00
30,040,00 363,680.00 -1,976,190.00 1,244,791.00
$ 75,794.00

137,276.00

541,364,00 170,572,00
51,530,00 8,394.00
406,593.00 666,302,00 107,257,00
30,040,00 363,680.00 .1,976,190.00 1,244,791.00 137,276.00
75,794,00

5,000.00 28,874.90
500.00 500,942.49
1,170.00 7,000.00 54,867,00 8,810.44

5,000.00 28,874.90
500.00 500,942.49
1,170.00 7,000.00 54,867.00 8,810.44

156,500.00 $
299,340.00 31,284.00 80,000.00

322,986.00

156,500.00 322,986,00 299,340.00
31,284.00 80,000.00

384,216.03 34,050.00 15,000.00
195,904.00 65,918.00

384,216.03 34,050.00 15,000.00 195,904.00 65,918.00

$ 18,092,296.83 $ 900,304.00 $ 707,202.03 $ 19,699,802.86

- 43 -

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "6"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Sources After School Program For Salaries Compensation for Loss of Assets Creative Arts Guild, Incorporated Grassroots Program Dalton College For Salaries Donations Food Processing Program Interest Earned Jury Duty Fees Murray County High School Alternative School For Salaries Reinhardt College For Salaries Rents Revenue in Lieu of Taxes Tennessee Valley Authority Sales Adult Meals Breakfast Contracted Meals Lunch Supplemental School Assets Testing Fees Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 5,102,070,31
6,097,81 18,139.40

$ 447,305,53 $ 447,305,53

5,102,070,31

530.24

6,628,05

1,577,34

19,716.74

90,035.94 797,375,28

1,900.00

30,583,30
2,413.79
123,440,99 $
1,802,58

$
18,205.64

2,900,00 75,264,80

12,227.38

90,035,94 797,375.28
1,900.00
30,583,30 2,900,00 2,413.79
229,138,81 1,802.58

17,265.45 8,200,00 200,00
57,131.42
6,904.43 8,242.75
720,00 28,911.73

72,436,53 59,990.83 18,272,25 539,654,24 77,464.82
48,327.73

1,500,00

17,265.45
8,200.00 200,00
57,131.42
72,436,53 59,990.83 18,272.25 539,654.24 77,464.82
6,904.43 8,242.75
720,00 78,739,46

$ 6,301,435.18 $ 834,352.04 $ 79,664.80 $ 461,640.49 $ 7,677,092.51

, See notes to the general purpose financial statements.

- 44 -

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 1996

SCHEDULE "7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 16,300,958.15 $ 1,373,663.87 $ 17,674,622.02

4,549,818.39

434,895.04

4,984,713.43

53,587.20

18,108.21

71,695.41

269,282.17

67,967.34

337,249.51

11,187.80

11,187.80

39,427.01

1,878.00

41,305.01

392,730.51

12,528.75

405,259.26

18,772.20

18,772.20

119,758.31

1,168.00

120,926.31

54,247.85

54,247.85

66,038.73

2,750.12

68,788.85

11,302.56

11,302.56

30,082.94

30,082.94

19,247.65

4,994.53

24,242.18

572,140.37

278,513.53

850,653.90

762,132.55

17,882.11

780,014.66

829,270.90

829,270.90

277,273.22

19,413.41

296,686.63

26,168.33

6,756.49

32,924.82

26,405.76

8,722.92

35,128.68

812,723.01 697,340.19

390,317.11

812,723.01 1,087,657.30

$ 25,099,322.34 $ 3,480,132.89 $ 28,579,455.23

See notes to the general purpose financial statements. - 45 -

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTIERY PROGRAMS YEAR ENDED JUNE 30,1996

SCHEDULE "8"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer and Cleaning Services Communications Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Building and Building Improvements Equipment

DISTANT LEARNING

EXCEPTIONAL GROWTHCAPITAL OUTLAY

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

$

$ $ 161,412.79

755,524.26

298,094.64

$

77,837.44

5,599.86

3,162.76

1,878.00 503.99
63,666.56 $ 17,790.00
3,456.45

31,312.70

19,413.41 253.00
3,587.89

$

83,010.98

TOTAL
298,094.64 77,837.44 5,599.86
3,162.76
1,878.00 503.99
94,979.26 17,790.00
3,456.45
19,413.41 253.00
3,587.89
755,524.26 244,423.77

Total Expenditures

$ 161,412.79 $

755,524.26 $

495,244.00 $ 31,312.70 $

83,010.98 $ 1,526,504.73

See notes to the general purpose financial statements.

- 46 -

MURRAY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30,1996

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 12,951,249.00 $ _ _--=-41.:...::J.:,7~0~7.:..:::0.::..0

$ 14,288,094.57 921,936.12 $ _ _---=.:82:...4:J.:7,~0~8.:...:.4.::..5
$ 15,210,030.69

-197,250.80 $ 15,012,779.89

$

0.00 $ =====0=,0==0

See notes to the general purpose financial statements. - 47 -

MURRAY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1996

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 912 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS RegUlar Programs Category I (*) Category /I (*) Category III (*) Category IV (*) Sub-Total - Regular Category V (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*) Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

$ 1,139,959.00

$

2,665,746.00

$ 3,805,705.00 90 $

1,2n,038.00 90

2,409,780.00 90

1,537,712.00 90

426,539.00 90

612,979.00 90

$ 10,069,753.00

$

1,025,963.10 2,399,171.40 $ 3,425,134.50 $ 1,149,334.20 2,168,802.00 1,383,940.80
383,885.10 551,681.10 9,062,777.70 $

100,000.00 100,000.00 186,276.00
286,276.00

$ 1,549,397.00

$ 1,394,457.30 $

0.00

$ 1,549,397.00

146,655.00

$ 1,696,052.00

$

444,628.00

$ 12,210,433.00

90 $ 90
$ 90 $
$

1,394,457.30 $ 131,989.50
1,526,446.80 $ 400,165.20 $
10,989,389.70 $

0.00
0.00 0.00 286,276.00

$

349,949.00 90 $

314,954.10 $

92,030.00 90

82,827.00

$

441,979.00

$

397,781.10 $

12,561.00 12,561.00

$ 12,652,412.00

$ 11,387,170.80 $

298,837.00

$

36,065.00

$

36,065.00 $

0.00

110,084.00

110,084.00

$

146,149.00 100 $

146,149.00 $

0.00

...

See notes to the general purpose financial statements.

- 48 -

SCHEDULE "10"

" TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,025,963.10 $

1,401,772.20 $

34.866.35 $ 1.436,638.55

2,499,171.40

3,086,205.40

134,212.76

3,220.418.16

$ 3,525.134.50 $

4,487,977.60 $

169,079.11 $ 4.657,056.71 $

0.00

1.149,334.20

1,509,711.99

100,614.02

1,610,326.01

0.00

2,355,078.00

2,574,273.69

205,646.47

2.779.920.16

0.00

1,383,940.80

1.543.518.65

139,007.65

1,682,526.30

0.00

383,885.10

475,774.30

35.510.74

511,285.04

0.00

551,681.10

754,425.05

123,718.88

878,143.93

0.00

$ 9.349,053.70 $ 11.345.681.28 $

773,576.87 $ 12.119,258.15

$ 1.394,457.30 $

379,944.15 $ 404.917.51 962.040.79
52,169.82

9,463.85 $ 12,304.54 16,303.31
2.209.92

389,408.00 417.222.05 978.344.10
54.379.74

$ 1,394,457.30 $

1.799.072.27 $

40,281.62 $ 1,839.353.89

0.00

131,989.50

177,396.18

3,968.45

181.364.63

0.00

$ 1,526.446.80 $

1.976,468.45 $

44.250.07 $ 2,020,718.52

$

400.165.20 $

411,381.71 $

6,881.51 $

418.263.22

0.00

$ 11.275.665.70 $ 13.733.531.44 $

824.708.45 $ 14.558,239.89

$

327.515.10 $

554.563.13

$

554,563.13

0.00

82,827.00

$

97,227.67

97,227.67

0.00

$

410.342.10 $

554.563.13 $

97,227.67 $

651.790.80

$ 11.686.007.80 $ 14.288.094.57 $

921.936.12 $ 15,210.030.69 $

0.00

$

36.065.00

110.084.00

$ ==::1=46;;",;,,14;;;,9;;;,.0;;.0

$

70.382.26 $

70.382.26

76.379.11

76.379.11

$

146.761.37 $

146.761.37 $======0=.0=0

. 49

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30. 1996

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Barron Peeples, Chairman (*) P. O. Box 309 Chatsworth, Georgia 30705
Mr. Raymond Butler (*) 824 Cobb Road Chatsworth, Georgia 30705
Mr. Harry Hawkins (*) 119 Browns Bridge Road Chatsworth, Georgia 30705
Mr. Roger Hobbs (*) 539 Wildwood Drive Chatsworth, Georgia 30705
Mr. Dennis Johns, Jr. (*) P. O. Box 74 Chatsworth, Georgia 30705
Mr. Mike Mathis (*) P. O. Box 99 Crandall, Georgia 30711
Mr. Del Richards (*) P. 0, Box 1346 Chatsworth, Georgia 30705
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

1,500.00

1,300.00

1,500.00 $

287.80

1,250.00

1,500.00

2,100.00

1,750.00

$

10,900.00 $ ====2=8=7,=8=0

See notes to the general purpose financial statements.

- 50 -

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
May 21, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Murray County Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Murray County Board of Education as of and for the year ended June 30,1996, and have issued our report thereon dated May 21,1997. 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 perfonn 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 Murray County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-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:cm 96CRL-IO

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
May 21, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Murray County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 21, 1997. 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 Murray County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-UplResolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

96CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Murray 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,
~~
Claude L. Vickers State Auditor
CLV:cm 96CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 21,1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Murray County Board of Education as of and for the year ended June 30,1996, and have issued our report thereon dated May 21,1997. 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 Murray County Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

(2) Eligibility
(3) Matching, Level of Effort, 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, 1996. The management of the Murray County Board of Education 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.

96CRL-80

We conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Bud~et (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB 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 Murray County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Murray 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, 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,
~
Claude L. Vickers State Auditor
CLV:cm 96CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 21, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Murray County Board of Education as of and for the year ended June 30,1996, and have issued our report thereon dated May 21,1997. 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 ofthe fiscal year 1996 general purpose financial statements of the Murray 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 of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governmg:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Murray County Board of Education had not complied, in all material respects, with those requirements.

96CRL-120

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,
d~
Claude L. Vickers State Auditor
CLV:cm 96CRL-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
May 21, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Murray County Board of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Murray County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated May 21, 1997. 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 Murray 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 of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

96ICL-3

In planning and peIforming our audit of the general purpose financial statements of the Murray County Board ofEducation for the year ended June 30, 1996, 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 determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of 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 condition disclosed above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be peIformed in our audit of the Murray County Board of Education's financial statements and this report does not affect our report thereon dated May 21, 1997.
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.

CLV:cm 96ICL-3

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
May 21, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Murray 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 Murray County Board of Education as of and for the year ended June 30,1996, and have issued our report thereon dated May 21,1997. 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 Murray County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 21, 1997.
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 (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB 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 Murray County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with OMB 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 May 21, 1997.
96ICL-5

The management ofthe Murray 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 of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because ofinherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REOUIREMENTS

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 of Effort, and/or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Drug-Free Workplace Act (7) Audit Follow-UplResolution (8) Administrative Requirements

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

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

During the year ended June 30, 1996, the Murray County Board of Education expended 53% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by OMB 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

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are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
" Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe 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. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
d~
Claude L. Vickers State Auditor
CLV:cm 96ICL-5

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30,1996
PRIOR YEAR AUDIT FOLLOW-UPIRESOLUTION Unearned Per Diem Payments Financial Statements Audit Control Number 7051-93-01 Audit reports for prior years have called attention to $4,800.00 of unearned per diem payments to Board Members for the years ended June 30, 1989, 1990 and 1991. Overpayments to Board Members were as follows:
As of the date of our audit report, no reimbursements were received for these overpayments. The Board should obtain reimbursement of $4,800.00 for deposit to the Board's General Fund. AUDIT FOLLOW-UPIRESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7051-93-05 The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $5,493.46 for the Staff Deve10pment - Professional Development Stipends Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department of Education to refund the underexpenditure as required.
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MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UPIRESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $11,272.48 Audit Control Number 7051-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$II,272.48 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$II,272.48 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-UPIRESOLUTION Failure to Transfer Local Matching Funds Financial Statements Finding Resolved Audit Control Number 7051-95-01
The audit report for the year ended June 30, 1995, stated that the Board failed to transfer local matching funds from the General Fund to the Capital Projects Fund as required for the approved State Capital Outlay Project for the 1995 fiscal year. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration and the agreement signed by the Board to receive the funding through Georgia State Financing and Investment Commission require that the Board transfer local matching funds by year end and designate those funds by project name and number. In the year under review, the local funds were transferred as required.
PRIOR YEARJCURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7051-93-03
The audit report for the year ended June 30, 1995, noted that the management of the Murray County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within t~e 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
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MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7051-93-03 accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory 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.
Note: The Murray County Board of Education 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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