Audit report, Pike County Board of Education, Zebulon , Georgia, year ended June 30, 1996

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AUDIT REPORT PIKE COUNTY BOARD OF EDUCAnON
ZEBULON, GEORGIA YEAR ENDED JUNE 30, 1996

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

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

ExmBITS

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

24

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

28

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

31

K

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

PGENCYFUND

32

PIKE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

33

2 CASH AND CASH EQUIVALENTS

34

3 ACCOUNTSRECENABLE

35

4 DEBT SERVICE REQUIREMENTS TO MATURITY

36

SCHEDULE OF REVENUE

5

STATE

37

6

TAXES AND OTHER

38

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

BY PROGRAM

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 AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.\., Suite 214 Atlanta, Georgia 30334-8400
June 12, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Pike County BoardofEducation
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, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
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 OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, 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:
96ARL-13

School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confonn to generally accepted accounting principles, these accounts should
.,. be included in the general purpose financial statements.
The 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, 1996, 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 June 12, 1997, on our consideration ofthe Board's internal control structure and a report dated June 12, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements 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 of the Pike County Board ofEducation. Such infonnation 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 infonnation 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 pennanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
- Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 96ARL-13

.,;
PIKE COUNTY BOARD OF EDUCAnON -1-

ASSETS
Cash and Cash Equivalents
Investments Held by Trustee
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

PIKE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30 1996

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAl

REVENUE

PROJECTS

FUND

FUND

$ 1,817,860.47 $

80,840.30 $

267,585.91

803,221.90 113,401.00

49,845.09

110,285.60

14,8n.34 10,742.60

$ 2,734,483.37 $

156,305.33 $

3.n;..;,,8;,;7..,,.;,;;;.5.'..

LIABILITIES AND FUNP EqUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Deferred Compensation Plan General Obligation Bonds Payable
Total Liabilities
FUND EqUITY
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 Purpose of Bond Issue For State Capital Outlay Projects
Unreserved Designated for Equipment Purposes Deficit Undesignated
Total Fund Balances
Total Fund Equity

$

183,562.95 $

762,164.29

113,401.00

19,789.05 85,750.70
26.20 $

109.048.00 17.356.00

$ 1,059,128.24 $

105,565.95 $

126,404.00

$

4,099.55

$

$

8,463.23

1,666,891.90

$ 1,675,355.13 $

$ 1,675,355.13 $

14,8n.34 10,742.60
$
29,719.49 $

13,564.70 261,107.81
274,672.51

21 ,019.89 50,739.38 $ 50,739.38 $

-23,205.00 0.00
251,467.51
" 251,467.51

Total Liabilities and Fund Equity The notes to the general purpose financial statements are an integral part of this statement.
-2-

$ 2,734.483.37 $

156,305.33 $

3.-n....8. .7.,;,1;;;;.5=1

EXHIBIT'A'

DEBT y SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

267,638.63 $

23,167.96

4,602,528.34

10,537.51

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

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

$ 2,457,093.27 $ 6,158,964.11

4,602,528.34

973,890.10

770,087.94

113,401.00

120,601.00

14,877.34 10,742.60

17,283.89 7,763.95

$

218,158.17

13,728,916.52

395,721.46

3,924,367.12

$

278,176.14

218,158.17 13,728,916.52
395,721.46 3,924,367.12
278,176.14

218,158.17 13,627,128.82
395,7.21.46 3,488,188.14
238,954.03

5,941 ,823.86

5,941 ,823.86

5,511,045.97

$

278,176.14 $

4,625,696.30 $ 18,267,163.27 $ 6,220,000.00 $ 32,659,695.92 $ 30,553,897.48

$

4,616,608.84

$

4,616,608.84

$

203,352.00 $

174,881.15

847,914.99

780,759.27

26.20

451.67

109,048.00

17,356.00

34,921.15

113,401.00

120,601.00

4,616,608.84

4,614,238.72

$ 6,220,000.00

6,220,000.00

5,750,000.00

$ 6,220,000.00 $ 12,127,707.03 $ 11 ,475,852.96

$ 18,267,163.27

$ 18,267,163.27 $ 17,729,196.59

$

278,176.14

$

278,176.14

0.00 $

$

278,176.14 $

$

278,176.14 $

9,087.46 9,087.46 9,087.46 $ 18,267,163.27

$

21,274.00

$

4,099.55

238,954.03

278,176.14

14,877.34 10,742.60 13,564.70 261,107.81

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

$

582,568.14 $

386,674.07

8,463.23 -23,205.00 1,696,999.25

7,203.70 954,970.16

$ 2,264,825.62 $ 1,348,847.93

$ 20,531,988.89 $ 19,078,044.52

$

278,176.14 $

4,625,696.30 $ 18,267,163.27 $ 6,220,000.00 $ 32,659,695.92 $ 30,553,897.48

-3-

PIKE COUNTY BOARP OF EpUCATION COMBINED STATEMENT OF REVENUES, EXpENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXpENDABLE TRUST FUNDS YEAR ENDED JUNE 30 1996

EXHIBIT "a-

TYPES '[lEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

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

$ $ 1,922,954.40

7,301,141.16 715,595.99
4,568,015.61 $

$ 1,922,954.40 $ 12,584,752.76 $

$ 5,000.00

7,301,141.16 $ 715,595.99
4,573,015.61

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

5,000.00 $ 12,589,752.76 $ 9,250,205.10

$ 5,526,968.40

301,118.03 230,231.05 312,414.76 299,217.60 527,740.90 60,520.76 698,973.37 734,504.50 90,011.19
22,237.69 701,773.36
52,278.79 $ 234,584.80

$ 120,000.00 373,035.00 645.80
1,415,500.00

120,000.00 373,035.00
645.80 1,415,500.00

$ 1,909,180.80 $ 11,701,756.00 $

$

13,773.60 $

882,996.76 $

$ 5,526,968.40 $ 4,941,045.89

5,239.68

301,118.03 230,231.05 312,414.76 299,217.60 527,740.90 60,520.76 698,973.37 734,504.50 90,011.19
22,237.69 701,773.36 57,518.47 234,584.80

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

120,000.00 373,035.00
645.80 1,415,500.00

105,000.00 378,390.00
525.00

5,239.68 $ 11,706,995.68 $ 9,068,020.89

-239.68 $

882,757.08 $

182,184.21

$

25,448.51 $

25,448.51

6,220,000.00 -152,547.00 -6,067,453.00

6,220,000.00 -152,547.00 -6,067,453.00
7,200.00 182,603.46 -182,603.46

$

25,448.51 $

32,648.51

$

39,222.11 $

915,645.27 $

238,954.03

1,339,520.79

-2,406.55 2,978.65

$

25,448.51

6,220,000.00 -152,547.00 -6,067,453.00
7,200.00 $ 182,603.46 -182,603.46

$

32,648.51 $

7,200.00 194,961.47 -162,961.47
39,200.00

-239.68 $ 9,327.14

915,405.59 $ 1,348,847.93

221,384.21 1,117,779.38

-2,406.55 2,978.65

6,874.79 2,809.55

$ 278,176.14 $ 2,255,738.16 $

9,087.46 $ 2,264,825.62 $ 1,348,847.93

- 5

TIDS PAGE LE" BLANK

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 3D. 1996

Note 1: SUM1v1ARY 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 fmancial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the 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 Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and 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 related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
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 balance 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

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 1: SIDvfMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and account groups presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately.
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 l\Iills 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 normal Board operating expenses.
AGENCY FUND - the fund used to account for assets held for other funds, governments, or individuals.
ACCOUNT GROUPS
GENERAL FIXED ASSETS ACCOUNT GROUP - used to account for all general fixed assets acquired or constructed for use by the Board.

- 9-

PIKE COUNTY BOARD OF EDUCATION

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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 (Le., revenues and other financing sources) and decreases (Le., 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 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 1995 and ending in early June 1996. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts 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.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.

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PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Pike County Board of EducationIS 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 ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

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

Special Revenue
Fund

FUND BALANCE JULY 1, 1995

$ 77,432.91

Adjustments Inventories - July 1, 1995 Food Donated Commodities Purchased Foods

-17,283.89 -7,763.95

Fund Balance July 1, 1995 (Budget Basis)

$ 52,385.07

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

-27,265.63

FUND BALANCE JUNE 30, 1996 (Budget Basis)

$ 25.11944

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PIKE COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30. 1996

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.
INVESTMENTS HELD BY TRUSTEE
Investments held by trustee consist of contributions from employees who have elected to participate in the Board's deferred compensation plan. See Note 11 - Deferred Compensation Plan
RECEIVABLES
Receivables consist ofgrant reimbursements due from State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
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 balance of the lease payments due to the Board as of June 30, 1996.
PROPERTY TAXES
The Pike County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on December 20, 1995 (levy date). Taxes were due on February 20, 1996. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section P70.1 03. 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.
Tax millag(. rates levied for the 1995 tax year (calendar year) for the Pike County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):
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PIKE COUNTY BOARD OF EDUCATION

EXillBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

School Operations School Bonds

9.96 mills 2.91 mills

12.87 mills

INVENTORIES

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

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. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Infrastructure assets are not capitalized by the Board.

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.

- 13 -

PIKE COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 1: Sillv1MARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government.
The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

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

MEMORANDUM ONLY - TOTAL COLUMNS

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

DEFICIT FUND BALANCES

Individual fund reporting a deficit fund balance position at June 30, 1996, which are not readily apparent on the general purpose financial statements are as follows:

Fund TypelFund Name

Deficit Balances

Governmental Fund Type Capital Projects Fund - Regular

$ -23,205.00

Note 2: DEPOSITS AND INVESTMENTS HELD BY TRUSTEES

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposi('at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured

- 14 -

PIKE COUNTY BOARD OF EDUCATION

EXIllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 2: DEPOSITS AND INVESTMENTS HELD BY TRUSTEES
after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $2,815,262.72. 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.)
- 15 -

PIKE COUNTY BOARD OF EDUCATION

EXIDBIT liD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 2: DEPOSITS AND INVESTMENTS HELD BY TRUSTEES

The Board's deposits are classified by risk category at June 30, 1996, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

2,715,262.72

3

0.00

Total

$ 2,815,26272

CATEGORIZATION OF INVESTMENTS HELD BY TRUSTEES At June 30, 1996, the market value ofthe Board's total investments was $4,602,528.34 and this entire amount is categorized as Unclassified - Deferred Compensation Plan pooled investments.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: GENERAL FIXED ASSETS

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

Land

Buildings

Improvements Other Than
Buildings

Machinery and
Eguipment

Total

- 16 -

PIKE COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 5: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness 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 of the past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk 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 expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1995 1996

$

0.00 $

2,382.00 $

2,382.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

Note 6: GENERAL LONG-TERM DEBT

ADVANCE REFUNDING During fiscal year 1996, the Pike County Board of Education issued $6,220,000.00 in General Obligation Refunding Bonds to advance refund $5,630,000.00 of outstanding bonds. The bond issue of $6,220,000.00 less underwriters and bond issue cost of$152,547.00 provided net proceeds of$6,067,453.00. The total net proceeds along with $1,415,500.00 derived from a forward purchase agreement provided $7,482,953.00. These funds were transferred to an irrevocable trust with an escrow agent to provide for future debt service payments on the 1992 Bond issue. As a result, the 1992 Series Bonds are considered defeased, and the liability has been removed from the General Long-Term Debt Account Group. The Pike County Board of Education refunded the aforementioned bonds to reduce its total Debt Service payments over 20 years beginning subsequent to fiscal year 1996 by $101,564.00 and to obtain an economic gain (difference between the present values of total debt service payments and the old and new debt) of$158,123.00.

- 17 -

PIKE COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 6: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Refunding - Series 1996

3.75% - 5.70% $ 6,220 000,00

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

Balance July 1, 1995
Additions Bonds Issued During Period
Deductions Bonds Retired During Period Bond Defeased During Period
Balance June 30, 1996

General Obligation
Bonds $ 5,750,000.00
6,220,000,00
120,000.00 5,630,000,00 $ 6,220000,00

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

Fiscal Year Ended June 30

General Obligation
Bonds

1997 1998 1999 2000 2001 2002 and thereafter

$ 361,385.42 473,945,00 477,227.50 484,785.00 481,698,75
8,069,257.50

Total Principal and Interest

$10,348,299 17

- 18 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 7: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $177,040.91 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$139,150.69

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$7,846.22

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$30,044.00

Note 8: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

96-714-054

$ 537.965.62 $ 239.400.00

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

Note 9: 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 10: SUBSEQUENT EVENTS

On March 18, 1997, the voters of Pike Cuunty voted in favor ofa Special Purpose Local Option Sales Tax Referendum for education purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot Pike County, is as follows:

- 19 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 10: SUBSEOUENT EVENTS
"Shall a one percent sales and use tax for educational purposes ofthe Pike County School District be imposed within Pike County for a maximum period of time of 20 calendar quarters, for the purpose of providing funds to pay the cost of acquiring, constructing, and equipping one new elementary school, adding to, renovating, repairing, improving, and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith, and acquiring any necessary property therefor, both real and personal, all at a maximum cost of $3,500,000?"
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 ofthe Board subject only to the claims of the Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant.
It is the opinion of the Board that the Board has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.
Investments are managed by the plan's trustees, United Bank ofPike and Interstate/Johnson Lane. Under this plan, participants select from an investment option, or combination of investment options, determined by the Board.
Note 12: ACCUMULATED EMPLOYEES' 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 of pay for unused leave up to the maximum accumulation. See Note 1 - Compensated Absences

- 20 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 13: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $5,146,521.69; total payroll was $6,056,702.12.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1996 amounted to $865,022.36, of which $607,805.67 was made by the Board and $257,216.69 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

- 21 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1996

Note 13: RETIREMENT PLANS

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, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15.857.066,000.00

Unfunded pension benefit obligation

$ 1.585.541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of $607,805.67 was actuarially determined and represented .1001 % of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

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 reti. ement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between

- 22 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

.JUNE 30. 1996

Note 13: RETIREMENT PLANS
the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as ifthe employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the .beneficiary shall receive for life half 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, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $2,560.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.
Note 14: SURETYBONDS
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 was paid through July 1, 1996.

- 23 -

PIKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1996

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

ELEMENTARY AND SECONDARY

TITLE I

GRANTS TO

TITLE II

LOCAL

EISENHOWER

EDUCATIONAL PROFESSIONAL

AGENCIES

DEVELOPMENT

$ 61,156.39 $ 18,003,22

$

340.06

3,871.41

$

41,396.00

14,8n.34 10.742,60

$ 90,647,74 $ 18,003,22 $

41,396,00 $

34_0,_06_

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

$

$

8,190,79 $

3,369,30

35,817,12

14,633.92

$ 44.007.91 $ 18,003.22 $

1,281,72 7,436.50 32,651.58
26,20
41,396;00

$ 14,8n.34 10,742,60
$ 25,619,94 21.019,89 $
$ 46,639.83 $

0,00 $ 0,00 $

$
$ 0.00 0,00 $

$ 90,647.74 $ 18,003,22 $

41,396.00 $

340.06
340,06 0.00
340.06 .,.;3;..;4,;,;0.;;.06;;.

See notes to the general purpose financial statements.

- 24-

EXHIBIT"E"

ED'lJCATION ACT TITLE VI
INNOVATIVE EDUCATION PROGRAM STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

GOALS 2000 STATE AND
LOCAL EDUCATION SYSTEMIC IMPROVEMENT
GRANTS

VOCATIONAL EDUCATION
FEDERAL

TOTALS JUNE 30,1996 JUNE 30,1995

$

0.00

$

0.00 $

3,759.49 $

0.00 $

83,259.16 $

87,731.16

$

4,577.68

49,845.09

45,844.24

14,877.34 10,742.60

17,283.89 7,763.95

$

0.00 $

4,577.68 $

0.00 $

3,759.49 $

..;,0;,;,.0.;.0 $ 158,724.19 $ 158,623.24

$

1,137.14

792.46

2,648.08

$

4,577.68

$

2,418.86 $

19,789.05

85,750.70

26.20

$ 107,984.81 $

3,084.52 9,025.70 68;628.44
451.67
81,190.33

$

3,759.49

$

4,099.55

14,877.34 $ 10,742.60

17,283.89 7,763.60

$

3,759.49

$

29,719.49 $

25,047.49

$

0.00 $

0.00 $

0.00

0.00 $

0.00

21,019.89

52,385.42

$

0.00 $

0.00 $

0.00 $

3,759.49 $

0.00 $

50,739.38 $

77,432.91

$

0.00 $

4,577.68 $

...;,0.;,;,0,;.0 $

3,759.49 $

0..0..0,;. $ 158,724.19 $ 158,623.24

- 25-

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

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

ELEMENTARY AND SECONDARY

TITLE I

GRANTS TO

TITLE II

LOCAL

EISENHOWER

EDUCATIONAL PROFESSIONAL

AGENCIES

DEVELOPMENT

$ 46,174.00 $ 365,898.00

349,119.75

$

267,034.79

$ 662,328.54 $ 365,898,00 $

261,369.80 $ 261,369.80 $

8,000.00 8,000.00

$ 204,176.70 $

20,754.31 4,329.87 17,535.60

83,202.25 42,222.80

$ 693,693,72

279.93

$ 693,693.72 $ 372,501.46 $

$ -31,365.18 $ -6,603.46 $

225,870.53 22.00 $
13,519.51
21,957.76
261,369,80 $ 0.00 $

6,603.46

$ -31,365.18 $ 77,432.91

0.00 $ 0.00

-2,406,55 2,978,65

0.00 $ 0,00

7,640.86 19.08
7,659,94 340.06
340.06 0.00

FUND BALANCE JUNE 30

$ 46,639,83 $

0.00 $

----- 0.00 $

34...0...,.0...6...

See notes to the general purpose financial statements.

- 26-

EXHIBIT"P'

EDUCATION ACT TITLE VI
INNOVATIVE EDUCATION PROGRAM STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

GOALS 2000 STATE AND
LOCAL EDUCATION SYSTEMIC IMPROVEMENT
GRANTS

VOCATIONAL EDUCATION
FEDERAL

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30,1995

$

11,143.00 $ 46,577.68 $

$

11,143.00 $ 46,577.68 $

11,900.00 $ 11,900.00 $

10,980.00 $ 10,980.00 $

$ 16,505.76

412,072.00 $ 715,595.99 267,034.79

161,385.83 675,690.44 219,417.72

16,505.76 $ 1,394,702.78 $ 1,056,493.99

$ 13,420.14

9,803.59

$

11,117.88

25.12

9,809.68

13,544.27 $

$

11,143.00 $ 46,577.68 $

$

0.00 $

0.00 $

$
11,900.00 11,900.00 $
0.00 $

$ 7,220.51
7,220.51 $ 3,759.49 $

11,268.00 $ 454,735.37 $ 324,774.51

5,200.00 37.76

30,579.90 24,391.24 28,653.48 23,411.15 83,202.25 55,767.07 11,900.00 22,237.69 693,693.72

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

16,505.76 $ 1,428,571.87 $ 1,133,713.96

0.00 $ -33,869.09 $ -77,219.97

$

0.00 $

0.00 $

0.00

0.00

0.00 $ 0.00

3,759.49 $ 0.00

6,603.46

19,548.15

0.00 $ 0.00

-27,265.63 $ 77,432.91

-57,671.82 125,420.39

-2,406.55 2,978.65

6,874.79 2,809.55

$

0.00 $

0.00 $

0.00 $

3,759.49 $

0.00 $

50,739.38 $ _ _77...,..4..3..2._.9.-1

-27 -

Cash and Cash Equivalents Accounts Receivable
Total Assets

PIKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30. 1996

EXHI81T"G"

REGULAR

1996 BOND ISSUE
FUND

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

LOTTERY PROJECT 96\95S-714-061

TOTALS JUNE 30,1996 JUNE 30, 1995

$

0.00 $ 13,564.70 $

98,481.00 $ 176,745.21 $ 290,790.91 $ 180,064.50

110,265.60

110,265.60

$

0.00 $ 13,564.70 $

96,461.00 $ 269,030.61 $ 401,076.51 $ 180,064.50

See notes to the general purpose financial statements.

26 -

PIKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, ExpENDITURES AND CHANGES IN FUND BALANCES
CAPITAl.. PROJECTS FUND
YEAR ENDED JUNE 30 1996

EXHIBIT "H"

"
REVENUES
State Funds T _ and Other Funds
Total Revenues
EXPENPITURES Capital Outlay Professional and Technical SelVices Land and Land Improvements . Building and Building Improvements Total Expenditures
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES <USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

1996 BOND ISSUE
FUND

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

LOnERY PROJECT 96\95S-714-061

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

0,00 $

$

0.00 $

0.00 $ 0.00 $

0.00 $

159,778.00 $ 159,778.00 $

0.00

5,077,96

5,077.96

0.00 $

164,855.96 $ 164,855.96 $

0.00

$ 17,493,00 $ 2.300.92
$ 19,793.92 $ $ -19,793.92 $

2.147.50 $
2,147.50 $ -2,147.50 $

0,00 $
0.00 $ 0.00 $

17.048.38 $ 22,000.00 173,562.00
212,610.38 $
-47,754.42 $

36.688,88 22.000.00 $ 175.862.92
234,551.80 $
-69,695.84 $

8.378.29 52.940.45
61,318.74
-61,318.74

$ -47,176.23 $ -47,176,23

$

36.000,00 $

187.176.23 $ 223.176,23 $ 175.413.32

-47,176.23

$

36,000.00 $

187,176.23 $ 176,000.00 $ 175,413.32

$ -66.970.15 $ 43,765,15

-2,147.50 $ 15,712.20

36,000.00 $ 62,481,00

139,421.81 $ 23,205.00

106.304,16 $ 145,163.35

114,094,58 31,068.77

FUND BALANCE JUNE 30

$ -23,205.00 $ 13,564,70 $

98,481.00 $

162,626.81 $ 251,467,51 $ 145,163.35

See notes to the general purpose financial statements.

- 29

PiKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FlpUCIARY FUNp TYPES JUNE 30 1996

ASSETS Cash and Cash Equivalents Investments Held by Trustee Accounts Receivable

EXPENDABLE TRUST FUNDS

THOMASTON

EVA PEEK

MILLS

CHILDREN'S DONATION

FUND

FUND

AGENCY FUND

TOTALS JUNE 30,1996 JUNE 30,1995

$

1,283.90 $

7,803.56 $

14,080.50 $ 23,167.96 $ 4,617,863.60

4,602,528.34 4,602,528.34

5,702.26

Total Assets

$

1,283.90 $

7,803.56 $ 4,616,608.84 $ 4,625,696.30 $ 4,623,565.86

LIABILITIES AND FUND EQUITY

LIABILITIES

Deferred Compensation Plan

FUND EQUITY

Fund Balances

Unreserved

Undesignated

$

$ 4,616,608.84 $ 4,616,608.84 $ 4,614,238.72

1,283.90 $

7,803.56

9,087.46

9,327.14

Total Liabilities and Fund Equity

$

1,283.90 $

7,803.56 $ 4,616.608.84 $ 4.625,696.30 $ 4,623,565.86

See notes to the general purpose financial statements.

- 30-

PIKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30,1996

EXHIBIT".r

"
REVENUES Taxes 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, 1996 JUNE 30, 1995

$

0.00 $

5,000.00 $

5,000.00 $

5,034.58

$

520.00

145.00

$

0.00 $

5,239,68 $

5,239.68

3,944.93

$

0.00 $

5,239.68 $

5,239.68 $

4,609.93

$

0.00 $

-239.68 $

-239.68 $

424.65

1,283.90

8,043.24

9,327,14

8,902.49

FUND BALANCE JUNE 30

$

1,283,90 $

7,803.56 $

9,087.46 $ _......."""'.9,.3=2=7..1...-4

See notes to the general purpose financial statements.

- 31 -

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

EXHIBIT "K"

LIABILITIES Deferred Compensation Plan

$ 4,614,238.72 $ 5,284,532.01 $ 5,282,161.89 $ 4,616,608.84

$ 4,614,238.72 $

684,373.79 $

682;003.67 $ 4,616,608.84

..

See notes to the general purpose financial statements.

- 32-

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

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1996 Contract Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I
Grants to Local Educational Agencies 1996 Grant
Title II Eisenhower Professional Development 1996 Grant
Title VI Innovative Education Program Strategies 1996 Grant
Goals 2000 State and Local Education Systemic Improvement Grants 1996 Grant
Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant
Vocational Education - Basic Grants to States
High School Program Basic Grant 1996 Grant
Total U, S. Department of Education

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.558 $

2,862.12

10.553
10.555 10.550
$

59,857.75
236,900.63 $ 49,499.25
349,119.75 $

(2)
(2) 644,194.47 (3)
49,499.25 693,693.72

84.010 $ 261,369.80 $

84.281

8,000.00

84.298

11,143.00

261,369.80 7,659.94
11,143.00

84.276

10,980.00

7,220.51

84.027 84.173

46,5n.68 11,900.00

46,5n.68 11,900.00

84.048 $

16,505.76 366,476.24 $

16,505.76 362,376.69

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

$ 715,595.99 $

1.:.;;,0;,;;,56,;,:',;,;07~O;;.;,4;.;.1

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year,
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program,
(3) Expenditures for this program include State ?l"ld/or Other Funds. Expenditures are not maintained by fund source.

See notes to the general purpose financial statements.

- 33 -

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

SCHEDULE "2-

INTEREST BEARING ACCOUNTS
United Bank of Pike. Zebulon. Georgia
N.O.W. Accounts (Variable)
United Bank of Pike. Zebulon. Georgia
Certificates of Deposits No. 28788 (5.40%) No. 28764 (5.20%) NO.28730 (5.20%) No. 28725 (5.20%) No. 28704 (5.20%) No. 28705 (5.20%) No. 28690 (5.20%) No. 28620 (5.50%) No. 28623 (5.50%) No. 28587 (5.40%) No. 28253 (5.50%)

$ 757.996.70

$ 100,000.00 117,693.00 150.000.00 100.000.00 520.000.00 35.000.00 100.000.00 100,000.00 102.664.85 60.000.00 313,738.72

1,699,096.57

$ 2,457.093.27

See notes to the general purpose financial statements. - 34 -

PIKE COUNTY BOARD OF EDUCATiON ACCOUNTS RECEIVABLE
JUNE 30, 1996

SCHEDULE -3-

"
Education, Georgia Department of Quality Basic Education
Deferred Summer Sallilries - FY 1996
Food Services School Breakfast Program National School Lunch Program
Lottery Program Capital Outlay
Federal Programs Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Individuals with Disabilities Education Act Part B - Special Education Flow Through
Georgia Baptist Children's Home and Family Ministries, Incorporated Reimbursement for Salaries
Pike County Tax Commissioner County Wide School Tax
United Bank of Pike Interest Earned

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 742,046.00 $

866.50 3,004.91
$ 110,285.60

$ 742,046.00
866.50 3,004.91
110,285.60

41,396.00 4,577.68

41,396.00 4,577.68

13,860.80 31,354.96 15,960.14

13,860.80

$ 10,537.51

41,892.47

15,960.14

$ 803,221.90 $ 49,845.09 $ 110,285.60 $ 10,537.51 $ 973,890.10

See notes to the general purpose financial statements.

- 35 -

.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, 1996

SCHEDULE "4"

TOTAL DEBT SERVICE
$ 361,385.42 $ 473,945.00 477,227.50 484,785.00 481,698.75
502,661.25 502,538.75 501,736.25 505,117.50 502,660.00
504,336.25 505,000.00 499,747.50 508,210.00 505,225.00
505,960.00 504,855,00 506,912.50 507,545.00 1,006,752.50

261,385.42 $ 308,945.00 302,227.50 294,785.00 286,698.75
277,661.25 267,538.75 256,736.25 245,117.50 232,660.00
219,336.25 205,000.00 189,747.50 173,210.00 155,225.00
135,960.00 114,855.00 91,912.50 67,545.00 41,752.50

100,000.00 165,000.00 175,000.00 190,000.00 195,000.00
225,000.00 235,000.00 245,000.00 260,000.00 270,000.00
285,000.00 300,000.00 310,000.00 335,000.00 350,000.00
370,000.00 390,000.00 415,000.00 440,000.00 965,000.00

.$ 10,348,299.17 $ 4,128,299.17 $ 6,220,000.00

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

1996 REFUNDING ISSUE

1992 ISSUE

$ 5,750,000.00

$ 6,220,000.00

120,000.00

5,630,000.00

Bonds Payable at June 30, 1996

$ 6,220,000.00 $======0=.0=,=0

MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date
See notes to the general purpose financial statements.

- 36 -

AUG 1 - FEB 1 AUG 1

FEB 1 -AUG 1 FEB 1

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

SCHEDULE -5-

AGENCYIFUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Umited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Mid-term Adjustment Local Fair Share Deferred Summer Salaries - FY 1994 Deferred Summer Salaries- FY 1995 Educational Equalization Funding Grant Food Services Other State Programs At-Risk Summer School Program Environmental Science Program Family Connection Health Insurance Innovative Programs Preschool Handicapped Program Remedial Summer School Program Teachers'Retirement Lottery Programs Distant Learning Exceptional Growth - Capital Outlay Instructional Technology Pre-Kindergarten Program Safe Schools Grant Technology Installation
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
OTHER Education, Georgia Department of Student Information System Project

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAl

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 3,946,530.00 414,939.00 104,639.00 165,857.00 55,076.00
1,148,614.00
315,107.00 105,192.00 25,765.00 149,433.00
53,321.00 69,354.00 12,439.00 221,001.00 -780,189.00 -677,393.00 742,046.00 439,434.00
$
9,381.46 500.00
2,340.00 139,150.69
3,838.93 21,706.00
2,818.86 7,846.22

$ 3,946,530.00 414,939.00 104,639.00 165,857.00 55,076.00
1,148,614.00

46,174.00

315,107.00 105,192.00 25,765.00 149,433.00 53,321.00 69,354.00
12,439.00 221,001.00 -780,189.00 -677,393.00 742,046.00 439,434.00
46,174.00

9,381.46 500.00
2,340.00 139,150.69
3,838.93 21,706.00
2,818.86 7,846.22

36,500.00 $
60,000.00 89,900.00 70,336.00 40,000.00

159,778.00

36,500.00 159,778.00
60,000.00 89,900.00 70,336.00 40,000.00

69,162.00

69,162.00

30,044.00

30,044.00

500,00

500,00

See notes to the general purpose financial statements,

$ 6,729,291,16 $ 412,072,00 $ 159,778.00 $ 7,301,141.16 - 37 -

PiKE COUNTY BOARD Of EDUCATION SCHEDULE Of TAXES ANp OTHER REVENUE
yEAR ENDED JUNE 30.1996

SCHEDULE "6"

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTAL

Taxes County Wide Bond Tax County Wide School Tax
Real Estate Transfer Tax

$ 1,668,011.97 12,150.73

$ 501,917.86

$ 501,917.86 1,668,011.97 12,150.73

Other Sources Corrvnodity Rebates Donations Escrow Forward Supply Contract Interest Earned Jury Duty Fees Lost and Damaged Books
Milk Court SeWement Georgia Baptist Children's Home and Family Ministries, Incorporated Reimbursements for Salaries Sales Adult Meals Breakfasts and Lunches Supplemental Tuition Other

$
636,364.78 1,420.00 282.63

15.00 1,232.03 $
39.71

5,On.96

$ 1,415,500.00
5,536.54

38,735.70
8,670.00 7,312.65

36,183.30 210,845.94
18,718.81

5,000.00

15.00 5,000.00 1,415,500.00 648,211.31 1,420.00
282.63 39.71

38,735.70
36,183.30 210,845.94
18,718.81 8,670.00 7,312.65

$ 2,372,948.46 $ 267,034.79 $ 5,On.96 $ 1,922,954.40 $

5,000.00 $ 4,573,015.61

See notes to the general purpose financial statements.

- 38 -

PIKE COUNTY BOARD OF EDUCATiON SCHEDULE OF EXPENDITURES BY OBJECT GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE .,.

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 5,473,148.96 $ 1,546,998,71 10,733.47 55,691.20 13,421.04 23,330.16 2,556.36 1,497.32 43,312.66 18,058.21
47,985.16 38,652.21 217,399.59 229,564.52
136,637.98 11,748.02 12,285.76

582,976.43 $ 135,986.00
3,493.66 28,977.36
688.00 7,058.62
1,671.82 3,357.08
43,211.80 169,870.86
10,452,77 315,479.41
4,039.53 1,742.30
411.50

6,056,125.39 1,682,984.71
14,227.13 84,668.56 13,421.04 24,018.16 9,614.98 1,497.32 43,312.66 19,730.03 3,357.08 47,985.16 81,864.01 387,270.45 240,017.29 315,479.41 140,677.51 13,490.32 12,697.26

246,430.20

119,154,73

365,584,93

Total Expenditures

$ 8,129,451.53 $ 1,428,571.87 $ 9,558,023.40

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. 1996

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Water, Sewer, and Cleaning Services Repair and Maintenance Services Communications Other Purchased Services Supplies Energy Books, Textbooks and Periodicals Other Expenditures
Nonoperating Costs Capital Outlay Equipment

DISTANT LEARNING

EXCEPTIONAL GROWTHCAPITAL OUTLAY

INSTRUCTIONAL TECHNOLOGY

$

6,568.00

$

3,286.00

$ 29,932.00

212,610.38

56,714.00

Total Expenditures

$

36,500.00 $

212,610.38 $====60=,=00=:0=.0:=0

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

SCHEDULE "8"

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

99,063.73

$

99,063.73

24,564.27

24,564.27

594.46

594.46

385.00

385.00

688.00

688.00

400.00

400.00

29.95

29.95

172.27 $

160.00 $

40,000.00

40,332.27

33,534.30

58,103.80

101,492.10

3,400.00

3,400.00

2,421.98

2,421.98

411.50

411.50

12,072.20

212,610.38 98,718.20

$

165,665.46 $

70,336.00 $

40,000.00 $ 585,111.84

- 41 -

PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 3D. 1996
EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Communication Other Purchased Services Supplies Books, Textbooks and Periodicals Dues and Fees
Total Expenditures

SCHEDULE "9"

$

576.73

7.38

2,374.90

21.44

417.84

1,555.59

60.80

225.00

$ ====5:::,2==:3=9=.6=8

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 ~o, 1996

SCHEDULE "10"

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

$ 4,802,683.00 $ _ _--.;.;15;..;.7.,t;;,2;;;2.;,;5.;,;.00;."

$ 4,690,438.34 273,979.21 $
$ 4,964,417.55

2;;;.:;2;;.;;6..l,,;,1~1..;;,;8.=.25~

-101,613.28 $ 4,862,804.27

Amount of Underexpenditure for Total Allotment

$

0.00 $=====0=.0:=0

Note:

(1) Salary accruals (July and August 1996 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 1995 Deferred Salaries) reported
as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

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

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

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (") Grades 1 - 3 (") Sub-Talai - K-3 Grades 4 5 (") Grades 6 8 (") Grades 9 12 (") High SChool Laboratolies (") Vocational Education Laboratolies (") Total General and career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs category II (") category III (") category IV (") Sub-Total - RegUlar category V (Gifted) (") Talai Special Education Programs
REMEDIAL EDUCATION PROGRAM C*) Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF PEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Thirteen Weighted Programs. (1) salary accruals (July and August 1996 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

%

ORIGINAL

MID-TERM

$

379,326.00

$

341,393.40 $

1,037.030.00

933,327.00

$ 1,416,356.00 90 $ 1,274,720.40 $

513.526.00 90

462,173.40

889,251.00 90

800,325.90

581.009.00 90

522,908.10

294,647.00 90

265,182.30

251.741.00 90

226,566.90

$ 3.946,530.00

$ 3,551.8n.00 $

0.00 0.00 0.00 10,000.00 59.879.00 14.000.00 15,000.00 0.00 98,879.00

$

379.350.00

$

341,415.00 $

27,000.00

$

379,350.00 90 $

341,415.00 $

35.589.00 90

32,030.10

$

414,939.00

$

373.445.10 $

$

104,639.00 90 $

94,175.10 $

$ 4,466,108.00

$ 4,019,497.20 $

27.000.00 34.000.00 61,000.00 4,295.00 164,174.00

$

130.220.00 90 $

117,198.00 $

35,637.00 90

32.073.30

$

165.857.00

$

149,271.30 $

0.00 6,544.00
6.544.00

$ 4.631,965.00

$ 4,166,768.50 $

170,718.00

$

13,605.00

41,471.00

$

13,605.00 $

41.471.00

$

55,076.00 100 $

55,076.00 $

(2) salary accruals (July and August 1995 Deferred salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

662.00 0.00
662.00

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

341,393.40 S

363,109.19 S

9,344.05 S

372.453.24

933,327.00

954,520.85

37,308.75

991,829.60

S 1.274,720.40 S 1.317.630.04 $

46,652.60 S 1.364,282.84 $

0.00

472.173.40

500,689.52

17,885.36

518.574.88

0.00

860.204.90

936,157.09

32,001.52

968,158.61

0.00

536,908.10

573,349.26

23,716.43

597,065.69

0.00

280,182.30

298,732.67

40,384.85

339,117.52

0.00

226,566.90

219,099.86

44,917.83

284,017.69

0.00

$ 3,650,756.00 $ 3,845,658.44 $

205,558.79 $ 4,051,217.23

$

368,415.00

$

80,841.58 $ 313,108.89
44,909.13

3,506.16 $ 10,647.35
965.69

84,347.74 323,756.24
45,874.82

$

368,415.00 $

436,859.60 $

15,119.20 $

453,978.80

0.00

66,030.10

70,306.17

2,273.54

72,579.71

0.00

$

434,445.10 $

509,165.77 $

17,392.74 $

526,558.51

$

98,470.10 $

109,460.81 $

3,166.72 $

112,827.53

0.00

$ 4,183,671.20 $ 4,464,285.02 $

226,118.25 $ 4,690,403.27

$

117,198.00 $

226,153.32

$

226,153.32

0.00

38,617.30

$

47,860.96

47,860.96

0.00

$

155,815.30 $

226,153.32 $

47,860.96 $

274,014.28

$ 4,339.486.50 $ 4,690,438.34 $

273.979.21 $ 4,964,417.55 $

0.00

$

14,267.00

41,471.00

$

55.,.-738;,;;,,;;..00.

$

21,631.76 $

21.631.76

34,113.26

34,113.26

$

55,745.02 $

55,745.02 $

00.0;;;.

- 45 -

PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30,1996

SCHEDULE "12"

BOARD MEMBER ADDRESS
Mr. Fred D. Blackmon, Chairman (*) 279 Second Street Concord, Georgia 30206
Mr. J. Ronald Adams (*) 599 Adams Road The Rock, Georgia 30285
Ms. Suzanne King (*) 334 Lifsey Springs Road Molena, Georgia 30258
Mr. Alton Shackleford, Jr. (*) 287 Shackleford Road Griffin, Georgia 30223
Mr. Alton Turner (*) 819 River Road Williamson, Georgia 30292
Mr. John L. Wynn, Sr. (*) P. O. Box 333 Molena, Georgia 30258
(*) Denotes Board Members Serving as of June 30, 1996

COMPENSATION

TRAVEL

$

1,700.00 $

455.86

2,200.00

181.68

2,200.00

2,200.00

2,000.00

1,900.00

583.50

$

12,200.00 $ ====::.r:1,2:=2=1=,04=

See notes to the general purpose financial statements.

- 46 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 12, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Pike County Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Pike County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 12, 1997. 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, 1996, 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.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
96CRL-IO

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
"

CLV:gp 96CRL-IO

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 12, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the 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 of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 12, 1997. This report was qualied 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 of Federal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-UpfResolution

(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 Pike County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

96CRL-40

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

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 12, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Pike County Board of Education as of and for the year ended June 30,1996, and have issued our report thereon dated June 12,1997. 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 1996 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 (OMB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30,1996. As required by OMB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements govemmg:

(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 Pike County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion.

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

96CRL-120

This report is intended for the infonnation 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,
c:1~
Claude L. Vickers State Auditor
CLV:gp 96CRL-120

SECTIONID INTERNAL CONTROL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 12, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Pike County Board of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERm.1ENT 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, 1996, and have issued our report thereon dated June 12, 1997. 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, 1996, 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 of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not

96ICL-I

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
"
In planning and performing our audit of the general purpose financial statements of the Pike County Board ofEducation for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
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 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:gp 96ICL-l

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 12, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Pike County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Pike County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated June 12, 1997. 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 (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1996, 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, 1996, 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 OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 12, 1997.
96ICL-13

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 of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL 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 of Effort, and!or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Audit Follow-UplResolution (7) Administrative Requirements

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

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

During the year ended June 30, 1996, the Pike County Board of Education had no major Federal financial assistance programs and expended 70% of its total Federal financial assistance under the following nonmajor Federal financial assistance programs:

96ICL-13

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act Title I - Grants to Local Educational Agencies
We performed tests of controls, as required by Ol\.1B 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 fmancial 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,

CLV:gp 96ICL-13

Claude L. Vickers State Auditor

PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIO"R 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.
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.