Audit report, Pike County Board of Education, Zebulon, Georgia, year ended June 30, 1995

GA
A~oo .R l
2-<o Pto3
1994-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT PIKE COUNTY BOARD OF EDUCATION
ZEBULON, GEORGIA YEAR ENDED JUNE 30, 1995

PIKE 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 GROUPS

2

B

COMBINED STATEMENT OF REVENUES,EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING 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

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

29

K

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCYFUND

30

PIKE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

31

2 CASH AND CASH EQUNALENTS

33

3 ACCOUNTS RECEIVABLE

34

4 DEBT SERVICE REQUIREMENTS TO MATURITY

35

SCHEDULE OF REVENUE

5

STATE

36

6

LOCAL AND OTHER

37

SCHEDULE OF EXPENDITURES BY OBJECT

7

GENERAL AND SPECIAL REVENUE FUNDS

39

8

LOTTERY PROGRAMS

40

9

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUNDS

42

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

43

11

BYPROGRAM

44

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

46

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

PIKE 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 AUOllOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 28, 1996

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

School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of this variance or omission 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 matter referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Pike County Board of Education as of June 30, 1995, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated May 28, 1996, on our consideration ofthe Board's internal control structure and a report dated May 28, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Pike County Board of Education taken as a whole. The combining and individual fund statements (Exhibits E through K) 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 ofthe Pike 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 matter 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.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. ,
Respectfully submitted,
IY~~
Claude L. Vickers State Auditor
CLV:dt 95ARL-13*

PIKE COUNTY BOARD OF EDUCATION - 1-

elKE QQ!.!ND: BOABQ QE EQUQAIIQ~ QOMBINEQ aAL.ANQE S!:!EET
ALL E!.!~Q D:eE A~Q AQQQ!.!~I !:2BQU~
JUNE 30, 1995

~ Cash and Cash Equivalents
Accounts Receivable
Lease Payments Receivable
Inventories Food Donated Commodities Purchased Food
General Fixed Assets Land Buildings Improvements Other Than Buildings Machinery and Equipment
Amount Available In Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,045,249.44 $

84,646.64 $ 180,084.50 $

710,707.34

45,844.24

120,601.00

DEBT SERVICE
FUND
231,119.93
7,834.10

17,283.89 7,763.95

$ 1,876,557.78 $ 155,538.72 $ 180,084.50 $ 238.954.03

LIABILl!ll.;S ANQ FUNQ !;;QUITY
LIABIUTIE
Accounts Payable Salaries Payable Expired Grant Balances Payable Retainages Payable Deferred Revenue Deferred Compensation Plan General Obligation Bonds Payable
Total Liabilities
FUNQEQUID:
Investment in General Fixed Assets
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Designated For Locker Repair and Replacement Undesignated
Total Fund Balances
Total Fund Equity
Total Liabilities and Fund Equity

$ 165,855.45 $ 712,130.83
120,601.00

9,025.70 68,628.44
451.67
$

34,921.15

$ 998,587.28 $

78,105.81 $

34,921.15

$

21,274.00

$

$

21,274.00 $

7,203.70 849,492.80
$ 8n,s10.so $
$ 8n,s10.so $

$ 238,954.03

17,283.89 7,763.95
$
25,047.84 $

15,712.20 85,686.00
101,398.20 $

238,954.03

52,385.07 n,432.91 $
n,432.91 $

43,765.15 145,163.35 $
145,163.35 $

0.00 238,954.03
238,954.03

$ 1.876,557.78 $ 155,538.72 $ 180,084.50 $ 238,954.03

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

EXHIBIT"A"

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

-4,617,863.60

5,702.26

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS {Memorandum Onll} JUNE 30, 1995 JUNE 30, 1994

$ 6,158,964.11 $ 5,773,933.06

770,087.94

753,766.07

120,601.00

127,801.00

$

218,158.17

13,627,128.82

395,721.46

3,488,188.14

$

$

4,623,565.86 $

17,729,196.59 $

238,954.03 5,511,045.97

17,283.89 7,763.95
218,158.17 13,627,128.82
395,721.46 3,488,188.14
238,954.03
5,511,045.97

10,409.10 4,954.40
218,158.17 13,599,296.92
395,721.46 3,275,322.61
226,217.51
5,628,782.49

5,750,000.00 $ 30,553,897.48 $ 30,014,362.79

$ 4,614,238.72 $

$ 4,614,238.72

$

$

17,729,196.59

$

9 327.14

$

9 327.14

$

9327.14 $

$

4,623,565.86 $

17,729,196.59 17,729,196.59 $

$
5,750,000.00 5,750,000.00 $

174,881.15 $ 780,759.27
451.67 34,921.15 120,601.00 4,614,238.72 5,750,000.00
11,475,852.96 $

182,494.02 710,750.22
3,860.84 31,596.71 242,675.06 4,381,707.40 5,855,000.00
11,408,084.25

$ 17,729,196.59 $ 17,488,499.16

$

21,274.00

$

6,026.15

238,954.03

226,217.51

17,283.89 7,763.95 15,712.20
85,686.00

10,409.10 4,954.40 31,068.77

$

386,674.07 $

278.675.93

7,203.70 954,970.16

6,097.52 833,005.93

$ 1,348,847.93 $ 1,117,779.38

$ 19,078,044.52 $ 18,606,278.54

5,750,000.00 $ 30,553,897.48 $ 30,014,362.79

-3 -

PIKE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 1995

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

DEBT

REVENUE

PROJECTS

SERVICE

FUND

FUND

FUND

$ 6,029,847.19 $ 26,099.54
1,636,078.28

161,385.83 675,690.44 219,417.72 $

$ 7,692,025.01 $ 1,056,493.99 $

0.00 $ 0.00 $

496,651.52 496,651.52

$ 4,615,751.38 $
270,201.26 146,877.82 269,650.13 268,143.34 498,486.64 47,719.13 625,360.31 503,174.71 20,774.00 53,362.17
1,095.42 63,266.95
600.00

324,n4.51
7,763.65 21,425.18 47,220.00 20,103.29
27,976.00 14,113.66 13,737.00 2,925.52 653,675.15
$

$ 7,384,463.26 $ 1,133,713.96 $

$

307,561.75 $

-77,219.97 $

61,318.74 $
61,318.74 $ -61,318.74 $

105,000.00 378,390.00
525.00
483,915.00
12,736.52

$

7,200.00

$

-162,961.47

$ -155,761.47 $

19,548.15 $ 175,413.32 19,548.15 $ 175.413.32

$

151,800.28 $

-57,671.82 $

114,094.58 $

12,736.52

726,170.22

125,420.39

31,068.77

226,217.51

6,874.79 2,809.55

FUND BALANCE JUNE 30

$ 877,970.50 $

77,432.91 $ 145,163.35 $ 238,954.03

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

EXHIBIT"B"

TOTAL

FIDUCIARY FUNDTYPE EXPENDABLE TRUSTFUNOS

TOTALS
(Memorandum On~} YEAR ENDED
JUNE 301 1995 JUNE 30, 1994

$ 6,191,233.02 701,789.98
2,352,147.52 $
$ 9,245,170.52 $

$ 5,034.58

6,191,233.02 $ 701,789.98
2,357,182.10

5,034.58 S 9~50~05.10 S

5,679,275.51 747,155.33
2~08.249.40
8,634,680.24

s 4,940,525.89 S
277,964.91 168,303.00 316,870.13 288,246.63 498,486.64 47,719.13 653,336.31 517,288.37 34,511.00 56,287.69 654,770.57 63,266.95 61,918.74
105,000.00 378,390.00
525.00
$ 9,063,410.96 $
$ 181,759.56 $

520.00 S 4,941,045.89 S 4,790,009.72

145.00 3,944.93

277,964.91 168,303.00 316,870.13 288,246.63 498,486.64 47,719.13 653,336.31 517,288.37 34,511.00 56,432.69 654,770.57 67,211.88 61,918.74

186,258.83 209,088.51 231,027.47 223,490.06 438,268.40
46,306.95 534,917.91 497,642.52
26,248.00 74,096.79 577,440.98 61,060.46 2,421,521.20

105,000.00 378,390.00
525.00

95,000.00 383,045.00

4,609.93 S 9,068,020.89 $ 10,795,422.80

424.65 $ 182,184.21 $ -2,160,742.56

$

7,200.00

194,961.47

-162,961.47

$

39,200.00

s 220,959.56 $
1,108,876.89

6,874.79 2,809.55

$

7,200.00 $

194,961.47

-162,961.47

$

39,200.00 $

7,200.00 209,318.21 -109,318.21
107,200.00

424.65 S 221,384.21 $

8,902.49

1,117,779.38

-2,053,542.56 3,171,074.24

6,874.79 2,809.55

-502.77 750.47

$ 1,339,520.79 $

9,327.14 $ 1,348,847.93 S 1,117,779.38

-5-

~a\;\_k_
FU C

PIKE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

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

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 5,795,446.00 $ 6,029,847.19

0.00

26,099.54

1,563,126.00 1,636,078.28

$ 7,358,572.00 $ 7,692,025.01

$ 4,638,060.46 $ 4,615,751.38

284,865.00 208,984.00 323,783.00 404,210.00 502,715.00
48,183.00 750,850.05 483,045.00
20,774.00 100,331.00
77,807.00

270,201.26 146,877.82 269,650.13 268,143.34 498,486.64 47,719.13 625,360.31 503,174.71 20,774.00 53,362.17
1,095.42 63,266.95
600.00

$ 7,843,607.51 $ 7,384,463.26

$ -485,035.51 $ 307,561.75

$

7,200.00

$ -325,000.00

-162,961.47

$ -325,000.00 $ -155,761.47

$ -810,035.51 $ 989,150.19

151,800.28 726,170.22

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 41,900.00 $ 161,385.83

642,034.00

675,690.44

225,175.00

219,417.72

$ 909,109.00 $ 1,056,493.99

$ 271,325.00 $ 324,774.51

2,429.00 1,138.24
0.00 20,155.00

7,763.65 21,425.18 47,220.00 20,103.29

12,634.00 25,637.00
1,694.00 599,941.00

27,976.00 14,113.66 13,737.00 2,925.52 653,675.15

$ 934,953.24 $ 1,133,713.96 $ -25,844.24 $ -77,219.97

$ 25,000.00 $ 19,548.15

$ 25,000.00 $ 19,548.15

$

-844.24 $ -57,671.82

139,764.63

110,056.89

FUND BALANCE JUNE 30, 1995

$ 179,114.68 $ 877,970.50

$ 138,920.39 $ 52,385.07

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

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Pike County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departure from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Pike County Board ofEducation.
Based upon the application ofthe above criteria, the Pike County Board of Education is determined to be the lowest level ofgovernment exercising oversight responsibility and control over all activities related to public education in Pike 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, the ability to significantly influence operations, and primary accountability for fiscal matters. The Bbard 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 account groups 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 rel~ted 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.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
- 8-

PIKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and account groups 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 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:
EXPENDABLE TRUST FUNDS Eva Peek Children's Fund - the fund used to account for the donation from Eva Peek to assist needy children of the Pike County School System.
Thomaston Mills Donation Fund - the fund used to account for the donation from Thomaston Mills Foundation, Community Enterprises, Incorporated. These funds are to be used according to the donors instructions for any project deemed worthwhile, with the exception of operating expenses.
AGENCY FUND - the funds used to account for assets held for other funds, governments, or individuals.

- 9-

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUPS
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired or constructed for use by the Board.
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1994 and ending in early June 1995. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
- 10 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.

BUDGET

The Pike County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

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

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

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

Special Revenue
Fund
$ -57,671.82 125,420.39
-10,409.10 -4 954.40
$ 52,385.07

- 11 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

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.

LEASE PAYMENT RECEIVABLE

The Pike County Board of Education has entered into a direct financing lease (as lessor) with the City of Zebulon (lessee) to lease land and facilities owned by the Board. The Lease Payment Receivable recorded on the Combined Balance Sheet consists of the amount oflease payments due to the Board as of June 30, 1995.

PROPERTY TAXES

The Pike County Board of Commissioners fixed the property tax levy for the 1994 tax year (calendar year) on November 16, 1994 (levy date). Taxes were due on February 28, 1995. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Pike County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

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

School Operations School Bonds

10.04 mills
-1.ll mills

13.17 mills

- 12 -

PIKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed 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.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
- 13 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent ofthe public funds .being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
- 14 -

PIKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 2: DEPOSITS

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

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $6,554,986.70. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Bank Balance
$ 224,119.93 0.00
6,330,866.77
$ 6,554,986, 70

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

- 15 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEl\.ffiNTS

JUNE 30, 1995

Note 4: CHANGES IN GENERAL FIXED ASSETS

The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year:

Land

Buildings

hnprovements Other Than
Buildings

Machinery and
Equipment

Total

Balance July I, 1994

$ 218,158.17 $ 13,599,296.92 $ 395,721.46 $ 3,212,065.06 $ 17,425,241.61

Retroactive Restatement ofPrior Year Balances

63,257.55

63,257.55

Balance July I, I994 Restated

$ 218,158.17 $ 13,599,296.92 $ 395,721.46 $ 3,275,322.61 $ 17,488,499.16

Additions

27,831.90

406,681.93

434,513.83

Deletions

193,816.40

193,816.40

Balance June 30, 1995

$ 218 158 12 S 13 622 128 82 $ 325 221 46 $ 3 48818814 S 12 222 126 52

Note 5: RISK MANAGEl\.ffiNT

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

The Board has obtained commercial insurance for risk of loss associated with torts, assets and job related illnesses or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.

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

The Board has elected to self-insure for all losses related to natural disasters. The Board has not experienced

any losses related to natural disasters in the past three years.

.

.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims

within the same fund that the employee's salary and benefits were paid. Claims are accounted for with

expenditures and liabilitiy being reported when it is probable that a loss has occurred and the amount of that

loss can be reasonably determined.

- 16 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 5: RISK MANAGE:MENT

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

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994 1995

$

0.00 $

3,453.00 $

3,453.00 $

0.00

$

0.00 $

2,382.00 $

2,382.00 $

0.00

Note 6: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1, 1994

$ . 5,855,000.00

Deductions

105,000.00

Balance June 30, 1995

$ 5 750,000.00

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

Fiscal Year Ended June 30

General Obligation
Bonds

1996 1997 1998 1999 2000 2001 and thereafter

$ 493,035.00 496,735.00 499,780.00 507,080.00 508,322.50
8,412,497.50

Total Principal and Interest

$ 10,917 450.00

- 17 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as ofJune 30, 1995.

Project

Unearned Executed Contracts

Middle School Renovations

$ 7,525.00

The amount described in this note is 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.

Note 9: DIRECT FINANCING LEASE

The Pike County Board of Education has entered into a direct financing lease (as lessor) with the City of Zebulon (lessee) to lease land and facilities owned by the Board for office use. The agreement calls for the City to make principal payments in the amount of $600.00 per month, payable on the first day of each month, until the total ofsuch reaches the amount of$135,000.00, at which time the lease shall terminate. No interest payments are provided for in the agreement. Interest revenue has not been imputed as this amount is deemed immaterial. At such time the lessee has paid the amount of $135,000.00 to the lessor, as provided, the lessee shall have the option to purchase the lease premises for the sum of one dollar ($1 .00).

Note 10: SUBSEQUENT EVENTS

In the subsequent fiscal year, the Board issued general obligation bonds in the amount of$6,220,000.00 dated April 30, 1996. The proceeds from these bonds will be used for refunding the General Obligation School Bonds, Series 1991.

Note 11: 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
- 18 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 11: DEFERRED CO11PENSATION PLAN
Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant.
It is the opinion ofthe Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor.
Investments are managed by the plan's trustee, United Bank ofPike, Zebulon, Georgia.
Note 12: ACCUMULATED E11PLOYEES' LEAVE
The Board's administrative staff and certain other full-time employees earn .833 days per month of annual leave. Annual leave may be accumulated to a maximum of ten days, and upon retirement or termination of employment employees are paid at the current rate ofpay for unused leave up to the maximum accumulation. See Note 1- Compensated Absences
Note 13: RETIRE:MENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO 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
- 19 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 13: RETIREMENT PLANS

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, 1995, was $4,598,424.76; total payroll was $5,486,504.46.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7. 50%.

Total contributions made during fiscal year 1995 amounted to $772,996.04, of which $543,074.22 was made by the Board and $229,921.82 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

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

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

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ I 058,958.000 00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $543,074.22 was actuarially determined and represented .0961% of total contributions made by all participating employers.

- 20 -

PIKE COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 13: RETIREMENT PLANS
Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number 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. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 79 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $2,850.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 14: SURETY BONDS
The School Superintendent, Mr. James G. Crayton, Jr., is bonded in the amount of $50,000.00 with the Western Surety Company, Sioux Falls, South Dakota, their Bond No. 60330432, on which premium is paid through July 1, 1996.
- 21 -

PIKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1995

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

ELEMENTARY AND SECONDARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

CHAPTER2 BLOCK GRANT FLOW THROUGH

$ 83,641.79 $

0.00 $

4,085.70 $

0.00

35,800.44

17,283.89 7,763.95

Total Assets

$ 108,689.63 $

0.00 $

- - - - - - 39,886.14 $

0.00

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Accounts Payable

$

Salaries Payable

Expired Grant Balances Payable

Deferred Revenue

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

$

Purchased Food

$ Unreserved
Undesignated

Total Fund Equity

$

463.94 30,792.78
31,256.72
17,283.89 7,763.95
25,047.84 52,385.07 $ 77,432.91 $

$

7,210.48

32,227.66

448.00

$

39,886.14

0.00 $ 0.00 $

0.00 $. 0.00 $

0.00 0.00

Total Liabilities and Fund Equity

- - - - - $ 108,689.63 $

0.00 $

39,886.14 $ _ _ _ _......,o_.o_o

See notes to the general purpose financial statements.

-22-

EXHIBIT"E"

EDUCATION ACT TITLE II-
EISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

3.67

$

0.00 $

87,731.16 $

273,145.59

$

10,043.80

45,844.24

57,166.70

17,283.89 7,763.95

10,409.10 4,954.40

$

3.67 $

10,043.80 $

0.00 $

158,623.24 $

345,675.79

$

3,084.52

1,351.28

5,608.00

$

3.67

$

3.67 $

10,043.80

$

3,084.52 $

4,358.37

9,025.70

27,676.95

68,628.44

69,485.18

451.67

3,860.84

114,874.06

$

81,190.33 $

220,255.40

$

0.00 $

0.00 $

$

0.00 $

0.00 $

------ $

3.67 $

10,043.80 $

$
$ 0.00 0.00 $

$

6,026.15

17,283.89 7,763.95
25,047.84 $ 52,385.07
TT,432.91 $

10,409.10 4,954.40
21,389.65 104,030.74 125,420.39

0.00 $

158,623.24 $

345,675.79

-23-

PIKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995

ELEMENTARY AND SECONDARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

CHAPTER2 BLOCK GRANT FLOW THROUGH

REVENUES

State Funds Federal Funds Local and Other Funds

$ 41,252.00 $ 120,133.83

324,991.11

$

219,417.72

253,218.20 $

11,235.00

Total Revenues

$ 585,660.83 $ 120,133.83 $

253,218.20 $

11,235.00

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation

$ 48,116.93 $

244,791.13

47,220.00 27,976.00

1,360.17 $ 10,010.59

$ 653,675.15

2,925.52

11,207.83 27.17

Total Expenditures

$ 653,675.15 $ 123,312.93 $

259,087.41 $

11,235.00

Excess of Revenues over (under) Expenditures

$ -68,014.32 $ -3,179.10 $

-5,869.21 $

0.00

OTHER FINANCING SOURCES

Operating Transfers In

16,368.65

3,179.10

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ -51,645.67 $

0.00 $

-5,869.21 $

0.00

FUND BALANCE JULY 1

119,394.24

0.00

5,869.21

0.00

Food Inventory- Net Change in Period Donated Commodities Purchased Food

6,874.79 2,809.55

FUND BALANCE JUNE 30

$ 77,432.91 $

0.00 $

------ 0.00 $

0.00

See notes to the general purpose financial statements.

-24-

EXHIBIT"P'

EDUCATION ACT TITLE II-
EISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

161,385.83 $

80,609.11

$

8,527.33 $

63,981.80 $

13,737.00

675,690.44

729,948.75

219,417.72

203,568.94

$

8,527.33 $

63,981.80 $

13,737.00 $ 1,056,493.99 $ 1,014,126.80

$

31,866.45

$

324,774.51 $

364,532.89

7,763.65

7,763.65

4,637.05

$

8,669.18

188.00

21,425.18

19,979.69

47,220.00

5,363.05

15.09

10,050.44

20,103.29

20,469.71

27,976.00

22,353.85

14,113.66

14,113.66

12,568.50

$

13,737.00

13,737.00

6,232.00

2,925.52

2,821.95

653,675.15

576,154.76

$

8,684.27 $

63,982.20 $

13,737.00 $ 1,133,713.96 $ 1,035,113.45

$

-156.94 $

-0.40 $

0.00 $

-77,219.97 $

-20,986.65

$

-156.94 $

156.94

0.40
0.00 $ 0.00

$

----- 0.00 $

0.00 $

19,548.15

210.21

0.00 $ 0.00

-57;671.82 $ 125,420.39

-20,776.44 145,949.13

6,874.79 2,809.55

-502.77 750.47

0.00 $

77,432.91 $

125,420.39

- 25 -

~ C8sh and C8sh Equivalents

Pl~E QQ!.!!::JD'. fi!QARQ QE EQ!.!QATIQt:l
!:.QMl;!INlf::!Q ~~NCE S!:!El;I 1:.APIT~L PRQ.,!EQI B.!NCl
JUNE 30 1995

EXHIBIT"G"

REGULAR

1992 BOND ISSUE
FUND

LOTTERY PROJECT 96l95S-714-061

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 96-714-054

TOTALS JUNE 30, 1995 JUNE 30, 1994

$ 43 765.15 $ 50633.35 $

23205.00 $

62 481.00 $

180084.50 $

62915.48

Ll~ILITIES ANQ B.!NCl EQUITY

UAl;!ILmES

Accounts Payable Retainages Payable

$ 34,921.15

Total Liabilities

$ 34,921.15

FUND EQUITY

Fund Balances ReseM!d For Purposes ct Bond Issue For State capital OUtlay Projects

$ 15,712.20 $

$ 15,712.20 $

Unreseived Undesignated

$ 43 765.15

0.00

Total Fund Equity

$ 43,765.15 $ 15,712.20 $

23,205.00 $ 23,205.00 $
0.00 23 205.00 $

Total Liabilities and Fund Equity $ 43 765.15 $ 501633.35 $

23 205.00 $

$

250.00

$

34921.15

31 596.71

$

34921.15 $

31 846.71

$ 62 481.00
62,481.00 $

15,712.20 $ 85 686.00
101,398.20 $

0.00 62481.00 $

43 765.15 145 163.35 $

31,068.77 31,068.77
31 068.77

62481.00 $

180 084.50 $

62 915.48

See notes to the general purpose financial statements.

-26-

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

EXHIBIT "H''

REGULAR

1992 BOND ISSUE
FUND

LOTTERY PROJECT 96/95S-714-061

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 96-714-054

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

REVENUES Local and Other Funds

$

0.00 $

0.00 $

0.00 $

0.00 S

0.00 $

25,238.46

EXPENDITURES

Cepital Outlay

Land and Land Improvements

$

Building and Building Improvements $ 45,962.17

Equipment

8,378.29 $ 6,978.28

Total Expenditures

$ 45,962.17 $ 15,356.57 $

Excess d Revenues Ollel' (under) Expenditures

s -45,962.17 $ -15 356.57 $

0.00 $ 0.00 S 0.00 $

0.00 S 0.00 S

8,378.29 $ 52,940.45
61 318.74 S

9,643.00 1,991,079.60
3~9 979.30
2,320,701.90

0.00 S

-e1 318.74 S -2,295,463.44

QI!::tER FINAt:!QING SQ\.!R!:&S

Operating Transfers In

s 89,727.32

$

Excess d Revenues and Other Financing

Sources Oller (under) Expenditures

$ 43,765.15 $ -15,356.57 $

FUND BALANCE JULY 1

0.00

31 068.77

23205.00 $
23,205.00 $ 0.00

62 481.00 $

175 413.32 $

109,108.00

62,481.00 S 0.00

114,094.58 $ -2, 186,355.44

31 068.77

2,217,424.21

FUND BALANQ!;; J!.,!Nli; 30

$ 43 765.15 $ 15 712.20 $

23,205.00 $

62 481.00 $

145163.35 $

31 068.77

See notes to the general purpose financial statements.

-27 -

PIKE COUNTY BOARD Of EDUCATION COMBINING BALANCE SHEET ADUCIARYFUNDTYPES JUNE 30. 1995

EXHIBIT"r

Cash and Cash Equivalents Accounts Receivable

EXPENDABLE TRUST FUNDS

EVA PEEK

THOMASTON

CHILDREN'S

MILLS

FUND

DONATION FUND

AGENCY FUND

TOTALS JUNE 301 1995 JUNE 301 1994

$

1,283.90 $

8,043.24 $

4,608,536.46 $ 4,617,863.60 $ 4,375,650.99

5,702.26

5,702.26

14,958.90

Total Assets

$

1,283.90 $

8043.24 $

s s 4,614,238.n

4,623,565.86

4,3901609.89

LIABILITIES AND FUND EQUITY

LIABILITIES

Deferred Compensation Plan

FUND EQUITY

Fund Balances

Unreserved

Undesignated

$

$

s s 4,614,238.n

4,614,238.n

4,381,107.40

1,283.90 $ _ _ _....;8:.,.;,04:...;.:;.3.=24-'- _ _ _ _____;;.o;.:;.oo~

s,321.14

8,902.49

Total Liabilities and Fund Equity

$

1,283.90 $

8043.24 $

4,614,238.72 $ 4.623,565.86 $ 4,39(),,609.89

See notes to the general purpose financial statements.

-28-

PIKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 1995

REVENUES
Local and Other Funds
EXPENDITURES
Current Instruction Support Services Other Support Services
Other Operations of Non-Instructional
Services
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

EVA PEEK CHILDREN'S
FUND

THOMASTON MILLS
DONATION FUND

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

34.58 $

5,000.00 $

5,034.58 $

5,033.66

$

0.00 $

$

0.00 $

$

34.58 $

1,249.32

520.00 $ 145.00 3,944.93 4,609.93 $ 390.07 $ 7,653.17

520.00 $ 145.00 3,944.93 4,609.93 $ 424.65 $ 8,902.49

1,593.23
3,673.26 5,266.49 -232.83 9,135.32

FUND BALANCE JUNE 30

$

1,283.90 $

8,043.24 $

9,327.14 s _ _...,;s;.:.;,90;.;.;;2;.;.4.;;;..9

See notes to the general purpose financial statements.

-29-

PIKE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"K"

DEFERRED COMPENSATION PLAN
ASSETS Cash Accounts Receivable

BALANCE JULY 1, 1994

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1995

$ 4,366,748.50 $ 14,958.90

603,414.01 $ 5,702.26

361,626.05 $ 14,958.90

4,608,536.46 5,702.26

$ 4,381,707.40 $ 609,116.27 $ 376,584.95 $ 4,614,238.72

LIABILITIES Deferred Compensation Plan

$ 4,381,707.40 $ 609,116.27 $ 376,584.95 $ 4,614,238.72

See notes to the general purpose financial statements.

- 30-

PIKE COUNTY BOARD OF EDUCATION
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30.1995

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT

CFDA

AWARDS

NUMBER 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 1995 Grant National School Lunch Program 1995 Grant Food Distribution Program (1)

10.553 $
10.555 10.550

59,939.27 $
227,057.10 371994.74

59,939.27 $
227,057.10 N/A

59,939.27
227,057.10 $ 371994.74

(2)
615.680.41 (3) 37994.74

Total U. S. Department of Agriculture

$ 3241991.11 $

2861996.37 $ 3241991.11 $

6531675.15

Education,U.S.Oepartmentof Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1994 Regular 1994 Carry-over 1994 Summer Program 1995 Regular Chapter2 Block Grant - Flow Through 1995 Regular
Title II Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular
Individuals with Disabilities Education Act Title VI, B Flow Through 1994 Regular 1994 Carry-Over 1995 Regular Preschool Program 1994 Carry-Over 1995 Regular
Vocational Education - Basic Grants to States High School Program Basic Grant 1995 Grant

84.010 84.010 $ 84.010 84.010
84.151
84.164 84.164
84.027 84.027 84.027 84.173 84.173
84.048

$ 38.487.00 225,949.00 11.235.00
8,531.00
4,738.00 61,902.00 13,737.00 11,900.00
181591.84

40.361.62 38,487.00 $
-621.24 180,000.00

38,487.00 $ -621.24
215,352.44

38.487.00 5,247.97 215,352.44

11.235.00

11,235.00

11,235.00

8,531.00

8,527.33

156.94 8,527.33

221.96 4,738.00 49,200.00
13,737.00

4.738.00 59,243.80
13,737.00

4.738.00 59,244.20 (3)
13,737.00

161883.60

181591.84

(4}

TotalU.S.OepartmentofEducation

$ 395,070.84 $

362,n3.94 $ 369,291.17 $

356i725.88

Labor, U. S. Department of Through Griffin Regional Educational Service Agency Job Training Partnership Act 93-11 C-BS-PWM-03

17.250

$

121625.11

- 31 -

PIKE COUNTY BOARD OF EDUCATION
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1995

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Federal Emergency Management Agency Through Office of the Govemor Disaster Assistance

CFDA

AWARDS

NUMBER IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

83.516 $

7,507.70 $

7,507.70 $

7,507.70

(4}

Total Federal Financial Assistance

$ 7271569.65 $

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

6691903.12 $ 701.789.98 $ 110101401.03

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

See notes to the general purpose financial statements.

- 32 -

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

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
United Bank of Pike, Zebulon, Georgia
N.O.W. Accounts
United Bank of Pike, Zebulon, Georgia
Certificates of Deposit No. 27646 (5.10%) No. 27647 (5.45%) No. 27680 (5.10%) No. 27698 (4.35%) No. 27699 (5.00%) No. 27152 (6.86%)

$ 505,312.65

$ 107,000.00 400,000.00 440,000.00
4,406,651.46 100,000.00 200,000.00

5,653,651.46

$ 6,158,964.11

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

PIKE COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1995

SCHEDULE'T

Education, Georgia Department of Quality Basic Education Deferred Summer Salaries-FY 1995 Vocational Education Federal Funds Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Ad. Tttle VI, B - Flow Through
Georgia Baptist Children"s Homes and Families Ministries, Incorporated Reimbursement for Salaries
Pike County Tax Commissioner County Wide Bond Tax County Wide School Tax
Various Sources Interest Earned

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL REVENUE

SERVICE

FUND

FUND

FUND

FIDUCIARY FUND TYPE AGENCY FUND

TOTAL

$ 677,393.00 1,708.24 $ 35,800.44 10,043.80

$ 677,393.00 1,708.24
35,800.44 10,043.80

6,360.99 23,196.96 2,048.15

$ 7,834.10 $

6,360.99

23,196.96 7,834.10

5,702.26

7,750.41

$ 710,707.34 $ 45,844.24 $ 7,834.10 $

5,702.26 $ TT0,087.94

See notes to the general purpose financial statements.

- 34 -

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1996 1997 1998 1999 2000
2001 2002 2003 2004 2005
2006 2007 2008 2009 2010
2011 2012 2013 2014 2015
2016

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

SCHEDULE "4"

TOTAL DEBT SERVICE

1992 ISSUE

INTEREST

PRINCIPAL

$

493,035.00 $ 373,035.00 $ 120,000.00

496,735.00

366,735.00

130,000.00

499,780.00

359,780.00

140,000.00

507,080.00

352,080.00

155,000.00

508,322.50

343,322.50

165,000.00

513,835.00 518,215.00 516,515.00 519,010.00 520,370.00

333,835.00 323,215.00 311,515.00 299,010.00 285,370.00

180,000.00 195,000.00 205,000.00 220,000.00 235,000.00

520,565.00 524,565.00 521,340.00 527,102.50 526,177.50

270,565.00 254,565.00 236,340.00 217,102.50 196,177.50

250,000.00 270,000.00 285,000.00 310,000.00 330,000.00

528,902.50 529,940.00 534,100.00 536,220.00 536,300.00

173,902.50 149,940.00 124,100.00 96,220.00 66,300.00

355,000.00 380,000.00 410,000.00 440,000.00 470,000.00

539,340.00

34,340.00

505,000.00

$ 10,917,450.00 $ 5,167,450.00 $ 5,750,000.00

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

1992 ISSUE $ 5,855,000.00
105,000.00
$ 5,750,000.00

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

FEB 1 -AUG 1 FEB 1

See notes to the general purpose financial statements.

- 35 -

PIKE COUNJY BOARD OF EDUCATION SCHEDULE Of STATE REVENUE YEAR ENDED JUNE 30 1995

SCHEDULE "5"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education
General and career Education Programs
Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation
Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension School Counselors Grades 4 and 5 Superintendent Base Salary Mid-term Adjustment Local Fair Share Deferred Summer Salaries - FY94 Deferred Summer Salaries - FY95 Educational Equalization Funding Grant Food Services Vocational Education other State Programs At-Risk Summer School Program Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Algebra Classrooms Distant Leaming Instructional Technology Media Center and Library Equipment Safe Schools Grant
Office of the Governor Disaster Assistance
CONTRACT Education, Georgia Department of Leadership Seminar - Georgia Education Leadership Academy
OTHER Education, Georgia Department of Reimbursement for Effective Practices Workshop Georgia Forestry Commission Tree Planting Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 3,628,355.00 398,305.00 88,132.00 153,650.00 49,731.00
1,063,805.00
308,927.00 100,587.00 122,821.00 51,502.00 66,282.00 19,971.00 10,423.00 179,576.00 -717,473.00 -625,819.00 677,393.00 404,395.00
$ 1,098.00
7,659.75 4,532.10
690.00 20,774.00
885.84 7,432.20

$ 3,628,355.00 398,305.00 88,132.00 153,650.00 49,731.00
1,063,805.00

41,252.00

308,927.00 100,587.00 122,821.00 51,502.00 66,282.00
19,971.00 10,423.00 179,576.00 -717,473.00 -625,819.00 677,393.00 404,395.00 41,252.00 1,098.00

7,659.75 4,532.10
690.00 20,774.00
885.84 7,432.20

1,966.50 6,239.87 39,872.36 47,136.95 24,918.15

1,966.50 6,239.87 39,872.36 47,136.95 24,918.15

807.30

807.30

1,000.00

1,000.00

5.00 4,400.00

5.00 4,400.00

$ 6p291847.19 $ 1611385.83 $ 611911233.02

See notes to the general purpose financial statements.

- 36 -

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

SCHEDULE6"

Taxes County Wide Bond Tax County Wide School Tax Real Estate Transfer Tax
Other Donations Community Enterprises, Incorporated Insurance Recovery
Interest Earned Jury Duty Fees Lost and Damaged Books Reimbursements for Salaries
Georgia Baptist Children's Homes and Families Ministries, Incorporated
Rents Sales
Adult Meals Contracted Meals Lunches Supplemental Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTAL

$ 1,554,182.08 10,327.34

$ 492,890.43

$ 492,890.43 1,554,182.08 10,327.34

1,761.06 28,816.62 $
435.00 208.91

1,980.37 90.00

$ 3,761.09

5,000.00 34.58

5,000.00 1,761.06 34,592.66
525.00 208.91

25,560.11 1,189.69
10,620.00 2,9TT.47

35.00
29,789.15 4,783.35
169,871.27 12,842.48
26.10

25,560.11 1,224.69
29,789.15 4,783.35 169,871.27 12,842.48 10,620.00 3,003.57

$ 1,636,078.28 $ 219,417.72 $ 496,651.52 $ 5,034.58 $ 2,357,182.10

See notes to the general purpose financial statements.

- 37 -

le E:, \Cl'-\_
yos~

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

SCHEDULE "'7"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 5,017,142.89 $ 1,265,817.33 10,351.93
62,884.68
11,487.57 26,699.86
6,489.13 196.07
1,309.68 31,750.76 17,460.90
45,783.08 25,943.69 322,796.17 216,034.04
99,547.23 12,708.98 7,004.50

469,091.57 $ 101,443.78
5,110.53 23,930.14
4,043.32
1,394.62 2,801.86
5,356.75
75,482.44
6,970.37 294,863.19
1,109.09 3,567.75
61.50

5,486,234.46
1,367,261.11
15,462.46 86,814.82 11,487.57
26,699.86 10,532.45
196.07 1,309.68 31,750.76
18,855.52
2,801.86
45,783.08 31,300.44
398,278.61
223,004.41
294,863.19 100,656.32
16,276.73 7,066.00

600.00 202,454.77

138,487.05

600.00 340,941.82

Total Expenditures

$ 7,384,463.26 $ 1,133,713.96 $ 8,518,177.22

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

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

EXPENDITURES Operating Costs Other Purchased Services Supplies Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

$

1,955.37

$

1,966.50

3,293.50 $

991.00

500.00 391410.56

$

1,966.50 $

6,239.87 $ _.....,...,3.s...,.9...1.o....5..6..,.

See notes to the general purpose financial statements.

- 40 -

SCHEDULE "8"

MEDIA CENTER AND
LIBRARY
EQUIPMENT

SAFE SCHOOLS
GRANT

TOTAL

$

1,955.37

5,760.00

$

47,220.00 $ _ _2_7..._,9_7_6._00_

115,597.56

$

47,220.00 $

27,976.00 $ 123,312.93

- 41 -

PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 1995
EXPENDITURES
Operating Costs Salaries Employee Benefits Professional and Technical Services Communications Other Purchased Services Supplies Dues and Fees
Total Expenditures

SCHEDULE "9"

$

270.00

4.44

476.00

19.72

1,163.00

2,052.77

624.00

$ ===4=,6=0=9=.9=3

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

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

SCHEDULE "1 O"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries (1) (2) Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 4,408,750.00 $

188,918.00

$ 4,258,865.43 320,408.97 $ _ _ _2_6_7..:.,.,8_6_4._38_
$ 4,579,274.40

-102,424.21 $ 4,476,850.19

Amount of Underexpenditure for Total Allotment

$

Note: (1) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

0.00 $ = = = = = =0.0=0

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

PIKE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30 1995

GENERAL !f:iD QABEEB EDUCATIQ!::I PRQG~MS Kindergarten M
Grades 1 - 3 (") SUb-Total -K-3
Grades 4 - 5 M Grades 6 - 8 M Grades 9 - 12 M
High School Laboratories (")
Vocational Education Laboratories M
Total General and career Education Programs
SPECIAL EOUCATION PROGRAMS
Regular Programs category II (") category Ill (")
category IV (")
SUb-Total - Regular
category V (Gifted) M
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM C*l
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost d Instruction Professional Development
Total Staff Development (") Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1995 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL _:L

ORIGINAL

MID-TERM

$

370,683.00

$

333,614.70 $

903,534.00

813,180.60

$ 1,274,217.00 90 $ 1,146,795.30 $

490,123.00 90

441,110.70

831,534.00 90

748,380.60

566,074.00 90

509,466.60

275,992.00 90

248,392.80

190,415.00 90

171,373.50

$ 3,628,355.00

$ 3,265,519.50 $

0.00 9,132.00 9,132.00
0.00 0.00 0.00 61,486.00 21,800.00 92,418.00

$

364,252.00

$

327,826.80 $

9,663.00

$

364,252.00 90 $

327,826.80 $

34,053.00 90

30,647.70

$

398,305.00

$

358,474.50 $

$

88,132.00 90 $

79,318.80 $

$ 4,114,792.00

$ 3,703,312.80 $

9,663.00 0.00
9,663.00 33,106.00 135,187.00

$

119,381.00 90 $

107,442.90 $

34,269.00 90

30,842.10

$

153,650.00

$

138,285.00 $

3,753.00 1,368.00
5,121.00

$ 4,268,442.00

$ 3,841,597.80 $

140,308.00

$

11,727.00

38,004.00

$

11,727.00 $

38,004.00

$

49,731.00 100 $

49,731.00 $

(2) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

485.00 0.00
485.00

See notes to the general purpose financial statements.

44.

SCHEDULE "11"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

s

333,614.70 s

345,653.81 s

9,786.39 s

355,440.20

822,312.60

887,289.80

40,383.14

927,672.94

s 1,155,927.30 s 1,232,943.61 s

50,169.53 s 1,283,113.14 s

0.00

441,110.70

468,646.88

28,470.94

497,117.82

0.00

748,380.60

796,042.34

56,131.06

852,173.40

0.00

509,466.60

489,928.92

29,111.85

519,040.TT

0.00

309,878.80

307,TT6.75

32,430.62

340,207.37

0.00

193,173.50

162,691.76

52,693.94

215,385.70

0.00

s 3,357,937.50 s 3,458,030.26 s

249,007.94 $ 3,707,038.20

$

337,489.80

$

61,023.90 $ 301,743.31
42,403.83

2,552.99 $ 9,741.83 1,233.46

63,576.89 311,485.14
43,637.29

$

337,489.80 $

405,171.04 $

13,528.28 $

418,699.32

0.00

30,647.70

67,201.57

2,452.64

69,654.21

0.00

$

368,137.50 $

472,372.61 $

15,980.92 $

488,353.53

$

112,424.80 $

119,811.94 $

2,875.52 $

122,687.46

0.00

$ 3,838,499.80 $ 4,050,214.81 $

267,864.38 $ 4,318,079.19

$

111,195.90 s

208,650.62

$

208,650.62

0.00

32,210.10

$

52,544.59

52,544.59

0.00

$

143,406.00 s

208,650.62 $

52,544.59 $

261,195.21

$ 3,981,905.80 $ 4,258,865.43 $

320,408.97 $ 4,579,274.40 $

000

$

12,212.00

38,004.00

s _ _ _so.,..2.1_,s.,.o..o.

$

15,293.58 $

15,293.58

34,967.40

34,967.40

$

50,260.98 $

50,260.98 s______o_.oo_

- 45 -

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

SCHEDULE "12''

BOARD MEMBER ADDRESS
Mr. J. Ronald Adams, Chairman (*) 599 Adams Road The Rock, Georgia 30285
Mr. Fred D. Blackmon (*)
237-B Second Street
Concord, Georgia 30206
Ms. Suzanne King (*) 334 Lifsey Springs Road Molena, Georgia 30258
Mr. Alton Shackleford (*) 287 Shackleford Road Griffin, Georgia 30223
Mr. Alton Turner (*) 134 Bethany Church Road Williamson, Georgia 30292
Mr. Mitchell Vaughn (*) Route 2, Box 379 Milner, Georgia 30257
Mr. John L. Wynn. Sr. P. 0. Box333 Molena, Georgia 30258

COMPENSATION

TRAVEL

$

1,700.00

1,900.00 $

414.99

1,600.00

950.00

2,050.00

271.90

450.00

1,600.00

550.68

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

$

10,250.00 $ ====1=,2=37=.5=7

See notes to the general purpose financial statements.

- 46 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 28, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Pike 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 Pike County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 28, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Pike County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

95CRL-10

The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
This report is intended for the information of management, the Federal cognizant audit agency and other
Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a
matter of public record.
Respectfully submitted,
L~
Claude L. Vickers State Auditor
CLV:dt 95CRL-10

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 28, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Pike 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 Pike County Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated May 28, 1996. This report was qualified for a scope limitation and for a departure 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 Pike County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

95CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Pike 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.
t t ~ ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:dt 95CRL-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 28, 1996

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

SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REOUIREl\ffiNTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Pike County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated May 28, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1995 general purpose financial statements of the Pike County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements goverrung:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

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

95CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Pike County Board ofEducation had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 95CRL-120

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 28, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Pike 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 Pike County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated May 28, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management of the Pike 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, 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
95ICL-1

procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of the Pike County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that 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. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other
Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a
matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt 95ICL-l

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 28, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Pike 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 Pike County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated May 28, 1996. This report was qualified for a scope limitation and for a departure from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1995, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures
relevant to compliance with requirements applicable to Federal financial assistance programs. We have

95ICL-13

addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated May 28, 1996.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1995, the Pike County Board of Education had no major Federal financial assistance programs and expended 69% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs:

95ICL-13

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act Chapter I - Education ofDeprived Children
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to the aforementioned nonmajor Federal financial assistance programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a 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. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt 95ICL-13

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Salary Overpayment Financial Statements Amount: $540.00 Audit Control Number 7141-94-01
The audit report for the year ended June 30, 1994, reported that the Board overpaid an employee in the amount of$540.00 as a result ofa transposition error in calculating the employee's salary. The Board should seek reimbursement for this overpayment for deposit to the Board's General Fund.
CURRENT YEAR
EXPENDITURES/1.JABILITIES/DISBURSEMENTS Overpayments ofPer Diem Financial Statements Nonmaterial Noncompliance Audit Control Number 7141-95-01 Finding Resolved
In the year under review, overpayments in the amount of $900.00 were made to various Board Members. These overpayments were due to the Board making per diem payments to various Board Members in excess of the $300.00 per month maximum provided by Board policy. As of the date of our audit report, reimbursements were received for these overpayments and deposited to the Board's General Fund.
Note: The Pike 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.