Audit report, Rabun County Board of Education, Clayton, Georgia, year ended June 30, 1994

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

AUDIT REPORT RABUN COUNTY BOARD OF EDUCATION
CLAYTON, GEORGIA YEAR ENDED JUNE 30, 1994

RABUN 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

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE

I

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 2 ANALYSIS OF CASH AND CASH EQUIVALENTS 3 ACCOUNTS RECEIVABLE

Page
2 4 5 6
18 20 22 23 24
26 28 29

RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF REVENUE

4

STATE FUNDS

30

5

LOCAL AND OTHER FUNDS

31

SCHEDULE OF EXPENDITURES BY OBJECT

6

GOVERNMENTAL FUND TYPES

32

7

LOTTERY PROGRAMS

33

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

35

9

BY PROGRAM

36

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

38

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

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

RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 22, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Rabun County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the Rabun County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsib_ility 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.
94ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of 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 ofthe matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Rabun County Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the Rabun County Board ofEducation taken as a whole. The combining statements (Exhibits E through I) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements of the Rabun 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.
Respectfully submitted,

CLV:gp 94ARL-13

Claude L. Vickers State Auditor

RABUN COUNTY BOARD OF EDUCATION - 1 ...

RABUN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1 1994

ASSETS Cash and Cash Equivalents Accounts Receivable Notes Receivable Inventories
Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund Amount to be Provided in Future Years
For Payment of Capital Lease Agreements
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Deferred Revenue Funds Held for Others Capital Lease Agreements General Obligat1on Bonds Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND
-------------

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

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

$ l,4Bl,840.78 $ 113,354.81 $ 540,628.50

750,461.81

87,655.69

25,000.00

8,643.71 5,719.02

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

$ 278,553.16 $ 634,051.60 25,000.00

12,326.68 47,211.30
98.00 936 .15

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

$ 16,879.15

$ 8,643.71 5,719.02
------------- ------------- $------2-,1--9-0-.0--0

$ 16,879.15 $ 14,362.73 $

2,190.00

--1-,3--0-2-,8--1-8-.-6-8 ----1-4-0-,-4-3-8-.3--7 ----5-3-8-,-4-3-8-.5--0

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

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

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

EXHIBIT "A"

-------D-EB-T-----SEFURNVDICE

FFUIDNUDCITAYRPYE A-G-E-N-C-Y- - -FU-N- D- -S -

ACCOUNT GROUP ----G-EN--ER-A-L----
LONDGEB-TTERM

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

$ 28,683.26 $ 18,689.28 19.32

$ 2,183,196.63 $ 2,085,932.74

838,136.82

839,094.65

25,000.00

35,000.00

$ 742,284.55

8,643.71 5,719.02 742,284.55

13,174.07 5,160.78
206,000.00

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

$ 290,879.84$ 219,448.57

681,262.90

669,956.56

98.00

7,450.00

25,936.15

35,000.00

$ 18,689.28

18,689.28

22,156.29

$ 742,284.55

742,284.55

206,000.00

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

$ 18,689.28$ 742,284.55$ 1,759,150.72 $1,160,011.42

$ 28,702.58 $ 28,702.58

$ 206,000.00

$ 16,879.15

1,127.35

8,643.71 5,719.02 2,190.00

13,174.07 5,160.78 2,190.00

$ 33,431.88$ 227,652.20 2,010,398.13 1,796,698.62

$ 2,043,830.01 $ 2,024,350.82

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

$ 3,184,362.24
=============

- 3-

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

EXHIBIT "B"

GENERAL FUND

SPECIAL
REVENUE FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS
{Memorandum Onl~l YEAR ENDED
JUNE 30 1 1994 JUNE 30, 1993

REVENUES

State Funds Federal Funds Local and Other Funds

$3,185,328.84$ 164,381.83

$ 3,349,710.67 $ 3,276,858.56

119,070.25 669,550.63

788,620.88 862,592.13

5,133,848.10 222,726.98$ 20,010.67 $ 15,817.93 5,392,403.68 5,264,477.82

Total Revenues

$8,438,247.19 $1,056,659.44 $ 20,010.67 $ 15,817.93 $ 9,530,735.23 $ 9,403,928.51

EXPENDITURES

Current

Instruction

$5,835,453.78$

Support Services

Pupil Services

201,920.04

Improv~nt of Instructional

Services

172,128.97

Educational Media Services

203,697.57

General Administration

139,019.16

School Administration

469,786.47

Business Administration

63,869.37

Maintenance and Operation of

Plant

919,114.22

Student Transportation

Services

676,148.45

Central Support Services

7,675.50

Other Support Services

Food Services Operation

7,443.74

Other Operations of Non-

Instructional Services

107,368.68

Capital Outlay

57,959.80

Debt Service

Principal

134,110.60

Interest

24,241.87

Paying Agent Fees

511,340.83 2,295.18 9,531.47 15,171.00 16,052.65
6,568.46 7,668.55
152.20 21,653.25 585,520.93
$ 22,584.42 4,067.58

$ 6,346,794.61 $ 5,189,457.89

204,215.22 218,818.95

181,660.44 218,868.57 155,071.81 469,786.47 63,869.37

160,270.22 209,551.46 138,670.98 453,134.68 61,469.19

925,682.68 834,061.35

683,817.00 7,827.70 21,653.25
592,964.67

639,337.14 9,419.72 24,694.00
559,827.28

38,219.05

107,368.68 106,349.46 96,178.85 168,400.31

$ 200,000.00 6,000.00 150.00

356,695.02 34,309.45
150.00

185,000.00 17,550.00

Total Expenditures

$9,019,938.22 $1,202,606.52 $ 38,219.05$ 206,150.00 $10,466,913.79 $ 8,976,012.63

Excess of Revenues over (under)

Expenditures

$ -581,691.03 $ -145,947.08 $ -18,208.38 $ -190,332.07 $ -936,178.56 $ 427,915.88

OTHER FINANCING SOURCES (USES}

Proceeds from Sale of Property $ 50,529.00

Capital Leases

770,440.04 $ 138,660.83

Operating Transfers In

Operating Transfers Out

$ 50,529.00$ 10,000.00 909,100.87 214,518.00 -214,518.00

Total Other Financing

Sources (Uses)

$ 820,969.04 $ 138,660.83

$ 959,629.87 $ 10,000.00

Excess of Revenues and Other

Financing Sources over (under)

Expenditures and Other Financing

Uses

$ 239,278.01 $ -7,286.25 $ -18,208.38 $ -190,332.07 $

23,451.31 $ 437,915.88

FUND BALANCE JULY 1

1,080,419.82 166,059.47 558,836.88 219,034.65 2,024,350.82 1,595,987.33

Food Inventory Donated Comnodities July 1 June 30 Purchased Food July 1 June 30

-13, 174. 07 8,643.71 -5,160.78 5,719.02

-13,174.07 8,643.71 -5,160.78 5,719.02

-21,794.06 13,174.07 -6,093.18 5,160.78

FUND BALANCE JUNE 30

$1,319,697.83 $ 154,801.10$ 540,628.50$ 28,702.58$ 2,043,830.01 $ 2,024,350.82

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

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

EXHIBIT "C"

ACTUAL PER
EXHIBIT 811 11

ACTUAL PER
ADJUSTMENTS BUDGET BASIS

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

REVENUES

State Funds Federal Funds Local and Other Funds

$ 3,349,710.67 $ 788,620.88
5,392,403.68

0.00 $ 3,349,710.67 $3,195,481.00 $ 154,229.67 788,620.88 804,192.00 -15,571.12
5,392,403.68 4,981,212.86 411,190.82

Total Revenues

$ 9,530,735.23 $

0.00 $ 9,530,735.23 $8,980,885.86$ 549,849.37

EXPENDITIJl.ES

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

$ 6,346,794.61 $

0.00 $ 6,346,794.61 $5,507,837.00$ -838,957.61

204,215.22 181,660.44 218,868.57 155,071.81 469,786.47 63,869.37 925,682.68 683,817.00
7,827.70 21,653.25 592,964.67

204,215.22 181,660.44 218,868.57 155,071.81 469,786.47 63,869.37 925,682.68 683,817.00
7,827.70 21,653.25 592,964.67

215,055.00 174,572.00 205,814.00 161,958.00 453,633.00 68,907.00 917,316.00 700,863.00
8,626.00 32,394.00 642,465.51

10,839.78 -7,088.44 -13,054.57 6,886.19 -16,153.47 5,037.63 -8,366.68 17,046.00
798.30 10,740.75 49,500.84

107,368.68

107,368.68 101,178.00

-6,190.68

96,178.85

96,178.85 251,617.00 155,438.15

391,154.47

391,154.47 206,181.00 -184,973.47

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

$10,466,913.79 $

0.00 $10,466,913.79 $ 9,648,416.51 $ -818,497.28

Excess of Revenues over (under) Expenditures $ -936,178.56 $ OTHER FINANCING SOIJl.CES

0.00 $ -936,178.56 $ -667,530.65 $ -268,647.91

Other Sources

959,629.87

0.00 959,629.87

12,200.00 947,429.87

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ 23,451.31 $

0.00 $ 23,451.31 $ -655,330.65 $ 678,781.96

FUND BALANCE JULY 1, 1993

2,024,350.82 -18,334.85 2,006,015.97 2,154,302.70 -148,286.73

ADJUSTMENTS

Prior Year (Net) FOOD INVENTORY

0.00

0.00

18,902.76 -18,902.76

Donated Comnodities July 1 1993 June 36, 1994
Purchased Food July 1, 1993 ' June 30, 1994

-13,174.07

13,174.07

0.00

0.00

8,643.71

-8,643.71

0.00

0.00

-5,160.78

5,160.78

0.00

0.00

------5-,7-1--9-.0-2-

-5,719.02
-------------

0.00
-------------

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

0.00
-------------

FUND BALANCE JUNE 30, 1994

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

The notes to the general purpose financial statements are an integral part of this statement.
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RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note I: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
The Rabun County Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board and Superintendent, both elected by the voters. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant 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 Rabun County Board of Education.
Based upon the application ofthe above criteria, the Rabun County Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Rabun 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.
- 6-

RABUN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND- the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the agency funds used to account for assets held by a government unit as an agent for individuals, private organizations, other government units and/or other funds. This fund consists of:
AGENCY FUNDS - the funds used to account for assets held for other funds or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
- 7-

RABUN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SlTh1MARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes and intergovernmental grants. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1993 and ending in early June 1994. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.
BUDGET
The Rabun County Board of Education has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process
- 8-

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT ..D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis. To facilitate comparison with the budget, donated and purchased food inventories as reflected on Exhibit "B" have been eliminated from fund balance.
CASH AND CASH EQUNALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other 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.
NOTES RECEIVABLE
Notes receivable consist of installment payments due the Board for the sale of school property to the City of Dillard.
PROPERTY TAXES
The Rabun County Board of Commissioners fixed the property tax levy for the 1993 tax year (calendar year) on October 1, 1993 (levy date). Taxes were due on January 14, 1994. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The Rabun County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the balance of taxes collected to the Board.
9 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 1993 tax year (calendar year) for the Rabun County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

.6....82 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 offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

INTERFUND TRANSACTIONS

The Board has the following type of interfund transactions:

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

MEMORANDUM ONLY -TOTAL COLUMNS

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

Note 2: DEPOSITS

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 suretybond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

- 10 -

RABUN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS
Acceptable security for deposits consists of any one of or any combination ofthe 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 ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $4,416,322.21. The amounts of the total bank balances are classified into three categories of credit risk:
Category I - 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.)

- 11 -

RABUN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 2: DEPOSITS

The Board's deposits are classified by risk category at June 30, 1994, as follows:

Risk Categmy

Bank Balance

1

$ 3,697,297.48

2

0.00

3

719,024.73

Total

$4,416,322.21

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. Claims are charged to the same fund as the respective salary. During fiscal year 1994, a total of$1 l,462.00 was paid in claims.

Note 5: GENERAL LONG-TERM DEBT

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

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

- 12 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:rvffiNTS

JUNE 30, 1994

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1993

$

0.00 $ 200,000.00 $ 200,000.00

Retroactive Restatement ofPrior Year Balances

18,188.15

18,188.15

Balance July 1, 1993 Restated

$ 18,188.15 $ 200,000.00 $ 218,188.15

Additions

909,100.87

0.00

909,100.87

Deletions

185,004.47

200,000.00

385,004.47

Balance June 30, 1994

$' 742,284 55 $======0='='0="=0 $ 742 284,55

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

Fiscal Year Ended June 30

Capital Leases

1995 1996 1997 1998

$ 223,523.94 215,194.96 212,019.48 211,535.84

Total Principal and Interest

$ 862,274.22

Deduct: Imputed Interest

119,989.67

Net Present Value ofFuture Minimum Lease Payments

$ 742,284.55

Note 6: SIGNIFICANT COMMIT:rvffiNTS

At June 30, 1994, the Board had encumbrances in the amount of $62,547.17 for the unperformed portion of purchase orders, contracts and other commitments for goods and services associated with the Lottery Programs. The Georgia Department of Education has funding available to the Board in an amount equal to these encumbrances. The revenues and expenditures associated with these encumbrances will be recognized

- 13 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1994

Note 6: SIGNIFICANT COMMIT:MENTS

in the subsequent fiscal year. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent year. These encumbrances are identified by Lottery Program as follows:

Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant

$

503.15

2,379.00

433.00

58,396.00

836.02

$ 62 547.17

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

Note 7: CONTINGENT LIABILITIES

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

The Board is a defendant in a legal proceeding pertaining to a matter 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: RETIRE:MENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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

- 14 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 8: RETIREMENT PLANS

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

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $4,678,980.54; total payroll was $5,538,216.77.

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

Total contributions made during fiscal year 1994 amounted to $833,328.37, of which $552,587.61 was made by the Board and $280,740.76 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.

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

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

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292,000 00

- 15 -

RABUN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 8: RETIREMENT PLANS
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $552,587.61 was actuarially determined and represented .1059% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia.
PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment of age 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 of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 77 employees covered under PSERS for the year ended June 30, 1994.
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.
- 16 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1994

Note 8: RETIREMENT PLANS
Total contributions from employees ofthe Board made during fiscal year 1994 amounted to $2,468.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 9: SURETY BONDS
Mr. Roger Nicholas, School Superintendent through June 30, 1994, was bonded in the amount of $100,000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. 02-0170-1009789-1.
The Interim School Superintendent, Ms. Patricia Coleman, July 1, 1994 through July 31, 1994, was bonded in the amount of $100,000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. 02-0170-10843-94-7.
The School Superintendent, Mr. Charles A. Prince, effective August 1, 1994, is bonded in the amount of $100,000.00 with the United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. 02-0170-10942-94-5, on which premium js paid through August 1, 1995.

- 17 -

RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1 1994

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

SCHOOL

TUITION

DRUG-FREE

FOOD

FOR THE

SCHOOLS AND

SERVICES

MUL Tl-

LOTTERY

COMMUN IT I ES

FUND

HANDICAPPED

PROGRAMS

ACT

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

$ 151,977.52 $

0.00

$

0.00

2,230.71

$ 34,023.98

8,643.71 5,719.02

Total Assets

$ 168,570.96 $

0.00 $ 34,023.98 $

0.00

------------- ============= ============= =============

LIABILITIES AND FUND EQUITY
---------------------------
LIABILITIES
-----------
Cash Overdrafts Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
-----------
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food
Unreserved Undesignated
Total Funcf. Equity

$ 1,287.42 12,482.44
-------------
$ 13,769.86
-------------

$ 33,087.83
936.15
-------------
$ 34,023.98
-------------

$ 8,643.71 5,719.02
-------------

$ 14,362.73

140,438.37 $

0.00 $

0.00 $

0.00

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

$ 154,801.10
-------------

$

0.00
-------------

$

0.00

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

$

0.00

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

Total Liabilities and Fund Equity $ 168,570.96 $

0.00 $ 34,023.98 $

0.00

------------- ------------- ============= =============

See notes to the general purpose financial statements. - 18 -

EXHIBIT "E"

ELEMENTARY AND SECONDARY EDUCATION ACT

CHAPTER 1
------------EDUCATION OF
DEPRIVED CHILDREN

CHAPTER 2
------------BLOCK GRANT FLOW THROUGH

TITLE II EISENHOWER
MATHEMATICS ANO SCIENCE
EDUCATION

INDIVIDUALS WITH DISABILITIES EDUCATION ACT
TITLE VI, B

FLOW THROUGH

PRESCHOOL PROGRAM

TOTALS JUNE 30, 1994 JUNE 30, 1993

$ 39,848.00$

$ 455.00

0.00
$

$ 6,504:00

2,362.00$ 154,339.52$ 148,173.23

4,594.00

87,655.69

50,912.09

8,643.71 5,719.02

13,174.07 5,160.78

.

$ 39,848.00$

455.00 $

0.00 $

6,504.00$

6,956.00$ 256,357.94$ 217,420.17

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

$ 3,108.80 $ 8,280.02 28,459.18

455.00

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

$ 39,848.00 $

455.00

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

$ 4,333.08

$ 40,984.71

1,182.92 $ 1,576.32

12,326.68 $ 10,641.46

890.00

5,379.68

47,211.30

40,719.24

98.00

98.00

936.15

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

$ 6,504.00 $ 6,956.00 $ 101,556.84 $ 51,360.70
------------- ------------- ------------- -------------

$

8,643.71 $ 13,174.07

5,719.02

5,160.78

$ 14,362.73 $ 18,334.85

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00

140,438.37

147,724.62

$

0 .00 $ .

0.00 $

0.00 $

0.00 $

0.00 $ 154,801.10$ 166,059.47

$ 39,848.00$

455.00 $

0.00 $ 6,504.00 $ 6,956.00$ 256,357.94 $ 217,420.17

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

- 19 -

RABUN COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 1994

SCHOOL FOOD
SERVICES FUND

TUITION
FOR THE MUL TlHANDICAPPED

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUN IT I ES
ACT

REVENUES

State Funds Federal Funds Local and Other Funds

$ 40,760.00$ 314,747.70
222,726.98

24,298.00 $

99,323.83 $

349.93

Total Revenues

$ 578,234.68$ 24,298.00 $ 99,323.83 $

349.93

EXPENDITURES

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Other Support Services

Food Services Operation

$ 585,520.93

Debt Service

Principal

Interest

24,298.00$ 182,942.68 $
15,171.00 5,920.00 7,298.98
22,584.42 4,067.58

349.93

Total Expenditures

$ 585,520.93 $ 24,298.00$ 237,984.66$

349.93

Excess of Revenues over (under) Expenditures $ -7,286.25 $

0.00 $ -138,660.83 $

0.00

OTHER FINANCING SOURCES

Capital Leases

138,660.83

Excess of Revenues and Other Financing

Sources over (under) Expenditures

$ -7,286.25 $

0.00 $

0.00 $

0.00

FUND BALANCE JULY 1

166,059.47

0.00

0.00

0.00

Food Inventory Donated Commodities July 1 June 30 Purchased Food July 1 June 30

-13,174.07 8,643.71
-5,160.78 5,719.02

FUND BALANCE JUNE 30

$ 154,801.10 $

0.00 $

0.00 $

0.00

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

See notes to the general purpose financial statements.

- 20 -

EXHIBIT "F"

ELEMENTARY AND SECONDARY EDUCATION ACT

CHAPTER 1
------------EDUCATION OF
DEPRIVED CHILDREN

CHAPTER 2 ------------BLOCK GRANT FLOW THROUGH

TITLE II EISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

INDIVIDUALS WITH
DISABILITIES EDUCATION ACT TITLE VI, B

FLOW THROUGH

PRESCHOOL PROGRAM

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 241,670.00$ 12,916.00 $ $ 241,670.00$ 12,916.00 $

8,424.00 $

67,645.00 $

$ 164,381.83 $ 56,931.00

23,798.00

669,550.63

744,682.50

222,726.98

216,033.70

8,424.00$ 67,645.00 $ 23,798.00$ 1,056,659.44 $1,017,647.20

$ 230,071.24 $ 12,885.30

$ 38,599.62 $ 22,194.06 $ 511,340.83 $ 386,461.82

322.27 11,244.73
31.76

$ 30.70

8,414.39 9.61

1,460.14 794.81
4,767.61
369.57
21,653.25

835.04
648.46 120.44

2,295.18 9,531.47
15,171.00 16,052.65
6,568.46 7,668.55
152.20 21,653.25 585,520.93

3,097.01 7,137.75
12,657.94 5,114.06
140.00 274.51 1,277.82 24,694.00 540,023.22

22,584.42 4,067.58
------------- ------------- ------------- ------------- ------------- ------------- -------------

$ 241,670.00$ 12,916.00 $ 8,424.00$ 67,645.00 $ 23,798.00 $ 1,202,606.52 $ 980,878.13

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ -145,947.08 $ 36,769.07

138,660.83

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ -7,286.25 $ 36,769.07

0.00

0.00

0.00

0.00

0.00

166,059.47

138,842.79

-13,174.07 8,643.71
-5,160.78 5,719.02

-21,794.06 13,174.07
-6,093.18 5,160.78

$

0.00

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

$

0.00

=========-==-

$

0.00

---=-========

$

0.00

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

$

0.00

======-==--=-

$ 154,801.10$ 166,059.47
--=--=-=--=-- ==--=----=--=

- 21 -

RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 92-719-041

TOTALS JUNE 30, 1994 JUNE 30, 1993

$ 538,438.50$

2,190.00$ 540,628.50$ 566,286.88

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

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

$

7,450.00

$ 2,190.00 $ 2,190.00 $ 2,190.00

$ 538,438.50

0.00

538,438.50

556,646.88

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

$ 538,438.50 $ 2,190.00 $ 540,628.50 $ 558,836.88
------------- ------------- ------------- -------------

Total Liabilities and Fund Equity $ 538,438.50 $ 2,190.00$ 540,628.50$ 566,286.88

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

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

EXHIBIT "H"

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION -------------
PROJECT 92-719-041

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

REVENUES
--------

Local and Other Funds

$ 20,010.67 $

0.00 $ 20,010.67 $ 19,162.35

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

EXPENDITURES
------------

Capital Outlay Building and Building Improvements Equipment

$ 38,219.05 $

0.00 $ 38,219.05 $ 133,897.60

12,695.72

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

Total Expenditures

$ 38,219.05 $

0.00 $ 38,219.05 $ 146,593.32

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

Excess of Revenues over (under) Expenditures $ -18,208.38 $

0.00 $ -18,208.38 $ -127,430.97

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

OTHER FINANCING SOURCES
-----------------------

Operating Transfers In

$ 214,518.00
-------------

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

$ -18,208.38 $

0.00 $ -18,208.38 $ 87,087.03

FUND BALANCE JULY 1
-------------------

556,646.88

2,190.00

558,836.88

471,749.85

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

FUND BALANCE JUNE 30

$ 538,438.50$ 2,190.00$ 540,628.50$ 558,836.88
============= ============= ============= =============

See notes to the general purpose financial statements. - 23 -

RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1994

EXHIBIT "I" Page 1

ADAMS SCHOLARSHIP ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
J. 0. KING SCHOLARSHIP
----------------------
ASSETS Cash and Cash Equivalents
LIABILITIES Funds Held for Others
-LA-K-E---RA-B-U-N---A-S-SO--C-IA-T-I-O-N-/-C-L-A-Y-T-O-N---T-R-IB-U-N--E SCHOLARSHIP FOUNDATION FUND --------------------------ASSETS Cash and Cash Equivalents
LIABILITIES Funds Held for Others
PARKIN/KRIVSKY SCHOLARSHIP ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 1, 1993

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1994

$

39.10 $

0.00 $

39.10 $

0.00

$

39 .10 $

0.00 $

39.10 $

0.00

------------- ------------- ------------- =============

$

2,477.74 $

0.00 $

2,400.00 $

77.74

------------- ------------- ============= =============

$

2,477.74 $

0.00 $

2,400.00 $

77.74

------------- ============= ============= =============

$

395.25 $ 10,500.00 $ 10,500.00 $

395.25

------------- ------------- ============= =============

$

395.25 $ 10,500.00 $ 10,500.00 $

395.25

============= ------------- ------------- =============

$

1,000.00 $

1,000.00 $

1,000.00$

1,000.00

$

1,000.00 $

1,000.00 $

1,000.00$

1,000.00

- 24 -

RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1994

EXHIBIT "I" Page 2

RABUN COUNTY SCHOLARSHIP FOUNDATION FUND
----------------------------------------
ASSETS Cash and Cash Equivalents

BALANCE

BALANCE

JULY 1, 1993

ADDITIONS

DEDUCTIONS JUNE 30, 1994

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

$ 17,201.59 $ 10,222.09 $ 11,750.00 $ 15,673.68
============= ============= ============= =============

LIABILITIES Funds Held for Others

$ 17,201.59 $ 10,222.09 $ 11,750.00 $ 15,673.68
============= ============= ============= =============

WILDER SCHOLARSHIP FOUNDATION
-----------------------------
ASSETS Cash and Cash Equivalents

$

1,042.61 $

1,000.00 $

500.00 $ 1,542.61

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

LIABILITIES Funds Held for Others
TOTALS - ALL AGENCY FUNDS
-------------------------
ASSETS Cash and Cash Equivalents

$

1,042.61 $

1,000.00 $

500.00 $ 1,542.61

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

$ 22,156.29 $ 22,722.09 $ 26,189.10 $ 18,689.28
============= ============= ============= =============

LIABILITIES Funds Held for Others

$ 22,156.29 $ 22,722.09 $ 26,189.10 $ 18,689.28
============= ============= =============:: =============

See notes to the general purpose financial statements. - 25 -

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

SCHEDULE "l" Page 1

FUNDING AGENCY PROGRAM/GRANT
--------------

FEDERAL FUNDS

RECEIVED IN

FEDERAL

CFDA AWARDS

PERIOD (NET

REVENUE EXPENDITURES

NUMBER IN PERIOD OF REFUNDS) IN PERIOD

IN PERIOD

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

Agriculture, U. S. Department of Through Office of Treasury and Fiscal Services National Forest Reserve Funds Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1993 Grant
1994 Grant National School Lunch Program
1994 Grant Food Distribution Program (1)

10.665 $ 70,073.94 $ 70,073.94$ 70,073.94

(5)

10. 553

4,497.37

10.553

60,460.22

58,229.51

60,460.22

(2)

. 10.555
10.550

212,224.13 42,063.35

212,224.13 N/A

212,224.13$ 543,457.58(3)

42,063.35

42,063.35

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

Total U. S. Department of Agriculture

$ 384,821.64 $ 345,024.95$ 384,821.64 $ 585,520.93
------------- ------------- ------------- -------------

Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Chapter 1 Education of Deprived Children 1993 Regular 1993 Carry-Over 1994 Regular Chapter 2 Block Grant - Flow Through 1994 Regular Title II Eisenhower Mathematics and Science Education 1993 Regular 1994 Regular Individuals with Disabilities Education Act Title VI, B Flow Through 1993 Carry-Over 1994 Regular Preschool Program 1993 Regular 1993 Carry-Over 1994 Regular Innovative 1993 Regular Vocational Education - Basic Grants to States High School Program Basic Grant 1994 Grant Tech-Prep Education 1993 Grant 1994 Grant Supplementary State Grant for Facilities 1993 Grant

84.010 84.010 $ 84.010
84.151
84.164 84.164
84.027 84.027 84.173 84.173 84.173 84.027
84.048 84.243 84.243 84.253

$ 46,631.00 201,454.00 12,916.00
7,000.00
8,422.00 74,654.00 6,378.00 20,244.00
15,217.00 33,900.00

32,415.00 46,631.00 $ 155,191.00
12,461.00
2,644.00 5,780.00
8,422.00 52,817.00 3,566.00 6,378.00 12,826.00 4,871.00
9,309.31 26,453.08 15,403.00
518.00

46,631.00 $ 195,039.00 12,916.00
2,644.00 5,780.00
8,422.00 59,223.00 6,378.00 17,420.00
15,216.31 33,780.00

46,631.00 195,039.00 12,916.00
2,644.00 5,780.00
8,422.00 59,223.00 6,378.00 17,420.00
(4) (4)

- 26 -

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

SCHEDULE "l" Page 2

FUNDING AGENCY PROGRAM/GRANT

CFDA Nl.R-IBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITlRES IN PERIOD

Education, U. S. Department of Through Pioneer Regional Educational Service Agency Drug-Free Schools and Comnunities Act 1994 Grant Vocational Education Carl D. Perkins Vocational and Applied Education Act of 1990 1993 Grant

84.186 $ 13,985.00 $ 84.048

349.93 $ 4,028.13

349.93 $

349.93

Total U. S. Department of Education

$. 440,801.00 $ 400,063.45 $ 403,799.24 $ 354,802.93

Labor, U. S. Department of Through Georgia Mountains Regional Development Center Job Training Partnership Act JTPA-A-92-10

17.250

$ 5,562.72

Total Federal Financial Assistance

$ 825,622.64 $ 750,651.12 $ 788,620.88 $ 940,323.86

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 nonnonetary assistance for donated conmodities received and/or conslllled by the systen during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

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

RABUN COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS
JUNE 30, 1994
INTEREST BEARING ACCOUNTS
Bank of Clayton, Clayton, Georgia
Certificates of Deposit No. 213 (3.26%) No. 214 (3.26%) No. 215 (3.51%) No. 216 (4.42%) No. 217 (4.42%)
N.O.W. Accounts (2.06%)
First Clayton Bank and Trust, Clayton, Georgia
Certificate of Deposit No. 3250 (3.60%)
Rabun County Bank, Clayton, Georgia
N.O.W. Accounts (3.00%) N.O.W. Accounts (2.80%)

SCHEDULE "2"
$ 100,000.00 300,000.00 400,000.00 200,000.00 200,000.00 495,590.61
100,000.00
95,000.00 292,606.02
$ 2,183,196.63

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

RABUN COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1994

SCHEDULE "3"

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

DEBT SERVICE FUND

TOTAL

Education, Georgia Department of

Quality Basic Education

Deferred Summer Salaries - FY 1994

$ 603,814.00

Food Services

School Breakfast Program

$

Vocational Education

Federal Funds

24,284.00

lottery Programs

Computers in Classrooms

Media Center and library Equipment

Safe Schools Grant

Federal Programs

ESEA - Chapter 1

Education of Deprived Children

ESEA - Chapter 2

Block Grant - Flow Through

Individuals with Disabilities Education

Act - Title VI, B

Flow Through

Preschool Program

Rabun County High School Reimbursement for Expenses

1,170.23

Rabun County Tax Commissioner County Wide Bond Tax County Wide School Tax

8,794.92

Revenue, Georgia Department of local Option Sales Tax

112,398.66

2,230.71
15,121.00 11,604.00
7,298.98 39,848.00
455.00 6,504.00 4,594.00
$

$ 603,814.00
2,230.71
24,284.00
15,121.00 11,604.00
7,298.98

39,848.00 455.00

6,504.00 4,594.00

1,170.23

19.32

19.32 8,794.92

112,398.66

$ 750,461.81 $ 87,655.69 $

19.32 $ 838,136.82

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

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

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

SCHEDULE "4"

AGENCY/FUNDING
GRANTS
Education, Georgia Department of Quality,Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment Local Fair Share Deferred Summer Salaries - FY 1993 Deferred Summer Salaries - FY 1994 Food Services Vocational Education Other State Programs Mentor Teacher Program Preschool Handicapped Program Teachers' Retirement Lottery Programs Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant
CONTRACTS Education, Georgia Department of Leadership Development Grant
OTHER Education, Georgia Department of Student Information Systems Project Supply Allowance for Initial Purchase of Scan Forms

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE FUND

TOTAL

$ 3,212,165.00 459,209.00 90,302.00 136,849.00 42,289.00 926,342.00
297,204.00 95,146.00 64,077.00 120,655.00 35,301.00
4,728.00 -2,335,257.00
-584,289.64 603,814.00 $ 6,748.40
720.00
7,826.08

$ 3,212,165.00 459,209.00 90,302.00 136,849.00 42,289.00 926,342.00

40,760.00

297,204.00 95,146.00 64,077.00 120,655.00 35,301.00
4,728.00 -2,335,257.00
-584,289.64 603,814.00 40,760.00 6,748.40

24,298.00

720.00 24,298.00
7,826.08

1,812.85 69,121.00 3,567.00 11,604.00 13,218.98

1;812.85 69,121.00
3,567.00 11,604.00 13,218.98

1,000.00

1,000.00

500.00

500.00

$3,185,328.84$ 164,381.83 $ 3,349,710.67
============= ============= =============

See notes to the general purpose financial statements. - 30 -

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

SCHEDULE 511 11

Taxes County Wide Bond Tax County Wide School Tax Local Option Sales Tax Real Estate Transfer Tax
Other Donations Foxfire Fund, Incorporated Interest Earned Jury Duty Fees Lost and Damaged Books Reimbursement for Salaries Sales Breakfast Lunches Supplemental Adult Meals School Assets Shared Service Contributions Various Sources Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

DEBT

GENERAL

REVENUE

PROJECTS

SERVICE

FUND

FUND

FUND

FUND

TOTAL

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

$ 3,606,667.83 1,415,030.78 19,740.00

$ 11,190.16$ 11,190.16 3,606,667.83 1,415,030.78 19,740.00

25,044.39 41,558.82 $ 2,415.00 1,910.26
7,782.50

4,099.07 $

7,361.72

13,514.49 146,772.02 28,247.58 28,619.95

1,350.00 4,000.00
986.80

1,473.87

20,010.67

4,627.77

25,044.39 70,296.33 2,415.00 1,910.26 7,782.50
13,514.49 146,772.02 28,247.58 28,619.95
7,361.72
1,350.00 4,000.00 2,460.67

$5,133,848.10$ 222,726.98$ 20,010.67 $ 15,817.93$ 5,392,403.68
============ ============= =========== ============ ==========

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

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

SCHEDULE 611 11

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 Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 5,087,427.99 $ 1,481,800.71 19,103.32 48,854.79 8,664.88 35,611.99 60,553.67 8,488.78 28,828.73 29,879.52 10,370.00
10,459.75 352,700.84 381,458.30
108,059.64 7,080.00 9,561.39

450,788.78 $ 5,538,216.77

138,857.03 1,620,657.74

3,038.05

22,141.37

2,364.91

51,219.70

8,664.88

700.00

36,311.99

7,294.40

67,848.07

8,488.78

28,828.73

1,860.58

31,740.10

10,370.00

2,704.65

2,704.65

33,266.86

43,726.61

73,754.32

426,455.16

3,878.46

385,336.76

267,102.03

267,102.03

108,059.64

518.00

7,598.00

2,220.87

11,782.26

158,352.47 22,219.81 31,274.99
1,119,186.65

26,652.00 187,605.58

185,004.47 22,219.81 31,274.99 1,306,792.23

$ 9,019,938.22 $1,202,606.52 $10,222,544.74
============= ============= =============

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

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30. 1994

SCHEDULE "7"

EXPENDITURES
------------
Operating Costs Professional and Technical
Services
Other Purchased Services Supplies
Nonoperating Costs Principal and Interest Equi?JIE!nt

MEDIA CENTER

COMPUTERS

AND

SAFE

ALGEBRA

IN

DISTANT

LIBRARY

SCHOOLS

CLASSROOMS CLASSROOMS LEARNING EQUIPMENT

GRANT

TOTAL

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

$

930.00 $

930.00

$ 11,604.00

11,604.00

$ 1,812.85$ 4,930.00$ 3,567.00

10,518.98 20,828.83

26,652.00

26,652.00

176,199.83

1,770.00 177,969.83

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

Total Expenditures

$ 1,812.85$ 207,781.83 $ 3,567.00$ 11,604.00$ 13,218.98 $ 237,984.66
========== ============ ============ ========= ========== ========

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

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

SCHEDULE "8"

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

THIRTEEN
WEIGHTED AND MEDIA CENTER
PROGRAMS
-------------

STAFF
DEVELOPMENT
PROGRAM
-------------

$ 3,903,215.00 $ 42,327.00
------------- -------------

$ 4,437,652.76 584,483.23 $ 44,224.09
------------- -------------
$ 5,022,135.99 $ 44,224.09

-59,663.57

-17,648.89
------------- -------------
$ 4,962,472.42 $ 26,575.20
------------- -------------

Amount of Underexpenditure for Total Allotment

$

0.00 $ 15,751.80

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

Note: (1) Salary accruals (July and August 1994 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 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

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

RABUN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1994

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

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

.L

ORIGINAL

MID-TERM

REQUIRED

$ 316,326.00 863,024.00
$1,179,350.00 90 431,902.00 90 675,356.00 90 514,976.00 90 251,944.00 90 158,637.00 90

$ 284,693.40$ 776,721.60
$1,061,415.00 $ 388,711.80 607,820.40 463,478.40 226,749.60 142,773.30

0.00 $ 284,693.40 776. 721. 60
0.00 $1,061,415.00 388,711.80 607,820.40 463,478.40 226,749.60
4,690.00 147,463.30

$ 3.212,'165.00

$2,890,948.50$

4,690.00$ 2,895,638.50

$ 435,066.00

$ 391,559.40 $

0.00 $ 391,559.40

$ 435,066.00 90 24 .143. 00 90
$ 459,209.00 $ 90,302.00 90 $ 136,849.00 90

$ 391,559.40$ 21,728.70
$ 413,288.10$ $ 81,271.80 $ $ 123,164.10 $

0.00 $
0.00 $ 0.00 $ 0.00 $

391,559.40 21,728.70 413,288.10 81,271.80 123,164.10

Total Thirteen Weighted and Media Center $ 3,898,525.00

$3,508,672.50$

4,690.00$ 3,513,362.50

STAFF DEVELOPMENT PROGRAMS (1) Cost of Instruction Professional Development

$ 14,426.85 100 $ 14,426.85$

27,862.15 100

27,862.15

38.00 $ 14,464.85 27,862.15

Total Staff Develo?J1ent

$ 42,289.00

$ 42,289.00$

38.00 $ 42,327.00

$ 3,940,814.00 (*) Identifies Thirteen Weighted Programs. Note: (1) $4,916.85 of the allotment for Professional
Develo!JOOnt has been transferred to Cost of Instruction as authorized by OCGA 20-2-182. (2) Salary accruals (July and Au9ust 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statenents are not included on this analysis in order to comply with program guidelines. (3) Salary accruals (July and August 1993 Deferred Salaries) rePQrted as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. See notes to the general purpose financial statements.
- 36 - .

$3,550,961.50$

4,728.00$ 3,555,689.50

SCHEDULE "9"

REQUIRED ALLOTMENT

SALARIES
ACTUAL (2) (3)

DISTRIBUTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 277,851.60 $ 420,882.28

$ 6,841.80 $ 42,678.79

754,076.70

975,902.00

22,644.90

129,997.35

$1,031,928.30$ 1,396,784.28$

0.00

$ 29,486.70$ 172,676.14 $

0.00

377,846.10

535,764.07

0.00

10,865.70

61,586.36

0.00

591,371.10

713,503.60

0.00

16,449.30

106,464.08

0.00

444,854.70

580,945.93

0.00

18,623.70

94,733.09

0.00

217,674.00

260,743.37

0.00

9,075.60

17,038.49

0.00

130,415.50

187,117.23

0.00

17,047.80

69,642.79

0.00

.

$ 2,794,089.70 $ 3,674,858.48 $

0.00

$ 101,548.80$ 522,140.95 $

0.00

$ 3,971.70 $ 92,868.30 273,228.30 10,589.40 1,011.60 822.60

2,407.02 90,415.68 363,129.48 22,561.37

$

184.50 $

36.00

1,803.60

2,718.13

6,750.90

12,673.54

328.50

3,670.93

$ 382,491.90 $ 478,513.55 $

0.00

$ 9,067.50$ 19,098.60$

0.00

21,181.50

27,334.45$

0.00

547.20

4 496.95 $

0.00

$ 403,673.40 $ 505,848.00

$ 9,614.70$ 23,595.55

$ 79,956.90 $

97,619.83 $

0.00

$ 1.314.90 $

1.560.61 $

0.00

$ 97,083.90$ 159,326.45$

0.00

$ 26,080.20$ 37,186.12 $

0.00

$ 313741803.90 $ 4,4371652.76 $

0.00

$ 138,558.60$ 584,483.23 $

0.00

$ 3,374.803.90 $ 4,437,652.76 $-======o=.o=o

$ 14,464.85$ 27,862.15

32,113.74 $ 12,110.35

0.00 15,751.80

$ 42,327.00$ 44 224.09 $-====-=-=15=,7=5=1=.8=0

$ 180,885.60$ 628,707.32 $....,,..........,15.....7..5....,1=.8=0

- 37 -

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

SCHEDULE "10"

BOARD MEMBER ADDRESS
Mr. Al Panell, Chairman(*) P. 0. Box 1212 Clayton, Georgia 30525
Ms. Emma Chastain(*) Route 1, Box 733 Rabun Gap, Georgia 3056B
Ms. Betsy Fowler(*) P. 0. Box 472 Clayton, Georgia 30525
Mr. Lawrence Stockton(*) Route 2, Box 1452 Clayton, Georgia 30525
Mr. A. Barry Wood(*) Route 1, Box 2747 Tiger, Georgia 30576

COMPENSATION

TRAVEL

$

1,650.00$

50.82

1,700.00

74.76

1,500.00

1,500.00

539.30

1,650.00

$ 8,000.00$

664.88

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

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

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

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 22, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Rabun County Board ofEducation
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Rabun County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 22, 1995. 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.
Compliance with laws, regulations, contracts, and grants applicable to Rabun County Board ofEducation is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results ofour tests indicate that, with respect to the items tested, the Rabun County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.
94CRL-10

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

CLV:gp 94CRL-10

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, SW., Suite 214 Atlanta, Georgia 30334-8400
February 22, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Rabun 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 Rabun County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 22, 1995. 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 Rabun County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) 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 ofState and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression ofan opinion on the Rabun County Board ofEducation's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-40

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that Rabun 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 94CRL-40

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 22, 1995

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

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

Ladies and Gentlemen:

We have audited the general pwpose financial statements ofthe Rabun County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated February 22, 1995. 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 ofthe fiscal year 1994 general purpose financial statements ofthe Rabun County
Board ofEducation and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office ofManagement and Budget (0MB) Circular 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, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

( 1) Types of Services Allowed or Unallowed

(2) Eligibility

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

94CRL-120

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Rabun 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 94CRL-120

SECTION ID INTERNAL CONTROL

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

DEPARTMENT OF AUDITS 254 Washington Street, s_w_, Suite 214
Atlanta, Georgia 30334-8400
February 22, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Rabun County Board ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Rabun County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated February 22, 1995_ 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.
In planning and performing our audit of the general purpose financial statements of the Rabun County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe Rabun County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-3

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.

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

(I) Cash and Cash Equivalents

(6) Employee Compensation

(2) Inventories

(7) General Ledger

(3) Revenue/Receivables/Receipts

(8) General Fixed Assets

(4) Procurement

(5) Expenditures/Liabilities/ Disbursements

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

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:

(I) Accounting Control (Overall)

(2) General Fixed Assets

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

Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.

94ICL-3

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Rabun County Board ofEducation's financial statements and this report does not affect our report thereon dated February 22, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:gp 94ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W-, Suite 214 Atlanta, Georgia 30334-8400
February 22, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Rabun County Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Rabun County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated February 22, 1995. 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 and about whether the Rabun County Board ofEducation complied with laws and regulations, noncompliance with which would be material to a Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our 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 February 22, 1995.
94ICL-15

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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

During the year ended June 30, 1994, the Rabun County Board ofEducation had no major Federal financial assistance programs and expended 72% ofits total Federal financial assistance under the following nonmajor Federal financial assistance programs:

94ICL-15

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act - Chapter I Education ofDeprived Children
We performed tests of controls, as required by O:MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements, and specific requirements, as described above that are applicable to the aforementioned nonmajor programs. Our procedures were less in
scope than would be necessary to render an opinion on these internal control structure policies and procedures.
Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation 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, a reportable condition was noted in the following control category:
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 controlstructure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted, /
~~~
Claude L. Vickers State Auditor
CLV:gp 94ICL-15

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,127.35 Audit Control Number 7191-93-03
The audit report for the year ended June 30, 1993, noted that the Board had an underexpenditure of $1,127.35 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $1,127.35 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 period.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7191-93-01
The audit report for the year ended June 30, 1993, stated that the Board did not provide for adequate separation ofemployee duties in the performance of accounting functions and related procedures for all funds. This deficiency was a result of management's decision to limit the number of administrative staff made
responsible for 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: The Federal financial assistance program affected by this finding is as follows: Elementary and Secondary Education Act - Chapter 1 Education ofDeprived Children (CFDA 84.010)
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7191-93-02
The audit report for the year ended June 30, 1993, noted that the management ofRabun County Board of Education had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7191-93-02
Account Group within the formal accounting records. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $15,751.80 Audit Control Number 7191-94-01
For the year under review, the Board reported to the Georgia Department of Education on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $32,113.74 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment Cost of Instruction Program
purposes resulting in an underexpenditure of$15,751.80 for the minimum required allotment of$27,862.15
for the StaffDevelopment - Professional Development Stipends Program.
This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent period.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

RABUN COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1994
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $1,127.35 Audit Control Number 7191-93-03
We concur with this finding; although, we feel that communication between the State Audit Department and the Georgia Department ofEducation should be such that LEA's should not have to suffer the consequences ofmatters which they have no control.
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition - Material Weakness Audit Control Number 7191-93-01
We concur with this finding. However, we are currently in the process of reorganizing our Business Office.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7191-93-02
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $15,751.80 Audit Control Number 7191-94-01
We concur with thi~ finding; although, we feel that communication between the State Audit Department and the Georgia Department ofEducation should be such that LEA's should not have to suffer the consequences of matters which they have no control.