Audit report, Quitman County Board of Education, Georgetown, Georgia, year ended June 30, 1995

GA
A<3oo
.RI 2'=, Q<3 1994-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

AUDIT REPORT QUITMAN COUNTY BOARD OF EDUCATION
GEORGETOWN, GEORGIA YEAR ENDED JUNE 30, 1995

QUITMAN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

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

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

28

SCHEDULES

I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

30

2 CASH AND CASH EQUIVALENTS

31

3 INVESTMENTS

32

4 ACCOUNTS RECEIVABLE

33

5 DEBT SERVICE REQUIREMENTS TO MATURITY

34

OillTMAN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

6

STATE

35

7

LOCAL AND OTHER

36

SCHEDULE OF EXPENDITURES BY OBJECT

8

GENERAL AND SPECIAL REVENUE FUNDS

37

9

LOTTERY PROGRAMS

38

ANALYSIS OF MINIMUM EXPENDITURE REQillREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

10

OVERALL

41

11

BY PROGRAM

42

12 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

44

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

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

QUITMAN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTIONN 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 11, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Quitman County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATE:MENTS AND SUPPLE:MENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Quitman County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
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.
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:
* 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.
95ARL-14*

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, 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 Quitman County 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 11, 1996, on our consideration ofthe Board's internal control structure and a report dated March 11, 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 ofthe Quitman County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 12 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Quitman County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
ttb/4-~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:gp 95ARL-14*

QUITMAN COUNTY BOARD OF EDUCATION - 1-

QUITMAN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1995

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories
Food
Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

9,609.64 $

194,915.06

1,888,079.28

$

479,306.80

121,893.78

439.17 87.12

Total Assets

$

479,306.80 $

132,029.71 $ 2,082,994.34

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories
Food
Donated Commodities Purchased Food For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$

165,740.23

32,657.00 $

139,517.84

$

337,915.07 $

21,190.15 $ 23,690.38
44,880.53 $

790.00 790.00

$

25,163.00

1,868.21 $

$

27,031.21 $

114,360.52

$

141,391.73 $

47,076.56

439.17 87.12 $

1,888,079.28 193,504.00

47,602.85 $ 2,081,583.28

39,546.33

621.06

87,149.18 $ 2,082,204.34

Total Liabilities and Fund Equity

$

479,306.80 $

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

132,029.71 $ 2,082,994.34

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE
TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

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

$

89,730.22 $

39,299.03

$

333,553.95 $

375,587.61

1,888,079.28

601,200.58

171,969.77

439.17 87.12

$

89,730.22

89,730.22

1,920,269.78

1,920,269.78

520.16 258.47

$

89,730.22 $

39,299.03 $

2,010,000.00 $ 4,833,360.10 $

548,336.01

$

165,740.23 $

12,848.45

54,637.15

36,451.62

163,208.22

151,994.39

$

2,010,000.00

2,010,000.00

$

2,010,000.00 $ 2,393,585.60 $

201,294.46

$

89,730.22

$

89,730.22

0.00 $

$

89,730.22 $

$

89,730.22 $

39,299.03 39,299.03
39 299.03 $

$

25,163.00

$

89,730.22

48,944.77

3,866.58 1,868.21

439.17 87.12
1,888,079.28 193,504.00
$ 2,245,947.56 $
193,826.94
$ 2,439,774.50 $

520.16 258.47 47,644.00 54,157.42 292,884.13 347,041.55

- - - = - 2,010,000.00 $ 4,833,360.10 $

548,336.01

-3-

QUITMAN COUNTY 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 Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

898,230.00 $

549,592.38

$ 1,447,822.38 $

380,786.79 315,891.72
10,n9.42 $
707,457.93 $

34,336.93 34,336.93

$ 864,388.06 $ 397,424.03

42,247.26 6,722.93
55,503.87 115,190.87
87,902.84 22,546.88 71,565.75 98,428.99
7,533.82 2,337.75

49,513.42 12,296.64
6,105.22 14,202.91
$ 27,005.54
6,083.n 62.54
149,451.43

$ 1,374,369.02 $

$

73,453.36 $

662,145.50 $ 45,312.43 $

78,291.93
3,590.00 81,881.93 -47,545.00

$ $ -151,913.54
$ -151,913.54 $

$

-78,460.18 $

213,789.65

6,062.26

$ 1,932,034.28

2,463.54

149,450.00

2,463.54 $ 2,081,484.28

47,n5.97 $ 2,033,939.28

39,625.55

54,327.32

-80.99 -171.35

-6,062.26

FUND BALANCE JUNE 30

$

141,391.73 $

87,149.18 $ 2,082,204.34

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

EXHIBIT "B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

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

$ 1,279,016.79 $

315,891.72

$

1,993.56

596,702.29

0.00 $

1,279,016.79 $ 315,891.72 596,702.29

912,386.60 351,099.64 530,141.96

$

1,993.56 $ 2,191,610.80 $ _ _ _ _0._00_ $ 2,191,610.80 $ 1,793,628.20

$

0.00 $ 1,261,812.09 $

91,760.68 19,019.57 61,609.09 129,393.78 87,902.84 100,838.81 98,571.29 104,512.76 7,596.36 151,789.18
3,590.00

$

0.00 $ 2,118,396.45 $

$

1,993.56 $

73,214.35 $

0.00 $ 1,261,812.09 $ 1,113,935.87

91,760.68 19,019.57 61,609.09 129,393.78 87,902.84 100,838.81 98,571.29 104,512.76
7,596.36 151,789.18
3,590.00

1,471.41 18,609.25 73,435.24 126,380.77 87,593.94 25,604.43 62,759.05 153,799.77
6,319.02 132,604.32

0.00 $ 2,118,396.45 $ 1,802,513.07

0.00 $

73,214.35 $

-8,884.87

$

9,770.94 $

9,770.94

77,965.72

2,010,000.00 151,913.54 -151,913.54

$

87,736.66 $ 2,019,770.94

$

9,770.94

2,010,000.00 151,913.54 $ -151,913.54

$ 2,019,770.94 $

47,768.42 -47,768.42
0.00

$

89,730.22 $ 2,092,985.29 $

0.00 $ 2,092,985.29 $

-8,884.87

0.00

307,742.52

39,299.03

347,041.55

356,616.82

-80.99 -171.35

-80.99 -171.35

-592.06 -98.34

$

89,730.22 $ 2,400,475.47 $

39,299.03 $ 2,439,774.50 $

347,041.55

-5-

G

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

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 Other Support Services Food Services Operation
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
Residual Equity Transfer

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS~

$ 882,962.00 $ 898,230.00

542,571.00

549,592.38

$ 1,425,533.00 $ 1,447,822.38

$ 854,116.00 $ 864,388.06

27,382.00 6,131..00 50,805.00
118,603.00 81,800.00 23,908.00 53,825.00 1n,862.oo

42,247.26 6,722.93 55,503.87
115,190.87 87,902.84 22,546.88 71,565.75 98,428.99
7,533.82 2,337.75

$ 1,394,432.00 $ 1,374,369.02

$ 31,101.00 $

73,453.36

$ -151,913.54 $ -151,913.54

$ 31,101.00 $ 315,118.54

-78,460.18 213,789.65
6,062.26

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS~

$ 380,786.79

$ 321,896.00

315,891.72

10,n9_42

$ 321,896.00 $ 707,457.93

$ 178,190.00 $ 397,424.03
49,513.42 12,296.64
6,105.22 14,202.91

149,9n.oo

27,005.54 6,083.n 62.54
149,451.43

$ 328,167.00 $ 662,145.50

$

-6,271.00 $

45,312.43

$

2,463.54

$

2,463.54

$ -6,271.00 $ 47,n5.97

61,855.41

38,846.92

FUND BALANCE JUNE 30, 1995

$ 346,219.54 $ 141,391.73

$ 55,584.41 $ 86,622.89

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

QUITMAN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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

- 8-

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note I: Sl.Th1MARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND- the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE- the trust fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
EXPENDABLE TRUST FUND Self-Insured Employee Benefit Fund - the fund used to account for Unemployment Compensation Insurance Contributions and Expenditures.

- 9-

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and the expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
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 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. Employment contracts for this employment period typically specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. In fiscal year 1994, the Board began the practice of accruing the revenues and expenditures associated with the salaries and benefits of certain ten-month employees. This change in accounting principle resulted in reflecting fourteen months of revenues and expenditures for that fiscal year.
For fiscal year 1995, the Board continued its method of accounting for the final two payments on one hundred and ninety day contracts. Adjustments have been made in the fiscal year 1995 financial statements to record revenues and expenditures associated with salaries and fringe benefits earned through June 30, 1995, (even though paid in July and August 1995). The net effect of the above accounting treatment results in the
- 10 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

accompanying financial statements reflecting revenues and expenditures associated with those salaries and benefits earned during fiscal year 1995 as required by generally accepted accounting principles.

BUDGET

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

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

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

Special Revenue
Fund

Excess of Revenues and Other Sources of Financial Resources over (under) Expenditures and Other Financing Uses

$ 47,775.97

Fund Balance July 1, 1994

39,625.55

Adjustments: Inventories July 1, 1994 Food Donated Commodities Purchased Foods

-520.16 -258.47

Fund Balance June 30, 1995 (Budget Basis)

$ 86,622 89

- 11 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
{2) Obligations issued by the United States government,
(3} Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other granters 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.
- 12 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Quitman County Board of Commissioners fixed the property tax levy for the 1994 tax year (calendar year) on April 5, 1995 (levy date). Taxes were due on June 5, 1995. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Quitman 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 Quitman County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

18 74 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.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

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

- 13 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

reimbursements.



MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. See Note 1 - Basis of Accounting - Expenditures

Note 2: DEPOSITS AND INVESTMENTS

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

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

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

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

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

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

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

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

- 14 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

(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 $405,897.91. 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

Bank Balance

1

$ 108,100.00

2

286,047.22

3

11 750.69

Total

$ 405,897.91

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

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

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

- 15 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

At June 30, 1995, the carrying amount of the Board's total investments was $1,888,079.28 and the market value ofthese investments were $1,920,161.05. The investments are classified as to risk category as follows:

Type oflnvestment U. S. Government

Risk Categories

2

3

Call)'ing Amount

Market Value

$====""0"-'0="'0 $ 1 888 079 28 $===0,,,,,00"'= $ 1 888 079 28 $ 1 920 161 05

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk of loss associated with torts, assets, errors and omissions and natural disaster. 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 established a limited risk management program for workers' compensation claims. The Board accounts for claims within the General 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. These losses include an estimate of claims that have been incurred but not reported.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1994 1995

$

0.00 $

1,751.02 $

1,751.02 $

0.00

$

0.00 $

602.25 $

602.25 $

0.00

The Board is self-insured with regard to unemployment compensation claims. A premium is charged by the Expendable Trust Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The

- 16 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

Board accounts for claims with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during the past two years.

Note 5: OPERATING LEASES

Quitman County Board of Education has entered into various leases as lessee for a copier and modular classrooms. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1995, amounted to $16,824.42. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

1996 1997 1998

$ 21,712.56 19,552.56 4 888.14

Total

$ 46,153.26

Note 6: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1, 1994

$

0.00

Additions

2.010,000.00

Balance June 30, 1995

$ 2 010.000.00

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

- 17 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 6: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

General Obligation
Bonds

1996 1997 1998 1999 2000 2001 and thereafter

$ 157,838.33 135,290.00 140,215.00 144,915.00 144,390.00
3,807,325.00

Total Principal and Interest

$ 4,529,973.33

Note 7: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by granter 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.

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

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 18 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREJ\ffiNT PLANS

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

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $1,025,615.30; total payroll was $1,169,290.66.

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 $172,406.62, of which $121,125.22 was made by the Board and $51,281.40 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

- 19 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS
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$121,125.22 was actuarially determined and represented .02% 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.
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 11 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.
- 20 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 8: RETIREMENT PLANS
Total contributions from employees of the Board made during fiscal year 1995 amounted to $352.00. 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 9: SURETY BONDS
The School Superintendent, Mr. James J. Gary, Jr., is bonded in the amount of$25,000.00 with the Selective Insurance Company of America, Branchville, New Jersey, their Bond No. B77076, on which premium was paid through November 1, 1995.
The School Superintendent, Mrs. Margaret W. Hunt, effective February 6, 1996, is bonded in the amount of $25,000.00 with the Selective Insurance Company of America, Branchville, New Jersey, their Bond No. B705121, on which premium is paid through February 6, 1997.

- 21 -

QUITMAN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1995

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

ELEMENTARY AND EDUCATION

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$ 36,823.39 $ 30,306.81

6,908.56

31,377.39 $

68,370.00

439.17 87.12

Total Assets

$ 44,258.24 $ 61,684.20 $ =====6=8=,37=0=.0=0

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

$

$

121.12 $ 14,823.08

4,064.50

$ 4,185.62 $ 14,823.08 $

45,257.22 4,911.90 18,200.88
68,370.00

$ 46,861.12

$

439.17

87.12

$

526.29 $ 46,861.12

39,546.33

0.00 $

0.00

$ 40,072.62 $ 46,861.12 $

0.00

Total Liabilities and Fund Equity

$

See notes to the general purpose financial statements. -22-

44,258.24 $

----....===--- 61,684.20 $

68,370.00

EXHIBIT"E"

SECONDARY ACT
TITLE 11EISENHOWER MATHEMATICS AND SCIENCE EDUCATION

INDIVIDUALS WITH DISABILITIES
EDUCATION ACT TITLE VI, B FLOW THROUGH

JOB TRAINING

PARTNERSHIP

TOTALS

ACT

JUNE 30, 1995 JUNE 30, 1994

$ 67,130.20 $ 41,245.67

$

7,000.00 $

7,100.00 $

1,137.83

121,893.78

84,118.62

439.17 87.12

520.16 258.47

$ -===7=,0=00=.0=0 $

7,100.00 $

1,137.83 $ 189,550.27 $ 126,142.92

$

7,000.00 $

4,125.51 $

1,137.83 $ 57,520.56 $ 54,094.12

1,334.05

21,190.15

6,446.74

$

1,425.00

____ __ 7,000.00 $

6..,.,8....8.. 4.56 $

1,137.83 $

23,690.38 102,401.09 $

25,976.51 86,517.37

$

$

$

0.00

$

0.00 $

$ -===7,=00=0.0=0 $

215.44
215.44 0.00 $
215.44 $

$ $ 47,076.56

3,866.58

$ 0.00 0.00 $

439.17 87.12
47,602.85 $
39,546.33
87,149.18 $

520.16 258.47 4,645.21
34,980.34
39,625.55

7,100.00 $

1,137.83 $ 189,550.27 $ 126,142.92

- 23 -

QUITMAN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE 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 Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
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
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

ELEMENTARY AND EDUCATION

LOTTERY PROGRAMS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

$

7,926.00 $ 372,860.79

131,297.47

$

10,779.42

$ 150,002.89 $ 372,860.79 $

161,338.00 161,338.00

$ 214,929.19 $

49,513.42 11,433.62
6,105.22 13,000.00 27,005.54
1,083.77

$ 145,436.90

3,268.43

$ 145,436.90 $ 326,339.19 $

$

4,565.99 $ 46,521.60 $

$

339.52 $

$

339.52 $

$

4,565.99 $ 46,861.12 $

35,758.97

0.00

-80.99 -171.35

156,450.47
1,202.91 5,000.00
62.54 746.10 163,462.02 -2,124.02
2,124.02
2,124.02
0.00 0.00

FUND BALANCE JUNE 30

$

See notes to the general purpose financial statements. - 24 -

40,072.62 $

46,861.12 $

0.00

=======

EXHIBIT"F"

SECONDARY ACT
TITLE II EISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH DISABILITIES
EDUCATION ACT TITLE VI, B FLOW THROUGH

JOB TRAINING PARTNERSHIP
ACT

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

3,133.42 $

$ _ _ _3..:..1, _3_3._42_ $

16,150.00 $ 16,150.00 $

$ 3,972.83
3,972.83 $

380,786.79 $ 315,891.72
10,779.42
707,457.93 $

28,785.60 351,099.64
7,959.64
387,844.88

$

6,136.98 $

863.02

$

7,000.00 $

$

-3,866.58 $

15,934.56 $
15,934.56 $ 215.44 $

3,972.83 $
3,972.83 $ 0.00 $

397,424.03 $
49,513.42 12,296.64
6,105.22 14,202.91 27,005.54
6,083.77 62.54
149,451.43
662,145.50 $
45,312.43 $

226,357.91
11,733.19 12,269.08
2,604.53 512.02
131,494.22 384,970.95
2,873.93

$

-3,866.58 $

3,866.58

215.44 $ 0.00

$

2,463.54 $

$

2,463.54 $

124.00 -0.42
123.58

0.00 $ 0.00

47,775.97 $ 39,625.55

2,997.51 37,318.44

-80.99 -171.35

-592.06 -98.34

$

0.00 $

215.44 $

0.00 $

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

87,149.18 $

39,625.55

-25 -

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

ASSETS Cash and Cash Equivalents Investments
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable FUNE> EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects
Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

HAZARD AND DEPRECIATION RESERVE FUND

1994 BOND ISSUE
FUND

$

0.00 $

621.06

______ $

1,888,079.28

$

0.00 $

621.06 $ 1,888,079.28

$ 1,888,079.28

$ 1,888,079.28

$

0.00 $ - - - -6-21.0-6

0.00

$

0.00 $

621.06 $ 1,888,079.28

$

0.00 $

621.06 $ 1,888,079.28

See notes to the general purpose financial statements.

- 26 -

EXHIBIT "G"

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

95/94S-718-047

96-718-056

LOTTERY

TOTALS

96/95S-718-062 JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

191,509.00 $

2,785.00 $ 194,915.06 $

54,327.32

1,888,079.28

$

0.00 $

191,509.00 $ ======2'=78=5=.0=0 $ 2,082,994.34 $ ===54=,3=2=7=.3=2

s_ _ _ _79_o_.o_o

$ - - - -7'9-0.0-0

$

190,719.00 $

$

190,719.00 $

$ 1,888,079.28

2,785.00

193,504.00 $

2,785.00 $ 2,081,583.28 $

47,644.00 47,644.00

$

0.00

0.00

0.00

621.06

6,683.32

$

0.00 $

190,719.00 $

2,785.00 $ 2,082,204.34 $

54,327.32

$

0.00 $

191,509.00 $

2,785.00 $ 2,082,994.34 $

54,327.32

===========

- 27 -

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

REVENUES
Local and Other Funds
EXPENDITURES
Current Support Services Business Administration Bond Issuance Cost
Capital Outlay Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES)
Proceeds from General Obligation Bonds Par Value
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
Residual Equity Transfer

REGULAR

HAZARD AND DEPRECIATION RESERVE FUND

1994 BOND ISSUE
FUND

$

0.00 $

0.00 $

34,336.93

$

0.00 $

$

0.00 $

$

0.00 $

0.00 $

78,291.93

0.00 $ 0.00 $

78,291.93 -43,955.00

$

0.00 $

6,062.26

-6,062.26

$ 1,932,034.28

$ 1,932,034.28

0.00 $ 1,888,079.28

621.06

0.00

FUND BALANCE JUNE 30

$

0.00 $ ======62=1=.0=6 $ 1,888,079.28

See notes to the general purpose financial statements.

- 28 -

EXHIBIT"H"

GEORGIA STATE FINANCING

AND INVESTMENT COMMISSION

PROJECT

PROJECT

95/94S-718-047

96-718-056

LOTTERY 96/95S-718-062

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

0.00 $

0.00 $

0.00 $

34,336.93 $ - - - -0.-00

$

0.00

$

0.00 $

_ _ _ _ _ $ _ _ _3...,.5_9_0_.o_o

$

0.00 $

3,590.00 $ - - - -0.-00 $

$

0.00 $

-3,590.00 $ _ _ _ _0._00_ $

78,291.93 $

0.00

3,590.00

81,881.93 $ - - - -0.0-0
-47,545.oo $ _ _ _ _0_.0_0-

$

194,309.00 $

$

-47,644.00

$

-47,644.00 $

194,309.00 $

$

-47,644.00 $

190,719.00 $

47,644.00

0.00

$ 2,785.00

1,932,034.28 197,094.00 $ -47,644.00

2,785.00 $ 2,081,484.28 $

47,644.00 47,644.00

2,785.00 $ 2,033,939.28 $

0.00

54,327.32

-6,062.26

47,644.00 6,683.32

$

0.00 $

190,719.00 $

2,785.00 $ 2,082,204.34 $===54=,3=2=7=.3=2

-29 -

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCI;
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 1995 Grant Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U.S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Children in Stale Schools 1995 Regular Education or Deprived Children 1993 Carry-Over 1994 Regular 1994 Carry-Over 1994 Summer 1995 Regular Chapter2 Block Grant - Flow Through 1994 Regular 1995 Regular Title II Eisenhower Mathematics and Science Education 1994 Regular 1995 Regular Individuals with Disabilities Education Act Title VI, B Flow Through 1993 Carry-Over 1994 Regular 1994 Carry-Over 1995 Regular
Total U.S. Department of Education
Labor, U.S. Department of Through Columbus Consolidated Government Job Training Partnership Act JTPA-A-94-364 JTPA-A-95-006
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

10.553 $
10.555 10.550
$

43.047.74 $
80,972.11 71277.62
1311297.47 $

36.139.18 $
81,093.23 NIA
117232.41 $

43,047.74
80,972.11 $ 71277.62
131,297.47 $

(2)
138,159.28 (3) 7277.62
1451436.90

84.009 $
84.010 84.010 84.010 84.010 84.010

636.00 $
25,210.00 141,951.00

84.151 84.151

3,084.00

539.00 53,860.00 25,210.00 $ 17,593.02 52,289.00

25,210.00 $ 15,469.00 120,659.00

25,210.00 17,593.02 (3) 120,659.00

3,076.00

84.164 84.164

7,000.00

3,133.42

-3,866.58 7,000.00

7,000.00

84.027 84.027 84.027 84.027
$

1,330.00 15,390.00
194,601.00 $

1,000.00 4,500.00
9,050.00
170 250.44 $

1,300.00 14,850.00
180,621.42 $

1,300.00 14,634.56
186,396.58

17.250 17.250 $
$

$ 3,379.00
3,379.00 $

2,835.00 $ 2,835.00 $

2,835.00 $ 1,137.83
3,972.83 $

2,835.00 1137.83
3,972.83

Total Federal Financial Assistance

$ 3291277.47 $

2901317.85 $ 3151891.72 $

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

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

See notes to the general purpose financial statements.

- 30 -

3351806.31

QUITMAN COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30. 1995
NONINTEREST BEARING ACCOUNT Southland Bank, Dothan, Alabama
INTEREST BEARING ACCOUNT Bank South, N.A., Atlanta, Georgia Money Market Account (Variable)

SCHEDULE "2"
$ 78,083.50 89,730.22
$ 167,813.72

See notes to the general purpose financial statements. - 31 -

QUITMAN COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1995
U.S. GOVERNMENT OBLIGATIONS
Bank South, NA Atlanta, Georgia
Investment Accounts (Variable)

SCHEDULE "3" $ 1,888,079.28

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

QUITMAN COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1995

SCHEDULE "4"

Columbus Consolidated Government Job Training Partnership Act
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries FY 1995 Food Services School Breakfast Program Lottery Programs Distant Learning Instructional Technology Safe Schools Grant Technology Installation Federal Programs ESEA - Chapter 1 Education of Deprived Children ESEA - Title 11 Eisenhower Mathematics and Science Education Individuals with Disabilities Education Act Title VI, B - Flow Through
Quitman County Tax Commissioner County Wide School Tax

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

1,137.83 $ 1,137.83

$

84,654.00

394,652.80

6,908.56
502.50 17,891.89 2,997.00
9,986.00

84,654.00
6,908.56
502.50 17,891.89 2,997.00 9,986.00

68,370.00

68,370.00

7,000.00 7,100.00

7,000.00 7,100.00

394,652.80

$ 479,306.80 $

121,893.78 $ 601,200.58

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

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1996 1997 1998 1999 2000
2001 2002 2003 2004 2005
2006 2007 2008 2009 2010
2011 2012 2013 2014 2015
2016 2017 2018 2019

QUITMAN COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30. 1995

SCHEDULE "5"

TOTAL DEBT SERVICE

1994 ISSUE

INTEREST

PRINCIPAL

$ 157,838.33 $ 157,838.33

135,290.00

135,290.00

140,215.00

135,215.00 $

144,915.00

134,915.00

144,390.00

134,390.00

5,000.00 10,000.00 10,000.00

148,715.00 157,740.00 161,315.00 164,515.00 172,317.50

133,715.00 132,740.00 131,315.00 129,515.00 127,317.50

15,000.00 25,000.00 30,000.00 35,000.00 45,000.00

174,610.00 181,377.50 187,523.75 192,941.25 197,616.25

124,610.00 121,377.50 117,523.75 112,941.25 107,616.25

50,000.00 60,000.00 70,000.00 80,000.00 90,000.00

201,561.25 209,726.88 216,964.37 223,189.38 228,341.87

101,561.25 94,726.88 86,964.37 78,189.38 68,341.87

100,000.00 115,000.00 130,000.00 145,000.00 160,000.00

237,270.00 239,936.25 251,308.75 260,355.00

57,270.00 44,936.25 31,308.75 20,355.00

180,000.00 195,000.00 220,000.00 240,000.00

$ 4,529,973.33 $ 2,519,973.33 $ 2,010,000.00

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

$

0.00

2,010,000.00

$ 2,010,000.00

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

- 34 -

FEB 1-AUG 1 FEB 1

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

SCHEDULE "6"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant School Counselors Grades 4 and 5 Superintendent Base Salary Local Fair Share Deferred Summer Salaries - FY 1994 Deferred Summer Salaries - FY 1995 Educational Equalization Funding Grant Food Services Other State Programs Preschool Handicapped Program Lottery Programs Distant Learning Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant Technology Installation
OTHER Education, Georgia Department of Student Information System Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 424,710.00 95,523.00 34,298.00 21,357.00 6,031.00
126,244.00
89,625.00 25,163.00 72,292.00 19,971.00 26,641.00 -117 ,865.00 -84,574.00 84,654.00 66,366.00
$
6,794.00

$ 424,710.00 95,523.00 34,298.00 21,357.00 6,031.00
126,244.00

7,926.00

89,625.00 25,163.00 72,292.00 19,971.00 26,641.00 -117 ,865.00 -84,574.00 84,654.00 66,366.00
7,926.00

6,794.00

1,012.22 26,775.89
5,970.68 326,119.00
2,997.00 9,986.00

1,012.22 26,775.89
5,970.68 326,119.00
2,997.00 9,986.00

1,000.00

1,000.00

$ 898,230.00 $ 380,786.79 $ 1,279,016.79

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

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30, 1995

SCHEDULE "7"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Interest Earned Sales Lunches and Breakfast Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 543,469.23 3,621.46 1,660.85

$ 543,469.23 3,621.46 1,660.85

$ 34,336.93 $

$ 10,689.88

840.84

89.54

1,993.56

36,330.49
10,689.88 930.38

$ 549,592.38 $ 10,779.42 $ 34,336.93 $ 1,993.56 $ 596,702.29

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

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

SCHEDULE "8"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 875,083.72 $ 294,206.94 $ 1,169,290.66

202,964.23

60,023.79

262,988.02

5,419.01

9,219.41

14,638.42

7,367.53

600.00

7,967.53

12,932.93

12,932.93

1,768.00

1,768.00

31,633.10

5,129.03

36,762.13

3,872.81

18,872.42

22,745.23

9,805.00

9,805.00

9,445.02

116.00

9,561.02

122,686.00

122,686.00

501.50

501.50

6,813.82

6,813.82

5,776.10

5,776.10

42,089.99

111,006.60

153,096.59

21,838.49

21,838.49

74,055.75

74,055.75

13,616.21

9,042.37

22,658.58

4,316.90

659.22

4,976.12

1,996.26

985.58

2,981.84

720.00

71,950.79

72,670.79

Total Expenditures

$ 1,374,369.02 $ 662,145.50 $ 2,036,514.52

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

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Repair and Maintenance Services Rents Communications Supplies Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment

DISTANT LEARNING

INSTRUCTIONAL TECHNOLOGY

MEDIA CENTER AND
LIBRARY EQUIPMENT

$

$

502.50

545.00

107.30

2,863.09 $

2,689.22

23,975.20

3,416.00

Total Expenditures

$

1,047.50 $

26,945.59 $ ===6=,1=0=5=.2=2

See notes to the general purpose financial statements. - 38 -

SCHEDULE "9"

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

124,635.94

27,320.27

6,601.44

3,363.15

18,872.42

58.00

67,231.42 $

2,997.00

9,042.37

490.00

641.78

$

124,635.94

27,320.27

6,708.74

3,865.65

18,872.42

58.00

76,325.73

9,042.37

490.00

641.78

21,001.09

$

9,986.00

58,378.29

$

279,257.88 $

2,997.00 $

9,986.00 $

326,339.19

- 39 -

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

SCHEDULE "1 O"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$

575,888.00 $

14,171.00

$

____ __ 703,799.17 29,463.75 $

25.,3._04.38

$

733,262.92

22,484.08 $ _ _ _71_0....,.7.. _7_8_.8_4

Amount of Underexpenditure for Total Allotment

$

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

0.00 $ = = = = = =0.0=0

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

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

GENERAL AND QAR!;!;R ~DUCATION PROGRAMS Kindergarten (*) Grades 1 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*)
Total General and Career Education Programs
SPECIAL !;DUCATION PROGRAMS
Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*)
Total Special Education Programs REMEDIAL EDUCATION PROGRAM{*}
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

92,188.00

$

82,969.20 $

0.00

161,239.00

145,115.10

$

253,427.00 90 $

228,084.30 $

0.00

74,562.00 90

67,105.80

96,721.00 90

87,048.90

$

424,710.00

$

382,239.00 $

0.00

$

95,523.00

$

85,970.70 $

0.00

$

95,523.00 90 $

85,970.70 $

0.00

$

34,298.00 90 $

30,868.20 $

0.00

$

554,531.00

$

499,077.90 $

0.00

$

17,401.00 90 $

15,660.90 $

0.00

3,956.00 90

3,560.40

$

21,357.00

$

19,221.30 $

0.00

Total Thirteen Weighted and Media Center Programs

$ ==5=75='=888===.00=

$

s1s.299.20 s-=====o=.oo=

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development

$

1,419.00

$

1,419.00 $

0.00

4,612.00

4,612.00

0.00

Total Staff Development
(*) Identifies Thirteen Weighted Programs.
(1) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
See notes to the general purpose financial statements.

$

6,031.00 100 $

6,031.00 $

0.00

=====

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

- 42 -

SCHEDULE "11"

TOTAL REQUIRED

ACTUAL EXPENDITURES SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

82,969.20 $

44,564.89 $

2,914.24 $

47,479.13

145,115.10

210,459.80

7,712.60

218,172.40

$

228,084.30 $

255,024.69 $

10,626.84 $

265,651.53 $

0.00

67,105.80

129,960.30

4,960.94

134,921.24

0.00

87,048.90

108,976.71

4,706.35

113,683.06

0.00

$

382,239.00 $

493,961.70 $

20,294.13 $

514,255.83

$

85,970.70

$

5,415.20 24,497.15 $ 95,346.26
3,557.63

$ 1,330.22 2,428.83

5,415.20 25,827.37 97,nS.09
3,557.63

$

85,970.70 $

128,816.24 $

3,759.05 $

132,575.29

0.00

$

30,868.20 $

41,339.52 $

1,251.20 $

42,590.72

0.00

$

499,on.90 $

664,117.46 $

25,304.38 $

689,421.84

$

15,660.90 $

39,681.71

$

39,681.71

0.00

3,560.40 - - - - - - $ _ _ _4~,1_5_9._3_7

4,159.37

0.00

$

19,221.30 $

39,681.71 $

4,159.37 $ _ _ _4...;3..:.;,84_1._08_

$

518,299.20 $

703,799.17 $

29,463.75 $

733,262.92 $

0.00

=======

$

1,419.00

4,612.00

$ ===6=,0=3=1.=00=

$

1,315.20 $

1,315.20

5,371.73

5,371.73

$

6,686.93 $

6,686.93 $=======0.=00=

- 43 -

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

SCHEDULE "1Z'

BOARD MEMBER ADDRESS
Mr. Loyd T. Lewis, Chairman (*) Route 2, Box 236 Georgetown, Georgia 31754
Mr. Willie J. Anderson (*)
Route 2, Box 74 Georgetown, Georgia 31754
Mr. Willie H. Bussey (*) Route 1, Box 32 Morris, Georgia 31767
Ms. Eva J. Massey Route 2, Box 251 Georgetown, Georgia 31754
Mr. George McCarthy (*) Route 2, Box 74 Georgetown, Georgia 31754
Mr. C. P. Redding P. 0. Box 336 Georgeto~n. Georgia 31754
Dr. Bobby Willis (*) Route 1, Box 32 Georgetown, Georgia 31754

COMPENSATION

TRAVEL

$

2,525.00 $

43.28

2,600.00

82.10

2,175.00

199.09

350.00

1,950.00

132.64

400.00

43.40

2,175.00

257.42

$

12,175.00 $

757.93

======

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

See notes to the general purpose financial statements. - 44 -

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 11, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Quitman County Board ofEducation
CO1\1PLIANCE 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 Quitman County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 11, 1996. This report was qual~fied for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
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.
Compliance with laws, regulations, contracts, and grants applicable to Quitman County 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.
Material instances of noncompliance consist of failures to follow requirements or violations of prohibitions, contained in laws, regulations, contracts, or grants, that cause us to conclude that the aggregation of the misstatements resulting from those failures or violations is material to the general purpose financial statements. The results of our tests of compliance disclosed a material instance of noncompliance, which is described in the Schedule of Findings and Improper or Questioned Costs.
95CRL-20

As also described in the Schedule of Findings and Improper or Questioned Costs, the material instance of noncompliance noted above has been corrected in the financial statements.
We considered this material instance ofnoncompliance in forming our opinion on whether the fiscal year 1995 general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated March 11, 1996 on those general purpose financial statements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:gp 95CRL-20

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 11, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Quitman County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 11, 1996. This report was qualified 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 Quitman County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995:

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

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

95CRL-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 Quitman County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule of Findings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:gp 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 11, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Quitman County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 11, 1996. This report was qualified 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 Quitman County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular 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 govemmg:

( 1) Types of Services Allowed or Unallowed

(2) Eligibility

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

95CRL-120

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

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 11, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Quitman County 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 Quitman County Board of Education as of and for t_he year ended June 30, 1995, and have issued our report thereon dated March 11, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
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.
The management of the Quitman County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
95ICL-3

In planning and performing our audit ofthe general purpose financial statements of the Quitman County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.

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

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

( 1) Accounting Controls (Overall)

(2) General Fixed Assets

A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of 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 both reportable conditions disclosed above are also considered to be material weaknesses.

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Quitman County Board of Education's financial statements and this report does not affect our report thereon dated March 11, 1996.

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,
L~
Claude L. Vickers State Auditor

CLV:gp 95ICL-3

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 11, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Quitman County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Quitman County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 11, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 11, 1996.
The management of the Quitman County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures.
95ICL-16

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

For the 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) Audit Follow-Up/Resolution (7) Administrative Requirements

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

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

During the year ended June 30, 1995, the Quitman County Board of Education had no major Federal financial assistance programs and expended 50% of its total Federal financial assistance under the following nonmajor Federal financial assistance program:

Elementary and Secondary Education Act - Chapter 1 Education of Deprived Children

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as

95ICL-16

described above that are applicable to the aforementioned nonmajor Federal financial assistance program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
( 1) Federal Financial Reports
(2) Administrative Requirements
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness:
Administrative Requirements
This report is intended solely for the use ofmanagement, 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
Rez~ distribution of this report which is a matter ofpublic record.

CLV:gp 95ICL-16

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND ll\1PROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Uncollateralized Deposits Financial Statements Finding Resolved Audit Control Number 7181-93-03
The audit report for the year ended June 30, 1994 stated that the Quitman County Board ofEducation failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12. During the year under review, the Board did have its bank balances fully collateralized as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,487.01 Audit Control Number 7181-93-04
The audit report for the year ended June 30, 1993, reported that the Board had underexpenditures of Quality Basic Education (QBE) funds of$638.0l for the salaries portion ofthe General and Career Education - Grades 6 - 8 Program and $849.00 for the Staff Development - Professional Development Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund these underexpenditures as required. The underexpenditures of $1,487.01 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 Failure to Meet Expenditure Requirements Financial Statements Amount: $381.20 Audit Control Number 7181-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $381.20 for the Staff Development - Cost oflnstruction Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $3 81.20 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Local Matching Funds Financial Statements Finding Resolved Audit Control Number 7181-94-02
The audit report for the year ended June 30, 1994, stated that the Board failed to transfer local matching funds from the General Fund to the Capital Projects Fund as required by the approved State Capital Outlay Project for the 1994 fiscal year. In the year under review, the local funds were transferred as required.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7181-93-01
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. For the year under review, no improvement in the separation of employee duties was noted. This deficiency was a result of management not assigning employee duties in a manner to adequately safeguard assets and/or promote efficiency and accuracy in key accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule "l " of this report, are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7181-93-02
The audit report for the year ended June 30, 1994, noted that the management of the Quitman County Board ofEducation had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in 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

QUITMAN COUNTY 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 7181-93-02
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.
EMPLOYEE COMPENSATION Superintendent Not Properly Certificated Financial Statements Nonmaterial Noncompliance Audit Control Number 7181-93-05
The audit report for the year ended June 30, 1994 noted that the Quitman County Board of Education did not comply with Georgia Department ofEducation Public School Standards requirement C-2. This standard states that school superintendents must hold a certificate in Supervision and Administration. The Superintendent of the Quitman County Board of Education did not hold such a certificate. In the year under review, the Superintendent did not obtain the required certificate. Procedures should be implemented to ensure that certificated personnel meet all requirements for employment.
FEDERAL FINANCIAL REPORTS Delinquent Completion Reports Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7181-93-07
The audit report for the year ended June 30, 1994 stated that the Board did not file the required program reports to the Georgia Department of Education for the Elementary and Secondary Education Act - Chapter 1 -Education ofDeprived Children Program (CFDA 84.010) in a timely manner. For the year under review, program reports for the Elementary and Secondary Education Act - Chapter 1 - Education of Deprived Children Program (CFDA 84.010) and Individuals with Disabilities Education Act - Title VI, B - Flow Through (CFDA 84.027) were not filed in a timely manner. Audit tests indicated that four required reports were not submitted by the due date as listed below:

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

PRIOR YEAR/CURRENT YEAR

FEDERAL FINANCIAL REPORTS Delinquent Completion Reports Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7181-93-07

CFDA

Project

Due Date

Date Submitted

84.010 84.010 84.027 84.027

94 Carry-Over 95 Regular 94 Carry-Over 95 Regular

July 31, 1995 September 30, 1995 September 30, 1995 September 30, 1995

October 27, 1995 October 27, 1995 October 27, 1995 October 27, 1995

Appropriate procedures should be established and implemented by the Board to ensure that each program report is submitted by the required due date.

CURRENT YEAR

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Remit Federal Income Tax Employee Withholdings Timely Financial Statements Nonmaterial Noncompliance Audit Control Number 7181-95-01

The Board failed to remit employee payroll withholdings to the proper depository in a timely manner resulting in a penalty of $270.92. This situation occurred because the Board failed to establish procedures to ensure that employee withholdings were remitted to the appropriate entity in a timely manner as required. The Board should implement procedures to ensure that employee payroll withholdings for F.I.C.A., Medicare Taxes and Federal Income Tax are remitted to the U. S. Treasury within three business days of actual payday.

EXPENDITURES/LIABILITIES\DISBURSEMENTS Delinquent Program Report Financial Statements Nonmaterial Noncompliance Audit Control Number 7181-95-02

The Board did not file the required program completion report for Lottery Programs in a timely manner. Audit tests indicated the completion report for the 1994 Lottery Programs was due December 31, 1994. The Board submitted the report on June 30, 1995. This noncompliance was caused because management neglected reporting requirements imposed upon the Board by the Georgia Department of Education. Appropriate procedures should be established and implemented by the Board to ensure that program reports are submitted by the required due date.

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number 7181-95-03
The Board received approval for State capital outlay project funding through Georgia State Financing and Investment Commission and Georgia Department ofEducation for the 1995 fiscal year. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration and the agreement signed by the Board to receive the funding require that the Board transfer required local matching funds to the Capital Projects Fund by fiscal year end and designate those funds by project name and number. These transfers were not made by the Board at June 30, 1995. This condition occurred because management has not developed the proper procedures to ensure local matching funds are transferred when required. Correcting audit adjustments were necessary to transfer $146,665.00 and $2,785.00 from the General Fund to GSFIC Project 96-718-056 and Lottery Project 96/95S-718-062, respectively.
GENERAL LEDGER Failure to File Completion Report/Unearned Lottery Funds Financial Statements Nonmaterial Noncompliance Amount: $46,861.12 Audit Control Number 7181-95-04
For the year under review, an examination of the Board's compliance with regulations for the Lottery - PreKindergarten Program, revealed that the Board failed to file a final completion report for this program as required by guidelines established by the Georgia Department .ofEducation. Accounting procedures applicable to the program revealed unearned lottery funds in the amount of $46,861.12, which were required to be refunded to the Georgia Department of Education. These deficiencies 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 submitted by the required date and that all unearned lottery funds are refunded. The Board should submit the final Lottery Programs Completion Report to the Georgia Department of Education and should include a refund of $46,861.12 for the unearned lottery funds.

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
FEDERAL FINANCIAL REPORTS Expired Grant Balance/Questioned Cost Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Amount $215 .44 Audit Control Number 7181-95-05
The project completion report submitted by the Board for the Individuals with Disabilities Education Act, Title VI, B Flow Through program (CFDA 84.027), 1995 project included expenditures of$215.44 which were charged twice to the project as a result of a posting error. An audit adjustment reducing expenditures by $215 .44 is included in the financial statements of this report. The resulting unexpended grant balance of $215.44 should be refunded to the Georgia Department ofEducation.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7181-95-06
The Board failed to submit a copy of its 1994 audit report to Columbus Consolidated Government from whom the Board received Job Training Partnership Act (CFDA 17.250) funds on a timely basis as required by 0MB Circular A-128. Paragraph 13fofOMB Circular A-128 requires that recipients of Federal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance, within 30 days after receiving the audit report. The management of the Board stated they were unaware of the time distribution requirements even though formally notified in writing of these report distribution responsibilities by the Department of Audits and Accounts. Procedures should be implemented by the Board to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

QUITMAN COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7181-93-02
General Fixed asset will remain a finding due to cost of implementation.
EMPLOYEE COMPENSATION Superintendent Not Properly Certificated Financial Statements Nonmaterial Noncompliance Audit Control Number 7181-93-05
Interim Superintendent holds a valid T6 certificate in Administration Supervision.
FEDERAL FINANCIAL REPORTS Delinquent Completion Reports Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7181-93-07
Required reports have been and will be sent in on a timely manner.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Remit Federal Income Tax Employee Withholdings Timely Financial Statements Nonmaterial Noncompliance Audit Control Number 7181-95-01
U. S. Treasury employee payroll withholdings are now deposited within three days following actual payroll.
EXPENDITURES/LIABILITIES\DISBURSEMENTS Delinquent Program Report Financial Statements Nonmaterial Noncompliance Audit Control Number 7181-95-02
Lottery fund completion reports are being submitted in appropriate time frame.

QUITMAN COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number 7181-95-03
Transfer was made to Capital Projects.
GENERAL LEDGER Failure to File Completion Report/Unearned Lottery Funds Financial Statements Nonmaterial Noncompliance Amount: $46,861.12 Audit Control Number 7181-95-04
Completion reports have been filed. Unused money of $46,861.12 in Pre-K has been carefully examined and legitimate expenditures have been checked by Financial Review. We are anticipating having to return approximately $33,861.12 to State Department.
FEDERAL FINANCIAL REPORTS Expired Grant Balance/Questioned Cost Federal Financial Assistance Reportable Condition Nonmaterial Noncompliance Amount $215.44 Audit Control Number 7181-95-05
When examining expenditures for VI-B Individuals with Disabilities Quitman County, expenditures were more. A completion report has been filed so $215.44 will not need to be returned.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7181-95-06
When final audit report is received for '95, a copy of such report will be sent to Columbus Consolidated Gov. (JTPA) within 30 days after receipt.