Audit report, Randolph County Board of Education, Cuthbert, Georgia, year ended June 30, 1996

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AUDIT REPORT RANDOLPH COUNTY BOARD OF EDUCATION
CUTHBERT, GEORGIA YEAR ENDED JUNE 30, 1996
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

RANDOLPH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

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

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

28

2 CASH AND CASH EQUIVALENTS

30

3 ACCOUNTS RECEIVABLE

31

SCHEDULE OF REVENUE

4

STATE

33

5

TAXES AND OTHER

34

RANDOLPH COUNTY BOARD OF EDUCATION TABLE OF CONTENTS

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

6

GENERAL AND SPECIAL REVENUE FUNDS

35

7

LOTTERY PROGRAMS

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

8

OVERALL

39

9

BY PROGRAM

40

10 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

42

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

SECTION III
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

RANDOLPH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION V 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
March 14, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Randolph 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 Randolph County Board of Education, as of and for the year ended June 30, 1996, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
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-l28, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
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.
96ARL-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 Board did not record revenues and expenditures associated with Federal donated commodities
in its general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded 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 Randolph County Board of Education as of June 30, 1996, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 14, 1997, on our consideration ofthe Board's internal control structure and a report dated March 14, 1997, on its compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Randolph County Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 10 which includes the Schedule of Federal Financial Assistance) are presented for purposes of additional analysis and are not a required part of the general purpose financial statements ofthe Randolph 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 96ARL-13

RANDOLPH COUNTY BOARD OF EDUCATION
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RANDOLPH COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30,1996

EXHIBIT "A"

The notes to the general purpose financial statements are an integral part of this statement.
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RANDOLPH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30 1996

EXHIBIT "8"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

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

REVENUES

Stale Funds Federal Funds Taxes and Other Funds

$ 6,563,118.14 $

679,544.13 $

89,541.71

1,913,414.75

1,540,187.71

90,020.86

370,668.94 $ 9,750.75

7,613,33121 $ 2,002,956.46 1,639,959.32

6,585,259.76 1,916,560.81 1,326,591.33

Total Revenues

$ 8,192,847.56 $ 2,682,979.74 $

380,419.69 $ 11 ,256,246.99 $ 9,828,411.90

EXPENDITURES

Current Instruction Support Services Pupil Services Inl>rovement 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 Community Service Operations Other Operations of Non-Instructional Services
Capital Outlay

$ 5,368,607.54 $ 1,376,795.24

309,074.64 362,191.86 184,315.39 164,102.24 631,890.03
78,444.97 829,491.45 447,522.26

173,433.72 237,868.87
1,378.24 36,898.29
2,478.81 2,052.81 47,942.15 23,518.03

8,347.13 8,600.95
57,360.87

13,486.48 804,209.48
1,403.37
$

$ 6,745,402.78 $ 6,001,892.40

427,751.89

482,508.36 600,060.73 185,693.63 201,000.53 634,368.84
80,497.78
8n,433.60
471,040.29
21,833.61 812,810.43
1,403.37 57,360.87 427,751.89

3n,609.74
358,995.41 221,029.07 196,186.95 511,832.65
76,375.08 782,598.17 399,062.72
n.70
29,216.76 787,971.49
2,788.22 52,558.09 31,769.12

Total Expenditures

$ 8,449,949.33 $ 2,721,465.49 $

427,751.89 $ 11,599,166.71 $ 9 ,829,963.57

Excess of Revenues over (under) Expenditures

$ -257,101.n $

-38,485.75 $

-47,332.20 $

-342,919.72 $

-1,551.67

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$

$

-113,193.33

18,193.33 $

95,000.00 $

113,193.33 $ -113,193.33

6,025.97 -6,025.97

Total Other Financing Sources (Uses)

$ -113,193.33 $

18,193.33 $

95,000.00 $

0.00 $

0.00

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

$

-370,295.10 $

-20,292.42 $

47,667.80 $

-342,919.72 $

-1,551.67

FUND BALANCE JULY 1

829,097.65

506,514.68

261,892.08

1,597,504.41

1,598,409.18

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-1,326.42 -151.68

-1,326.42 -151.68

269.57 377.33

hJND BALANCE JUNE 30

$

458.802.55 $

484.744.16 $

309.559.88 $ 1,253.106.59 $ 1,597,504.41

The notes to the general purpose financial statements are an integral part of this statement. - 3-

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RANDOLPH 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, 1996

EXHIBIT"C"

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

RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Randolph County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception 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 governmental units and unless otherwise disclosed in these notes, the financial statements present all of the fund types and account groups of the Board. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the governmental unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Randolph County Board of Education.
Based upon the application of the above criteria, the Randolph County Board of Education is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Randolph County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate
.management, the ability to significantly influence operations, and primary accountability for fiscal matters. The
Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A Gener'l,l Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
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RANDOLPH COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational 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.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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 and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues
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RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1995 and ending in early June 1996. Employment contracts for these employment periods typically specifY that compensation be paid in twelve equal monthly payments beginning in September 1995 and ending in August 1996. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Randolph County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to actual revenues, expenditures and fund balance as reflected on Exhibit "B" of this report:

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RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1,1995

$ 506,514.68

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

-1,609.65 -2,526.18

Fund Balance July 1, 1995 (Budget Basis)

$ 502,378.85

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

-20,292.42

FUND BALANCE JUNE 30,1996 (Budget Basis)

$ 482086.43

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 of proceeds 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.

PROPERTY TAXES

The Randolph County Board of Commissioners fixed the property tax levy for the 1995 tax year (calendar year) on September 5,1995 (levy date). Taxes were due on December 20,1995. The lien date for property taxes was January 1, 1995. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1996 since their collection meets the criteria of GASB codification section
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RANDOLPH COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

P70.103. The Randolph County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1995 tax year (calendar year) for the Randolph County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

11.84 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). The Board uses the purchases method to account for inventories of purchased foods whereby expenditures are recorded at the time of purchase. Both the donated food commodities inventory and the purchased foods inventory reported on the balance sheet are equally offset by reservations offund balance which indicates that they do not constitute "available spendable resources" even though they are a component ofnet current assets. The Federally assigned value of donated commodity items received and consumed has not been reflected as revenues and expenditures in the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

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

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

MEMORANDUM ONLY - TOTAL COLUMNS

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

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RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

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 anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial reve.nue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1996, the bank balances were $2,242,751.03. 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.
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RANDOLPH COUNTY BOARD OF EDUCATION

EXlllBIT "DII

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 2: DEPOSITS

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, 1996, as follows:

Risk Category

Bank Balance

1

$ 200,000.00

2

853,193.64

3

1.189,557.39

Total

$ 2,242 751.03

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts 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 ofthe past three years.

The Board has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D, 1996

Note 4: RISK MANAGEMENT

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1995

$

2,020.00 $

5,350.00 $

4.445.00 $

2,925.00

1996

$

2,925.00 $

3,951.36 $

5.500.36 $

1.376.00

The Board participates in the Georgia Education and Government Workers' Compensation Trust, a public entity risk pool organized 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 Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Continental Insurance Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $1,000,000.00.

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $230,000. 71 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$194,810.97

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$7,387.74

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$27,802.00

Note 6: SIGNIFICANT COMMITMENTS

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

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RANDOLPH COUNTY BOARD OF EDUCATION

EXlllBIT liD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1996

Note 6: SIGNIFICANT COM:MITMENTS

Project

Unearned Executed Contracts

Funding Available From State

96-720-057

$ 842,106.51 $ 530,514.06

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

Note 7: CONTINGENT LIABILITIES

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

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of creditable service, regardless ofage, or after 10 years .ofservice 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 members 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.

"

- 14 -

RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1996

Note 8: RETIREMENT PLANS

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

The Board's payroll for employees covered by TRS for the year ended June 30, 1996, was $6,055,525.14; total payroll was $7,039,249.52.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1996 that rate for employer contributions was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions made during fiscal year 1996 amounted to $1,017,898.92, of which $715,116.53 was made by the Board and $302,782.39 was made by employees. These contributions represented 11.81% (Board) and 5% (employees) of covered payroll.

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

Total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, was as follows:

Total pension benefit obligation

$17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585.541 000.00

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

- 15 -

RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT liD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 8: RETIREMENT PLANS
Total contributions from all employers to TRS for fiscal year ended June 30, 1996 were $607,275,000.00. The Board's contribution for the year ended June 30, 1996 of$715,116.53 was actuarially determined and represented .1178% of total contributions made by all participating employers.
Ten year historical trend information is presented in the 1996 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)
PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System of Georgia (PSERS). All employer's contributions are made by the State of Georgia in accordance with State statute.
PSERS provides, in accordance with State statute, service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retires between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number 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. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
There were 58 employees covered under PSERS for the year ended June 30, 1996.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1996 amounted to $2,076.00. TotaJ contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1996, was $9,817,769.80.

- 16 -

RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "Oil

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1996

Note 9: SURETY BONDS
The School Superintendent, Mrs. Kathryn Hardwick, was bonded in the amount of $50,000.00 with the Auto Owners Insurance Company, Lansing, Michigan, their Bond No. 837618-48009200.
Mr. Bobby Jenkins, School Superintendent effective January 1, 1997, is bonded in the amount of $50,000.00 with the Auto Owners Insurance Company, Lansing, Michigan, their Bond No. 837618-48009200, on which premium is paid through November 22, 1997.

- 17 -

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

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

SCHOOL FOOD
SERVICES FUND

FAMILY CONNECTION
FUND

LOTTERY PROGRAMS

$ 478,437.42

10,196.43 $ 40,468.32 $

41,189.31

283.23 2,374.50

Total Assets

$ 491,291.58 $ 40,468.32 $ ====4=1,.1...8...9.=.3=1

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

$

$

3,865.05

12,978.33

35,438.46 $ 3,853.90

$ 16,843.38 $

39,292.36 $

3,167.68 10,254.50 27,341.14
425.99
41,189.31

$

1,175.96

$

283.23

2,374.50

$

2,657.73 $

1,175.96

471,790.47

0.00 $

0.00

$ 474,448.20 $

1,175.96 $

0.00

"

Total Liabilities and Fund Equity See notes to the general purpose financial statements.
- 18 -

$ 491,291.58 $

40,468.32 $ ===4=1,1=89=.3=1

EXHIBIT"E" Page 1

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

TITLE II

INNOVATIVE

EDUCATION OF

LOCAL

EISENHOWER

EDUCATION

CHILDREN WITH EDUCATIONAL PROFESSIONAL PROGRAM

DISABILITIES

AGENCIES

DEVELOPMENT STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$

4,759.41

$ 1,214.77 $

4,278.40

$

674.00 $

96,933.65

$

4,888.17

9,027.82

3,399.20

$ -======67=4=.0..0... $

96,933.65 $ -=======4,=75=9==.4=,:1 $

4,888.17 $ 10,242.59 $====7=,6=7==7.=60==

$

2,406.01

$

674.00

22,911.98

71,615.66

$

674.00 $

96,933.65

$

6.10

3,758.55 $ 3,644.75 $

713.24

6,597.84

410.28

$

4,888.17 $ 10,242.59 $

2,316.26 5,361.34
7,677.60

$

4,759.41

$

4,759.41

$

0.00 $

--'-0._00_ _ _ _ _ _0_.0_0 $

0._00_ $

0.00 $

---=.O.:..:;.O~O

$

..;;.O.:..:;.O~O $

0_._00_$

4...:..,7_5_9_.4_1 $

0_.0_0 $

0.00 $

---=.O.:..:;.O~O

$

674.00 $

96,933.65 $===4=,7=5=9=.4=1 $

4,888.17 $ 10,242.59 $ ===7=,6==7==7=.6==0

- 19 -

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

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

SAFE AND DRUG-FREE SCHOOLS

VOCATIONAL EDUCATION
FEDERAL

$

2.36

$

$ 46,159.77

HEAD START
7,477.25
37,059.34

Total Assets

$

2,36 $ 46,159.77 $ 44,536.59

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Accounts Payable

Salaries Payable

Expired Grant Balances Payable

$

Total Liabilities

$

FUND EQUITY

Fund Balances Reserved For Continuation of Federal Program For Continuation of State Program For Inventories Food Donated Commodities Purchased Food

Unreserved

Undesignated

$

Total Fund Equity

$

Total Liabilities and Fund Equity

$

See notes to the general purpose financial statements. - 20-

$
2.36 2.36 $

30,701.58 12,986.58 $
2,471.61
46,159.77 $

12,800.86 31,735,73
44,536.59

0.00 $ 0.00 $

0.00 $

0,00

0,00 $

0.0.0.

2.36 $ 46,159.77 $ 44,536.59

EXHIBIT"E" Page 2

"

JOB TRAINING PARTNERSHIP
ACT

CHILD CARE AND
DEVELOPMENT BLOCK GRANT

HIGH RISK YOUTH
PROGRAM

TOTALS JUNE 30, 1996 JUNE 30, 1995

$

0.00 $

2,486.89

$ 498,656.50 $ 542,289.95

2,163.26 $ 1,696.03

293,855.30

140,683.24

283.23 2,374.50

1,609.65 2,526.18

$ ====O=:,O=.O $ ===4==,6=5=0=.1=5 $

1,696.03 $ 795,169.53 $ 687,109.02

$ 1,531.39 $ 73,251.22 $

6,214.60

$

289.56

164.64

77,520.63

61,596.23

156,343.28

91,242.48

3,310.24

21,541.03

$

289.56 $ 1,696.03 $ 310,425.37 $ 180,594.34

$

4,360.59

$

9,120.00 $

3,136.18

1,175.96

365.00

283.23 2,374.50

1,609.65 2,526.18

$

4,360.59

$ 12,953.69 $

7,637.01

$

0.00

0.00 $

0.00

471,790.47

498,877.67

$

0.00 $

4,360.59 $

0.00 $ 484,744.16 $ 506,514.68

$ ====0=.0==0 $ ===4==,6=5=0=.1=5 $

1,696.03 $ 795,169.53 $ 687,109.02

- 21 -

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

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

SCHOOL FOOD
SERVICES FUND

FAMILY CONNECTION
FUND

LOTIERY PROGRAMS

$ 53,492.00 $ 639,943.32 86,371.39
$ 779,806.71 $

65,468.32 $ 65,468.32 $

560,583.81 560,583.81

$ $ 803,212.07

6,462.18 $ 11,536.83 44,029.44
2,263.91

459,033.66
77,261.35 1,205.21
2,304.45 241.50
2,052.81 21,302.91
1,026.00 1,072.57
997.41

$ 803,212.07 $ $ -23,405.36 $

64,292.36 $ 1,175.96 $

566,497.87 -5,914.06

$ -23,405.36 $ 499,331.66

1,175.96 $ 0.00

-1,326.42 -151.68

5,549.06
-365.00 365.00

FUND BALANCE JUNE 30 See notes to the general purpose financial statements.
- 22-

$ 474,448.20 $

1,175.96 $ = = = =0.=00

EXHIBIT "F" Page 1

'"

ELEMENTARY AND SECONDARY EDUCATION ACT

TITLE I

TITLE VI

GRANTS TO

TITLE"

INNOVATIVE

EDUCATION OF

LOCAL

EISENHOWER

EDUCATION

CHILDREN WITH EDUCATIONAL PROFESSIONAL

PROGRAM

DISABILITIES

AGENCIES

DEVELOPMENT STRATEGIES

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

PARTB

SPECIAL EDUCATION

FLOW

THROUGH

PRESCHOOL

$

963.00 $ 575,713.07 $

23,556.91 $

- - - - - - $

963.00 $ 575,713.07 $ - - - -2'3-,5-56-.91- $

13,646.72 $ 80,808.32 $

20,016.98

13,646.72 $

80,808.32 $ _ _---=20~,0.:...1;..:.6.;..:..9..;...8

$ 531,299.79

$

10,875.76 $ 34,107.00 $

26,296.60

$

289.82

10,056.10

6,217.07 $

18,793.12

3,688.76

26,943.93

1,378.24

33,614.78

4.38

39.86

201.54

1,959.81

674.00

2,767.74

23.75 9,476.00

$ - - - - -9-63.'8-2 $

$

-0.82 $

577,237.43 $ -1,524.36 $

18....:.,7_9_7_.5_0 $ 4,759.41 $

14,604.38 $ -957.66 $

80,808.32 $ _ _---=26:..!.:,2:::;.;9;..:.6.;..:..6..;...0

0.00 $

-6,279.62

0.82

957.66

6,279.62

$

0.00 $

-1,524.36 $

4,759.41 $

0.00 $

0.00 $

0,00

0.00

1,524.36

0.00

0.00

0.00

0.00

$

0.00 $

======

0.00 $

4,759.41 $ - 23-

0.00 $===0=,0=0 $====";,0=,0,;,,,0

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

FUND BALANCE JUNE 30

$

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

0.00 $

0,00 $ ====0',;,00=

EXHIBIT"F" Page 2

JOB TRAINING PARTNERSHIP
ACT

CHILD CARE
AND
DEVELOPMENT BLOCK GRANT

HIGH RISK YOUTH
PROGRAM

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 679,544.13 $ 614,775.28

$

3,224.33 $

15,699.89 $

10,519.82 1,913,414.75 1,741,624.13

3,370.50

90,020.86

81,635.09

$

3,224.33 $

19,070.39 $

10,519.82 $ 2,682,979.74 $ 2,438,034.50

$

3,224.33 $

15,752.57 $

7,938.78 $ 1,376,795.24 $ 1,213,298.29

1,235.70 1,403.37

164.00 277.50 2,139.54

173,433.72 237,868.87
1,378.24 36,898.29
2,478.81 2,052.81 47,942.15 23,518.03 13,486.48 804,209.48 1,403.37

129,526.31 124,733.49
32,086.31 29,569.62
2,765.27 3,214.53 40,467.79 32,671.88 20,536.92 784,869.96 2,446.50 23,269.12

$

3,224.33 $

18,391.64 $

10,519.82 $ 2,721,465.49 $ 2,439,455.99

$

0.00 $

678.75 $

0.00 $ -38,485.75 $

-1,421.49

18,193.33

6,025.97

$

0.00 $

678.75 $

0.00 $ -20,292.42 $

4,604.48

0.00

3,681.84

0.00

506,514.68

501,263.30

-1,326.42 -151.68

269.57 377.33

$

0.00 $ ===4=,3=6=0.=5=9 $ ======,=0.=00= $ 484,744.16 $ 506,514.68

- 25-

RANDOLPH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1996

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 96-720-057

TOTALS JUNE 30, 1996 JUNE 30, 1995

$ 214,110.79 $

-2,092.82 $

212,017.97 $

266,325.92

2,150.04

253,364.15

255,514.19

4,066.16

$ 216,260.83 $

251,271.33 $

467,532.16 $ -=====2=70==,3=9=2=.0=8

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

$ $
$ $ 216,260.83 $ 216,260.83 $

121,258.48 $ 36,713.80
157,972.28 $

121,258.48 $ 36,713.80
157,972.28 $

8,500.00 8,500.00

93,299.05 $ 0.00
93,299.05 $

93,299.05 $ 216,260.83 309,559.88 $

150,382.00 111,510.08 261,892.08

Total Liabilities and Fund EqUity

$ 216,260.83 $

251,271.33 $

467,532.16 $ -=====2=70:=,=39=2=.0.=8

See notes to the general purpose financial statements.

- 26-

RANDOLPH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30,1996

EXHIBIT "H"

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
PROJECT 96-720-057

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30. 1995

REVENUES

State Funds Taxes and other Funds
Total Revenues

$

$

9.750.75

$

9l50.75 $

370,668.94 $ 370,668.94 $

370,668.94 9.750.75 $
380,419.69 $

10,683.98 10,683.98

EXPENDITURES

Capital Outlay Building and Building Improvements

$

0.00 $

427l51.89 $ 427.751.89 $

8,500.00

Excess of Revenues over (under) Expenditures

$

9,750.75 $

-57,082.95 $ -47.332.20 $

2,183.98

OTHER FINANCING SOURCES (USES)

Operating Transfers In

$

Operating Transfers Out

Total Other Financing Sources (Uses) $

95,000.00 95,000.00

$

95,000.00 $ 180,878.77

-180,878.77

$

95,000.00 $

0.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$ 104,750.75 $

FUND BALANCE JULY 1

111,510.08

-57,082.95 $ 150,382.00

47,667.80 $ 261,892.08

2,183.98 259,708.10

FUND BALANCE JUNE 30

$ 216,260.83 $

93,299.05 $ 309,559.88 $===26=1=,8=9=2.=0=8

See notes to the general purpose financial statements.

- 27-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1996 Grant National School Lunch Program 1996 Grant Food Distribution Program
Total U. S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Education of Children with Disabilities in State Operated or Supported Schools 1996 Grant Grants to Local Educational Agencies 1995 Summer 1996 Grant Title II Eisenhower Professional Development 1996 Grant Title VI Innovative Education Program Strategies 1996 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1996 Grant Preschool 1996 Grant Safe and Drug-Free Schools 1996 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1996 Grant Tech-Prep Education 1996 Grant Through Georgia Department of Human Resources West Central Georgia Regional Mental Health, Mental Retardation and Substance Abuse Center High Risk Youth Program Contract No. 427-93-51745 Contract No. 427-93-614-011
Total U. S. Department of Education

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 $
* 10.555 10.550
$

201,215.82
438,727.50 $ (1 )
639,943.32 $

(2)
803,212.07 (3) (1 )
803,212.07

84.009 $
* 84.010 * 84.010

963.00 $
12,753.65 562,959.42

963.82 (3)
14,278.01 562,959.42

84.281

23,556.91

18,797.50

84.298

13,646.72

14,604.38 (3)

84.027 84.173 84.186

80,808.32 20,016.98
8,505.64

80,808.32 26,296.60 (3)
8,505.64

84.048 84.243

40,598.64 58,771.86

44,490.28 (3) 60,286.39 (3)

84.186 84.186
$

5,804.42 4,715.40
833,100.96 $

5,804.42
4,715.40 "
842,510.18

- 28 -

RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL FINANCIAL ASSiSTANCE
YEAR ENDED JUNE 30, 1996

SCHEDULE "1"

Total Federal Financial Assistance

$ 2,002,956.46 $ 2,090,675.26

Major Programs are identified by an asterisk (*) in front of the CFDA number.
(1) The Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. Commodities valued in the amount of $35,678.46 were received during the current fiscal year and were not included in the system's financial statements.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1996 National School Lunch Program.
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.
See notes to the general purpose financial statements.
- 29 -

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

SCHEDULE "2"

INTEREST BEARING ACCOUNTS
First State Bank and Trust Company, Albany, Georgia
N,O.W. Accounts (2.50%)
First State Bank of Randolph County, Cuthbert, Georgia
N.O.W. Account (2.80%)
Certificates of Deposit
No. 16807 (5.10%) No. 16808 (5.10%) No. 16813 (5.05%) No. 16822 (5.10%)

$ 776,491.10

$ 2,744.93
500,000.00 300,000.00
10,000.00 111,500.00

924,244.93

$ 1,700,736,03

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

RANDOLPH COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "3"

AT&T Reimbursement for Communications
Children and Youth Coordination Council In-School Probation
Clay County Board of Education Tuition
Defense, U. S. Department of Department of the Army R.O.T.C. Program
Education, Georgia Department of Quality Basic Education Deferred Summer Salaries - FY 1996 Food Services School Breakfast Program National School Lunch Program Vocational Education State Federal Other State Programs Alternative Programs Apprenticeship Program Lottery Programs Alternative School Program Safe Schools Grant Federal Programs Elementary and Secondary Education Act Title I Education of Children with Disabilities in State Operated or Supported Schools Grants to Local Educational Agencies Title VI Innovative Education Program Strategies Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Health and Human Services, U. S. Department of Head Start

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$

10.12

$

10.12

$

946.32

946.32

33,360.58

33,360.58

12,105.49

12,105.49

635,819.00
1,236.00 900.00
3,993.73

4,959.52 3,198.74
46,159.77
1,977.41 116.82

635,819.00
4,959.52 3,198.74
1,236.00 46,159.77
900.00 3,993.73
1,977.41 116.82

674.00 96,933.65
4,827.04
9,027.82 3,399.20
$ 253,364.15
37,059.34

674.00 96,933.65
4,827.04
9,027.82 3,399.20
253,364.15
37,059.34

- 31 -

RANDOLPH COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30, 1996

SCHEDULE "3"

Hertzberg - New Method, Incorporated Reimbursement for Supplies
Human Resources, Georgia Department of Adult Education Child Care and Development Block Grant Family Connection High Risk Youth Grant
Muscogee County School District Reimbursement for Substitute Teachers
Medley Hotel and Restaurant Supply Company, Incorporated Reimbursement for Supplies
New Horizons Reimbursement for Supplies
Office of School Readiness Pre-Kindergarten Program
Randolph County Tax Commissioner County Wide School Tax
Interest Earned Various Sources

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$

61.13

$

61.13

$ 3,170.11

2,163.26 40,468.32
1,696.03

3,170.11 2,163.26 40,468.32 1,696.03

168.30

168.30

875.05 1,153.00 39,095.08 37,695.09 5,744.26 - - - - $ 2,150.04

875.05 1,153.00 39,095.08 37,695.09 7,894.30

$ 735,138.88 $ 293,855.30 $ 255,514.19 $ 1,284,508.37

..

See notes to the general purpose financial statements.

- 32 -

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

SCHEDULE "4"

RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF TAXES AND OTHER REVENUE
YEAR ENDED JUNE 30, 1996

SCHEDULE "5"

Taxes County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Sources Compensation for Loss of Assets Indirect Cost Special Revenue Fund Interest Earned Medical Assistance Randolph County Milk Court Settlement Reimbursements for Salaries Various Sources Rents Sales Lunches and Breakfast Shared Service Contributions Clay County Board of Education Tuition Other

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

$ 1,204,878.82 3,688.45 3,563.14

$ 1,204,878.82 3,688.45 3,563.14

43,892.33

7,169.69 33,310.32 $ 11,885.89 $

20,293.19

69.38

1,021.95 38,618.02

73,253.23

13,303.86 156,983.04
13,464.90

3,370.50 1,441.86

9,750.75

43,892.33
7,169.69 54,946.96
20,293.19 69.38
1,021.95 38,618.02
73,253.23
16,674.36 156,983.04
14,906.76

$ 1,540,187.71 $ 90,020.86 $ 9,750.75 $ 1,639,959.32

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

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

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 Federal Indirect Costs Other Expenditures
Nonoperating Costs Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 5,660,142.07 $ 1,379,107.45 $

1,450,306.56

268,415.17

31,839.10

24,265.43

74,346.32

37,688.08

8,311.75

30,437.24

11,147.05

51,819.20

10,863.83

1,248.90

25,547.80

602.60

31,367.28

6,400.94

1,850.00

2,330.50

6,279.00

10,150.00

36,714.31

55,452.62

347,840.26

194,585.48

390,003.40

13,718.59

416,255.16

95,121.98

15,088.57

15,375.50

12,956.74

7,169.69

9,987.05

22,132.85

7,039,249.52 1,718,721.73
56,104.53 112,034.40
8,311.75 41,584.29 62,683.03
1,248.90 26,150.40 37,768.22
1,850.00 2,330.50 16,429.00 92,166.93 542,425.74 403,721.99 416,255.16 110,210.55 28,332.24 7,169.69 32,119.90

183,261.61

231,284.74

414,546.35

Total Expenditures

$ 8,449,949.33 $ 2,721,465.49 $ 11,171,414.82

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

RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT
LOTTERY PROGRAMS
YEAR ENDED JUNE 30, 1996

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Water, Sewer and Cleaning Services Communications Other Purchased Services Supplies Food Usage Books, Textbooks and Periodicals Due and Fees Other Expenditures
Nonoperating Costs Equipment

ALTERNATIVE SCHOOL
PROGRAM

APPLIED TECHNOLOGY
LABS

DISTANT LEARNING

$

33,065.12

1,334.88

$

674.01

8,600,00 $

99,080.00

Total Expenditures

$

43,000.00 $

99,080.00 $====67=4=.0:=1

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

SCHEDULE "7"

INSTRUCTIONAL PRE-KINDERGARTEN

TECHNOLOGY

PROGRAM

SAFE SCHOOLS
GRANT

TECHNOLOGY INSTALLATION

TOTAL

$

$

4,308.80

55,235.00

$

59,543.80 $

227,300.58 47,845.16 2,449.45 1,187.50 840.12 1,163.97 21,491.55 $ 997.41 1,576.69 20.00 2,329.64
8,912.99

$ 17,680.00

$ 30,405.00

227,300.58 47,845.16 2,449.45 1,187.50 840.12 31,568.97 77,219.48 997.41 2,911.57 20.00 2,329.64

171,827.99

316,115.06 $

17,680.00 $

30,405.00 $

566,497.87

- 37 -

THIS PAGE LEn BLANK

RANDOLPH COUNTY BOARD OF EDUCATION ANALYSrS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1996

SCHEDULE "S"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$

4,031,984.00 $ _ _.....:1~4.;;.J0,~78:;.;:;9.:.:.0~0

$ 6,075,828.45 174,749.86 $ _ _-..:...14;..;:0~,2:..;,4,;;.:6.~00;;..
$ 6,250,578.31

-49,259.96 $ 6,201,318.35

Amount of Underexpenditure for Total Allotment

$

0.00 $ ======54=3=.0==0

Note: (1) Salary accruals (July and August 1996 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1995 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

See notes to the general purpose financial statements. - 39 -

RANDOLPH COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REqUIREMENTS - BY PROGRAM
GENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1996

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*)
Grades 9 -12 r)
High School Laboratories (*) Vocational Education Laboratories (*)
Total General and career Education Programs SPECIAL EDUCATION PROGRAMS
RegUlar Programs Category /I (*) Category "I (*) Category IV (*) Sub-Total - RegUlar Category V (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*) Total Thirteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Thirteen Weighted and Media Center Programs
STAFF DEVELOPMENT PROGRAMS Cost of Instruction ~rofessional Development
Total Staff Development Programs (*) Identifies Thirteen Weighted Programs. (1) Salary accruals (July and August 1996 Deferred
Salaries) reported as expenditures in the General Purpose Financial Statements are not inclUded on this analysis in order to comply with program guidelines.
See notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

284,505.00

$

256,054.50

662,025.00

595,822.50 $

$

946,530.00 90 $

851,877.00 $

286,844.00 90

258,159.60

784,826.00 90

706,343.40

414,830.00 90

373,347.00

514,844.00 90

463,359.60

269,969.00 90

242,972.10

$ 3,217,843.00

$ 2,896,058.70 $

13,617.00 13,617.00
13,617.00

$

498,846.00

$

448,961.40 $

0.00

$

498,846.00 90 $

448,961.40 $

30,182.00 90

27,163.80

$

529,028.00

$

476,125.20 $

$

139,988.00 90 $

125,989.20 $

$ 3,886,859.00

$ 3,498,173.10 $

000
000 0.00 13,617.00

$

102,302.00 90 $

29,206.00 90

92,071.80 $ 26,285.40

$

131,508.00

$

118,357.20 $

0.00 0.00

$ 4,018,367.00

$ 3,616,530.30 $

13,617.00

$

11,765.00

35,978.00

$

11,765.00 $

35,978.00

$

47,743.00 100 $

47,743.00 $

(2) Salary accruals (JUly and August 1995 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are inclUded on this analYl>is as required by program guidelines.

000 000 0.00
"

- 40 -

SCHEDULE ''9''

'>TOTAL
REQUIRED

ACTUAL EXPENDITURES SALARIES (1 )(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

256,054.50 $

609,439.50

$

865,494.00 $

258,159.60

706,343.40

373,347.00

463,359.60

242,972.10

$ 2,909,675.70 $

282,870.14 $ 756,924.07 1,039,794.21 $ 299,527.56 736,961.73 400,945.63 550,042.25 261,254.38 3,288,525.76 $

7,424.28 $

290,294.42

19,949.37

776,873.44

27,373.65 $ 1,067,167.86 $

8,520.11

308,047.67

25,875.49

762,837.22

14,930.08

415,875.71

17,390.81

567,433.06

30,676.04

291,930.42

124,766.18 $ 3,413,291.94

0.00 0.00 0.00 0.00 0.00 0.00

$

448,961.40

$

$

448,961.40 $

27,163.80

$

476,125.20 $

$

125,989.20 $

$ 3,511,790.10 $

239,859.81 $ 2,161,153.03
10,555.99
2,411,568.83 $
43,700.13
2,455,268.96 $
185,769.63 $
5,929,564.35 $

4,895.87 $ 4,533.79 3,324.27

244,755.68 2,165,686.82
13,880.26

12,753.93 $ 2,424,322.76

942.11

44,642.24

13,696.04 $ 2,468,965.00

1,783.78 $

187,553.41

140,246.00 $ 6,069,810.35

0.00 0.00
0.00

$

92,071.80 $

26,285.40

.$

118,357.20 $

146,264.10 $
146,264.10 $

$ 34,503.86
34,503.86 $

146,264.10 34,503.86
180,767.96

0.00 0.00

$ 3,630,147.30 $ 6,075,828.45 $

174,749.86 $ 6,250,578.31 $

0.00

$

11,765.00

35,978.00

$ _ _.4.7."",.7.4...3...0..",=0

$

32,212.68 $

32,212.68

16,770.35

16,770.35

$

48,983.03 $

48,983.03 $

..;;0.0..0....

- 41 -

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

SCHEDULE "10"

BOARD MEMBER ADDRESS
Mr. Henry L. Cook, Chairman (*) P. O. Box 5 Cuthbert, Georgia 31740
Mr. C. Larry Brown (*) Route 1, Box 143 Coleman, Georgia 31736
Mr. John Davis (*) 208 Davis Street ~uthbert, Georgia 31740
Mr. Jimmy Gilbert (*) West Lake Drive Cuthbert, Georgia 31740
Mrs. Ella Jean King (*) P. O. Box 132 Cuthbert, Georgia 31740

COMPENSATION

TRAVEL

$

1,800.00

1,575.00 $

69.00

1,200.00

25.50

1,800.00

1,725.00

117.25

$

8,100.00 $====2=1=1.=75=

(*) Denotes Board Members Serving as of June 30, 1996

See notes to the general purpose financial statements. - 42 -

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
March 14, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Randolph 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 Randolph County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 14, 1997. 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 Randolph County Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

96CRL-IO

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

CLV:gp 96CRL-IO

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 14, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Randolph 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 Randolph County Board ofEducation as of and for the year ended June 30, 1996, and have issued our report thereon dated March 14, 1997. 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 Randolph County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996:

(1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-UplResolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

96CRL-50

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

CLV:gp 96CRL-50

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 14, 1997

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Randolph County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 14, 1997. 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 also audited the Randolph County Board ofEducation's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

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

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the Randolph County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

96CRL-80

We conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Cir"cular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Randolph County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1996.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.

CLV:gp 96CRL-80

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 14, 1997

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

SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REOUIREMENTS APPLICABLE TO NONMAJORFEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Randolph County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 14, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit of the fiscal year 1996 general purpose financial statements of the Randolph County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1996. As required by OMB 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 Randolph County Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

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

96CRL-120

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
"
Respectfully submitted,
L~
Claude L. Vickers State Auditor
CLV:gp 96CRL-120

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
March 14, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Randolph 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 Randolph County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 14, 1997. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
The management ofthe Randolph 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.

96ICL-3

In planning and perfonning our audit of the general purpose financial statements of the Randolph County Board of Education for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose ofexpressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the nonnal course of perfonning their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition disclosed above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be perfonned in our audit ofthe Randolph County Board of EducationIS financial statements and this report does not affect our report thereon dated March 14, 1997.
This report is intended for the infonnation of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Re~

CLV:gp 96ICL-3

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 14, 1997

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Randolph 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 Randolph County Board of Education as of and for the year ended June 30, 1996, and have issued our report thereon dated March 14, 1997. 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 also audited the Randolph County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated March 14, 1997.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Randolph County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1996, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 14, 1997.
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The management ofthe Randolph County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are r~uired to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

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, 1996, the Randolph County Board of Education expended 71% of its total Federal financial assistance under majQr Federal financial assistance programs.

We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which

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are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we" do not express such an opinion.
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 of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable condition described above is not a material weakness.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
R~ submitted,

CLV:gp 96ICL-6

Claude L. Vickers State Auditor

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7201-93-02
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$163.06 for the operations portion of the Vocational Education Laboratories Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Finding Resolved Audit Control Number 7201-93-03
The audit report for the year ended June 30, 1993, stated that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$5,059.59 for the StaffDevelopment - Professional Development Program. For the year under review, an adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $8,905.43 Audit Control Number 7201-94-01
The audit report for the year ended June 30, 1994, noted that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $8,905.43 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 of Education to refund this underexpenditure as required. The underexpenditure of $8,905.43 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.
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RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGSAND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

PRIOR YEAR/CURRENT YEAR

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7201-93-01

The audit report for the year ended June 30, 1995, noted that the management of the Randolph 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 ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.

CURRENT YEAR

EXPENDITURESILIABILITIESIDISBURSEMENTS

Failure to Meet Expenditure Requirements

Financial Statements

Nonmaterial Noncompliance

Amount: $543.00

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.Audit Control Number 7201-96-01

For the year under review, the Board had underexpenditures of Quality Basic Education (QBE) funds of $543.00 for Operational Costs portion of the Thirteen Weighted Programs. QBE regulations require that Operational Cost (expenditures) for all Thirteen Weighted Programs should equal or exceed 100% of the original allotment for Operational Cost plus 100% of the mid-term allotment allocated to operational costs of the Thirteen Weighted Programs. This underexpenditure occurred because expenditures did equal or exceed the minimum expenditure requirement for QBE Operational Cost. The underexpenditure of$543.00 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.

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RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30,1996
CURRENT YEAR
ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditure Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $176.66 Audit Control Number 7201-96-02
In the year under review, expenditures of$176.66 were made for travel and supplies and charged to the Head Start - 95 Grant (CFDA 93.600) after the grant period had expired. These expenditures do not appear to be allowable in accordance with cost allowability criteria defined in Office ofManagement and Budget (OMB) Circular A-87 which states, in part, Ita grantee may charge to the award only costs resulting from obligations of the funding periodIt. This questioned cost occurred because management failed to morutor the Board's compliance with OMB Circular A-87. The U.S. Department of Health and Human Services should review this matter to determine the allowability of these expenditures.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7201-96-03
For the year under review, the Board failed to submit a copy of the 1995 audit report to the Georgia Department ofMedical Assistance and to the Office ofthe Governor within the required 30 day time period. Paragraph Bf ofOMB Circular A-128 requires that recipients ofFederal financial assistance submit copies of single 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 grantor agencies in accordance with audit distribution requirements.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7201-96-04
For the year under review, the Board failed to perform a physical inventory count of equipment for the Title I - Grants to Local Educational Agencies program (CFDA 84.010). Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA) requires an annual inventory of all equipment acquired
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RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996 CURRENT YEAR ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7201-96-04 in whole or part with state or Federal funds. This condition occurred because management failed to follow the guidelines set forth in FMGLUA. Procedures should be implemented to ensure that an annual physical inventory of Title I equipment is performed as required.
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SECTION V PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

RANDOLPH COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30,1996
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7201-93-01
We concur with the recommendation. Due to the current staffing and budgetary limitations, the Board has decided not to pursue the recording of general fixed assets on the financial statements.
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $543.00 Audit Control Number 7201-96-01
We concur with the finding. Due to the inexperience of the Bookkeeper closing for the first time, this was an oversight. Funds will be monitored more closely.
ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditure Federal Financial Assistance Major Program Nonmaterial Noncompliance Amount: $176.66 Audit Control Number 7201-96-02
We concur with the finding. The Head Start Bookkeeper will monitor expenses more closely to ensure that all are within the grant period.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7201-96-03
We concur with the finding. Procedures are in place to ensure adequate distribution promptly.
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RANDOLPH COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1996 ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7201-96-04 We concur with the finding. Procedures are in place to perform an annual physical inventory for Title I.
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