Audit report, Rabun County Board of Education, Clayton, Georgia, year ended June 30, 1995

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AUDIT REPORT RABUN COUNTY BOARD OF EDUCATION
CLAYTON, GEORGIA YEAR ENDED JUNE 30, 1995

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

RECEIVED
MAY ZO1996
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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

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

23

FIDUCIARY FUND TYPE

I

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

24

,.o ~ SCHEDULES
C

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 ANALYSIS OF CASH AND CASH EQUNALENTS

28

3 ACCOUNTS RECEIVABLE

29

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 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 16, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe 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, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
95ARL-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 of the matters referred to in
the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Rabun County Board of Education as of June 30, 1995, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 16, 1996, on our consideration ofthe Board's internal control structure and a report dated February 16, 1996, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Rabun County Board of Education 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.

CLV:gp. 95ARL-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, 1995

ASSETS Cash and Cash Equivalents Accounts Receivable Notes Receivable Inventories
Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,881,372.26 $

2,132.92 $ 422,277.07

847,141.44

176,532.92

15,000.00

4,225.15 5,410.73

$ 2,743,513.70 $ 188,301.72 $ 422,277.07

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Funds Held for Others Capital Lease Agreements
Total Liabilities
FUND EQUITY
Fund Balances Reserved 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

$ 273,728.15 $ 678,727.44
15,000.00

11,405.62 44,945.50
201.68 825.76

$ 967,455.59 $

57,378.56

$

16,879.15

$

$

16,879.15 $

1,759,178.96

$ 1,776,058.11 $

4,225.15 5,410.73
$
9,635.88 $
121,287.28
130,923.16 $

2,190.00 2,190.00 420,087.07 422,277.07

$ 2,743,513.70 $ 188,301.72 $ 422,277.07

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

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

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

$

32,238.67 $

19,803.01

$ 2,357,823.93 $ 2,183,196.63

238.13

1,023,912.49

838,136.82

15,000.00

25,000.00

- - - - - $ _ _....;.7..;;.3.;.:,1,..;_;154;...;.;.;;;.2;.;;...3

4,225.15 5,410.73
731,154.23

8,643.71 5,719.02
741,360.58

$

32,476.80 $

19,803.01 $

731,154.23 $ 4,137,526.53 $ 3,802,056.76

$ 285,133.77 $ 290,879.84

723,672.94

681,262.90

201.68

98.00

15,825.76

25,936.15

$

19,803.01

19,803.01

18,689.28

$

731,154.23

731,154.23

741,360.58

$

19,803.01 $

731,154.23 $ 1,775,791.39 $ 1,758,226.75

$

32,476.80

$

32,476.80

$

32,476.80 $

19,803.01 $

$

16,879.15 $

16,879.15

4,225.15 5,410.73 2,190.00

8,643.71 5,719.02 2,190.00

$

28,705.03 $

33,431.88

2,333,030.11

2,010,398.13

$ 2,361,735.14 $ 2,043,830.01

731,154.23 $ 4,137,526.53 $ 3,802,056.76

-3-

RABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1995

EXHIBIT"B"

REVENUES
State Funds Federal Funds Local and Other Funds
Total Rl!llellues
EXPENDITURES
Current Instruction Support Services Pupil Services lmprowment of Instructional Services Educational Media Se/vices General Administration School Administration Business Administration Maintenance and Operation of Plant student Transportation Se/vices Central Support Se/vices Other Support Services Food Services Operation Other Operations of Non-Instructional Services
capital Outlay DebtSeMce
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Rl!llellues oYer (under) Expenditures
OTHER FINANCl!'.::lQ SOURC!;;S
Proceeds from Sale ci Property capital Leases
Total Other Financing sources
Excess ci Rl!'tlenues and Other Financing Sources 011er (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS
{Memorandum On!Y,l
YEAR ENDED JUNE 30. 1995 JUNE 30, 1994

$ 3,485,814.50 $ 96,653.07
5,564,013.40

207,280.49 656,574.96 255,253.28 $

$ 9,146,480.97 $ 1,119,108.73 $

$ 21,162.66 $ 3,774.22

3,693,094.99 $ 753,228.03
5,844,203.56

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

21,162.66 $ 3,n4.22 s 10,290,526.58 $ 9,530,735.23

$ 5,285,668.71 $ 372,743.00

$

0.00 $ 5,658,411.71 $ 6,346,794.61

273,289.49 224,395.45 207,827.43 168,908.95 550,705.03 112,740.72 879,890.46 623,017.36
8,476.80 35,812.76
6,254.72 117,605.53 138,628.86

1,951.52 9,124.19 61,700.84 11,668.52
1,457.80 20,431.92
32,269.62 634,704.97
$ 139,514.09

275,241.01 233,519.64 269,528.27 180,577.47 550,705.03 112,740.72 881,348.26 643,449.28
8,476.80 68,082.38 640,959.69 117,605.53 278,142.95

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 21,653.25 592,964.67 107,368.68 96,178.85

154,813.96 39,064.79

35,165.28 9,834.72

189,979.24 48,899.51

356,695.02 34,309.45 150.00

$ 8,827,101.02 $ 1.191,052.38 $ 139 514.09 $

0.00 $ 10 157 667.49 $ 10,466,913.79

$ 319,379.95 $ -71 943.65 $ -118,351.43 $ 3,774.22 $

132 859.09 $ -936 178.56

$ 10,000.00 126,980.33 $
$ 136,980.33 $

52792.56 52,792.56

$

10,000.00 $

50,529.00

179 772.89

909100.87

$

189 772.89 $

959,629.87

$ 456,360.28 $ -19,151.09 $ -118,351.43 $ 3,774.22 $

322,631.98 $

23,451.31

1,319,697.83

154,801.10 540,628.50 28,702.58

2,043,830.01

2,024,350.82

-4,418.56 -308.29

-4,418.56 -308.29

-4,530.36 558.24

FUND BALANCE JUNE 30

$ 1,776,058.11 $ 130923.16 $ 422,277.07 $ 32,476.80 $ 2,361.735.14 $ 2,043,830.01

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

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

EXHIBITc

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Local and Other Funds

$ 3,365,814.00 $ 3,485,814.50

100, 160.00

96,653.07

5,156,592.00 5,564,013.40

Total Revenues

$ 8,622,566.00 $ 9,146,480.97

EXPENDITURES

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

$ 5,426,540.00 $ 5,285,668.71

283,425.00 197,491.00 218,924.00 163,495.00 587,839.00 80,220.00 986,019.00 680,043.00
9,327.00 3,700.00 16,649.00 106,020.00 179,000.00

273,289.49 224,395.45 207,827.43 168,908.95 550,705.03 112,740.72 879,890.46 623,017.36
8,476.80 35,812.76
6,254.72 117,605.53 138,628.86 193,878.75

Total Expenditures

$ 8,938,692.00 $ 8,827,101.02

Excess of Revenues over (under) Expenditures

$ -316,126.00 $ 319,379.95

OTHER FINANCING SOURCES

Proceeds from Sale of Property
Capital Leases

$

0.00 $ 10,000.00

126,980.33

Total Other Financing Sources

$

0.00 $ 136,980.33

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

$ -316,126.00 $ 456,360.28

FUND BALANCE JULY 1. 1994

1,454,102.38 1,319,697.83

FUND BALANCE JUNE 30. 1995

s 1,137,976.38 s 1,n6,0S8.11

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 182,458.00 $ 207,280.49

644,592.00

656,574.96

218,600.00

255,253.28

$ 1,045,650.00 $ 1,119,108.73

$ 413,898.00 $ 372,743.00

2,079.00 7,485.00 3,159.00 14,487.00

1,951.52 9,124.19 61,700.84 11,668.52

400.00
28,042.00 650,749.19

1,457.80 20,431.92
32,269.62 634,704.97

45,000.00 $ 1,120,299.19 $ 1,191,052.38 $ -74,649.19 $ -71,943.65

$

0.00 $ 52,792.56

$

0.00 $ 52,792.56

$ -74,649.19 $ -19,151.09

152,902.84

140,438.37

$ 78,253.65 $ 121,287.28

The notes to the general purpose financial statements are an integral part of this statement. -5-

RABUN COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Rabun County Board ofEducation (Board) was established under the laws ofthe State ofGeorgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception ofthe departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Rabun County Board ofEducation.
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, 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

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

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 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. All outstanding principal and interest has been liquidated, and after passage of an appropriate resolution by the Board, the balance in this fund may be transferred to the General Fund and expended for purposes of the General Fund.
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.

- 7-

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for material capital lease obligations.
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 ofaccounting 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, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1994 and ending in early June 1995. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.

- 8-

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

BUDGET

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

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

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

Special Revenue
Fund

Excess ofRevenues and Other Sources of Financial Resources over (under) Expenditures

$ -19,151.09

Fund Balance July 1, 1994

154,801.10

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

-8,643.71 -5,719.02

Fund Balance June 30, 1995 (Budget Basis)

$ 121,287.28

- 9-

RABUN COUNTY BOARD OF EDUCATION

EXIDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

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

RECEIVABLES

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

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 ofCommissioners fixed the property tax levy for the 1994 tax year (calendar year) on October 1, 1994 (levy date). Taxes were due on January 14, 1995. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70. l 03. 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.

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

School Operations

6.9167 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

- 10 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofinterfund 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 of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
- 11 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS

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

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

(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe 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 Banlc, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $3,361,289.52. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1995, as follows:

Risk Category
1 2 3
Total

Bank Balance
$2,870,481.36 0.00
490,808.16
$3,361,289.52

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
- 12 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to natural disaster in the past three years.

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

1994 1995

$

0.00 $ 11,462.00 $ 11,462.00 $

0.00

$

0.00 $

4,045.00 $

4,045.00 $

0.00

The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organiz.ed on December 1, 1991 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Continental Insurance Company to provide coverage for potential losses sustained by the Fund in excess of $250,000.00 loss per occurrence, up to $1,000,000.00.

Note 5: GENERAL LONG-TERM DEBT

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

- 13 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

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

Balance July 1, 1994
Retroactive Restatement ofPrior Year Balances
Balance July 1, 1994 Restated
Additions
Deductions
Balance June 30, 1995

Capital Leases $ 742,284.55
-923.97
$ 741,360.58 179,772.89 189,979.24
$ 731. 154,23

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

Fiscal Year Ended June 30
1996 1997 1998 1999
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Capital Leases
$ 267,207.56 279,246.08 265,465.22 12,885.27
$ 824,804.13
93,649.90
$ 73LI54.23

Note 6: 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.

- 14 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $4,959,717.31; total payroll was $5,861,517.43.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1995 amounted to $833,729.76, of which $585,742.63 was made by the Board and $247,987.13 was made by employees. These contributions represented 11.81 % (Board) and 5% (employees) of covered payroll.

- 15 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS

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

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

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058.958.000,00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of $585,742.63 was actuarially determined and represented .1036% oftotal contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.

PSERS provides in accordance with State statute service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between

- 16 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: RETIREMENT PLANS
the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number ofyears of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 78 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $2,412.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 8: SURETY BONDS
The School Superintendent, Mr. Charles A. Prince, 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 is paid through August 1, 1996.

- 17 -

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

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

SCHOOL FOOD
SERVICES FUND

AT RISK SUMMER SCHOOL

PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

$ 134,846.51

$

0.00

$

0.00

m.o9 $ 5,546.22

$ 71,512.86

. 4,225.15 5,410.73

______ - - - - - $ 145,259.48 $ 5,546.22 $

......0.00 $ 71,512.86 $

0.00

LIABILITIES AND FUND EQUITY

LIABILITIES

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

$ $ 1,364.40
12,971.92

5,546.22

$ 70,687.10 825.76

Total Liabilities

$ 14,336.32 $ 5,546.22

$ 71,512.86

FUND EQUITY

Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food

$ 4,225.15 5,410.73

Unreserved Undesignated

$ 9,635.88

121,287.28 $

0.00 $

0.00 $

0.00 $

0.00

Total Fund Equity

$ 130,923.16 $

0.00 $

0.00 $

0.00 $

0.00

Total Liabilities and Fund Equity $ 145,259.48 $ 5,546.22 $ _ _ _ _o_.o_o $ 71,512.86 $ _ _ _ _o._oo_

See notes to the general purpose financial statements.

- 18 -

EXHIBIT"E"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT - AND SCIENCE

CHILDREN FLOW THROUGH EDUCATION

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, 8

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

0,00 $

0.00

$ 134,846.51 $ 154,339.52

$

40,917.40

$ 40,565.22 $

17,214.13

176,532.92

87,655.69

4,225.15 5,410.73

8,643.71 5,719.02

$

----------- 40,917.40 $

0.00 $

0.00 $ 40,565.22 $

17,214.13 $ 321,015.31 $ 256,357.94

$

8,123.16

7,371.00

25,423.24

$

40,917.40

$ 38,412.22 $ 1,081.32 870.00 201.68
$ 40,565.22 $

9,944.89 $ 1,588.90 5,680.34
17,214.13 $

132,713.59 $ 11,405.62 44,945.50 201.68 825.76
190,092.15 $

40,984.71 12,326.68 47,211.30
98.00 936.15
101,556.84

$

4,225.15 $

8,643.71

5,410.73

5,719.02

$

9,635.88 $

14,362.73

$

0.00 $ _ _ _ _ _ 0.0_0 $

0.00 $

0.00 $

0.00

121,287.28

140,438.37

$

0.00 $ _ _ _ _ _ 0.0_0 $

0.00 $

0.00 $

0.00 $ 130,923.16 $ 154,801.10

$

40,917.40 $

----- 0.00 $

0.00 $ 40,565.22 $

17,214.13 $ 321,015.31 $ 256,357.94

- 19 -

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

SCHOOL FOOD
SERVICES FUND

AT RISK SUMMER SCHOOL

PRESCHOOL HANDICAPPED
PROGRAM

LOTTERY PROGRAMS

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

REVENUES

State Funds Federal Funds Local and Other Funds

$ 41,642.00 $ 318,658.60 255,253.28

5,546.22 $

22,458.00 $ 137,634.27 $

851.69

Total Revenues

$ 615,553.88 $ 5,546.22 $

22,458.00 $ 137,634.27 $

851.69

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
Debt Service Principal Interest

$ 5,546.22 $ $ 634,704.97

22,458.00 $ 66,598.91 $
58,396.00 20,431.92
35,165.28 9,834.72

851.69

Total Expenditures

$ 634,704.97 $ 5,546.22 $

22,458.00 $ 190,426.83 $

851.69

Excess of Revenues over (under) Expenditures $ -19,151.09 $

0.00 $

0.00 $ -52,792.56 $

0.00

OTHER FINANCING SOURCES

Capital Leases

52,792.56

Excess of Revenues and Other Financing

Sources over (under) Expenditures

$ -19,151.09 $

0.00 $

0.00 $

0.00 $

0.00

FUND BALANCE JULY 1

154,801.10

0.00

0.00

0.00

0.00

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-4,418.56 -308.29

FUND BALANCE JUNE 30

$ 130,923.16 $

0.00 $

0.00 $

----- 0.00 $

0.00

See notes to the general purpose financial statements.

-20-

EXHIBITP

.ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE II

CHAPTER 1

EISENHOWER

EDUCATION OF

CHAPTER2

MATHEMATICS

DEPRIVED

BLOCK GRANT - AND SCIENCE

CHILDREN

FLOW THROUGH EDUCATION

INDMDUALS WITH

DISABILITIES EDUCATION ACT

TITLEVI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

209,974.00 $

10,478.00 $

$

209,974.00 $ _ _ _10..:..,4_7_8._00_ $

8,220.00 $ 84,354.54 $ 8,220.00 $ 84,354.54 $

$ 24,038.13

207,280.49 $ 656,574.96 255,253.28

164,381.83 669,550.63 222,726.98

24,038.13 $ 1,119,108.73 $ 1,056,659.44

$

203,352.99 $

6,569.03 51.98

$

209,974.00 $

$

0.00 $

7,146.30 $
3,304.84 26.86
10,478.00 $ 0.00 $

$
8,201.84 18.16

42,750.76 $
1,951.52 922.35
5,054.47 1,457.80

32,217.64

8,220.00 $ 0.00 $

84,354.54 $ 0.00 $

24,038.13 $ 372,743.00 $ 511,340.83

1,951.52 9,124.19 61,700.84 11,668.52 1,457.80 20,431.92
32,269.62 634,704.97

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

35,165.28 9,834.72

22,584.42 4,067.58

24,038.13 $ 1,191,052.38 $ 1,202,606.52

0.00 $ -71,943.65 $ -145,947.08

$

0.00 $

0.00

$ _ _ _ _o_.oo_ $

0.00 $ 0.00
0.00 $

0.00 $ 0.00

0.00 $ 0.00

52,792.56

138,660.83

0.00 $ 0.00

-19,151.09 $ 154,801.10

-7,286.25 166,059.47

-4,418.56 -308.29

-4,530.36 558.24

---- ----- 0.00 $

0.00 $

0.00 $ 130,923.16 $ 154,801.10

- 21 -

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

REGULAR

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

TOTALS JUNE 30, 1995 JUNE 30, 1994

$ 420,087.07 $

2,190.00 $

422,277.07 $

540,628.50

FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects Unreserved Undesignated

$ $ 420,087.07

Total Fund Equity

$ 420,087.07 $

2,190.00 $ 0.00

2,190.00 $ 420,087.07

2,190.00 538,438.50

2,190.00 $ 422,211.01 $ """""=-54_0_,s_2_s_.5=o

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, 1995

EXHIBIT "H"

REVENUES Local and Other Funds
EXPENDITURES Capital Outlay Building and Building Improvements
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1

REGULAR

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

TOTALS YEAR ENDED JUNE 301 1995 JUNE 30, 1994

$ 21,162.66 $

0.00 $

21,162.66 $

20,010.67

$ 139,514.09 $ $ -118,351.43 $
538,438.50

0.00 $ 0.00 $ 2 190.00

139,514.09 $ -118,351.43 $ 540,628.50

38,219.05 -18,208.38 558,836.88

FUND BALANCE JUNE 30

$ 420,087.07 $

2 190.00 $

422,2n.01 s _ _54_0..1,s_2_8_.5_o

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, 1995

EXHIBITI

J. 0. KING SCHOLARSHIP ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
LAKE RABUN ASSOCIATION/CLAYTON TRIBUNE SCHOLARSHIP FOUNDATION FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY1, 1994

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1995

$

TT.74 $

1,000.00 $

1 000.00 s _ _ _n_.1_4
1

$

TT.74 $

1,000.00 $

1 000.00 s_ _ _n__._7_4 1

$

395.25 $

15,513.93 $

13 000.00 s_ _ _2._909__,.1.s.. 1

$

395.25 $

15,513.93 $

13,000.00 s_ _ _2,,_909__,.1_8

PARKIN/KRIVSKY SCHOLARSHIP
ASSETS Cash and Cash Equivalents

$

1,000.00 $

1,000.00 $

1,000.00 s___1,,_000_._oo_ 1

LIABILITIES Funds Held for Others

$

1,000.00 $

1,000.00 $

----- 1,000.00 $

1,000.00

RABUN COUNTY SCHOLARSHIP FOUNDATION FUND

ASSETS

Cash and Cash Equivalents

$

15,673.68 $

11,142.41 $

s_ _ 121000.00

1_4,,_,s_1_s._09_

LIABILITIES Funds Held for others

$

15,673.68 $

11142.41 $

12,000.00 s_ _1..,4,,.,.s1..s.._09_

-24-

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

WILDER SCHOLARSHIP FOUNDATION ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
TOTALS-AGENCY FUNDS ASSETS
Cash and Cash Equivalents

BALANCE JULY 11 1994

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 1995

$

1,542.61 $

1,000.00 $

1,542.61 $ _ _ _1 _0_00_.oo_
1

$

1,542.61 $

1,000.00 $

1,542.61 $ _ __,11_000_.oo_

$

18,689.28 $

29,656.34 $

28,542.61 $ _ _1_9,_8_03_.0_1

LIABILITIES Funds Held for Others

$

18,689.28 $

28,542.61 $ _ _1_,9,_80_3_.0_1

See notes to the general purpose financial statements.

-25-

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

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES 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 1994Grant 1995Grant National School Lunch Program 1995 Grant Food Distribution Program (1)

10.665 $ 57,497.35 $

10.553 10.553
10.555 10.550

60,901.76
211,675.62 46,081.22

57,497.35 $ 57,497.35

(5)

2,230.71 60,124.67
211,675.62 NIA

60,901.76
211,675.62 $ 46,081.22

(2)
588,623.75 (3) 46,081.22

Total U.S. Department of Agriculture

$ 376, 155.95 $

331,528.35 $ 376,155.95 $

634,704.97

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

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

$ 11,665.00 198,309.00
10,478.00
7,000.00
16,805.00
n,292.oo
2,824.00 21,700.00
15,660.00 30,000.00

39,848.00 11,665.00 $ 157,391.60

11,665.00 $ 198,309.00

11,665.00 198,309.00

455.00 10,478.00

10,478.00

10,478.00

1,220.00 7,000.00

1,220.00 7,000.00

1,220.00 7,000.00

6,406.00 13,450.00 30,541.00
4,594.00 2,824.00 4,000.00

16,805.00 67,549.54
2,824.00 21,214.13

16,805.00 67,549.54
2,824.00 21,214.13

5,907.00

15,460.00

15,460.00

(4)

18,3TT.OO

23,695.72

23,695.72

(4)

- 26 -

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

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U.S. Department of Through Pioneer Regional Educational Service Agency Drug-Free Schools and Communities Act 1995 Grant

84.186 $

9,293.00 $

851.69 $

851.69 $

851.69

TotalU.S.DepartmentofEducation

$ 401,026.00 $

354,164.01 $ Jn,012.oa $ 337,916.36

Total Federal Financial Assistance

$ ?n,181.95 $

685,692.36 $ 753,228.03 $ _ _9_72.,,62.....,1._33_

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

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fJSCal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds eamed 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, 1995
INTEREST BEARING ACCOUNTS
Bank of Claytoi;i, Clayton, Georgia
N.O.W. Accounts (3.20%)
Rabun County Bank, Clayton, Georgia
Certificate of Deposit No. 013 (4.85%) N.O.W. Accounts (3.35%)

SCHEDULE "2"
$ 1,800,700.35 75,000.00
482,123.58 $ 2,357,823.93

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

RABUN COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1995

SCHEDULE "3"

Education, Georgia Department of Quality Basic Education Deferred Summer Salaries - FY 1995 Food Services School Breakfast Program other State Programs At Risk Summer School Lottery Programs Assistive Technology Instructional Technology Safe Schools Grant Federal Programs ESEA - Chapter 1 Education of Deprived Children Individuals with Disabilities Education Act Title VI, B Flow Through Preschool Program
Piedmont College Shared Service Contributions
Rabun County High School Reimbursement for Expenses
Rabun County Tax Commissioner County Wide Bond Tax County Wide School Tax
Revenue, Georgia Department of Local Option Sales Tax

GOVERNMENTAL FUND TYPES

SPECIAL

DEBT

GENERAL

REVENUE

SERVICE

FUND

FUND

FUND

TOTAL

$ 631,834.00

$

777.09

5,546.22

6,916.96 45,000.00 19,595.90

40,917.40

40,565.22 17,214.13

150.00

1,399.45

$ 81,686.48

132,071.51

$ 631,834.00
777.09
5,546.22
6,916.96 45,000.00 19,595.90

40,917.40

40,565.22 17,214.13

150.00

1,399.45

238.13

238.13 81,686.48

132,071.51

$ 847,141.44 $ 176,532.92 $===2=3=8.=13= $ 1,023,912.49

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

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 1995

SCHEDULE "4"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension School Counselors Grades 4 and 5 Superintendent Base Salary Mid-term Adjustment Local Fair Share
Deferred Summer Salaries - FY 1994 Deferred Summer Salaries - FY 1995
Food Services Vocational Education Other State Programs
At Risk Summer School Governor's Emergency Funds (1) Innovative Programs Mentor Teacher Program Preschool Handicapped Program Teachers' Retirement Lottery Programs Algebra Classrooms Assistive Technology Distant Leaming Instructional Technology Media Center and Library Equipment Safe Schools Grant
OTHER Education, Georgia Department of Reimbursement for Student Information Systems Project

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 3,271,555.00 504,467.00 96,939.00 138,963.00 43,080.00 933,640.00
310,189.00 96,361.00 78,825.00 144,989.00 36,311.00 19,971.00 13,376.00 65,379.00
-2,328, 104.00 -603,814.00 631,834.00 $ 11,033.00
4,000.00 3,100.00
690.00
11,030.50

$ 3,271,555.00 504,467.00 96,939.00 138,963.00 43,080.00 933,640.00

41,642.00

310,189.00 96,361.00 78,825.00 144,989.00 36,311.00 19,971.00 13,376.00 65,379.00
-2,328, 104.00 -603,814.00 631,834.00 41,642.00 11,033.00

5,546.22 22,458.00

5,546.22 4,000.00 3,100.00
690.00 22,458.00 11,030.50

503.15 6,916.96 4,007.24 47,379.00 58,396.00 20,431.92

503.15 6,916.96 4,007.24 47,379.00 58,396.00 20,431.92

2,000.00

2,000.00

(1) The purpose of these funds is for "renovations at the Central Office".
See notes to the general purpose financial statements.

$ 3,485,814.50 $ 207,280.49 $ 3,693,094.99 - 30 -

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

SCHEDULE 5

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

DEBT SERVICE
FUND

TOTAL

$ 3,814,905.84 1,626,338.33 21,515.71

$ 2,500.73 $

2,500.73

3,814,905.84

1,626,338.33

21,515.71

12,264.37

4,286.18 72,930.40 $
1,520.00 1,662.94
580.00

5,389.32 $ 21,162.66

1,798.27

182,711.34 39,506.27 27,563.35

3,221.26 325.00
2,665.10

83.00

1,273.49

12,264.37
4,286.18 100,755.87
1,520.00 1,662.94
580.00
182,711.34 39,506.27 27,563.35 1,798.27
3,221.26 325.00
2,748.10

$ 5,564,013.40 $ 255,253.28 $ 21,162.66 $ 3,774.22 $ 5,844,203.56

See notes to the general purpose financial statements.

- 31 -

THIS PAGE LEFT BLAHK

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 5,412,799.27 $
1,572,408.37 20,282.52 37,852.15 10,809.36 47,712.50
116,529.69 7,201.03 30,311.40 35,048.99 180.00
8,476.80 103,446.15 344,299.35 168,775.10
92,427.85 8,772.00 12,038.38

448,718.16 $ 139,450.70
3,561.44 38,006.07
500.00 6,073.93
2,384.45
3,234.31
12,213.00 104,913.12
3,767.65 294,322.86
3,304.84 1,501.50
267.34

5,861,517 ..43 1,711,859.07
23,843.96 75,858.22 10,809.36 48,212.50 122,603.62
7,201.03 30,311.40 37,433.44
180.00 3,234.31 8,476.80 115,659.15 449,212.47 172,542.75 294,322.86 95,732.69 10,273.50 12,305.72

193,878.75 17,152.00
118,800.86 467,898.50

45,000.00 83,833.01

238,878.75 17,152.00
118,800.86 551,731.51

$ 8,827,101.02 $ 1,191,052.38 $ 10,018,153.40

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

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS YEAR ENDED JUNE 30.1995

EXPENDITURES
Operating Costs Professional and Technical Services Other Purchased Services Supplies
Nonoperating Costs Principal and Interest Equipment

ALGEBRA CLASSROOMS

INSTRUCTIONAL TECHNOLOGY

COMPUTERS

ASSISTIVE

IN

TECHNOLOGY CLASSROOMS

$

503.15 $

1,761.96 $

2,379.00

5,155.00

45,000.00

Total Expenditures

$

503.15 $

6,916.96 $

47,379.00 (1)

(1) This program does not include expenditures of $52,792.56 associated with the inception of a capital lease.

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

SCHEDULE '7"

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

SAFE SCHOOLS
GRANT

TOTAL

$

$

4,007.24

3,423.00 12,213.00 29,906.00 $
12,854.00

$ 20,431.92

3,423.00 12,213.00 58,989.27
45,000.00 18,009.00

$

4,007.24 $

58,396.00 $

20,431.92 $ 137,634.27

- 35 -

THIS PAGE LEFT BLANK

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

SCHEDULE "8"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 4,077,303.00 $

1271548.00

$ 4,548,558.98 566,537.40 $ _ _.....;5=2=6,.....;11;...;4.;.;;.8..;_8
$ 5,115,096.38

-73,757.17 $ 5,041,339.21

Amount of Underexpenditure for Total Allotment

$

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

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

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

RABUN COUNTY BOARD Of EDUCATION ANALYSIS Of MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - CUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 3Q 1995

GENERAL &::IQ CAR~R EQ!,!QATION PROGRAMS
Kindergarten C, Grades 1 - 3 C,
Sub-Total - K-3
Grades 4 - 5 C,
Grades 6 - 8 (") Grades 9-12 (") High School Laboratories (") Vocational Education Laboratories (*)
Total General and Career Education Programs S~IAl. l;;Q!&ATI~ PROGRAMS
Regular Programs
Category I (") Categcxy II C, Category Ill (") Categcxy IV (")
Sub-Total - Regular
Category V (Gifted) C,
Total Special Education Programs REMEQIAL !;DUCATION PROGRAM (~
Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEYl;;bOPMENT PROGRAMS Cost ct Instruction Professional Development
Total Staff OeYetopment (") Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1995 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply With program guidelines.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

$

325,674.00

$

293,106.60 $

856,631.00

770967.90

$ 1,182,305.00 90 $ 1,064,074.50 $

442,004.00 90

397,803.60

706,609.00 90

635,948.10

456,331.00 90

410,697.90

290,113.00 90

261,101.70

194193.00 90

174 773.70

$ 3,271,555.00

$ 2,944,399.50 $

0.00 0.00 0.00 65,379.00 0.00 0.00 0.00 0.00 65,379.00

$

476,550.00

$

428,895.00 $

0.00

$

476,550.00 90 $

428,895.00 $

27 917.00 90

25125.30

$

504,467.00

$

454,020.30 $

$

96,939.00 90 $

87 245.10 $

$ 3,872,961.00

$ 3,485,664.90 $

0.00 0.00 0.00 0.00 65379.00

$

110,213.00 90 $

28 750.00 90

99,191.70 $ 25875.00

$

138 963.00

$

125066.70 $

0.00 0.00
0.00

$ 4,011,924.00

$ 3,610,731.60 $

65,379.00

$

17,728.41

25,351.59

$

17,728.41 $

25 351.59

$

43,080.00 100 $

43,080.00 $

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

- 38 -

0.00 0.00
0.00

SCHEDULE "9"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES (1 )(2) OPERATIONS

TOTAL

AMOUNTOF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

293,106.60 $

386,361.81 $

37,425.76 $

423,787.57

770,967.90

1,020,952.10

106,335.27

1,127,287.37

$ 1,064,074.50 $ 1,407,313.91 $

143,761.03 $ 1,551,074.94 $

0.00

463,182.60

511,942.71

78,003.52

589,946.23

0.00

635,948.10

710,143.70

93,100.58

803,244.28

0.00

410,697.90

609,809.11

103,444.78

713,253.89

0.00

261,101.70

274,895.53

11,133.53

286,029.06

0.00

174 773.70

214,520.49

66116.33

280,636.82

0.00

$ 3,009,778.50 $ 3,728,625.45 $

495559.77 $ 4,224, 185.22

$

428,895.00

$

3,545.66 $ 121,262.91 369,320.80
28,532.88

36.00 $ 3,605.00 20,088.44
757.17

3,581.66 124,867.91 389,409.24
29,290.05

$

428,895.00 $

522,662.25 $

24,486.61 $

547,148.86

0.00

25,125.30

28,561.52

2141.66

30,703.18

0.00

$

454,020.30 $

551 223.77 $

26,628.27 $

577,852.04

$

87 245.10 $

96412.11 $

3926.84 $

100,338.95

0.00

$ 3,551,043.90 $ 4,376,261.33 $

526114.88 $ 4,902,376.21

$

99,191.70 $

172,297.65

$

172,297.65

0.00

25,875.00

$

40,422.52

40,422.52

0.00

$

125,066.70 $

172,297.65 $

40 422.52 $

212 720.17

$ 31676,110.60 $ 4,548,558.98 $

566,537.40 $ 5,115,096.38 $

0.00

$

17,728.41

25,351.59

s _ _ _43_,o_8_o._oo_

$

17,766.20 $

17,766.20

25,351.59

25,351.59

$

43,117.79 $

43,117.79 s_ _ _ _ _ _o._oo_

- 39 -

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

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 30568
Ms. Betsy Fowler
P. 0. Box472
Clayton, Georgia 30525
Ms. Irene Keller (*)
P. o. Box774
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

$

1,700.00 $

845.90

1,700.00

350.82

900.00

800.00

294.94

1,650.00

1,017.70

1,550.00

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

$

8,300.00 $ ====2=,5=09=.3=6

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

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 16, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe 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 of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated February 16, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Rabun County Board of Education is
the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

95CRL-10

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

Respectfully submitted,

Clauae L. Vickers State Auditor

~

CLV:gp 95CRL-10

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 16, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the 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 of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated February 16, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Audit Follow-Up/Resolution

(3) Cash Management

(7) Administrative Requirements

(4) Federal Financial Reports

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression 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.

95CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph ofthis report. With respect to items not tested, nothing came to our attention that caused us to believe that the Rabun County Board of Education had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance ofnoncompliance with those requirements, which is described in the Schedule ofFindings and Improper or Questioned Costs.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:gp 95CRL-50

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 16, 1996

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 SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

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, 1995, and have issued our report thereon dated February 16, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

( 1) Types of Services Allowed or Unallowed

(2) Eligibility

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

95CRL-120

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

CLV:gp 95CRL-120

Claude L. Vickers State Auditor

SECTION III 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 16, 1996

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 ofEducation as of and for the year ended June 30, 1995, and have issued our report thereon dated February 16, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and petform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management ofthe Rabun County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because ofinherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

95ICL-3

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

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

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

(1) Accounting Controls (Overall)

(2) General Fixed Assets

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

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

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Rabun County Board of Education's financial statements and this report does not affect our report thereon dated February 16, 1996.

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

Respectfully submitted,
~
Claude L. Vickers State Auditor

CLV:gp 95ICL-3

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 16, 1996

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 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 of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated February 16, 1996. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated February 16, 1996.
The management ofthe Rabun County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute,
95ICL-15

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 ofthe design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level 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, 1995, the Rabun County Board of Education had no major Federal financial assistance programs and expended 61% ofits total Federal financial assistance under the following nonmajor Federal financial assistance programs:

Food and Nutrition Program Food Services National School Lunch Program
Elementary and Secondary Education Act - Chapter 1 Education ofDeprived Children

95ICL-15

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as descnbed 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 of the 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 ofthe internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, 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 ofthis report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 95ICL-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, 1995
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, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $1,127.35 for the StaffDevelopment - 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 ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $15,751.80 Audit Control Number 7191-94-01
The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$15,751.80 for the StaffDevelopment - 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$15,751.80 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period.
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation of Duties Reportable Condition - Material Weakness Audit Control Number 7191-93-01
The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation ofemployee duties in the performance ofaccounting functions and related procedures for all funds. For the year under review, the Board made some improvements regarding separation of employee's duties but still did not achieve an adequate degree of internal control. 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 ofinternal control with existing staff

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
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
Note: All Federal financial assistance programs listed in the Schedule of Federal Financial Assistance, Schedule 111 11 of this report are affected by this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7191-93-02
The audit report for the year ended June 30, 1994, noted that the management of the Rabun County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account 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
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7191-95-01
The Board failed to submit a copy of the 1994 audit report on a timely basis to the following agencies that were the sources of Federal Financial Assistance:

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

CURRENT YEAR

AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7191-95-01

Office of Treasury and Fiscal Services Georgia Mountains Regional Development
Center Pioneer Regional Educational
Service Agency

National Forest Reserve Funds (CFDA 10.665)
Job Training Partnership Act (CFDA 17.250)
Drug-Free Schools and Communities Act (CFDA 84.186)
Vocational Education (CFDA 84.048)

Paragraph 13f ofOMB Circular A-128 requires that recipients ofFederal financial assistance submit copies ofsingle audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing ofthe audit report distribution responsibilities by the Department of Audits, management failed to perform the distribution requirement.

Procedures should be implemented to ensure that reports are submitted to granter agencies in accordance with audit distribution requirements.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

RABUN COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
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 of Education should be such that LEA's should not have to suffer the consequences of matters 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. We have separated some ofthese duties and currently working on separating the remainder.
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.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7191-95-01
We concur with this finding. Procedures have been implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

RABUN COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
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 of matters 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. We have separated some ofthese duties and currently working on separating the remainder.
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.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7191-95-01
We concur with this finding. Procedures have been implemented to ensure that reports are submitted to grantor agencies in accordance with audit distribution requirements.