Audit report, Oconee County Board of Education, Watkinsville, Georgia, year ended June 30, 1995

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

AUDIT REPORT OCONEE COUNTY BOARD OF EDUCATION
WATKINSVILLE, GEORGIA YEAR ENDED JUNE 30, 1995

OCONEE 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

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

27

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

28

2 CASH AND CASH EQUIVALENTS

29

3 ACCOUNTS RECEIVABLE

31

4 DEBT SERVICE REQUIREMENTS TO MATURITY

32

SCHEDULE OF REVENUE

5

STATE

34

6

LOCAL AND OTHER

35

OCONEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

37

8

LOTTERY PROGRAMS

38

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

41

10

BY PROGRAM

42

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

44

SECTION II
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

SECTION ID
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

OCONEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
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 AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 2, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Oconee County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Oconee County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
95ARL-13*

The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confonn 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 confonn to generally accepted accounting principles, these amounts should be included in the general purpose financial statements.
The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To confonn 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 ofsuch adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and 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 ofthe Oconee County Board ofEducation as of June 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe Oconee County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements ofthe Oconee County Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
95ARL-13*

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

OCONEE COUNTY BOARD OF EDUCATION - 1-

Q~Qt:,IEE ~OUNI:t: BQARD QF EDUQAT!Q!ll ~QMalNEQ aALAN~E SHEEI
ALL F!.!!l!Q n:ees ANQ ACQQ!.!NI !:zBQ!.!e
J!,!NE 30, 1995

ASSETS
Cash and Cssh 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 Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2,098,459.74 $ 122,769.54 $ 131,916.47

50,375.34

118,187.57

491,963.00

23,003.83 9,647.65

Total Assets

$ 2,148,835.08 $ 273,608.59 $ 623,879.47

LIAEULII!ES At:,IQ E!.!NQ EQUII:t:
UABILIIIES
Accounts Payable Arbitrage Rebate Tax Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Unearned Lottery Funds Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
F!.!NQ EQ!.!11:t:
Fund Balances Reserved For Bus Replacement Funds For Debt Service 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
Total Liabilities and Fund Equity

$

2,524.15 $

17,603.06

74,295.61

$

6,886.96

171,815.00

$

2,524.15 $

911898.67 $ 178z701.96

$

62,401.59

45,899.24

$
$ 108,300.83 $ 2,038,010.10
$ 211461310.93 $

23,003.83 9,647.65
$ 32,651.48 $ 149,058.44 181,709.92 $

44511n.s1 445,tn.st
0.00 445,1n.s1

$ 2,148,835.08 $ 273,608.59 $ 623,879.47

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

EXHIBITA

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS {Memorandum On~} JUNE 3011995 JUNE 3011994

$ 513,730.90

$ 2,866,876.65 $ 3,010,123.85

10,331.47

670,857.38

128,411.05

23,003.83 9,647.65

22,837.29 8,619.66

$

524,062.37

524,062.37

406,671.29

12,610,937.63 4131182.02

12,610,937.63 4131182.02

13,118,328.71 2271268.87

$ 5241062.37 $

1315481182.02 $ 1711181567.53 $ 1619221260.72

$

20,127.21 $

22,232.59

66,000.00

74,295.61

71,967.53

68.09

6,886.96

171,815.00

12,504.50

196.24

$

413,182.02

413,182.02

227,268.87

1311351000.00 1311351000.00 1315251000.00

$

1315481182.02 $ 1318211306.80 $ 1319251237.82

$ 524,062.37
$ 524,062.37 0.00
$ 5241062.37 $ 5241062.37 $

$

62,401.59

524,062.37 $ 406,671.29

45,899.24

45,899.24

23,003.83 9,647.65
4451177.51

22,837.29 8,619.66 61,971.22
4971593.21

$ 1,110,192.19 $ 1,043,591.91

211871068.54

11953,430.99

$ 3,2971260.73 $ 2,9971022.90

1315481182.02 $ 1711181567.53 $ 161922,260.72

-3-

OCONEE COUNTY BOARD Of EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1995

REVENUES
State Funds Federal Funds Local and 0lher 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 Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Escrow Agent Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES lUSES}
Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds
Par Value Discount on Bonds Sold Payments to Refunded Bond Escrow Agent Capital Leases 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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 11,739,035.40 $ 17,24222
4,901,430.29

-494,03522 $ 787,954.71 528,947.43

1,988,41627 6,512.48

$ 16.657.707.91 $ 1,810,937.36 $ 1,994.928.75

$ 10,198,350.39 $ 553,663.16

542,05325 466,811.59 370,832.06 403,336.76 1,063,031.51 247,71124 1,584,05521 862,518.46 14,486.20
60.00 51,561.92 121,499.80 66,014.84

71,154.53 13,591.47 88,942.60
755.33
12,711.09 8,560.50
74,83922 1,040,460.72
$ 2,609,315.67

49,021.85 1,517.43

$ 16.042.862.51 $ 1,864,678.62 $ 2,609,315.67

$

614,845.40 $

-53.741.26 $ -614.386.92

$

234,935.00

$

-526,895.68

$ -291.960.68 $

26,895.68 $ 500,000.00 26,895.68 $ soo,000.00

$

322,884.72 $

1,823,426.21

-26,845.58 $ 207,360.97

-114,386.92 559,564.43

166.54 1,027.99

FUND BALANCE JUNE 30

$ 2,146,310.93 $ 181,709.92 $ 445,177.51

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

EXHIBITe-

DEBT SERVICE
FUND

TOTALS
(Memorandum OnM
YEAR ENDED
JUNE 301 1995 JUNE 301 1994

$ 14,221,486.89 $

805,196.93

$ 1.153,574.60

6.590,464.80

$ 1,153.574.60 $ 21.617,148.62 $

10,596,870.89 767,STT.41
5.901,126.08
17.265,974.18

$ 10,752,013.56 $ 9,629,695.57

613,207.78 480,403.06 459,TT4.66 404,082.08 1,063,031.51 247,71124 1,596,766.30 871,078.96
14,48620 74,69922 1,082,022.64 121,499.80 2,675,330.51

506,558.13
472,069.03 336,16521 323,089.02 910,526.99 198,578.49 1,456,369.92 963,726.11
20,167.60 65,32922 994,132.05 89,901.18 492,991.95

$ 380,000.00 641,652.50
4,331.02

439,021.65 643,368.93
4,331.02

201,179.48 496,101.46 288,581.95
883.90

$ 1.036,183.52 $ 21.553,040.32 $ 17,446,04726

$ 117,391.08 $

64,108.30 $

-180,073.08

$

42,740.78

-239,600.50

11,275,000.00

-65,80225

-10,989,59725

$

234,935.00

226,974.00

526,895.68

315,902.47

-526,895.68

-315,902.47

$

234,935.00 $

269,714.78

$ 117,391.08 $

299,043.30 $

89,641.70

406,67129

2,997,022.90

2,907,53828

166.54 1,027.99

-400.43 243.35

$ 524.062.37 $ 312971260.73 $ 2!9971022.90

-5-

B(c~v\.-\c
?0~'

OCONEE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - CNON-GAAP BASIS>
GENERAL AND SPECIAL REVENUE FUNDS VEAR ENDED JUNE 30, 1995

EXHIBIT c-

REVENUES
State Funds
Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current
Instruction
Support Services Pupil Services Improvement of Instructional Services
Ed icational 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 Other Operations of Non-Instructional Services capital Outlay
Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHEB FINANCING SOUBCES tUSESl
Other Sources
Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and other Financing Sources over (under) Expenditures and Other Financing Uses
FUND E!ALANCE JUL::( 1, 1994
Adjustments

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 11,130,427.00 $ 11,739,035.-40

17,242.22

415841272.00

419011430.29

$ 15z7141699.00 $ 16,657,707.91

$ 10,434,903.00 $ 10,198,350.39

553,889.00 495,099.00 433,656.95 277,478.00 995,-404.00 236,909.00 1,575,829.50 717,412.00
14,119.00
43,219.00 92,645.00 420,000.00

542,053.25 466,811.59 370,832.06 403,336.76 1,063,031.51 247,711.24 1,584,055.21 862,518.46 14,486.20
60.00 51,561.92 121,499.80 66,014.84 50,539.28

$ 16.290,563.45 $ 16,042,862.51

$ -575,864.45 $ 614,845.-40

$ 234,935.00 -526,895.68
$ -291,960.68

$ -575,864.45 $ . 322,884.72

1,929,894.89

1,823,426.21

-10,478.39

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 398,280.20 $ 4'94,035.22

863,845.00

787,954.71

4591500.00

528,947.43

$ 1,7211625.20 $ 11s101937.36

$ 448,605.00 $ 553,663.16

72,955.00 16,887.00
1,1-40.00

71,154.53 13,591.47 88,942.60
755.33

360.00 4,992.00
76,024.00 932,975.00

12,711.09 8,560.50
74,839.22 1,0,40,460.72

$ 1,553,938.00 $ 1,864,678.62 $ 1671687.20 $ -53,741.26

$ 26,895.68

$ 26,895.68

$ 167,687.20 $ -26,845.58

207,361.57

175,904.02

1,195.n

FUND E!ALANCE JUNE 30, 1995

$ 1,343,552.05 $ 2,146,310.93

$ 376,244.54 $ 149,058.44

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

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Oconee County Board ofEducation (Board) was established under the laws ofthe State ofGeorgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant ofthe Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity ofthe Oconee County Board ofEducation.
Based upon the application ofthe above criteria, the Oconee County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Oconee 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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set ofaccounts. 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.

- 8-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet.
- 9-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUM;MARY OF SIGNIFICANT ACCOUNTING POLICIES

Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources.

Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available).

"Measurable" means the amount ofthe transaction can be determined and "available" means collectible within

the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues

considered susceptible to accrual are property taxes, intergovernmental grants and investment income.

Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board

within 60 days after fiscal year-end.

,

Expenditures are generally recognized when the related fund liability is incurred.

A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number ofpersonnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion ofthe compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

BUDGET

The Oconee County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is

- 10 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

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

Special Revenue
Fund
$ -26,845.58 207,360.97
-22,837.29 -8,619.66 $ 149,058.44

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 ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

- 11 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from infonnation 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 Oconee County Board ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on August 30, 1994 (levy date). Taxes were due on November 15, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70. l 03. The Oconee County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds $85,045.00 (one-half of Tax Commissioner's budget not to exceed 2.5% oftaxes collected) as a fee for tax collection, and remits the balance of taxes collected to the Board.

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

School Operations School Bonds

13.35 mills 3.05 mills

12,iQ mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

- 12 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
- 13 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D" -

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or of the State ofGeorgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,

(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgja, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as . to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $4,676,207.15. The amounts of the total bank balances are classified into three categories of credit risk:

Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1995, as follows:
Risk Category 1 2 3 Total

Bank Balance
$ 813,730.90 2,448,327.51 1,414,148.74
$ 4 676,207.15

- 14 -

OCONEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

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

The Board has obtained commercial insurance for errors and omissions, however the policy excludes coverage for sexual harassment and discrimination claims. The Board has not experienced any losses related to errors or omissions in the past three years.

The Board has elected to self-insure with regard to natural disasters. The Board has not incurred any losses related to natural disasters during the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994

$

0.00 $

2,725.00 $

178.00 $

2,547.00

1995

$

2 547.00 $

0.00 $

2,547.00 $

0.00

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

- 15 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

rated premium during the policy temi, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss.

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Oconee County Board ofEducation has entered into various lease agreements as lessee for school buses and communications equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date oftheir inception.

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1994

$ 227,268.87 $ 13,525,000.00 $13,752,268.87

Additions Deductions Balance June 30, 1995

234,935.00

234,935.00

49,021.85

390,000.00

439,021.85

$ 413,182,Q2 $ IJ, IJ~,QQQ QQ s lJ,548,182 Q~

At June 30, 1995, payments due, by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1996 1997 1998 1999 2000 200 l and thereafter

$ II5,039.42 $ 790,706.25 $ 905,745.67 l 15,039.42 1,174,775.00 1,289,814.42 I 15,039.42 1,246,690.00 1,361,729.42 115,039.43 1,326,392.50 1,441,431.93 1,323,380.00 1,323,380.00 12.266,552.50 12,266,552.50

Total Principal and Interest

$ 460,157.69 $18,128 496,25 $ 18,588,653.94

Deduct: Imputed Interest

46,975.67

Net Present Value ofFuture Minimum Lease Payments

$ 413,182.02

- 16 -

OCONEE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1994, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial
statements. At June 30, 1995, $11,920,000.00 ofbonds are outstanding and are considered defeased.

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction-or renovation contracts executed by the Board as ofJune 30, 1995, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

New Oconee County Elementary School

$ 1,972,475.48 $ 788.004 73

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

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant tenns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the perfonnance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but are not believed to be material to the general purpose financial statements.

Note 9: SUBSEQUENT EVENTS

In the subsequent fiscal year, the Board issued general obligation bonds in the amount of $9,385,000.00 dated December 1, 1995. The proceeds from these bonds will be used for the construction of a new middle school and renovation of existing school facilities.

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.

- 17 -

OCONEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\ffiNTS

JUNE 30, 1995

Note 10: DEFERRED COl\,fl>ENSATION PLAN
All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Board subject only to the claims of the Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant.
It is the opinion ofthe Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required ofan ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims ofgeneral creditors in the future.
The Board has designated an independent plan administrator to operate and maintain the plan. The assets and liabilities of the plan are not reflected in these financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
Note 11: RETIREl\ffiNT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment ofage 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.

- 18 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 11: RETIREMENT PLANS

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $10,472,283.55; total payroll was $11,883,666.91.

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

Total contributions made during fiscal year 1995 amounted to $1,760,390.47, ofwhich $1,236,775.02 was made by the Board and $523,615.45 was made by employees. These contributions represented I 1.81% (Board) and 5% (employees) of covered payroll.

TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected
salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable
readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058.958,000,00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

- 19 -

OCONEE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 11: RETIREMENT PLANS
Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of$1,236,775.02 was actuarially determined and represented .2188% oftotal contributions made by all participating employers.
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
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 IO years of service and attainment ofage 65. A member applying for service retirement with IO years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has IS or more years ofcreditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.
Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contnbutions are refunded with interest.
There were 136 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board ofTrustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $4,404.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.

- 20 -

OCONEE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 12: SURETY BONDS
The School Superintendent, Dr. DebraM Harden, is bonded in the amount of$50,000.00 with the Hartford Insurance Company ofthe Southeast, Hartford, Connecticut, their Bond No. 4670012, on which premium is paid through December 31, 1996.

- 21 -

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

OCONEE COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
SPECIAL REVENUE FUND
JUNE3Q 1995

ELEMENTARY

SCHOOL FOOD
SERVICES FUND

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE

CHAPTER 1

SCHOOLS AND EDUCATION OF

COMMUNITIES CHILDREN IN

ACT

STATE SCHOOLS

$ 205,954.70 $

0.00

$

0.00 $

0.00

$ 67,589.19

23,003.83 9,647.65
$ 238,606.18 $ _ _ _ _o._oo_s 67,589.19 $

0.00 $ _ _ _ _ _0._00_

LIABILITIES AND FUND EQUITY

LIABILITIES

cash overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Umtarned Lottery Funds

$ 12,538.54 44,357.72

$ 67,589.19

Total Liabilities

$ 56,896.26

$ 67,589.19

FUND EQUITY

Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food

$ 23,003.83 9,647.65

Unreserved Undesignated

$ 32,651.48

149,058.44 $

0.00 $

0.00 $

0.00 $

0.00

Total Fund Equity

$ 181,709.92 $

0.00 $

0.00 $

0.00 $

0.00

Total Liabilities and Fund Equity

$ 238,606.18 $

0.00 $ 67,589.19 $

0.00 $

0.00

See notes to the general purpose financial statements.

-22-

EXHIBITE

AND SECONDARY EDUCATION ACT
EDUCATION OF CHAPTER2 DEPRIVED BLOCK GRANT CHILDREN FLOW THROUGH

TITLE II EISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B ---,F"""L""'o,.,.w,,_---,P,;.,R=E'""s""'c.,..,Ho=o=L~

THROUGH

PROGRAM

TOTALS JUNE 301 1995 JUNE 301 1994

$

0.00 $

0.00

$ 205,954.70 $ 226,634.91

$

36,230.38

$

7,643.00 $

6,725.00

118,187.57

100,347.55

----- $

36,230.38 $

0.00 $

23,003.83 9,647.65

22,837.29 8,619.66

0.00 $

7,643.00 $

6,725.00 $ 356,793.75 $ 358,439.41

$

14,438.57

2,961.37

18,830.44

$

36,230.38

$

633.55 $

523.85 $ 83,185.16 $ 44,263.63

1,372.12

731.03

17,603.06

22,078.45

5,637.33

5,470.12

74,295.61

71,967.53

68.09

12,504.50

196.24

$

7,643.00 $

6,725.00 $ 175,083.83 $ 1511078.44

$

0.00 $

$

0.00 $

$

36,230.38 $

0.00 $ 0.00 $
0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$ 23,003.83 $ 91647.65

$ 32,651.48 $

0.00

149,058.44

0.00 $ 181?09.92 $

22,837.29 8,619.66
31,456.95
175,904.02 207,360.97

0.00 $

7,643.00 $

6,725.00 $ 356,793.75 $ 358,439.41

-23-

OCOt:fEE QQ!.!NIY BQABQ QE EQ!J~IIQt:f
QQMl;llt:flN~ IATEMEt:fI QF BWEt:f!.!E, EXPEt:fQII!.!BE Af::112 Ql:IAt:f~E lt:f E!.!f::112 EIALAt:fQES
PEQIAL RE:iEN!,!E E!.!f::112
YEAR ENDEQ J!,!NE 30, 1995

BWEN!,!E
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENPII!.!BE
Current Instruction Support Services PupilServices Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
Qil:IER Elt:fAt:fQIN~ Q!,!RQE
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
E!.!NP BALANCE JULY 1
Food lnvento,y - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

ELEMENTARY

STATE PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

CHAPTER 1 EDUCATION OF CHILDREN IN STATE SCHOOLS

$ 76,224.00 $ 409,283.71 5281107.43
$ 110131615.14 $

33,786.00 $

384,025.22 $
840.00

33i786.00 $ 3841865:22 $

15,953.00 $ 151953.00 $

898.00 898.00

$
$ 1,040,460.n $ 11040,460.n s $ -26,845.58 $

33,786.00 $ 247,396.42 $ sa,sn.as 2,232.44 88,942.60 12,711.09 3,605.50
s 33,786.00 $ 411i7ao.so
0.00 $ -26,895.88 $

804.00 $ 14,281.88
829.14 38.18
151953.00 $ 0.00 $

$ -26,845.58 $ 207,360.97
166.54 1,027.99

26,895.88

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

698.00
698.00 0.00
0.00 0.00

FUND BALANCE JUNE 30

$ 181,709.92 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

-24-

EXHIBIT"P

AND SECONDARY EDUCATION ACT

EDUCATION OF DEPRIVED CHILDREN

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE 11 EISENHOWER MATHEMATICS AND SCIENCE EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

$

167,340.00 $

$

167,340.00 $

1s.~.oo $ 19,969.00 $

10,251.00 $ 141,360.00 $ 10,251.00 $ 141,360.00 $

$ 23,100.00

494,035.22 $ 787,954.71 528,947.43

253,953.32 756,289.04 466,508.94

23,100.00 $ 1,810,937.36 $ 1,476,751.30

$

166,sn.37 $

362.63

$

167,340.00 $

$

0.00 $

$

0.00 $

0.00

$

0.00 $

19,920.26 $
48.74
19,969.00 $ 0.00 $

$

65,936.11 $

10,229.89 21.11

300.00 284.67

74,839.22

10,251.00 $ 0.00 $

141,360.00 $ 0.00 $

18,145.00 $ 553,663.16 $ 397,570.06

4,955.00

71,154.53 13,591.47 88,942.60
755.33 12,711.09 8,560.50 74,839.22 1,040,460.72

13,551.66 2,905.52 4,826.99 5,059.52 19,982.25 48,457.10 65,304.22 946,319.31

23,100.00 $ 1,864,678.62 $ 1,503,976.63

0.00 $ -53,741.26 $ -27,225.33

0.00 $ 0.00

0.00 $ 0.00

0.00 $ 0.00

26,895.68

0.00 $ 0.00

-26,845.58 $ 207,360.97

-27,225.33 234,743.38

166.54 1,027.99

-400.43 243.35

0.00 $

0.00 $

0.00 $

0.00 $ 181,709.92 $ 207,360.97

- 25-

Cash and Cash Equivalents Accounts Receivable
Total Assets

OCONEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30, 1995

EXHIBIT "G"

1989 BOND ISSUE
FUND

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECTS 94-708-058 96-708--051

LOTTERY PROJECT 96195S-708-056

TOTALS JUNE 30. 1995 JUNE 301 1994

$

0.00 $

49,945.47 $

81,971.00 $ 131,916.47 $ 625,564.43

491.963.00

491.963.00

$

0.00 $

541,908.47 $

81,971.00 $ 623,879.47 $ 625,564.43

LIABILITIES AND FUND EQUITY

LIABILITIES
Arbitrage Rebate Tax Payable Contracts Payable Retainages Payable

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For Purposes of Bond Issue

For State Capital Outlay Projects

Unreserved

Undesignated

$

Total Fund Equity

$

Total Liabilities and Fund Equity

$

$

6,886.96

171,815.00

$

178.701.96

$

$

6,886.96

171.815.00

$ 178.701.96 $

66,000.00 66.000.00

$ 0.00 0.00 $

363,206.51 $ 0.00
363.206.51 $

81,971.00 $ 0.00
81,971.00 $

$ 445,177.51
0.00
445,177.51 $

61,971.22 "97,593.21
0.00
559.564.43

0.00 $

541,908.47 $

81,971.00 $ 623,879.47 $ 625,564.43

See notes to the general purpose financial statements.

-26-

OCONEE COUNTY BOARD Of EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND VEAR ENDED JUNE 3Q 1995

EXHIBIT "H"

1989 BONO ISSUE
FUND

GEORGIA STATE FINANCING ANO
INVESTMENT COMMISSION
PROJECTS 94-708-058 96-708-051

LOTTERY PROJECT
96195S-708-056

TOTALS YEARENOEO
JUNE 301 1995 JUNE 301 1994

REVENUES
StataFunds Local and Other Funds

$

1,988,416.27 $

$

66.56

6,425.92

0.00 $ 1,988,416.27 6,512.48 $

21,664.28

Total Revenues

$

66.56 $

1,994,842.19 $

0.00, $ 1,994,928.75 $

21,884.28

EXPENDITURES
Current Support Services Business Administration Arbitrage Rebate Tax Professional and Technical Services Other Expenditures
Capital Outlay Land and Land Improvements Building and Building Improvements

$ $ 62,057.78

376,457.23 $ 2,170,800.66

$
0.00 $ 376,457.23 2,232,856.44

66,000.00 2,270.00 3.14
251,650.00 212,370.07

Total Expenditures

$ 62,057.78 $

2,547,257.89 $

0.00 $ 2,609,315.67 $ 532~.21

Excess of Revenues over (under) Expenditures

$ -61,971.22 $

-552,415.70 $

0.00 $ -614,386.92 $ -510,428.93

OTHER FINANCING SOURCES (!.!SES}

Operating Transfers In Operating Transfers Out

$

418,029.00 $

81,971.00 $ 500,000.00 $ 315,902.47

-338.11

Total Other Financing Sources (Uses)

$

418,029.00 $

81,971.00 $ 500,000.00 $ 315,564.36

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -61,971.22 $

-134,386.70 $

81,971.00 $ -114,386.92 $ -194,664.57

FUND BALANCE JULY 1

61,971.22

497,593.21

0.00

559,564.43

754,429.00

FUND BALANCE JUNE 30

$

0.00 $

3631206.51 $

811971.00 $ 44511n.51 $ 5591564.43

See notes to the general purpose financial statements.

-27-

QQONEE gouNTY aQ~D QE ED!,!~TIQt:l
~g!::IEQ!.!L!:; QF Fi:;DEB&, El~Q!&. AS~l~I~E
YEAR ENDEDJ!,!NE 30 1995

SCHEDULE "1"

FUNDING AGENCY
PBQGRAM/GRANl'
Agriculture, U. S. Department d Through Office d Treasury and Fiscal Services National Forest Reserve Funds Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1995Grant National School Lunch Program 1995Grant Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and Communities Act 1995Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994 Regular 1995 Regular Education of Deprived Children 1994 Regular 1995 Regular Chapter2 Block Grant - Flow Through 1995 Regular Title II Eisenhower Mathematics and Science Education 1995 Regular Individuals with Disabilities Education Act TdleVl,B Flow Through 1994 Regular 1994 Carry-Over 1995 Regular Preschool Program 1994 Regular 1995 Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant 1995Grant
Total U.S. Department of Education

CFDA NUMBER

AWARDS INPERIOO

FEDERAL FUNDS RECEIVED IN PERIOO(NET OF REFUNDS)

FEDERAL REVENUE INPERIOO

EXPENDITURES INPERIOO

10.665 $

214.52 $

214.52 $

214.52

(5)

10.553
10.555 10.550
$

47,508.52
283,802.26 n,972.93
409,498.23 $

47,508.52
283,802.26 NIA
331,525.30 $

47,508.52 283,802.28 $
n,sn.93
409,498.23 $

(2)
962,487.79 (3) n,972.93
1,040,460.72

84.186 $ 15,953.00 $

15,953.00 $ 15,953.00 $

15,953.00

84.009 84.009 84.010 84.010
84.151

62.00 636.00
167,340.00
19,969.00

62.00 636.00 25,752.40 131,109.62
19,969.00

62.00 636.00
167,340.00
19,969.00

62.00 636.00
167,340.00
19,969.00

84.164

10,251.00

10,251.00

10,251.00

10,251.00

84.027 84.027 84.027
84.173 84.173

2,166.00 139,194.00
23,100.00

6,424.00 2,166.00 131,551.00
7,669.00 16,375.00

2,166.00 139,194.00
23,100.00

2,166.00 139,194.00
23,100.00

84.048 84.048
$

17,027.70 395,698.70 $

8,670.68 17,027.70
393,616.40 $

17,027.70 395,698.70 $

{4) 378,671.00

Total Federal Financial Assistance

$ 805,196.93 $

The Board had no major programs as defined by the Single Audit Act of 1984.

725,141.70 $ 805,196.93 $ 1,419,131.72

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.
See notes to the general purpose financial statements.
- 28

OCONEE COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995
INTEREST BEARING ACCOUNTS
Athens First Bank and Trust, Athens, Georgia
N.O.W. Account (5.69%)
Bank of Georgia, Watkinsville, Georgia
N.O.W. Account (3.50%) Certificates of Deposit
No. 2990 (5.65%) No. 3073 (5.00%)
Oconee State Bank, Watkinsville, Georgia
N.O.W. Account (Variable) Certificate of Deposit No. 2595 (5.65%)

SCHEDULE "2"
$ 501,125.84 764,148.74 500,000.00 250,000.00 451,602.07 400,000.00
$ 2,866,876.65

See notes to the general purpose financial statements.

- 29 -

t>1a1,~
P}=so

OCONEE COUNTY BOARD Of EDUCATION ACCOUNTS RECEIVABLE JUNE30 1995

SCHEDULE "3"

Education, Georgia Department of Lottery Programs Instructional Technology Safe Schools Technology Installation Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act - Title VI, B Flow Through Preschool Program
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Oconee County Tax Commissioner County Wide Bond Tax County Wide School Tax
Oconee County Little League Reimbursement for Expenses
University of Georgia Reimbursement for Expenses
Various Sources Reimbursement for Expenses

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

DEBT

GENERAL REVENUE PROJECTS SERVICE

FUND

FUND

FUND

FUND

TOTAL

$ 58,683.16 830.00
8,076.03
36,230.38
7,643.00 6,725.00

$ 58,683.16 830.00
8,076.03
36,230.38
7,643.00 6,725.00

$ 43,894.98 378.56
5,850.00 251.80

$ 491,963.00

491,963.00

$ 10,331.47

10,331.47 43,894.98

378.56

5,850.00

251.80

$ 50,375.34 $ 118,187.57 $ 491,963.00 $ 10,331.47 $ 670,857.38

See notes to the general purpose financial statements.

- 31 -

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

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

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$

790,706.25 $

1,174,ns.oo

1,246,690.00

1,326,392.50

1,323,380.00

315,706.25 $ 604,ns.oo 571,690.00 531,392.50 483,380.00

475,000.00 570,000.00 675,000.00 795,000.00 840,000.00

1,329,780.00 1,338,700.00 1,339,850.00 1,353,837.50 1,358,957.50

449,780.00 413,700.00 374,850.00 333,837.50 288,957.50

880,000.00 925,000.00 965,000.00 1,020,000.00 1,070,000.00

1,365,807.50 1,an,a10.oo 1,395,250.00 1,407,000.00

240,807.50 187,370.00 130,250.00 67,000.00

1,125,000.00 1,190,000.00 1,265,000.00 11340,000.00

$ 18,128,496.25 $ 4,993,496.25 $ 13,135,000.00

(*) Interest due July 1, 1995, was paid prior to June 30, 1995, and has been excluded
from this schedule.

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

TOTAL

1993-A ISSUE

$ 13,525,000.00 $ 9,645,000.00

390,000.00

90,000.00

Bonds Payable at June 30, 1995

$ 13,135,000.00 $ 9,555,000.00

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

JUL 1-JAN 1 JAN 1

See notes to the general purpose financial statements.

- 32 -

SCHEDULE 4

1993-A ISSUE INTEREST(*) PRINCIPAL

199~8 ISSUE INTEREST (*) PRINCIPAL

1989 ISSUE

INTEREST (*)

PRINCIPAL

$ 219,060.00 $ 95,000.00 $ 32,086.25 $ 30,000.00 $ 64,560.00 $

435,032.50 431,582.50

100,000.00 105,000.00

63,197.50 62,162.50

30,000.00 30,000.00

106,545.00
n,945.oo

427,750.00

110,000.00

61,067.50

35,000.00

42,575.00

423,625.00

120,000.00

59,755.00

720,000.00

350,000.00 440,000.00 540,000.00 650,000.00

418,825.00 413,700.00 374,850.00 333,837.50 288,957.50

125,000.00 925,000.00 965,000.00 1,020,000.00 1,070,000.00

30,955.00

755,000.00

240,807.50 187,370.00 130,250.00 67,000.00

1,125,000.00 1,190,000.00 1,265,000.00 1,340,000.00

$ 4,392,647.50 $ 9,555,000.00 $ 309,223.75 $ 1,600,000.00 $ 291,625.00 $ 1,980,000.00

199~8 ISSUE 1989 ISSUE

$ 1,630,000.00 $ 2,250,000.00

30,000.00

270,000.00

$ 1,600,000.00 $ 1,980,000.00

JUL 1 - JAN 1 JAN 1

JUL 1 - JAN 1 JAN 1

- 33 -

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

SCHEDULE5"

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 7,168,770.00 1,159,869.00 142,228.00 306,377.00 98,947.00 2,096,270.00
439,915.00 112,646.00 276,898.00
68,394.00 69,191.00 575,611.00 19,971.00 -1,533,645.00 704,596.00
$ 856.00
11,773.32 1,000.00 5,520.00
3,561.30 10,286.78

76,224.00
41,970.00
33,786.00
57.00 69,591.00
7,338.20 75,122.48 82,673.01 85,920.00 13,277.50
8,076.03

$ 7,168,770.00 1,159,869.00 142,228.00 306,377.00 98,947.00 2,096,270.00
439,915.00 112,646.00 276,898.00
68,394.00 69,191.00 575,611.00 19,971.00 -1,533,645.00 704,596.00 76,224.00
856.00
41,970.00 11,773.32
1,000.00 5,520.00 33,786.00 3,561.30 10,286.78
57.00 69,591.00
7,338.20 75,122.48 82,673.01 85,920.00 13,277.50
8,076.03

$ 1,988,416.27

1,988,416.27

2,000.00

2,000.00

$ 11,739,035.40 $ 494,035.22 $ 1,988,416.27 $ 14,221,486.89

See notes to the general purpose financial statements.

- 34 -

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Interest Earned Jury Duty Fees Lost and Damaged Books Rents Sales Lunches and Breakfast School Assets Shared Service Contributions University of Georgia Tuition Other

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1995

SCHEDULE "6"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 4,730,122.89 2,517.66
35,054.58

$ 1,104,341.80 $ 1,104,341.80

4,730,122.89

2,517.66

8,010.02

43,064.60

96,972.81 $ 1,755.00 201.16 642.00

5,378.97 $

7,325.28

520,341.21

9,600.00 8,372.46 8,866.45

840.00 2,387.25

6,512.48

21,482.49 19,740.29

130,346.75 1,755.00 201.16 642.00
520,341.21 7,325.28
9,600.00 9,212.46 30,993.99

$ 4,901,430.29 $ 528,947.43 $ 6,512.48 $ 1,153,574.60 $ 6,590,464.80

See notes to the general purpose financial statements.

- 35 -

B'ct~~J~-
Ptr 3b

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

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 Insurance Communications Commodity Hauling Shared Services other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees other Expenditures
Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 11,195,935.43 $ 2,406,627.89 22,262.57 84,572.31 12,173.71 88,273.93 95,778.88 3,994.63 243,022.00 41,487.58
14,119.00 16,390.00 589,671.95 592,454.07
177,614.86 29,774.98
577.79

687,731.48 $ 150,189.49
4,797.58 3,104.49
13,334.99 7,913.23
428.96 5,125.65 74,839.22
131,769.66
541,299.37 675.72
2,049.75

11,883,666.91 2,556,817.38 27,060.15 87,676.80 12,173.71 101,608.92 103,692.11 3,994.63 243,022.00 41,916.54 5,125.65 88,958.22 16,390.00 721,441.61 592,454.07 541,299.37 178,290.58 31,824.73 577.79

50,539.28 23,863.44 42,151.40 311,576.81

2411419.03

50,539.28 23,863.44 42,151.40 552,995.84

Total Expenditures

$ 16,042,862.51 $ 1,864,678.62 $ 17,907,541.13

See notes to the general purpose financial statements.

- 37 -

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Repair and Maintenance Services Supplies Books, Textbooks and Periodicals Dues and Fees
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

ALTERNATIVE SCHOOL
PROGRAM (1)

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

$

52,750.60

8,527.14

482.03

1,533.00

1,962.50

$

63.41

31,866.43 $

7,338.20 $

10,317.66

557.31

365.00

36,205.00

65,949.60

$

63.41 $ 134,249.01 $

7,338.20 $ _ _ _1s_,_2S_1_.2S_

(1) Includes State Alternative School Program expenditures in the amount of $41,970.00.

See notes to the general purpose financial statements.

- 38 -

SCHEDULE 8"

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

$

1,966.40

81,564.00

$

83,530.40 $

47,440.30 10,801.94
140.28
13,741.48 $

3,675.49 $

13,796.00

12,641.10

$ 8,076.03

100,190.90 19,329.08 622.31 1,533.00 1,962.50 n,045.10 557.31 365.00

210,155.70

85,920.00 $

16,316.59 $

8,076.03 $

411,760.90

- 39 -

it~k FO- 4o

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 9,352,855.00 $

295,007.00

$ 9,495,633.66

---------- 543,618.91 $

465,257.96

$ 10,039,252.57

-64,455.06 $ 9,974,797.51

$

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

See notes to the general purpose financial statements. - 41 -

OCONEE COUNTY BQARP OF EDUCATl()N
ANALYSIS OF MINIMUM EXPENPfJUBE REQUIREMENTS BY PBQGRAM
GENERAL FUND QUALITY BASIC EDUCATION PBQGRAMS YEAR ENDED JUNE 30 1995

GENERAL AND !.ABEEB EDUCATION PROGRAMS Kindergarten M Grades 1 - 3 M SUb-Total K-3 Grade& 4 - 5 M Grades 6 8 M Grades 9 12 M High School Labon11ories M Vocational Education Labonllories M
Total Genenll and career Education Programs
SPECIAL EDUCATION PBQGRAMS Regular Programs category IM category II M category Ill M Category IV M Sub-Total Regular category V (Gifted) M Total Special Education Programs
REMEDIAL EDUCATION PROGRAM C, Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Program&
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost d Instruction Professional Delo'8lopment
Total Staff Delo'8lopment (") Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL _.!,_

ORIGINAL

MID-TERM

$

658,696.00

$

592,826.40 $

1,932,104.00

1i738,893.eo

$ 2,580,800.00 90 $ 2,331,720.00 $

954,417.00 90

858,975.30

1,1!01,532.00 90

1,441,378.80

669,521.00 90

602,568.90

975,675.00 90

878,107.50

376,825.00 90

339,142.50

$ 7,168,n0.OO

$ 6,451,893.00 $

78,268.00 175,000.00 253,268.00 126,634.00 103,609.00
0.00 92,100.00
0.00 575,611.00

$

852,140.00

$

766,926.00 $

0.00

$

852,140.00 90 $

766,926.00 $

307,729.00 90

276,956.10

$ 1, 159,869.00

$ 1,043,882.10 $

$

142,228.00 90 $

128,005.20 $

$ 8,470,867.00

$ 7,623,780.30 $

0.00 0.00 0.00 0.00 575,611.00

$

240,704.00 90 $

216,633.60 $

0.00

65,673.00 90

59,105.70

0.00

s

306,3n.OO

s

275,739.30 s

0.00

$ a.m.244.00

s 7,899,519.60 $

575,611.00

$

23,294.00

$

23,294.00 $

0.00

75,653.00

75,653.00

0.00

$

s 98,947.00 100

98,947.00 S

0.00

See notes to the general purpose financial statements.

42

SCHEDULE "10"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNOEREXPENDITURE
FOR REQUIRED ALLOTMENT

s 671,094.40 s

819,796.20 s

26,271.45 s 846,067.65

1,913,893.60

21051 ,089.37

71130.71

21122,220.08

s 2,584,988.00 s 2,870,885.57 s

97,l2.16 s 2,968,287.73 s

0.00

985,609.30

1,122,474.01

48,030.95

1,170,504.96

0.00

1,544,987.80

1,640,141.47

66,306.33

1,706,447.80

0.00

602,568.90

654,210.94

60,597.79

714,808.73

0.00

970,207.50

1,025,639.25

90,053.46

1,115,692.71

0.00

339,142.50

319,870.70

73,708.44

393,579.14

0.00

s 7,027,504.00 s 7,633,221.94 s 436,099.13 s 8,069,321.07

s 766,926.00 s

6,909.36 s
193,190.51
660,312.69
50,617.07

4,091.97 $ 1,299.32 10,610.33 1,649.29

11,001.33 194,489.83 670,923.02 52,266.36

s s 766,926.00

911,029.63 s

17,650.91 s

928,680.54

0.00

276,956.10

422,734.57

9,094.93

431,829.50

0.00

$ 1,043,882.10 s 1,333,764.20 s

26,745.84 s 1,360,510.04

s 128,005.20 s

236,176.41 s

2,412.99 s 238,589.40

0.00

s 8, 199,391.30 s 9,203, 162.55 s 465,257.96 s 9,668,420.51

s 216,633.60 s

292,471.11

s 292,471.11

0.00

59,105.70

s

78,360.95

78,360.95

0.00

s 275,739.30 s

292,471.11 s

78,360.95 $ 370,832.06

s 814751130.60 s 9,495,633.66 S 543,618.91 s 10,0391252.57 $

0.00

s

23,294.00

75,653.00

s

98,947.00 S

s

26,168.68 S

26,168.68

73,797.87

73,797.87

0.00 S

99,966.55 $

99 966.55 s______o_.oo_
1

- 43 -

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30. 1995

SCHEDULE 11"

BOARD MEMBER ADDRESS
Mr. Harry Thomas, Chairman c>
1350 Parker Creek Road Watkinsville, Georgia 306n
Mr. Kenneth Bridges 1040 White Oak Drive Athens, Georgia 30606
Mr. John Daniell () 1922 Elder Road Bishop, Georgia 30621
Mr. Chuck Horton () 1061 Ramblewood Place Watkinsville, Georgia 306n
Mr. James Hunter {*) 2180 Cole Springs Road Bishop, Georgia 30621
Ms. Kay Shepard (*) 1111 Limerick Drive Watkinsville, Georgia 306n

COMPENSATION

TRAVEL

$

2,100.00 $

832.88

300.00

1,200.00

341.54

2,050.00

250.60

2,000.00

460.91

2,150.00

487.78

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

$

9,800.00 $ ========2=,3=7=3.=7=1

See notes to the general purpose financial statements.

- 44 -

SECTION II COMPLIANCE

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

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

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Oconee County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Oconee County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 2, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, 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.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Oconee County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
95CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter ofpublic record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 95CRL-I0

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

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

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Oconee County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 2, 1996. This report was qualified for a scope limitation and 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 Oconee County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

95CRL-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 ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that Oconee 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:dt 95CRL-40

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

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

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements ofthe Oconee County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 2, 1996. This report was qualified for a scope limitation and 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 1995 general purpose financial statements of the Oconee County Board ofEducation and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular 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, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(3) Applicable Special Tests and Provisions

(2) Eligibility

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

95CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Oconee 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 ofthis report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt 95CRL-120

SECTION ill INTERNAL CONTROL

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

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

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Oconee County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose :financial statements ofthe Oconee County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 2, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, 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.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management of the Oconee County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and

95ICL-3

not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.
In planning and petforming our audit ofthe general purpose financial statements of the Oconee County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding ofthe design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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, reportable conditions were noted in the following control categories:
(1) Accounting Controls (Overall)
(2) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of petforming their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions disclosed above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be petformed in our audit of the Oconee County Board ofEducation's financial statements and this report does not affect our report thereon dated July 2, 1996.
95ICL-3

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:dt 95ICL-3

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

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

Honorable Zell Miller, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Oconee County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements ofthe Oconee County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated July 2, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, 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 ofOffice ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 2, 1996.
95ICL-15

The management of the Oconee 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 ~ the expected benefits and related costs ofinternal control structure policies and procedures. The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because 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 ofthe design and operation ofpolicies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs./Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1995, the Oconee County Board ofEducation had no major Federal financial assistance programs and expended 56% ofits total Federal financial assistance under the following nonmajor Federal financial assistance programs:

95ICL-15

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act - Chapter I Education ofDeprived Children
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to. the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financ~al assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 95ICL-15

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount $14,755.85 Audit Control Number 7081-93-04
The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Program had an underexpenditure ofQuality Basic Education (QBE) funds of$14,755.85 for the required minimum allotment. For the year under review, no adjustment was made to the Board.'s local fair share by the Georgia Department of Education to refund the underexpenditure as required. The underexpenditure of $14,755.85 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount $31,143.39 Audit Control Number 7081-94-01
The audit report for the year ended June 30, 1994, disclosed that the Staff Development - Professional Development Stipends Program had an underexpenditure of Quality Basic Education (QBE) funds of $31,143.39 for the required minimum allotment. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund the underexpenditure as required. The underexpenditure of$31,143.39 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for QBE programs in a subsequent fiscal year.
AUDIT FOLLOW-UP/RESOLUTION Unearned Lottery Funds Financial Statements Finding Resolved Audit Control Number 7081-94-02
The audit report for the year ended June 30, 1994, stated that the Board received $196.24 in lottery funds in excess of the amount needed to cover program expenditures. In the year under review, this lottery fund balance was refunded to the Georgia Department ofEducation.
- 1-

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to File Corrective Action Plan Federal Financial Assistance Finding Resolved Audit Control Number 7081-94-03
The audit report for the year ended June 30, 1994, reported that the Board could not document that a corrective action plan for the 1993 audit report, as required by Office ofManagement and Budget Circular' A-128, was submitted to the Georgia Department of Education from whom the Board received Federal financial assistance. During the year under review the Board submitted a corrective action plan for the 1994 audit report as required.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7081-93-02
The audit report for the year ended June 30, 1994, noted that the management of the Oconee County Board ofEducation had chosen not to maintain a system-wide General Ftxed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting. records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. 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.
CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7081-95-01
Our audit disclosed that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions.
-2-

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995 CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7081-95-01 Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree ofinternal control with existing staff. Note: All Federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule "l" of this report are affected by this finding.
Note: The Oconee County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.
-3-