Audit report, Polk school district Board of Education, Cedartown, Georgia, year ended June 30, 1995

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

AUDIT REPORT POLK SCHOOL DISTRICT BOARD OF EDUCATION
CEDARTOWN, GEORGIA YEAR ENDED JUNE 30, 1995

POLK SCHOOL DISTRICT BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

_

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

24

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 CASH AND CASH EQUIVALENTS

28

3 ACCOUNTS RECEIVABLE

29

SCHEDULE OF REVENUE

4

STATE

30

5

LOCAL AND OTHER

31

POLK SCHOOL DISTRICT BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

33

7

LOTTERY PROGRAMS

34

8

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUND

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

37

10

BY PROGRAM

38

11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

40

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

POLK SCHOOL DISTRICT 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
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1996

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

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1995, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1995. Also funds received, subsequent to June 30, 1995, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were improperly recorded in the year ended June 30, 1995. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, if any, on the Special Revenue Fund, as might have beendetermined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Polk School District Board of Education as of June 30, 1995, and the results of its 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 March 22, 1996, on our consideration ofthe Board's internal control structure and a report dated March 22, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Polk School District Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Polk School District Board of Education. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
95ARL-13*

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

POLK SCHOOL DISTRICT BOARD OF EDUCATION - 1-

POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1995

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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 3,882,198.45 $ 449,783.16 $ 1,035,966.25

130,764.n

456,614.82

73,820.55 23,972.63

Total Assets

$ 4,012,963.22 $ 1,004,191.16 $ 1,035,966.25

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Retainages Payable Deferred Revenue
Total liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$ 163,459.61 $ 235,335.05

7,169.88

196,556.44

500.00

5,804.63

$ 171,129.49 $ 437,696.12

$

$

28,532.37

2,465.03

$

28,532.37 $

3,813,301.36

$ 3,841,833.73 $

73,820.55 23,972.63
$

411,987.93

100,258.21 $ 411,987.93

466,236.83

623,978.32

566,495.04 $ 1,035,966.25

Total Liabilities and Fund Equity

$ 4,012,963.22 $ 1,004,191.16 $ 1,035,966.25

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

EXHIBIT"A"

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS (Memorandum Only) JUNE 30, 1995 JUNE 30, 1994

$

8,987.20 $ 5,376,935.06 $ 4,660,207.56

587,379.59

385,905.28

73,820.55 23,972.63

63,193.94 17,613.87

$

8,987.20 $ 6,062,107.83 $ 5,126,920.65

$ 398,794.66 $ 165,372.80

203,726.32

194,049.21

6,304.63

17,468.67

28,772.00

2,638.96

$ 608,825.61 $ 408,301.64

$

30,654.66

$

2,465.03

17,698.26

28,532.37

28,532.37

73,820.55 23,972.63 411,987.93

63,193.94 17,613.87 178,908.24

$ 540,TT8.51 $ 336,601.34

$

8,987.20

4,912,503.71

4,382,017.67

$

8,987.20 $ 5,453,282.22 $ 4,718,619.01

$

8,987.20 $ 6,062,107.83 $ 5,126,920.65

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POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1995

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay
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
Adjustment For Unrecorded Fund Balance
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 19,608.366.89 $

637,920.45 $

69,325.45

2,486,272.89

5.515,605.60

596,573.83

$ 25.193,297.94 $ 3.720,767.17 $

267,316.19 29,567.96
296,884.15

$ 17,264,391.02 $ 1,311,583.20

832,515.01 553,701.03 731,494.50 245,273.45 1,599,589.55 293,356.02 2,032,816.79 1,060,511.45
22,098.06 4,531.59

109,015.70 33,747.61 46,917.57 63,236.69 1,452.60
88,068.00 49,228.58
10,195.35 1,986,210.00

73,163.67

25,402.12 $

$ 24,713,442.14 $ 3,725,057.42 $

$

479,855.80 $

-4,290.25 $

57,236.50 57,236.50 239,647.65

$

$

-107,066.48

$

-107,066.48 $

66.48 $

107,000.00

66.48 $

107,000.00

$

372,789.32 $

3,469,044.41

-4,223.TT $ 553,733.44

346,647.65 689,318.60

10,626.61 6,358.76

FUND BALANCE JUNE 30

$ 3,841,833.73 $

566 495.04 $ 1,035,966.25

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

EXHIBIT"B"

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 20,513,603.53 2,555,598.34 6,141,747.39 $
$ 29,210,949.26 $

$ 6,197.70

20,513,603.53 $ 2,555,598.34 6,147,945.09

18,812,076.38 2,513,071.03 6,065,306.16

6,197.70 $ 29,217,146.96 $ 27,390,453.57

$ 18,575,974.22

941,530.71 587,448.64 778,412.07 308,510.14 1,601,042.15 293,356.02 2,120,884.79 1,109,740.03 22,098.06
14,726.94 1,986,210.00
$ 155,802.29

$ 28,495,736.06 $

$

715,213.20 $

$ 18,575,974.22 $ 17,339,952.81

3,733.06

941,530.71 587,448.64 778,412.07 308,510.14 1,601,042.15 293,356.02 2,120,884.79 1,109,740.03
22,098.06 14,726.94 1,986,210.00 3,733.06 155,802.29

866,706.39 581,875.91 948,086.83 287,768.45 1,522,867.76 263,299.93 1 ,996,884.59 993,390.83
24,243.38 5,522.16
1,842,808.76 2,560.58
270,307.81

3,733.06 $ 28,499,469.12 $ 26,946,276.19

2,464.64 $

717,677.84 $

444,177.38

$

107,066.48

-107,066.48

$

0.00

$

715,213.20 $

4,712,096.45

10,626.61 6,358.76

$

107,066.48

-107,066.48

$

0.00

2,464.64 $ 6,522.56

717,677.84 $ 4,718,619.01

444,177.38 4,275,643.97

10,626.61 6,358.76

4,625.14
-6,071.34 243.86

$ 5,444,295.02 $

8 987.20 $ 5,453,282.22 $ 4 718 619.01

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POLK SCHOOL DISTRICT BOARD OF !;DUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - {NON-GAAP BASIS} GENERALANDSPEC~LREVENUEFUNDS
YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

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

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 19,111,115.00 $ 19,608,366.89

63,514.00

69,325.45

5,041,003.00

5,515,605.60

$ 24,215,632.00 $ 25,193,297.94

$ 17,346,166.57 $ 17,264,391.02

840,153.48 506,495.53 758,447.91 244,417.41 1,612,628.74 305,856.20 2,168,332.49 1,021,328.67
24,250.00 6,330.00

832,515.01 553,701.03 731,494.50 245,273.45 1,599,589.55 293,356.02 2,032,816.79 1,060,511.45
22,098.06 4,531.59

82,094.00

73,163.67

$ 24,916,501.00 $ 24,713,442.14

$ -700,869.00 $ 479,855.80

$ -107 ,066.48 $ -107,066.48

$ -700,869.00 $ 372,789.32

3,460,889.80

3,469,044.41

-110,036.62

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 345,615.00 $ 637,920.45

2,360,743.00

2,486,272.89

601,500.00

596,573.83

$ 3,307,858.00 $ 3,720,767.17

$ 1,341,291.00 $ 1,311,583.20

94,102.00 42,252.00 47,816.00 65,848.00

109,015.70 33,747.61 46,917.57 63,236.69 1,452.60

7,461.00 51,274.00

88,068.00 49,228.58

10,725.00 1,982,817.00
117,370.00

10,195.35 1,986,210.00
25,402.12

$ 3,760,956.00 $ 3,725,057.42

$ -453,098.00 $

-4,290.25

$

66.48

$

66.48

$ -453,098.00 $ 552,159.06 48,087.13

-4,223.n 472,925.63

FUND BALANCE JUNE 30, 1995

$ 2,649,984.18 $ 3,841,833.73

$ 147,148.19 $ 468,701.86

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

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Polk School District Board ofEducation (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 of the departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Polk School District Board of Education.
Based upon the application of the above criteria, the Polk School District Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Polk 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 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.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

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POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these :financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the trust fund used to account for assets held by a government unit in a trustee capacity. This fund includes:
EXPENDABLE TRUST FUND Student Special Needs Fund - the fund used to account for contributions and expenditures of private funds which are designated to be used for the purchase of clothing and medical needs for disadvantaged students at the Superintendent's discretion.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are
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POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds and the expendable trust fund are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities 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 departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Polk School District Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is

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POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

prepared by fund, function and object. The legal level 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 tbis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.

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

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

Special Revenue
Fund
$ -4,223.77 553,733.44
-63,193.94 -17,613.87 $ 468,701.86

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit, savings and N. 0.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

- 10 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

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

The tax millage rate levied for the 1994 tax year (calendar year) for the Polk School District Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.7027 mills

INVENTORIES

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

COMPENSATED ABSENCES

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

- 11 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in a General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(I) 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,
- 12 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the Stat'e 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, 1995, the bank balances were $7,132,153.80. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Bank Balance
$7,132,153.80 0.00 0.00
$ 7 132 153.80

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

- 13 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk of loss associated with torts, assets, and errors or omissions. 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 General Fund and the School Food Services Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994

$

0.00 $

1,964.60 $

1964.60 $

0.00

1995

$

0.00 $

1 170.00 $

1 170.00 $

0.00

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to the statutory limit. Also, should losses within the retained limit of $250,000.00 aggregate to more than eighty-five percent (85%) of the standard experience rated premium during the policy term, the policy with Safety National Casualty Corporation will pay the next $1,000,000.00 ofloss.

Note 5: 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 granter 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.

- 14 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: ACCUMULATED EMPLOYEES' LEAVE
All twelve-month employees are eligible for annual vacation earned at the rate of .833 days for each full calendar month employed up to a maximum often (10) days. Twelve-month employees with fifteen (15) or more years ofservice with the school district are eligible for five (5) additional vacation days annually. Upon approval of the employee's supervisor, all unused vacation days may be carried forward into the next employment year. Upon retirement or termination, employees will be paid at the current rate of pay for unused earned vacation up to the maximum earned during a single year. See Note 1 - Compensated Absences
Note 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $16,906,011.92; total payroll was $19,106,148.80.

- 15 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS

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

Total contributions made during fiscal year 1995 amounted to $2,841,904.59, ofwhich $1,996,599.01 was made by the Board and $845,305.58 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

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

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

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1 058,958,000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $1,996,599.01 was actuarially determined and represented .3533% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

- 16 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of 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 of employer contributions occurs, but the member's contributions are refunded with interest.
There were 181 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4. 00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $6,184.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 8: SURETY BONDS
The School Superintendent, Mr. James J. Carter, Jr., is bonded in the amount of $50,000.00 with the Western Surety Company, Sioux City, South Dakota, their Bond No. 58554256, on which premium is paid through May 7, 1996.

- 17 -

POLK SCHQQL DISTRICT BOARD OF EDUCATION CQMBINING BALANCE SHE~T PECIAL REVENUE FUND JUNE 30 1995

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

ELEMENTARY AND SECONDARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COM\1UNITIES
ACT

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER 1

EDUCATION OF

STATE

DEPRIVED

PROGRAM

CHILDREN

IMPROVEMENT

$ 560,357.36

8,883.16 $ 240,225.75 $

15,499.00 $

408.00 $

137,213.48 $

2,547.67

73,820.55 23,972.63

Total Assets

$ 667,033.70 $ 240,225.75 $

15,499.00 $

408.00 $

137,213.48 $

2 547.67

blABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue

$ 50,092.82 $

$ 21,957.31

185,709.63

81,046.38

4,423.30

Total Liabilities

$ 103,003.69 $ 240,225.75 $

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

$

Purchased Food

73,820.55 23,972.63

Unreserved Undesignated

$ 97,793.18 466,236.83 $

0.00 $

Total Fund Equity

$ 564,030.01 $

0.00 $

15,342.09 $ 156.91
15,499.00 $
0.00 $ 0.00 $

408.00 $

38,097.28 $ 17,659.12 80,938.54
518.54

408.00 $

137,213.48 $

2,251.77 295.90
2 547.67

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 0.00

Total Liabilities and Fund Equity $ 667,033.70 $ 240,225.75 $

15,499.00 $

408.00 $

1371213.48 $

2,547.67

See notes to the general purpose financial statements.

-18 -

EXHIBIT"E"

EDUCATION ACT

MIGRANT PROGRAM

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE IIEISENHOWER MATHEMATICS AND SCIENCE EDUCATION

$

4,909.02 $

140.00 $

3,696.27

INDMDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS JUNE 301 1995 JUNE 30, 1994

$

5,390.79

$ 574,493.44 $ 589,174.51

$

46,914.59

$

4,923.17

456,614.82

211,905.56

73,820.55 23,972.63

63,193.94 17,613.87

$

4,909.02 $

140.00 $

3,696.27 $

46,914.59 $

5,390.79 $

4,923.17 $ 1,128,901.44 $ 881,887.88

$

799.24 $

3,755.08

354.70

$

4,909.02 $

140.00 $ 140.00 $

$ 1,231.24

13,595.15 6,732.88 $
26,230.16 356.40

1 231.24 $

46,914.59 $

$ 652.82 4,586.28 151.69
5,390.79 $

4,923.17 $ 4,923.17 $

124,710.28 $ 235,335.05 196,556.44
5,804.63
562,406.40 $

35,143.78 84,544.67 188,400.39 17,426.64
2,638.96
328,154.44

$

0.00 $

$

0.00 $

$

4,909.02 $

$

2,465.03

$ 0.00 0.00 $

2,465.03 0.00 $
2,465.03 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$

2,465.03 $

17,698.26

$ 0.00 0.00 $

73,820.55 23,972.63 100,258.21 $
466,236.83 566,495.04 $

63,193.94 17,613.87 98,506.07
455,227.37 553,733.44

140.00 $

3,696.27 $

46,914.59 $

5,390.79 $

4,923.17 $ 1,128,901.44 $ 881,887.88

19

POLK SCHOOL DISTRICT BOARD OF !;DUCATION COMBININg STAT!;;Ml;NT QF R!;;VENUl;S !;;XP!;;NDITURES ANQ !:,HANg!;;S IN F!JNQ BALAN!:;!;;~
SPECIAL REVENUE FUND YEAR ENDED J!JNE 30 1995

ELEMENTARY AND SECONDARY

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER 1

EDUCATION OF

STATE

DEPRIVED

PROGRAM

CHILDREN

IMPROVEMENT

B~NUES

State Funds Federal Funds Local and Other Funds

$

151,300.00 $ 486,620.45

1,248,300.19

$

596,573.83

33,499.00 $

2,094.00 $

802,931.95 $

22,547.67

Total Revenues

$ 1,996,174.02 $ 486,620.45 $

33,499.00 $

2,094.00 $

802,931.95 $

22,547.67

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transpor1ation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay

$ 293,269.55 $ 34,059.91 1,140.21 1,269.00

$ 1,985,164.56

88,068.00 40,669.25
1,761.97 1,045.44 25,402.12

9,267.59 $ 7,698.76 8,618.15 7,750.14
112.21
52.15

610.32 $ 1,483.68

754,009.29 $
4,539.09
858.52 56,598.44
1,452.60

10,348.80
3,473.93 291.56

8,433.38

Total Expenditures

$ 1,985,164.56 $ 486,685.45 $

33,499.00 $

2094.00 $

817 457.94 $

22,547.67

Excess of Revenues over (under) Expenditures

$

11,009.46 $

-65.00 $

0.00 $

0.00 $

-14,525.99 $

0.00

OTHER FINANCING SOURCES

Operating Transfers In

65.00

Excess of Revenues and Other Financing

Sources over (under) Expenditures

$

11,009.46 $

0.00 $

0.00 $

0.00 $

-14,525.99 $

0.00

FUND BALANCE JULY 1

536,035.18

0.00

0.00

0.00

14,525.99

0.00

Food Inventory - Net Change in Period Donated Commodities Purchased Food

10,626.61 6358.76

FUND BALANCE JUNE 30

$

564,030.01 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

See notes to the general purpose financial statements.

- 20-

EXHIBIT "F"

EDUCATION ACT

MIGRANT PROGRAM

CHAPTER2 BLOCK GRANT FLOW THROUGH

TITLE 11EISENHOWER MATHEMATICS AND SCIENCE EDUCATION

INDMDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

$ 29,706.72 $ $ 29,706.72 $

40,128.00 $ 40,128.00 $

19,000.00 $ 207,886.19 $ 19,000.00 $ 207,886.19 $

64,151.31 $ 64,151.31 $

$ 16,027.86
16,027.86 $

637,920.45 $ 2,486,272.89
596,573.83
3,720,767.17 $

573,029.60 2,426,044.53
596~03.96
3,595,278.09

$ 28,518.89 $

1,187.83

$ 29,706.72 $

$

0.00 $

$

0.00 $

0.00

$

0.00 $

857.85
$ 39,167.43
102.72

$
19,656.80 50.44

157,758.95 $ 45,314.92
4,812.32

56,701.96 $ 130.00

7,319.35

40,128.00 $ 0.00 $

19 707.24 $ 207,886.19 $

-707.24 $

0.00 $

64,151.31 $ 0.00 $

240.00 $ 15,789.34
16,029.34 $

1,311,583.20 $ 1,175,598.83

109,015.70

65,583.10

33,747.61 46,917.57 63,236.69
1,452.60

48,819.97 251,908.13
60,985.33

88,068.00 49,228.58
10,195.35 1,986,210.00
25,402.12

31,381.99 4,357.80
1,842,808.76

3,725,057.42 $ 3,481,443.91

-1.48 $

-4,290.25 $ 113,834.18

0.00 $ 0.00

-707.24 $ 3,172.27

0.00 $ 0.00

0.00 $ 0.00

1.48
0.00 $ 0.00

66.48

-4,223.77 $ 553,733.44

113,834.18 445,726.74

10,626.61 6,358.76

-6,071.34 243.86

0.00 $

2,465.03 $

0.00 $

0.00 $

0.00 $

566,495.04 $ 553,733.44

- 21 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1995

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING

PROJECT

PROJECT

91-715-050

93/92S-715-070

$ 623,978.32 $

24,339.77 $

25,309.75

Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Retainages Payable FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity

$ 623,978.32 $

24,339.77 $

25,309.75

========

$
$ 623,978.32 $ 623,978.32 $

24,339.77 $

25,309.75

0.00

0.00

24,339.77 $ _ _ _2_5__,_3_0_9_.7_5

Total Liabilities and Fund Equity

$ 623,978.32 $

24,339.77 $ ===25=,3=0=9=.7=5

See notes to the general purpose financial statements.

- 22 -

EXHIBIT"G"

AND INVESTMENT COMMISSION

PROJECT

PROJECT

93/92S-715-071

94-715-060

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

5,657.41 $

356,681.00 $ 1,035,966.25 $

689,739.80

28,350.80

$

5,657.41 $

356,681.00 $ 1,035,966.25 $==7=18=,0=9=0=.6=0

$

28,772.00

$

5,657.41 $

356,681.00 $

411,987.93 $

178,908.24

0.00

0.00

623,978.32

510,410.36

$

5,657.41 $

356,681.00 $ 1,035,966.25 $

689,318.60

$

5,657.41 $

356,681.00 $ 1,035,966.25 $

718,090.60

- 23 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1995

REVENUES
State Funds Local and Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
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

GEORGIA STATE FINANCING

PROJECT

PROJECT

91-715-050

93/92S-715-070

$ $ 29,567.96
$ 29,567.96 $

0.00 $

31,627.94

0.00 $

31,627.94

$ $ 23,000.00

$ 23,000.00 $

$

6,567.96 $

0.00 $

20,925.45

0.00 $ 0.00 $

20,925.45 10,702.49

$ 107,000.00

$ 107,000.00

$ 113,567.96 $ 510,410.36

0.00 $ 24,339.77

10,702.49 14,607.26

FUND BALANCE JUNE 30

$ 623,978.32 $

24,339.77 $ ====25=,3=0=9.=75=

See notes to the general purpose financial statements.

- 24 -

EXHIBIT"H"

AND INVESTMENT COMMISSION

PROJECT

PROJECT

93/92S-715-071

94-715-060

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

5,918.25 $

229,770.00 $

267,316.19 $

91,884.78

29,567.96

20,081.02

$

5,918.25 $

229,770.00 $

296,884.15 $

111 965.80

$

$

13,311.05

0.00 $

$ 57,236.50

34,400.32 172,072.89 - 3,705.00

$

13,311.05 $

0.00 $

57,236.50 $

210,178.21

$

-7,392.80 $

229,770.00 $

239,647.65 $

-98,212.41

$

107,000.00 $

$

107,000.00 $

21,358.00 -21,358.00
0.00

$

-7,392.80 $

229,770.00 $

346,647.65 $

-98,212.41

13,050.21

126,911.00

689,318.60

787,531.01

$

5,657.41 $

356,681.00 $ 1,035,966.25 $

689,318.60

- 25-

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1995

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture. U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1995 Grant National School Lunch Program 1994 Grant 1995Grant Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U. S. Department of Direct P. L. 81-874 1995 Grant Through Georgia Department of Education Drug-Free Schools and Communities Act 1995 Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994 Regular 1995 Regular Education of Deprived Children 1994Summer 1994 Regular 1994 Carry-Over 1995 Regular State Program Improvements 1995 Regular Chapter 2 Block Grant - Flow Through 1995 Regular Title II Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Individuals with Disabilities Education Act TitleVl,B Flow Through 1994 Regular 1994 Carry-Over 1995 Regular Preschool Program 1994 Regular 1994 Carry-Over 1995 Regular Vocational Education Basic Grants to States High School Program Basic Grant 1994 Grant 1995 Grant Consumer and Homemaking Education 1995 Contract Tech-Prep Education 1995 Grant

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 $
. 10.555
. 10.555
10.550

268.473.43 $
813,782.67 166,044.09

$ 1,248,300.19 $

268.473.43 $ 268.473.43

8,096.94 804,899.51 NIA

813,782.67 $ 166,044.09

1,081,469.88 $ 1,248,300.19 $

(2)
1,819,120.47 (3) 166,044.09
1,985,164.56

84.041 $

7,920.00 $

84.186

33,499.00

7,920.00 $

7,920.00

18,000.00

33,499.00 $

(4) 33,499.00

84.009 84.009
* 84.010 * 84.010 * 84.010 * 84.010
84.218
84.151

186.00 1,908.00
85,625.00 789,590.00
27,736.00
40,128.00

186.00 1,500.00
27,504.01 111,661.03
85,625.00 588,000.00
20,000.00
40,128.00

186.00 1,908.00 -7,387.99 85,625.00 724,694.94 22,547.67
40,128.00

186.00 1,908.00 7,138.00 85,625.00 724,694.94 22,547.67
40,128.00

84.164 84.164

23,026.00

19,000.00

19,000.00

3,172.27 16,534.97

84.027 84.027 84.027
84.173 84.173 84.173

14,238.00 199,044.00
23,003.00 41,300.00

26,381.95 14,238.00 147,090.00
-15,427.26 23,003.00 41,300.00

14,238.00 193,648.19
22,852.33 41,298.98

14,238.00 193,648.19
22,852.33 41,298.98

84.048 84.048
84.049
84.243

58,932.74 2,472.71

10,550.00

54,424.74

58,932.74

(4)

1,760.71

2,472.71

(4)

2,404.00

See notes to the general purpose financial statements.

26

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30. 1995

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Through Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Chapter 1 Migratory Education Program 1994 Summer 1995 Regular
Total U.S. Department of Education
Labor, U. S. Department of Through Coosa Valley Regional Development Center Job Training Partnership Act 17-93-20-011 17-94-20-010
Total U.S. Department of Labor

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.011

$

84.011 $_-"2"-7'-',6-"-0-'-5.c.c8..c...4

$ 1,376,214.29 $

3.469.07 $ 27,605.84

2.100.88 $ 27,605.84

1,256,324.09 $ 1,291,270.29 $

2,100.88 27,605.84
1,237,178.07

17.250

$

17.250 $ _ _2_2~,5_85_._oo_

$ 22,585.00 $

16,062.90 $ 16,062.90 $

11,104.69 $ 4,923.17

11,104.69 4,924.65 (3)

16,027.86 $ _ _ _16~,0_2_9._34_

Total Federal Financial Assistance

$ 2,647,099.48 $ 2,353,856.87 $ 2,555,598.34 $ 3,238,371.97

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

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

See notes to the general purpose financial statements.

- 27 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30. 1995

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
First Federal Bank of Northwest Georgia, Cedartown, Georgia
Certificates of Deposit No. 01-24-134 (5.51%) No. 01-24-135 (5.53%) No. 01-24-136 (5.68%)
First National Bank of Polk County, Cedartown, Georgia
N.O.W. Account (3.04%)
Trust Company Bank of Northwest Georgia, N. A., Rome, Georgia
Certificate of Deposit No. 4612 (5.75%) Money Market Accounts (4.00%) N.O.W. Accounts (2.00%)

$ 500,000.00 1,000,000.00 2,000,000.00 $ 3,500,000.00

-436, 174.14

$ 500,000.00 1,799,232.38 13,876.82

2,313,109.20

$ 5,376,935.06

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

POLK SCHOOL DISTRICT BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "3"

Cedartown High School Summer School Tuition
Coosa Valley Regional Development Center Job Training Partnership Act
Education, Georgia Department of Food Services National School Lunch Program Vocational Education Federal Funds Other At-Risk Summer School Lottery Program Distant Learning Instructional Technology Safe School Grant Technology Installation Federal Program Drug-Free School and Communities Act ESEA - Chapter 1 Education of Children in State Schools Education of Deprived Children State Program Improvements Individuals with Disabilities Education Act Title VI, B - Flow Through
Georgia State University Reimbursement of Salaries
Polk County Tax Commissioner County Wide School Tax

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

7,920.00

$

7,920.00

$

4,923.17

4,923.17

5,220.00 19,845.30
17,285.93 80,493.54

8,883.16
12,100.00 163,008.63
47,085.00 18,032.12 15,499.00
408.00 137,213.48
2,547.67 46,914.59

8,883.16 5,220.00 19,845.30 12,100.00 163,008.63 47,085.00 18,032.12 15,499.00
408.00 137,213.48
2,547.67 46,914.59
17,285.93
80,493.54

$

130,764.77 $

456,614.82 $ ===5=8=7,=37=9=.59=

See notes to the general purpose financial statements.

- 29 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1995

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Special Instructional Assistance In-School Suspension School Counselors Grades 4 - 5 Mid-term Adjustment Local Fair Share Educational Equalization Funding Grant Food Services other State Programs At-Risk Summer School Program Environmental Science Program Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Distant Learning Instructional Technology Pre-Kindergarten Program Safe Schools Grant Technology Installation
Financing and Investment Commission, Georgia State Reimbursement on Construction Projects
other Education, Georgia Department of Student Information System Project

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 11,928,714.00 1,537,788.00 517,967.00 514,004.00 153,625.00 3,373,557.00

634,321.00 199,038.00 211,000.00 183,020.00
28,832.00 439,872.00 -1,831,723.00 1,602,516.00
$

151,300.00

27,943.89 500.00
3,500.00 690.00
73,244.00 7,458.00

12,100.00 163,008.63 165,691.70 127,788.00 18,032.12

$ 11,928,714.00 1,537,788.00 517,967.00 514,004.00 153,625.00 3,373,557.00
634,321.00 199,038.00 211,000.00 183,020.00 28,832.00 439,872.00 -1,831,723.00 1,602,516.00 151,300.00
27,943.89 500.00
3,500.00 690.00
73,244.00 7,458.00
12,100.00 163,008.63 165,691.70 127,788.00
18,032.12

$ 267,316.19

267,316.19

2,500.00

2,500.00

$ 19,608,366.89 $ 637,920.45 $ 267,316.19 $ 20,513,603.53

See notes to the general purpose financial statements.

- 30 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30, 1995

SCHEDULE "5"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Donations Various Sources Indirect Cost Special Revenue Fund Interest Earned Reimbursements for Salaries Georgia State University Sales Adult Meals Contracted Meals Lunches Supplemental School Assets Supervision and Assessment of Student and Beginning Teachers and Performance Based Certification Berry College Shorter College Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTAL

$ 5,171,677.59 14,649.54 19,668.47

$ 5,171,677.59 14,649.54 19,668.47

$

10,372.72 201 ,935.56 $

16,334.40 $

29,567.96

51,853.93

19,682.22

81,016.45 8,701.50
467,926.33 22,595.15

6,197.70

6,197.70
10,372.72 247,837.92
51,853.93
81,016.45 8,701.50
467,926.33 22,595.15 19,682.22

250.00 150.00 18,405.00 6,960.57

250.00 150.00 18,405.00 6,960.57

$ 5,515,605.60 $ 596,573.83 $ 29,567.96 $ 6,197.70 $ 6,147,945.09

See notes to the general purpose financial statements.

- 31 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1995

SCHEDULE "6"

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 Insurance Communications Tuition Commodity Hauling Shared Services Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Other Expenditures
Nonoperating Costs Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 17,466,592.46 $ 3,565,841.43 47,222.91 221,964.41 41,855.31 351,407.36 96,877.06 164,930.89 71,039.92 15,000.00
16,237.50 19,074.49 898,065.17 876,386.35
246,922.51 25,206.39
7,338.72

1,639,556.34 $ 352,784.03 14,776.85 48,717.52
3,906.25 60,586.44
4,445.74
8,712.68
7,249.51 245,719.77
6,742.31 884,735.31
4,779.39 3,592.50 10,372.72 12,796.54

19,106,148.80 3,918,625.46 61,999.76 270,681.93 41,855.31 355,313.61 157,463.50 164,930.89 75,485.66 15,000.00 8,712.68 16,237.50 26,324.00 1,143,784.94 883,128.66 884,735.31 251,701.90 28,798.89 10,372.72 20,135.26

1,180.00 49,250.67 531,048.59

7,370.00 18,032.12 390,181.40

8,550.00 67,282.79 921,229.99

Total Expenditures

$ 24,713,442.14 $ 3,725,057.42 $ 28,438,499.56

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

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1995

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Communications Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Other Expenditures
~onoperating Costs - Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

$

4,795.00 $

10,115.24

7,370.00

152,893.39

$

12,165.00 $ ===1=63=,0=08=.6=3

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

SCHEDULE "7"

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

71,769.38

14,149.82

1,951.70

1,705.00

250.00

1,761.97

29,194.68 $

23,814.00

194.25

1,045.44

2,968.79

1,536.17

$

71,769.38

14,149.82

1,951.70

1,705.00

250.00

1,761.97

67,918.92

194.25

1,045.44

2,968.79

1,536.17

39,164.50

$ 103,974.00

18,032.12

7,370.00 18,032.12 296,031.89

$

165,691.70 $ 127,788.00 $

18,032.12 $ 486,685.45

- 35 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1995

SCHEDULE "8"

EXPENDITURES
Operating Costs Clothing Medical Claims

$

1,285.87

2,447.19

Total Expenditures

$ ========3=,7=3=3=.=0=6=

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

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

SCHEDULE "9"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 14,938,345.00 $

542,047.00

$ 15,791,947.02 934,147.00 $ _ ___;;,;82;;;..;3C..?..,4.;,.,;1..;.7.;.;;.6~5
$ 16,726,094.02

-208,387 .14 $ 16,517,706.88

$

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

See notes to the general purpose financial statements. - 37 -

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

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten () Grades 1 3 () Sub-Total K-3 Grades 4 5 () Grades 6 8 () Grades 9 12 (') High School Laboratories ()
Vocational Education Laboratories ci
Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS
Regular Programs
category I cJ Category II (J
Category 111 ()
Category IV cJ
Sub-Total - Regular
Category V (Gifted) cJ
Total Special Education Programs REMEDIAL EDUCATION PROGRAM(\
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total staff Development
ci Identifies Thirteen Weighted Programs.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 1,219,601.00

$ 1,097,640.90 $

3,230,587.00

2,907,528.30

$ 4,450,188.00 90 $ 4,005,169.20 $

1,592,578.00 90

1,433,320. 20

2,810,010.00 90

2,529,009.00

1,520,963.00 90

1,368,866.70

672,431.00 90

605,187.90

882,544.00 90

794,289.60

$ 11,928,714.00

$ 10,735,842.60 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

$ 1,406,484.00

$ 1,265,835.60 $

439,872.00

$ 1,406,484.00 90 $ 1,265,835.60 $

131,304.00 90

118,173.60

$ 1,537,788.00

$ 1,384,009.20 $

$

517,967.00 90 $

466,170.30 $

$ 13,984,469.00

$ 12,586,022.10 $

439,872.00 0.00
439,872.00 0.00
439,872.00

$

409,324.00 90 $

368,391.60 $

104,680.00 90

94,212.00

$

514,004.00

$

462,603.60 $

0.00 0.00
0.00

$ 14,498.473.00

$ 13,048,625.70 $

439,872.00

$

36,205.00

117,420.00

$

36,205.00 $

117,420.00

$

153.625.00 100 $

153,625.00 $

0.00 0.00
0.00

See notes to the general purpose financial statements.

- 38 -

SCHEDULE "10''

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,097,640.90 $ 2,907,528.30
$ 4,005,169.20 $ 1,433,320.20 2,529,009.00 1,368,866.70 605,187.90 794,269.60
$ 10,735,842.60 $

1,179,542.74 $ 3,272,825.75 4,452,368.49 $ 1,697,018.22 3,004,278.07 1,812,102.89
746,005.98 925,851.83 12,637,625.48 $

32,153.57 $ 1,211,696.31

106,306.32

3,379.132.07

138,459.89 $ 4,590,828.38 $

39,527.75

1.736,545.97

91,376.53

3,095,654.60

64,894.29

1,876,997.16

27,695.92

773,901.90

256,671.11

1, 182.522.94

618.82549 $ 13.256.450.97

0.00 0.00 0.00 0.00 0.00 0.00

$ 1,705.707.60 $

$ 1,705,707.60 $

118,173.60

$ 1,823,681.20 $

$

466,170.30 $

$ 13,025.894.10 $

9,222.16 $ 342,077.04 1,157,197.74 244,091.67
1,752,568.61 $
237,750.00
1,990,338.61 $
552,321.14 $
15, 180.285.23 $

1,580.59 $ 7,280.84 181,600.22 2,574.33

10,802.75 349,357.68 1,338,797.96 246,666.00

193,035.96 $ 1,945,624.59

3,753.00

241,503.00

196,788.98 $ 2,187,127.59

7,803.18 $

560,124.32

823,417.65 $ 16,003,702.88

0.00 0.00
0.00

$

368,391.60 $

94,212.00

$

462,603.60 $

611,661.79 $
611,661.79 $

$ 110,729.35
110,729.35 $

611,661.79 110,729.35
722,391.14

000 000

$ 13,486,497.70 $ 15.791,947.02 $

934,147.00 $ 16,726,094.02 $

0.00

$

36,205.00

117,420.00

$ _ _1_53,,.,6=2==5_00_

$

55,930.69 $

55,930.69

98,235.18

98,235.16

$

154,165.87 $

154,165.87 $-=======0=.00=

- 39 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS
YEAR ENDED JUNE 30. 1995

SCHEDULE "11"

BOARD MEMBER ADDRESS
Mr. Jerry E. Baldwin, Chairman (*) 3609 Rockmart Highway Cedartown, Georgia 30125
Dr. John Atha (*) Monarch Drive Rockmart, Georgia 30153
Mr. Greg Forrister(*) 36 Bradshaw Drive Cedartown, Georgia 30125
Mr. Rick Lundy(*) 303 Marshall Street Cedartown, Georgia 30125
Mr. John H. Moore (*) P. 0. Box 845 Cedartown, Georgia 30125
Mr. Gene Newton (*) 516 Prospect Road Rockmart, Georgia 30153
Mr. Odell Owens, Jr. 902 Jones Street Cedartown, Georgia 30125
Mr. Guy Rutland (*) 2474 Rockmart Highway Cedartown, Georgia 30125
Mr. Tommy Sanders(*)
P. 0. Box209
Rockmart, Georgia 30153
Dr. Harold Wingfield (*)
P. 0. Box 960
Cedartown, Georgia 30125

COMPENSATION

TRAVEL

$

5,250.00 $

2,645.05

1,350.00

15.33

2,350.00

589.70

3,100.00

4,150.00

3,440.22

3,500.00

2,684.41

2,050.00

743.53

1,200.00

2,750.00

2,150.00

3,887.07

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

$

27,850.00 $ ===14=,0=0=5=.3=1

See notes to the general purpose financial statements.

- 40 -

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Polk School District Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Polk School District Board ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated March 22, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Polk School District Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
95CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
;:7~~
Claude L. Vickers State Auditor
CLV:dt 95CRL-10

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Polk School District 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 Polk School District Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 22, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the Polk School District Board of Education's compliance with the following requirements applicable to each ofits Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995:

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

95CRL-50

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

CLV:dt 95CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Polk School District Board of Education

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Polk School District Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 22, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the gen~ral purpose financial statements.

We have also audited the Polk School District Board of Education's compliance with the requirements governing:

( 1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995. The management of the Polk School District Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

95CRL-80

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Polk School District Board of Education's compliance with those requirements. 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 the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report.
In our opinion, the Polk School District Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt 95CRL-80

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Polk School District Board ofEducation

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Polk School District Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 22, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1995 general purpose financial statements of the Polk School District Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Polk School District 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 Polk School District Board of Education had not complied, in all material respects, with those requirements.

95CRL-120

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

CLV:dt 95CRL-120

Claude L. Vickers State Auditor

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Polk School District Board of Education
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Polk School District Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 22, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles., as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management ofthe Polk School District Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that
95ICL-3

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 Polk School District Board of Education for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts-that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Polk School District Board of Education's general purpose financial statements and this report does not affect our report thereon dated March 22, 1996.
95ICL-3

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
d~~
Claude L. Vickers State Auditor
CLV:dt 95ICL-3

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 22, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Polk School District 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 Polk School District Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 22, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Board's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated March 22, 1996.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions ofOffice of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Polk School District Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with
95ICL-5

0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 22, 1996.

The management of the Polk School District 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 ofinherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

95ICL-5

For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.
During the year ended June 30, 1995, the Polk School District Board of Education expended 64% ofits total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would. be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above.
This rep~rt is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Rd~~

CLV:dt 95ICL-5

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $13,949.91 Audit Control Number 7151-93-02
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$13,949.91 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of$13,949.91 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Overpayment Of Annual Leave Financial Statements Amount: $2,252.55 Audit Control Number 7151-9304
The audit report for the year ended June 30, 1993, reported an overpayment to the former Superintendent, Mr. Ernest Burch, for fifteen days of accrued annual leave upon his retirement in the amount of$2,252.55. Neither the Board's leave policy nor the Superintendent's contract provided for this payment. During the year under review, reimbursement ofthis expenditure was not obtained. Appropriate action should be taken by the Board to secure reimbursement of the $2,252.55 for deposit to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $14,582.46 Audit Control Number 7151-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$14,582.46 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $14,582.46 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7151-93-01
The audit report for the year ended June 30, 1994, noted that the management of the Polk School District Board of Education had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
FEDERAL FINANCIAL REPORTS Delinquent Completion Report Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7151-95-02
A review ofthe project completion reports submitted by the Board to the Georgia Department of Education for the Elementary and Secondary Education Act - Chapter 1 Education ofDeprived Children program (CFDA 84.010) for the year under review, revealed that the 1994 Carry-Over project report was not filed by the required due date. As set forth in guidelines established by the Georgia Department of Education, the completion report was due July 31, 1995, but was not filed until September 19, 1995. This deficiency occurred because management neglected the specific limitations imposed upon the Board by the Georgia Department of Education. Appropriate procedures should be implemented by the Board to ensure that completion reports are filed in a timely manner.

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7151-95-03
Property management records maintained by the Board for the Elementary and Secondary Education Act Chapter 1 - Education of Deprived Children Program (CFDA 84.010) were incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). The inventory records as presented for audit did not contain accurate costs. This condition occurred because management did not ensure that accurate equipment purchase costs were included in property management records. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 41, of the FMGLUA.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

POLK SCHOOL DISTRICT BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
FEDERAL FINANCIAL REPORTS Delinquent Completion Report Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7151-95-02
All completion reports are filed as timely as possible. Changes were made in the reporting requirements for FY 95 and this was an oversight. Measures are being taken to file these reports as timely as possible due to limited number of staff and heavier workload during summer months.
Note: The Polk County Board ofEducation has elected not to provide comments for inclusion in this report other than the above.