Audit report, Paulding County Board of Education, Dallas, Georgia, year ended June 30, 1994

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

AUDIT REPORT PAULDING COUNTY BOARD OF EDUCATION
DALLAS, GEORGIA YEAR ENDED JUNE 30, 1994

PAULDING 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

GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND 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

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

28

J

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

29

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

30

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

32

3 INVESTMENTS

33

4 ACCOUNTS RECEIVABLE

35

PAULDING COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

5 DEBT SERVICE REQUIREMENTS TO MATURITY

36

SCHEDULE OF REVENUE

6

STATE FUNDS

38

7

LOCAL AND OTHER FUNDS

39

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

41

9

LOTTERY PROGRAMS

42

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

45

11

BYPROGRAM

46

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

48

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

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Paulding County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARYINFORMATIONSCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Paulding County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
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, 1994, 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:
94ARL-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 and after school program accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, 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, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch 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 on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Paulding County Board ofEducation as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Paulding County Board ofEducation taken as a whole. The combining and individual fund statements (Exhibits E through J) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Paulding County Board of Education. Such information has been subjected to the auditing procedures applied in the audit of the 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.
94ARL-13

A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Re~,

CLV:cm 94ARL-13

Claude L. Vickers State Auditor

PAULDING COUNTY BOARD OF EDUCATION - 1-

PAULDING COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1994

ASSETS
Cash and Cash Equivalents Investments Investments Held by Trustee 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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

-----FU-N-D------ -----FU-N--D----- -----FU-N-D------

$ 1,085,523.31 $ 646,939.54

2,307,427.39

$ 987,924.05

236,329.89

206,459.68

60,401.82 31,006.58

Total Assets

$ 3,629,280.59 $ 944,807.62 $ 987,924.05
============= ============= =============

LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Unearned Lottery Funds Deferred Compensation Plan Capital Lease A$reements General Obligation Bonds Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Continuation of PEACH Program For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purposes of Bond Issue
Unreserved Designated for Equipment Purchases Undesignated Total Fund Equity

$ 271,010.10 $ 54,008.85 $ 65,088.46
164,570.88 82,024.79
16,718.70 4,596.95 125,153.00
------------- ------------- ------------$-----5-4-,0--0-8-.8--5 $----4-4-1-,-4-3-4-.0--8 $----2-8-7-,-7-2-8-.-8-0

$ $ 45,966.84

7,499.01

60,401.82 31,006.58
------------- -------------
$ 45,966.84 $ 98,907.41

-3--,5-2--9-,3--0-4-.9--0 ----4-0-4-,4--6-6-.1--3 $----7-0-0-,-1-9-5-.2--5 $--3-,5-7--5-,2--7-1-.7--4 $----5-0-3-,-3-7-3-.5--4 $----7-0-0-,-1-9-5-.-2-5

Total Liabilities and Fund Equity

$=3==,6=2==9=,2=8==0=.5==9 $====9=4=4=,8==0=7=.6=2= $====9=8=7=,=9=2=4=.0==5

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

- 2-

EXHIBIT "A"

--------------DEBT SERVICE

FIDUCIARY
--FU-TNR-DU--ST-T-Y-AP-NE-DS--

-----FU-N-D------ A--G-EN-C-Y---F-U-N-D-S-

$ 439,331.57 $

600.00

31,915.33

240,665.83

ACCOUNT GROUP ---G--EN-E-R-A-L----
LONDEGB-TTERM

(MemoraTnOdTuAmLS Only) J-U-N-E--3--0-, --19-9-4---J-U-N-E---3-0-, --1-99-3-

$ 2,172,394.42 $ 3,973,352.37

3,295,351.44 5,373,125.83

240,665.83

217,011.52

474,704.90

525,746.22

$ 471,246.90

60,401.82 31,006.58 471,246.90

65,435.28 29,519.34 446,134.63

21,233,753.10 21,233,753.10 21,763,865.37 4,475,397.82 4,475,397.82 4,838,337.39

$ 471,246.90 $ 241,265.83 $26,180,397.82 $32,454,922.81 $37,232,527.95
============= ============= ============= ============= =============

$ 271,010.10

119,097.31 $ 391,464.52

164,570.88

150,876.59

82,024.79

27,984.87

16,718.70

853,101.53

4,596.95

125,153.00

$ 240,665.83

240,665.83

217,011.52

$ 4,475,397.82 4,475,397.82 4,838,337.39

21,705,000.00 21,705,000.00 22,210,000.00

$ 240,665.83 $26,180,397.82 $27,204,235.38 $28,688,776.42

$ 471,246.90
-------------
$ 471,246.90
----------0-.0--0 $--------6-0-0-.0--0 $----4-7-1-,2--4-6-.9--0 $--------6-0-0-.-0-0

$

7,499.01

471,246.90 $ 446,134.63

45,966.84

1,283.39

60,401.82

65,435.28

31,006.58

29,519.34

3,215,733.36

$ 616,121.15$ 3,758,106.00

1,123.20 4,634,566.28 4,784,522.33

$ 5,250,687.43 $ 8,543,751.53

$====4=7=1=,=2=4=6=.9==0

$ 241,265.83
=============

$26,180,397.82
=============

$32,454,922.81
=============

$37,232,527.95
=============

- 3-

PAULDING COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994

REVENUES State Funds Federal Funds Local and Other Funds Total Revenues
EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Service Operations Other Operations of Non-Instructional Services Capital Outlay Debt Service Principal Interest Paying Agent Fees Total Expenditures
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)
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
Residual Equity Transfer
FUND BALANCE JUNE 30

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

$24,915,613.96$ 633,667.38 85,339.57 1,813,031.92
10,455,054.14 1,368,169.63 $ $35,456,007.67 $ 3,814,868.93 $

97,108.39 97,108.39

$22,590,045.66 $ 967,768.85

989,303.57 892,090.21 1,026,334.58 409,638.11 2,066,271.98 264,703.64 3,011,678.68 2,042,350.87

53,718.89 66,139.83 39,611.77 81,265.58 77,877.84

7,591.89 73,183.00 305,367.25 191,177.95 249,899.87

35,154.01 2,617,678.45
$ 3,912,646.50

1,096,250.57 348,176.59
------------- ------------- ------------$-3-5-,5--6-4-,0--6-4-.4--2 $-3--,9-3--9-,2-1--5-.2--2 $-3--,9-1--2-,6--4-6-.5--0 $----1--0-8-,0--5-6-.7--5 $----1-2--4-,3--4-6-.2--9 $--3-,-8-1-5--,5-3--8-.1-1-

$ 733,311.00 $ 35,776.91 $ 300,000.00
----3-3--5-,7-7--6-.9-1- ------------- ------------$----3-9-7-,-5-3-4-.0--9 $-----3-5-,7--7-6-.9--1 $----3-0-0-,-0-0-0-.-0-0

$ 289,477.34 $ -88,569.38 $-3,515,538.11

3,251,735.76

629,547.78 4,215,733.36

-5,033.46 1,487.24
-----3-4-,0--5-8-.6--4 -----3--4-,0-5--8-.6--4 -------------

$=3==,5=7=5==,2=7==1=.7=4=

$ 503,373.54
=============

$====7=0=0=,1==9=5=.2=5=

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

EXHIBIT "B"

TYPES DEBT
SEFURNVDICE

TOTAL

FIDUCIARY FUND TYPE ------------TERXUPESNTDAFUBNLDE

TOTALS (Memorandum Only)
YEAR ENDED J-U-N-E--3--0-, --19-9-4----JU-N-E--3--0-, --1-99-3--

$25,549,281.34 1,898,371.49
$1,904,872.63 13,825,204.79 $ $1,904,872.63 $41,272,857.62 $

$25,549,281.34 $ 22,265,948.88 1,898,371.49 1,734,877.81
0.00 13,825,204.79 12,964,143.12 0.00 $41,272,857.62 $ 36,964,969.81

$23,557,814.51 $

1,043,022.46 958,230.04
1,065,946.35 490,903.69
2,066,271.98 264,703.64
3 , 011 , 678. 68 2,120,228.71

42,745.90 2,690,861.45
305,367.25 191,177.95 4,162,546.37

$ 505,000.00 1,601,250.57

1,366,492.50 1,714,669.09

8,267.86

8,267.86

$1,879,760.36 $45,295,686.50$

$ 25,112.27 $-4,022,828.88 $

0.00 $23,557,814.51 $ 20,954,081.76

1,043,022.46 958,230.04
1,065,946.35 490,903.69
2,066,271.98 264,703.64
3,011,678.68 2,120,228.71
42,745.90 2,690,861.45
305,367.25 191,177.95 4,162,546.37

1,062,513.04 720,963.68 939,025.04 474,022.93
1,832,528.54 243,527.83
2,837,339.47 1,891,590.97
9,493.25 50.00
2,401,828.79 221,216.97 177,811.08
12,861,189.16

1,601,250.57 1,714,669.09
8,267.86

475,000.00 1,272,847.08
7,973.61

0.00 $45,295,686.50 $ 48,383,003.20

0.00 $-4,022,828.88 $-11,418,033.39

$ 733,311.00 335,776.91 -335,776.91
$ 733,311.00
$ 25,112.27 $-3,289,517.88 $ 446,134.63 8,543,151.53
-5,033.46 1,487.24 0.00

$ 733,311.00

335,776.91 $ 998,487.18

-335,776.91

-998,487.18

$ 733,311.00 $

0.00

0.00 $-3,289,517.88 $-11,418,033.39 600.00 8,543,751.53 19,941,536.22

-5,033.46 1,487.24
0.00

7,300.78 12,947.92
0.00

$====4=7=1=,=2=4=6=.=9=0 $ ==5=,2=5==0=,0=8==7=.4=3=

$========6=0=0=.=0=0

$ 5,250,687.43
=============

$ 8,543,751.53
==============

- 5-

PAULDING COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ACTUAL AND BUDGET - GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

ACTUAL

ACTUAL

PER

PER

EXHIBIT "B" ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

REVENUES

State Funds Federal Funds Local and Other Funds

$25,549,281.34$ 1,898,371.49 13,825,204.79

0.00 $25,549,281.34 $26,141,321.63 $ -592,040.29

1,898,371.49 1,844,229.00

54,142.49

13,825,204.79 12,967,888.00 857,316.79

Total Revenues

$41,272,857.62 $

0.00 $41,272,857.62 $40,953,438.63 $ 319,418.99

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adninistration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation C00111Unity Service Operations Other Operations of Non-Instructional Services
Capital Outlay Debt Service

$23,557,814.51 $ 1,043,022.46 958,230.04 1,065,946.35 490,903.69 2,066,271.98 264,703.64 3,011,678.68 2,120,228.71 42,745.90 2,690,861.45 305,367.25 191,177.95 4,162,546.37 3,324,187.52

0.00 $23,557,814.51 $25,047,566.54 $1,489,752.03

1,043,022.46 958,230.04
1,065,946.35 490,903.69
2,066,271.98 264,703.64
3,011,678.68 2,120,228.71
42,745.90 2,690,861.45
305,367.25

1,132,639.76 939,884.50
1,275,744.96 525,203.00
2,027,339.00 264,488.00
3,344,015.00 2,146,596.00
80,033.00 2,754,591.00

89,617.30 -18,345.54 209,798.61 34,299.31 -38,932.98
-215.64 332,336.32 26,367.29 37,287.10 63,729.55 -305 ,367. 25

191,177.95 205,183.00

14,005.05

4,162,546.37 5,926,335.04 1,763,788.67

3,324,187.52 1,879,493.00 -1,444,694.52

Total Expenditures

$45,295,686.50$

0.00 $45,295,686.50 $47,549,111.80 $ 2,253,425.30

Excess of Revenues over (under) Expenditures $-4,022,828.88 $

0.00 $-4,022,828.88 $-6,595,673.17 $ 2,572,844.29

OTHER FINANCING SOURCES (USES)

Capital Leases Other Sources Other Uses

$ 733,311.00 335,776.91 $ -335,776.91

$ 733,311.00

733,311.00

0.00 335,776.91 $ 300,000.00 $ 35,776.91

-335,776.91 -300,000.00 -35,776.91

Total Other Financing Sources (Uses)

$ 733,311.00$

0.00 $ 733,311.00$

0.00 $ 733,311.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other

Financing Uses

$-3,289,517.88 $

FUND BALANCE JULY 1, 1993

8,543,151.53

0.00 $-3,289,517.88 $-6,595,673.17 $ 3,306,155.29 -94,954.62 8,448,196.91 9,224,784.85 -776,587.94

ADJUSTMENTS

Prior Year (Net) FOOD INVENTORY - NET CHANGE IN PERIOD

-4,904.64

4,904.64

Donated Camiodities Purchased Food

-5,033.46

5,033.46

0.00

0.00

1,487.24

-1,487.24

0.00

0.00

FUND BALANCE JUNE 30, 1994

$==5=,2=5==0=,0=8==7=.4=3=

$ -91,408.40
=============

$=5==,1=5=8=,=6=7=9=.0=3=

$==2=,6=2==4=,2=0==7=.0=4=

$==2=,5=3==4=,4=7==1=.9=9=

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

PAULDING COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

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

PAULDING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" and "after school program 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 pwpose 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 of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLETRUSTFUND McGarity Fund - the fund used to account for a donation from the Estate of Mrs. Maybell Hitchcock McGarity. This fund is to provide for the purchase of a hardwood tree to be planted at the McGarity Elementary School and also to purchase awards, recognition plaques, etc. for outstanding students ofthe Paulding County School System.
- 8-

PAULDING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
AGENCY FUND - the fund used to account for assets held for individuals.
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 and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1994, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1993 and ending in early June 1994. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the
- 9-

PAULDING COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Board in the same twelve months. As ofJune 30, 1994, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1994, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1994. Also, the State's portion of the compensation paid in July and August 1994 was received and recorded as revenue in the fiscal year subsequent to June 30, 1994. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were recorded in the year ended June 30, 1994; Generally accepted accounting principles require that revenues be recorded when available and
measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The Agency fund is accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
Paulding County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval 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 prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and savings 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.

- 10 -

PAULDING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\.ffiNTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTl\.ffiNTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation ofthe United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
INVESTMENTS HELD BY TRUSTEE
Investments held by trustee consist of contributions from employees who have elected to participate in the Board's deferred compensation plan. See Note 9 - Deferred Compensation Plan
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Paulding County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on September 14, 1993 (levy date). Taxes were due on December 15, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section
- 11 -

PAULDING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

P70.103. The Paulding County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

Tax millage rates levied for the 1993 tax year (calendar year) for the Paulding County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

16.10 mills 3.00 mills

19.10 mills

INVENTORIES

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

COMPENSATED ABSENCES

Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.

Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. 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.

- 12 -

PAULDING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are

recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is

reimbursed.

-

Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.

Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.

MEMORANDUM ONLY -TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of any one of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

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

- 13 -

PAULDING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS AND INVESTMENTS

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

(5) Bonds of any 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 Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $4,001,017.09. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category 1 2
3
Total
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Bank Balance
$ 400,000.00 3,601,017.09 0.00
$ 4 001.017.09

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.

- 14 -

PAULDING COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS AND INVESTMENTS

Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another government are not required to be categorized

unless the investing entity owns specific, identifiable investment securities in the pool.



At June 30, 1994, the carrying amount of the Board's total investments was $3,536,017.27 and the market value ofthese investments were $3,536,817.27. The investments are classified as to risk categories as follows:

Tn,e ofInvestment

Bisk Categories

Repurchase Agreement

$ 10000000 $ 406 28:Z 6:Z $

Local Government Investment Pools

Unclassified

Deferred Compensation Plan Pooled Investments

Total Investments

Carrying

Market

3

AmOWlt

Value

QOO $ 506,287.67 $ 506,287.67

2,789,063.77 2,789,063.77

240,665.83

241,465.83

$ 3 536 Ql:Z 2:Z $ 3 536 81'.Z 2:Z

The carrying amounts shown above includes amounts maintained in an investment pool by the Office of Treasury and Fiscal Services in which the Board owns no identifiable securities.

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 has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$1,580.63 was paid in claims.

- 15 -

PAULDING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Paulding County Board of Education has entered into various lease agreements as lessee for equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$ 126,426.33 $22,210,000.00 $22,336,426.33

Retroactive Restatement ofPrior Year Balances

4,711,911.06

4,711,911.06

Balance July 1, 1993 Restated

$4,838,337.39 $22,210,000.00 $27,048,337.39

Additions

733,311.00

733,311.00

Deductions

1,096,250.57 505,000.00 1,601,250.57

Balance June 30, 1994

$4,475.397 82 $21,705.000 00 $26,180,397.82

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

Fiscal Year Ended June 30
1995 1996 1997 1998 1999 2000 and thereafter Total Principal and Interest Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Capital Leases

General Obligations
Bonds

Total Debt

$ 1,464,812.24 $ 1,952,670.00 $3,417,482.24 1,405,745.10 2,042,537.50 3,448,282.60 1,385,753.76 2,140,075.00 3,525,828.76 797,774.71 2,243,637.50 3,041,412.21 12,785.51 2,347,207.50 2,359,993.01 23,824,640.00 23,824,640.00

$5,066,871.32 $34,550,767.50 $39,617 638,82

591,473.50

$ 4,475,397.82

- 16 -

PAULDING COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal years 1986 and 1992, 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, 1994, $8,635,000.00 of bonds defeased by the 1986 and 1992 bond issues are outstanding and are considered defeased.

Note 7: SIGNIFICANT COMMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of $94,506.02 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department of Education has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Algebra Classrooms
Computers in Classrooms Distant Learning Media Center and Library Equipment

$ 4,759.15 1,352.00
11,765.32 76,629.55
$ 94 506.02

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

Project

Unearned
Executed Contracts

P. B. Ritch Elementary Addition

$ 107,321.12

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

Note 8: CONTINGENT LIABILITIES

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

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

- 17 -

PAULDING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 9: DEFERRED COMPENSATION PLAN
The Board offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Board employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.
All amounts 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.
Investments are managed by the plan's trustee, The Variable Annuity Life Insurance Company, under an investment option, or a combination of investment options, made by the participants.
It is the opinion of the Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.
Note 10: ACCUMULATED EMPLOYEES' LEAVE
The Board's administrative staffand certain other full-time employees earn a maximum of one and one quarter days per month ofannual leave. Annual leave may be accumulated to a maximum of 20 days, and an amount based on unused leave, up to the maximum accumulation, is paid at the current rate of pay to employees upon retirement or termination of employment. See Note 1 - Compensated Absences
Note 11: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
- 18 -

PAULDING COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 11: RETIREMENT PLANS

Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $20,458,314.99; total payroll was $24,071,676.62.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of
Trustees as advised by their independent actuary. For fiscal year 1994 that rate for employer contributions was
11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1994 amounted to $3,643,631.05, ofwhich $2,416,128.98 was made by the Board and $1,227,502.07 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

TRSFUNDINGSTATUSANDPROGRESS 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 amongother PERS and among other employers.

Total unfunded pension benefit obligation of TRS as of June 30, 1993, was as follows:

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292,000 00

- 19 -

PAULDING COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 11: RETIREMENT PLANS

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of$2,416,128.98 was actuarially determined and represented .4633% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION

Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school

systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's

contributions are made by the State of Georgia.



PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after IO years ofservice and attainment of age 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 of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. 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. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.

There were 257 employees covered under PSERS for the year ended June 30, 1994.

- 20 -

PAULDING COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 11: RETIREMENT PLANS
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $8,956.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 12: SURETY BONDS
The School Superintendent, Dr. Allene Magill, is bonded in the amount of $100,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 18215000, on which premium is paid through December 31, 1996.

- 21 -

PAIJ.DIN3 gum~ CF Ell.CATICW
aJeININ3 IW..AtCE stET
SPECIAL REVEtU Fl.ti)
.l.t 30. 1994

ASSETS
Cash ard Cash ~ivalents Accxults Receivable Inveitories
Fcoo
!mated Camo:lities
Purchased Fcoo

som..
FOO)
SERVICES
AH)

Alll.T Ell.CATICW

VOCATICWAI.. Ell.CATICW/ INSlRlCTICWAL E~IMNT

PEACH PROOWI

AmR
som..

ro+umv som..

LOTTERY

PROOWI PRoow-1 PROOWo!S

CRLG-FREE
som..s AND
CXJ+UUTIES /Cf

$ 546,643.86

$

5,910.21$ 15,492.71

0.00 $4,703.01$ 2,796.00

0.00 $

0.00 $ 123,581.96 87,477.11$ 2,034.36

60,401.82
31,006.58

Tota1 Assets

$643,962.47$ 15,492.71$

0.00 $7,499.01$ 0.00 $ 0.00 $211,059.07$ 2,034.36

LIABILITIES AND Fl.ID E~ITY

LIABILITIES

Cash Overdraft Accxults Payable Salaries Payable Expired Grant Balances Payable lleferredReveu! lneamed Lottery Fims

$ 15,492.71 $ 41,456.52
106,631.42

Total Liabilities

$ 148,007.94 $ 15,492.71

Fl.ti) E~ITY

Finl Ba1anc:es Resenl8l For Cart:iruatia, of PEPDi Progran
For Inventories
Fcoo
!mated Camo:lities
Purchased Fcoo

$ 60,401.82
31,006.58

$ 91,400.40

lnresenl8l
Desigiated for Equiprent Purcteses lh::lesigiated

404,466.13 $

0.00 $

Total Finl Equity

$495,874.53$ 0.00 $

$ 2,031.05

$ 2,588.24

3.31

78,720.88
4,596.95 125,153.00

$ 211,059.07 $ 2,034.36

$7,499.01

$7,499.01

0.00

0.00 $ 0.00 $ 0.00 $

0.00 $

0.00

0.00 $7,499.01$ 0.00 $ 0.00 $

0.00 $

0.00

Total Liabilities ard Finl Equity

$643,962.47$ 15,492.71$

0.00 $7,499.01$ 0.00 $ 0.00 $ 211,059.07 $ 2,034.36

See notes to tt-e general purpose financial statere,ts.

- 22 -

EXHIBIT ''E"

REI-ENT.ARY ANO SE~Y Eru:ATIOO PCT
CI-W'TER 1 CI-W'TER 2
Eru:ATIOO CF Eru:ATIOO STATE CHIL.mEN IN CF DEPRIVED PR~ BUXXffiAATSTATE SCHXI.S CHILmEN If4lROVEJ,NT FLCJJ TIRCUii

TITLE II EISEttna 1.TI-EW,TICS AHD SCIEN:E Eru:ATIOO

INJIVI!l.W..S WITH DISABILITIES Eru:ATIOO PCT
TITLE VI, B

FLCJJ TI-Ra.Gi

PRESCHXI.
~

.XE lRAINIMj P.ARTNERSHIP
K.T

TOTALS ~ 30, 1994 JWE 30, 1993

$ 36,940.54$ 7,977.64

$ 719,847.01$ 573,923.49

$

56.41 12,797.B5

$

650.00 $ 36.32 $ 52,006.00 $ 19,974.00$ 7,228.71 206,459.68 267,526.34

60,401.82 31,006.58

65,435.28 29,519.34

$

56.41 $ 49,738.39$ 7,977.64$

650.00 $ 36.32 $ 52,006.00$ 19,974.00$ 7,228.71 $1,017,715.09$ 936,404.45

$

56.41

$

650.00 $ 36.32 $ 27,445.25 $ 19,967.02 $ 7,228.71 $ 72,907.47$ 50,340.55

$ 11,183.21 $ 1,373.73

8,476.47

6.98

65,008.46 82,847.39

38,555.18 3,300.00

16,004.28

164,570.88 150,876.59

3,303.91

82,024.79 22,792.14

4,596.95

125,153.00

$

56.41 $ 49,738.39$ 7,977.64$

650.00 $ 36.32 $ 52,006.00 $ 19,974.00$ 7,228.71$ 514,341.55 $ 306,856.67

$ 7,499.01

60,401.82 $ 65,435.28 31,006.58 29,519.34

$ 98,907.41$ 94,954.62

1,123.20

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 404,466.13 533,469.96

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 503,373.54 $ 629,547.78

$

56.41 $ 49,738.39$ 7,977.64$

650.00 $ 36.32 $ 52,006.00$ 19,974.00$ 7,228.71$ 1,017,715.09$ 936,404.45

- 23 -

PAU.Dlt, en.my OOt'<RD Cf" Ell.CATIOO
CXM3ININJ STAIDNT Cf" REVENLES, EXPENDITlRES AND owa:s IN FI.H) BAL.AtCES
SPECIAL REVEN! FLtID JI.NE 30. 1994

som..
FCXX> SERVICES
FlN)

AW. T Ell.CATIOO

VOCATIOOAI.. Ell.CATIOO/ INSlRLCTIOOAI.. EQJIMNT

PEACH PRoow-1

AFTER
som.
PRoow-1

~ITY
som.. LOTTERY
PRoow-1 PROOWolS

IRLG--FREE
som.s Nf)
~!TIES
PCT

REVENLES

State Furrls Fei?ral Furrls Local and Otl-er Furrls

$ 165,906.00 $ 38,896.46 $ 1,010,280.D.3 1,346,547.23

39,129.18

$

$21,622.40

0.00 $

0.00 $389,735.74 $ 64,277.36

Total Reverues

$2,522,733.26 $ 38,896.46 $ 39,129.18 $21,622.40 $ 0.00 $ 0.00 $389,735.74$ 64,277.36

EXPEND I TIRES

Current
Instn.ctia, Suwort Services
Pupil Services IrrprovetBlt of Instn.ctiaial
Services Ech:atiaial Media Services General Adninistratia, Stixlent Transportatia, Services r.eitral Support Services Other Support Services
Food Services ~ratia, r.amuiity Service ~ratia,s

$ 38,896.46 $ $2,617,678.45

40,252.38 $14,123.39 $

0.00 $

0.00 $283,994.41$ 41,422.18

29,4D.3.89

5,448.38 39,611.77
934.62

22,784.61 70.57

30,505.27

Total Expenditures

$2,617,678.45 $ 38,896.46 $ 40,252.38 $14,123.39 $ 0.00 $ 0.00 $ 389,898.34 $ 64,277.36

Excess of Reverues over (IJ'lder) Expenditures
OTtfR FINAtCINJ 50.RCES

$ -94,945.19 $ 0.00 $ -1,123.20 $7,499.01$ 0.00 $ 0.00 $ -162.60 $

0.00

~ratirg Transfers In

162.60

Excess of Reverues and Other Financirg

Sources over (under) Expenditures $ -94,945.19 $ 0.00 $ -1,123.20 $7,499.01$ 0.00 $ 0.00 $

0.00 $

0.00

FLN> BALAtCE .ll..Y 1

594,365.94

0.00

1,123.20

0.00 30,621.85 3,436.79

0.00

0.00

Food Inventory
!mated Camtxlities Purchased Food ResiciJal Equity Transfer

-5,033.46 1,487.24

-30,621.85 -3,436.79

FLN> BALAtCE JLt 30

$ 495,874.53$ 0.00 $

0.00 $7,499.01$

0.00 $ 0.00 $

0.00 $

0.00

See notes to the general purpose financial statme,ts.

- 24 -

EXHIBIT ''F''

ELOENTARY AND SE<lID'iRY EIX.CATIOO !CT
OW'TERl CIW'TER 2
BX.CATIOO CF EIX.CATIOO STATE OULmEN IN CF DEPRIVED PRoow-1 B1..00( ffiANT STATE SOIXl.S O!Ium:N IlfJROVEM:NT FLOw Tl-R<X.Gl

TITLE II EISENIOER
Wffl-EWITICS
AND scma
Etu:ATIOO

INDIVIllW..S WITH DISABILITIES EIX.CATIOO !CT
TITLE VI, B

FLOw Tl-R<X.Gi

PRESOIXl. PROOW4

.XE lRAINit-G PARTNERSHIP
!CT

TOTALS YEAR ENDED .l.t 30, 1994 .l.t 30, 1993

$ 6.33,667.38 $ 177,093.25 $ 1,806.41$ 357,245.85$ 40,9n.oo $ 31,240.oo $ 20,971.95$ 228,188.51$ 43,874.oo $ 14,168.72 1,813,031.92 1,627,405.78
1,368,169;63 1,486,256.49
$ 1,806.41$ 357,245.85$ 40,977.09$ 31,240.00$ 20,971.95$ 228,188.51$ 43,874.00$ 14,168.72$ 3,814,868.93$ 3,290,755.52

$

825.66 $314,315.80$ 26,063.45 $ 30,590.00

$ 135,010.90 $ 40,470.31 $ 1,803.91 $ 967,768.85$ 610,361.49

982.75

33.78

8,942.65 1,991.01 12,364.81 53,718.89 21,244.76

1,407.57 14,913.64 36,839.96
4,648.74

650.00 $ 20,935.63 36.32

44,318.73 69,690.43

7,252.79

66,139.83 39,611.77 81,265.58 n,877.84
35,154.01 2,617,678.45

16,266.26
68,325.33 70,324.07 9,493.25
50.00 2,292,875.93
221,216.97

$ 1,806.41$ 357,245.85$ 40,977.09$ 31,240.00$ 20,971.95$ 257,962.71$ 49,714.11$ 14,168.72$ 3,939,215.22$ 3,310,158.06

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ -29,774.20 $ -5,840.11 $

0.00 $ -124,346.29 $ -19,402.54

29,n4.20 5,840.11

35,776.91

628.48

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ -68,569.38 $ -18,774.06

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00 629,547.78 604,900.27

-5,033.46
1,487.24 -34,058.64

7,300.78 12,947.92 23,164.87

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ 503,373.54$ 629,547.78

- 25 -

PAULDING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1994

EXHIBIT "G"

ASSETS
Cash and Cash Equivalents Investments
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue Unreserved Undesignated
Total Fund Equity

1992

TOTALS

BOND ISSUE ----------------------------

REGULAR

FUND

JUNE 30, 1994 JUNE 30, 1993

------------- ------------- ------------- -------------

$

0.00 $

0.00 $ 2,445,703.71

$ 987,924.05

987,924.05 2,623,131.18

------------- ------------- ------------- -------------

$ 987,924.05$

0.00 $ 987,924.05 $ 5,068,834.89

============= ============= ============= =============

$ 271,010.10 16,718.70
-------------
$ 287,728.80
-------------

$ 271,010.10 16,718.70 $ 853,101.53
------------- -------------
$ 287,728.80 $ 853,101.53
------------- -------------

$ 700,195.25$ $ 700,195.25$

$ 3,215,733.36 0.00 $ 700,195.25 1,000,000.00
0.00 $ 700,195.25$ 4,215,733.36

Total Liabilities and Fund Equity $ 987,924.05$

0.00 $ 987,924.05$ 5,068,834.89

============= ============= ============= =============

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

PAULDING COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

REGULAR

1992
BOND ISSUE FUND

TOTALS
YEAR ENDED ----------------------------JUNE 30, 1994 JUNE 30, 1993

REVENUES

Local and Other Funds

$ 30,083.48 $ 67,024.91 $ 97,108.39 $ 449,173.45

EXPENDITURES

Current Instruction Equipment
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

$ 64,428.37
7,862.00 $ 629,888.23 $ 3,282,758.27 $ 3,912,646.50 12,487,415.58
1,000.00

Total Expenditures

$ 629,888.23 $ 3,282,758.27 $3,912,646.50$ 12,560,705.95

Excess of Revenues over (under) Expenditures$ -599,804.75 $-3,215,733.36 $-3,815,538.11 $-12,111,532.50 OTHER FINANCING SOURCES

Operating Transfers In

300,000.00

300,000.00

997,858.70

Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1

$ -299,804.75 $-3,215,733.36 $-3,515,538.11 $-11,113,673.80 1,000,000.00 3,215,733.36 4,215,733.36 15,329,407.16

FUND BALANCE JUNE 30

$ 700,195.25$

0.00 $ 700,195.25$ 4,215,733.36

============= ============= ============= ==============

See notes to the general purpose financial statements. - 27 -

PAULDING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1994

EXHIBIT "I"

ASSETS
Cash and Cash Equivalents Investments Held by Trustee

EXPENDABLE TRUST FUND
------------AWARDS
------------MCGARITY FUND

AGENCY FUND -------------
DEFERRED COMPENSATION
FUND

TOTALS ---------------------------JUNE 30, 1994 JUNE 30, 1993

$

600.00

$

600.00 $

600.00

$ 240,665.83

240,665.83

217,011.52

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES Deferred Compensation Plan
FUND EQUITY
Fund Balances Unreserved Undesignated

$

600.00 $ 240,665.83 $ 241,265.83 $ 217,611.52

============= ============= ============= =============

$ 240,665.83 $ 240,665.83 $ 217,011.52

$

600.00

0.00

600.00

600.00

Total Liabilities and Fund Equity $

600.00 $ 240,665.83$ 241,265.83 $ 217,611.52

============= ============= ============= =============

See notes to the general purpose financial statements. - 28 -

PAULDING COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30 1 1994

EXHIBIT "J"

DEFERRED COMPENSATION PLAN
ASSETS Investments Held by Trustee
LIABILITIES Deferred Compensation Plan

BALANCE JULY 1, 1993

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1994

$ 217,011.52 $ 24,045.44 $

391.13 $ 240,665.83

============= ============= ============= =============

$ 217,011.52 $ 24,045.44 $

391.13 $ 240,665.83

============= ============= ============= =============

See notes to the general purpose financial statements. - 29 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1994

SCHEDULE "l" Page 1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1993 Grant 1994 Grant National School Lunch Program 1993 Grant 1994 Grant National Education and Training Program 1994 Contract Food Distribution Program (1)

10.553 10.553 $
*10.555 *10.555
10.564 10.550

$ 154,085.69
674,089.92
5,000.00 177,104.42

18,890.03 154,085.69 $
90,668.23 668,179.71
5,000.00 N/A

154,085.69

(2)

674,089.92 $ 2,440,574.03(3)

5,000.00 177,104.42

(2) 177,104.42

Total U. S. Department of Agriculture

$1,010,280.03 $ 936,823.66 $1,010,280.03$ 2,617,678.45

Education, U. S. Department of Through Georgia Department of Education Drug-Free Schools and CCJ1111Jnities Act 1993 Grant 1993 Carry-Over 1994 Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1992 Carry-Over 1993 Carry-Over 1994 Regular Education of Deprived Children 1993 Regular 1993 Reallocation 1993 Carry-Over 1994 Regular State Program Improvements 1994 Regular Chapter 2 Block Grant - Flow Through 1993 Regular 1994 Regular Title II Eisenhower Mathematics and Science Education 1993 Regular 1994 Regular Individuals with Disabilities Education Act Title VI, B Flow Through 1993 Regular 1993 Carry-Over 1994 Regular Preschool Program 1992 Carry-Over 1993 Regular

84.186 84.186 $ 84.186
84.009 84.009 84.009
*84.010 *84.010 *84.010 *84.010 84.218
84.151 84 .151
84.164 84.164
84.027 84.027 84.027
84.173 84.173

$
33,243.00 43,247.00
1,752.00 2,478.00
29,448.00 428,845.00 44,281.00
48,615.00
23,017.00
6,181.00 222,006.00

-22,792.14 33,243.00$ 29,000.00
1,118.30 1,752.00
72,513.09 29,448.00 315,000.00 44,281.00
42,967.71 30,590.00
20,957.00
24,965.74 6,181.00 170,000.00
680.00 1,034.84

33,243.00$ 31,034.36
1,752.00 56.41
1,319.42 29,448.00 326,478.43 40,977.09
31,240.00
20,935.63 36.32
1.51 6,181.00 222,006.00

33,243.00 31,034.36
1,752.00 56.41
1,319.42 29,448.00 326,478.43 40,977.09
31,240.00
20,935.63 36.32
1.51 6,181.00 251,780.20(3)

- 30 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1994

SCHEDULE "l" Page 2

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of

Through Georgia Department of Education

Individuals with Disabilities Education Act

Title VI, B

Preschool Program

1993 Carry-Over

84.173 $ 1,940.00$

900.00 $ 1,940.00$ 2,068.88(3)

1994 Regular

84.173

41,934.00

23,000.00

41,934.00

47,645.23(3)

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1993 Grant

84.048

24,661.58

1994 Grant

84.048

35,554.25

18,929.03

35,554.25

(4)

Consumer and Homemaking Education

1993 Grant

84.049

5,565.25

Tech-Prep Education

1993 Grant

84.243

30,660.43

1994 Grant

84.243

21,551.60

4,290.35

21,551.60

(4)

------------- ------------- ------------- -------------

Total U. S. Department of Education

$ 984,092.85$ 908,946.18 $ 845,689.02 $ 824,197.48
------------- ------------- ------------- -------------

Labor, U. S. Department of

Through Coosa Valley Regional Development Center

Job Training Partnership Act

17-92-20-009

17.250

17-93-20-010

17.250 $

$
24,493.00

9,533.87 $

6,940.01 $ 7,228.71

6,940.01 7,228.71

Total U. S. Department of Labor

$ 24,493.00$ 9,533.87 $ 14,168.72 $ 14,168.72

OTHER FEDERAL ASSISTANCE

Defense, U. S. Department of Direct Department of the Anny R.O.T.C. Program

$ 28,233.72$ 20,217.75$ 28,233.72

(4)

Total Federal Financial Assistance

$2,047,099.60$ 1,875,521.46 $1,898,371.49 $ 3,456,044.65
--~======= ======== ============= =============

Major Programs are identified by an asterisk (*) in front of the CFDA number.

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated cC1T1T10dities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program and the National Education and Training Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statenents.

- 31 -

PAULDING COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30 1 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Community Trust Bank, Hiram, Georgia
First National Bank of Paulding County, Dallas, Georgia
INTEREST BEARING ACCOUNTS
Community Trust Bank, Hiram, Georgia
Passbook Savings Account (4.00%)
First National Bank of Paulding County, Dallas, Georgia
Certificates of Deposit No. 9500050073 (3.00%) No. 9500004057 (3.50%)
Demand Deposit Accounts (Variable) Money Market Account (Variable)

$ 242,575.51 1,762.42
$ 244,337.93

$ 735,512.59

500,000.00 50,000.00 344,883.39 26,650.41

1,657,046.39

$1,901,384.32

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

PAULDING COUNTY BOARD DF EDUCATION INVESTMENTS
JUNE 30, 1994
INVESTMENT POOL
Office of Treasury and Fiscal Services Local Government Investment Pool (4.237%)
REPURCHASE AGREEMENT
First National Bank of Paulding County, Dallas, Georgia
Repurchase Agreement No. 9500050073 due August 26, 1994 (3.00%)

SCHEDULE "3"
$2,789,063.77 506,287.67
$ 3,295,351.44
==============

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

Dletv1\c

PAULDING COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1994

SCHEDULE "4"

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

DEBT SERVICE FUND

TOTAL

Coosa Valley Regional Development Center Job Training Partnership Act

Department of the Army

R.O.T.C. Program

$

Education, Georgia Department of Food Services National School Lunch Program Vocational Education
State Funds Federal Funds Lottery Programs Computers in Classrooms Distant Learning Media Center and Library Equipment
Federal Programs Drug-Free Schools and Communities Act ESEA - Title I Chapter 1 Education of Children in State Schools Education of Deprived Children Chapter 2 Block Grant - Flow Through
ESEA - Title II Eisenhower Mathematics and Science
Education Individuals with Disabilities Education
Act - Title VI, B Flow Through Preschool Program
Contract Implementation of Department's Elementary School Foreign Language Model Program
in the McGarity Elementary School

Family and Children Services, Paulding County Department of
PEACH Program

Paulding County Tax Commissioner County Wide Bond Tax County Wide School Tax

Economic Opportunity Tallatoona EOA, Inc. Pre-Kindergarten Program

Technical and Adult Education, Georgia
Department of Adult Education

$ 8,015.97 15,548.96 33,886.47
7,840.00 171,038.49

7,228.71
5,910.21
17,500.00 1,194.34 39,611.77 2,034.36
56.41 12,797.85
650.00 36.32 52,006.00 19,974.00
2,796.00 $
29,171.00
15,492.71

$

7,228.71

8,015.97

5,910.21 15,548.96 33,886.47 17,500.00 1,194.34 39,611.77 2,034.36
56.41 12,797.85
650.00
36.32
52,006.00 19,974.00

7,840.00

31,915.33

2,796.00
31,915.33 171,038.49

29,171.00

15,492.71

$ 236,329.89 $ 206,459.68 $ 31,915.33 $ 474,704.90
============= ============= ============= =============

See notes to the general purpose financial statements. - 35 -

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

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
--------------
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
CHANGES IN GENERAL LONG-TERM DEBT
Bonds Payable at July 1, 1993 Bonds Retired During Period
Bonds Payable at June 30, 1994
MATURITY DATES
Semi-Annual Interest Payment Dates Annual Debt Retirement Date

TOTAL

DEBT

TOTAL

TOTAL

SERVICE

INTEREST

PRINCIPAL

------------- ------------- -------------

$1,952,670.00$ 1,342,670.00$ 610,000.00 2,042,537.50 1,312,537.50 730,000.00 2,140,075.00 1,275,075.00 865,000.00 2,243,637.50 1,228,637.50 1,015,000.00 2,347,207.50 1,172,207.50 1,175,000.00

2,444,870.00 2,456,150.00 2,470,710.00 2,482,760.00 2,501,805.00

1,104,870.00 1,026,150.00
940,710.00 847,760.00 746,805.00

1,340,000.00 1,430,000.00 1,530,000.00 1,635,000.00 1,755,000.00

2,504,485.00
2,522,935.00 2,540,275.00 2,557,175.00
1,343,475.00
-------------

634,485.00
512,935.00 380,275.00
237,175.00 83,475.00
-------------

1,870,000.00
2,010,000.00 2,160,000.00 2,320,000.00
1,260,000.00
-------------

$34,550,767.50 $12,845,767.50 $21,705,000.00
============= ============= =============

TOTAL

1992-A ISSUE

$22,210,000.00 $10,720,000.00 505,000.00

$21,705,000.00 $10,720,000.00
============= =============

AUG l - FEB l FEB l

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

SCHEDULE "5"

1992-A ISSUE

1992-B ISSUE

1991 ISSUE

INTEREST

PRINCIPAL

INTEREST

PRINCIPAL

INTEREST

PRINCIPAL

------------- ------------- ------------- ------------- ------------- -------------

$ 704,885.00 704,885.00 704,885.00 704,885.00 704,885.00

$ 292,800.00$ 365,000.00 $ 344,985.00 $ 245,000.00

274,550.00

385,000.00

333,102.50

345,000.00

254,337.50

410,000.00

315,852.50

455,000.00

231,787.50

445,000.00

291,965.00

570,000.00

206,422.50

475,000.00

260,900.00

700,000.00

704,885.00 704,885.00 704,885.00 704,885.00 704,885.00$ 1,100,000.00

178,635.00 148,635.00 116,000.00 80,350.00 41,920.00

500,000.00 535,000.00 575,000.00 610,000.00 655,000.00

221,350.00 172,630.00 119,825.00
62,525.00

840,000.00 895,000.00 955,000.00 1,025,000.00

634,485.00
512,935.00 380,275.00 237,175.00 83,475.00
-------------

1,870,000.00 2,010,000.00 2,160,000.00 2,320,000.00 1,260,000.00
-------------

-------------

-------------

-------------

-------------

$ 8,897,195.00 $10,720,000.00 $1,825,437.50$ 4,955,000.00$ 2,123,135.00$ 6,030,000.00
============= ============= ============= ============= ============= =============

1992-B ISSUE 1991 ISSUE

$5,295,000.00$ 6,195,000.00

340,000.00

165,000.00

$ 4,955,000.00 $ 6,030,000.00
============= =============

AUG 1 - FEB 1 AUG 1 - FEB 1

FEB 1

FEB 1

- 37 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1994

SCHEDULE "6"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Program Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Family Connection Governor's Emergency Funds (1) Mentor Teacher Program Next Generation Schools Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and Performance-Based Certification Lottery Programs Computers in Classrooms Distant Learning Media Center and Library Equipment Next Generation Schools Pre-Kindergarten Program,
Georgia Public Telecommunication Commission Lottery Program Distant Learning
Technical and Adult Education, Georgia Department of Adult Education
CONTRACTS Education, Georgia Department of Implementation of Department's Elementary School Foreign Languages Model Program in the McGarity Elementary School Implementation of School-Based Leadership Development Activities in Those Schools in the 1992-93 Governor's School Leadership Institute (GSLI)

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$14,373,644.00 1,211,565.00 553,638.00 614,387.00 202,246.00 4,281,166.00
863,562.00 232,437.00 523,442.00 868,316.00 155,041.00 1,461,642.00 -2,719,906.00 1,785,313.00
$ 160,844.96
10,000.00 5,000.00
14,400.00 172,280.00 95,616.00

$14,373,644.00
1,211,565.00 553,638.00 614,387.00 202,246.00
4,281,166.00

165,906.00 39,129.18

863,562.00 232,437.00 523,442.00 868,316.00
155,041.00 1,461,642.00
-2,719,906.00 1,785,313.00
165,906.00 199,974.14

10,000.00 5,000.00 14,400.00
172,280.00 95,616.00

2,500.00

77,592.00 1,194.34
39,611.77 38,690.00
223,177.63

2,500.00
77,592.00 1,194.34
39,611.77 38,690.00 223,177.63

9,470.00

9,470.00

38,896.46

38,896.46

45,480.00 3,000.00

45,480.00 3,000.00

$24,915,613.96$ 633,667.38 $25,549,281.34
============= ============= =============
(1) For physical education facilities at East Paulding High School and W. C. Abney Elementary School.
See notes to the general purpose financial statements. - 38 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1994

SCHEDULE "7"

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Interest Earned PEACH Program Reini>ursement of Unearned Payment to Board Member Sales Lunch and Breakfast Tuition Other

GOVERNMENTAL FUND TYPES

----------------------------------------------------------

SPECIAL

CAPITAL

DEBT

GENERAL

REVENUE

PROJECTS

SERVICE

FUND

FUND

FUND

FUND

TOTAL

------------- ------------- ------------- ------------- -------------

$ 9,892,558.14 135.99
89,329.50

$1,891,709.32 $ 1,891,709.32

9,892,558.14

25.34

161.33

89,329.50

96,645.75$ 9,620.37 $ 78,828.57 21,622.40

13,137.97

198,232.66 21,622.40

50.00

50.00

1,335,278.41

1,335,278.41

307,316.36

307,316.36

69,018.40

1,648.45

18,279.82

88,946.67

------------- ------------- ------------- ------------- -------------

$10,455,054.14 $1,368,169.63 $ 97,108.39 $1,904,872.63 $13,825,204.79
======== =========== =========== ============ =============

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

40

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

SCHEDULE "8"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Tec~nical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Property Services Insurance Communications Tuition Commodity Hauling 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
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$22,718,725.88$ 1,352,950.74 $24,071,676.62

6,424,966.19

426,624.86 6,851,591.05

56,760.55

17,353.50

74,114.05

129,358.65

112,926.76

242,285.41

9,110.01

9,110.01

256,269.73

256,269.73

383,310.56

14,476.78

397,787.34

7,094.61

31,735.03

38,829.64

21,315.25

21,315.25

113,147.17

10,070.49

123,217.66

7,659.00

7,659.00

12,133.09

12,133.09

57,327.25

31,085.21

88,412.46

923,612.44

356,016.52 1,279,628.96

826,621.31

826,621.31

1,238,444.06 1,238,444.06

403,942.09

6,605.81

410,547.90

54,040.61

27,730.25

81,770.86

2,677.00

6,102.67

8,779.67

1,444,427.16
35.00 207,897.79
1,515,766.17
-------------

294,959.45
-------------

1,444,427.16
35.00 207,897.79
1,810,725.62
-------------

$35,564,064.42 $ 3,939,215.22 $39,503,279.64
============= ============= =============

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

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1994

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Other Purchased Services Supplies Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

$ 36,374.50$ 1,194.34 $ 1,506.80

41,282.10

38,104.97

$ 77,656.60$

1,194.34 $ 39,611.77

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

SCHEDULE "9"

NEXT GENERATION
SCHOOLS

PRE-KINDERGARTEN PROGRAM

G.P.T.C. DISTANT LEARNING

TOTAL

$ $ 38,690.00

89,216.55 27,922.21 4,207.69 30,611.27 52,228.44 $ 4,266.72
1,425.00 1,364.75

$ 4,732.00

89,216.55 27,922.21
4,207.69 30,611.27 96,036.08 4,266.72
1,425.00 1,364.75

11,935.00

4,836.00

134,848.07

$ 38,690.00$

223,177.63 $ 9,568.00$ 389,898.34

============= ================ ============= =============

- 43 -

44

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

SCHEDULE "10"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$18,214,876.00$ 202,246.00

$19,645,187.18 2,434,197.48 $ 202,678.60
$22,079,384.66$ 202,678.60
-405,947.58 -45,116.05
$21,673,437.08$ 157,562.55

$

0.00 $ 44,683.45

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

PAULDING COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITIRE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1994

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category III (*) Category IV (*) Itinerant Supplenental Speech Sub-Total - Regular Category V (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*) MEDIA CENTER PROGRAM

ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQOiRED

ToTAL

ORIGINAL _%_ ORIGINAL

MID-TERM

REQUIRED

$ 1,589,117.00 4.166.652.00
$ 5,755,769.00 90 1,937,863.00 90 3,114,870.00 90 552,566.00 90 2,238,781.00 90 773,795.00 90
$14,373,644.00

$1,430,205.30$ 3,749,986.80
$ 5,180,192.10 $ 1,744,076.70 2,803,383.00 497,309.40 2,014,902.90 696.415.50

612,744.50 $ 2,042,949.80 3,749,986.80
612,744.50 $ 5,792,936.60 1,744,076.70
730,821.00 3,534,204.00 497,309.40
118,076.50 2,132,979.40 696.415.50

$12,936,279.60$ 1,461,642.00 $14,397,921.60

$1,155,703.00

$1,040,132.70$

0.00 $1,040,132.70

$ 1,155,703.00 90 55,862.00 90
$ 1,211,565.00 $ 553,638.00 90 $ 614,387.00 90

$1,040,132.70$ 50,275.80
$1,090,408.50 $ $ 498,274.20$ $ 552,948.30$

0.00 $1,040,132.70 50,275.80
0.00 $1,090,408.50 0.00 $ 498.274.20 0.00 $ 552,948.30

Total Thirteen Weighted and Media Center $16,753 1234.00

$15,077,910.60 $ 1.461.642.00 $16,539,552.60

STAFF DEVELOPMENT PROGRAMS (1) Cost of Instruction Professional Development

$ 69,021.25 100 $ 69,021.25 $

133,224.75 100

133,224.75

0.00 $ 69,021.25 0.00 133,224.75

Total Staff Development (*) Identifies Thirteen Weighted Programs.

$ 202,246.00 $16.955,480.00

$ 202,246.00$

0.00 $ 202,246.00

s $15 1280 1156.60 1,461,642.00 $16.741,798.60

Note: (1) $23,510.25 of the allotment for Professional Development has been transferred to Cost of Instruction as authorized by OCGA 20-2-182.

\

See notes to the general purpose financial statenents.

I

- 46 - .

SCHEDULE "11"

REQUIRED ALLOTMENT

sAc:111ms
ACTUAL

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOONI OF UNDEREXPENDITI.RE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPt!ViTI ON S ACTUAL

AMoONI OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 2,005,000.40 $ 1,653,270.80

$ 37,949.40$ 289,648.91

3,629,178.90 4,600,942.97

120,807.90

452,463.14

$5,634,179.30$ 6,254,213.77 $

0.00

$ 158,757.30$ 742,112.05 $

0.00

1,688,888.70 2,184,254.24

0.00

55,188.00

244,772.85

0.00

3,330,231.50 3,549,384.67

0.00

203,972.50

501,228.15

0.00

474,686.10

501,773.34

0.00

22,623.30

64,084.18

0.00

1,923,600.60 2,541,590.09

0.00

209,378.80

422,730.15

0.00

603,288.00 1,125,083.21

0.00

93,127 .so

154,998.88

0.00

$13,654,874.20 $ 16,156,299.32 $

0.00

$ 743,047.40$ 2,129,926.26 $

0.00

$ 52,326.90$ 163,152.90 720,016.20 65,117.70 3,612.60 6,972.30

175,465.71 553,260.85 950,162.80 130,078.73

$ 2,771.10 3,608.10 20,252.70$ 2,302.20

56,181.45

$1,011,198.60$ 1,808,968.09 $

0.00

$ 28,934.10 $ 56,181.45 $

0.00

48,839.40

164,772.42 $

0.00

1,436.40

2,374.71 $

0.00

$1,060,038.00$ 1,973,740.51

$ 30,370.50$ 58,556.16

$ 489,364.20 $ 726 I 281. 58 $

0.00

$ 8,910.00$ 14,246.25 $

0.00

$ 426,501.90 $ 788,865.77 $

0.00

$ 126,446.40$ 231,468.81 $

0.00

$15.6301778.30 $ 19,645.187 .18 $

0.00

$ 9081774.30 $ 214341197.48 $

0.00

s1s 630 778.3o $ 19,645,187.18 s_ _ _ _o=.o_,o
11

$ 69,021.25$ 133,224.75

114,137.30 $ 88,541.30

0.00 44,683.45

$ 2021246.00 $

202 I 678. 60

$_ _ _4_4_68....,3.,.4.iii:5
1

$ 1,1111020.30 $ 2,6361876.08 $_ _ _4_4,.,6ii,ii8,_3..,.4ii:5

- 47 -

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

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr. Howard Maxwell, Chairman(*) 1801 Sunset Drive Dallas, Georgia 30132
Mr. Tommie Graham, Vice-Chairman(*) Route 2, Mein Mitchell Road Dallas, Georgia 30132
Mr. Wayne Atkinson(*) 8875 Dave Summers Road Powder Springs, Georgia 30073
Mr. Steve Golden(*) 8754 Winnview Drive Dallas, Georgia 30132
Dr. Jim Goodman(*) Route 2, Highway 120 Temple, Georgia 30179
Mr. Sam Posey(*) 9356 Bennett Road Powder Springs, Georgia 30073
Ms. Beth Roberson (*) 3182 Narroway Church Road Dallas, Georgia 30132

COMPENSATION

TRAVEL

$

1,300.00$

356.93

950.00

1,000.00

800.00

800.00

882.57

1,000.00

544.03

1,000.00

476.48

$

6,850.00$

2,260.01

=====~======= =============

(*) Denotes Board Members Serving as of June 30, 1994

See notes to the general purpose financial statements. - 48 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Paulding County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Paulding County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 13, 1995. 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, 1994, 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 Paulding 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.

94CRL-20A

Material instances ofnoncompliance are failures to follow requirements or violations of prohibitions, contained in laws, regulations, contracts, or grants, that cause us to conclude that the aggregation of the misstatements resulting from those failures or violations is material to the general purpose financial statements. The results of our tests of compliance disclosed a material instance of noncompliance, which is described in the Schedule of Findings and Improper or Questioned Costs.
As also described in the Schedule of Findings and Improper or Questioned Costs, this material instance of noncompliance noted above has been corrected in the financial statements.
We considered this material instance ofnoncompliance in forming our opinion on whether the fiscal year 1994 general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated March 13, 1995, on thos.e general purpose financial statements.
Except as described above, the results ofour tests of compliance indicate that with respect to the items tested the Paulding County Board of Education complied, in all material respects, with the provisions referred to in the fourth paragraph of this report, and with respect to items not tested, nothing came to our attention that caused us to believe that the Paulding County Board of Education had not complied, in all material respects, with those provisions.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-20A

Cl.AUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Paulding County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 13, 1995. 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 Paulding County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the Paulding County Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Re~:-:

CLV:cm 94CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, s_W,, Suite 214 Atlanta, Georgia 30334-8400
March 13, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Paulding County Board ofEducation

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Paulding County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 13, 1995. 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 also audited the Paulding County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994_ The management of the Paulding County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Paulding County Board of Education's compliance with those requirements. We believe that our audit provides a reasonable basis for our op1ruon.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
In our opinion, the Paulding County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-80

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1995

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Paulding County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 13, 1995. 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 of the fiscal year 1994 general purpose financial statements of the Paulding County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

94CRL-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 Paulding 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.

CLV:cm 94CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Paulding County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Paulding County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated March 13, 1995. 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, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit ofthe general purpose financial statements ofthe Paulding County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management of the Paulding County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures.
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The objectives ofan internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

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

(1) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement

(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation
(8) General Ledger (9) General Fixed Assets

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

We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:

General Fixed Assets

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

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all

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reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable condition disclosed above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Paulding County Board ofEducation's financial statements and this report does not affect our report thereon dated March 13, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
t?~.A'~
Claude L. Vickers State Auditor
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CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 13, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Paulding County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Paulding County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated March 13, 1995. 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 also audited the Paulding County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated March 13, 1995.
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 ofthe United States; and the provisions of Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Paulding County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, 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, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with
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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 ofthe general purpose financial statements in a separate report dated March 13, 1995.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Paulding County Board of Education expended 54% ofits total Federal financial assistance under major Federal financial assistance programs.

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We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness ofthe design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to each ofthe Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
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 financial 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:
Cash Management
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable condition described above is not 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 ofthis report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
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SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Unearned Payments to Board Members Financial Statements Audit Control Number 7101-93-01

The audit reports for the years ended June 30, 1989 and 1990, stated that Board members received per diem payments in excess of amounts earned which resulted in overpayments to Board members as follows:

BOARD MEMBERS

Mr. Stevan Crew Mrs. Betty Crowe Mr. Steve Golden Mr. Tommie Graham Mrs. Kate Heaton Mr. Bobby Hopper

$ 50.00 100.00 50.00 200.00 50.00 50.00

$ 500.00

As of the date of our audit, no reimbursements were received for these overpayments. The Board should obtain reimbursement of$500.00 for deposit to the Board's General Fund.

AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,283.39 Audit Control Number 7101-93-04

The audit report for the year ended June 30, 1993, disclosed that the Staff Development - Professional Development Stipends Program had an underexpenditure of Quality Basic Education (QBE) funds of $1,283.39 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 this underexpenditure as required. The underexpenditure of $1,283.39 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.

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Lease Agreements Financial Statements Nonmaterial Noncompliance Audit Control Number 7101-93-02
The audit report for the year ended June 30, 1993, noted that the Board had entered into several lease agreements with various vendors for equipment. These agreements did not contain a required governmental escape clause which is required by the Official Code of Georgia Annotated Section 20-2-506 which provides, in part as follows:
"(a) Except as otherwise provided in this Code section, each county, independent, or area school system in this State shall be authorized to enter into multiyear lease, purchase, or lease purchase contracts ofall kinds for the acquisition of goods, materials, real and personal property, services, and supplies, provided that any such contract shall contain provisions for the following:
(1) The contract shall terminate absolutely and without further obligation on the part of the school system at the close ofthe calendar year in which it was executed and at the close of each succeeding calendar year for which it may be renewed as provided in this code section;
(2) The contract may provide for automatic renewal unless positive action is taken by the school system to terminate such contract, and the nature of such action shall be determined by the school system and specified in the contract;...".
During the year under review, no action had been taken by the Board to amend these agreements.
The Board should amend these lease agreements to include provisions as required by State Law and should institute procedures to require that all future lease or lease-purchase agreements contain the required provisions.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7101-93-03
The audit report for the year ended June 30, 1993, noted that the management of the Paulding County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7101-93-03
accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance 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
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $44,683.45 Audit Control Number 7101-94-01
For the year under review, the Board reported to the Georgia Department ofEducation on DE Form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $114,137.30 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) Program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment Cost of Instruction Program purposes resulting in an underexpenditure of$44,683.45 for the minimum required allotment of$133,224.75 for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7101-94-03
A review of cash management procedures for the ESEA - Chapter 1 - Education of Deprived Children Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, "Quarterly Report ofExpenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 1994, the program had excessive ending monthly cash balances in six months. The excessive cash balances are a result of management's failure to adequately forecast the cash needs of this program. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department ofEducation and disbursement of such funds by the Board.
ADMINISTRATIVE REQUIREMENTS Expenditures Outside Grant Period Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7101-94-04
For the year under review, the Board had expenditures totaling $1,319.42 for the ESEA - Chapter 1 Education of Deprived Children - 1993 Reallocation Project (CFDA 84.010). These expenditures were incurred prior to the effective project period, which began in the subsequent fiscal year on July 5, 1994 and continued through August 30, 1994. The Georgia Department of Education should review this matter to determine if the $1,319.42 should be refunded to the Georgia Department ofEducation.
CURRENT YEAR/SUBSEQUENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Supplanting Existing Resources Financial Statements Material Noncompliance Amount: $373,345.91 Audit Control Number 7101-94-02
During the fiscal years 1994 and 1995, the Board received Lottery proceeds from the Georgia Department of Education in the amounts of$125,153.00 and $248,192.91, respectively, which were used to supplant existing resources. These Lottery funds were appropriated by the Georgia General Assembly for fiscal year 1994. The Board's attention is directed to the Official Code of Georgia Annotated Section 50-27-2 (I) which states, in part, as follows:

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR/SUBSEQUENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Supplanting Existing Resources Financial Statements Material Noncompliance Amount: $373,345.91 Audit Control Number 7101-94-02
" ... That net proceeds of lottery games conducted pursuant to this chapter shall be used to support improvements and enhancements for educational purposes and programs and that such net proceeds shall be used to supplement, not supplant, existing resources for educational purposes and programs~ ... ".
The unallowable expenditures resulted from the Board charging Lottery Programs for payments on lease agreements which were entered into prior to the approval ofLottery awards. Audit adjustments were made transferring these expenditures to the Board's General Fund.
These unallowable expenditures occurred because management neglected the specific limitations imposed upon the Board by Georgia Laws. Accordingly, unearned Lottery funds in the amount of $373,345.91 should be refunded to the Georgia Department ofEducation.
Note: The Paulding 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.