Audit report, Richmond County Board of Education, Augusta, Georgia, year ended June 30, 1995

GA
A<aoo
.R\
lf:2(:,
Rs
'. 199t.!-l5
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT RICHMOND COUNTY BOARD OF EDUCATION
AUGUSTA, GEORGIA YEAR ENDED JUNE 30, 1995

RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALLFUNDTYPESANDACCOUNTGROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

24

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

32

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

34

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

36

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

37

K

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

38

RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

39

2 CASH_AND CASH EQUIVALENTS

42

3 INVESTMENTS

43

4 ACCOUNTS RECEIVABLE

44

5 DEBT SERVICE REQUIREMENTS TO MATURITY

46

SCHEDULE OF REVENUE

6

STATE

48

7

LOCAL AND OTHER

50

SCHEDULE OF EXPENDITURES BY OBJECT

8

GOVERNMENTAL FUND TYPES

51

9

LOTTERY PROGRAMS

52

10

FIDUCIARY FUND TYPE

EXPENDABLE TRUST FUNDS

54

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

11

OVERALL

55

12

BYPROGRAM

56

13 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS

58

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

RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 1, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Richmond 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 Richmond County Board of Education, as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

95ARL-13*

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

A copy ofthis report has been filed as a pennanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

CLV:gp 95ARL-13*

Claude L. Vickers State Auditor

RICHMOND COUNTY BOARD OF EDUCATION - 1-

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Consumable Supplies
Food
Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Capital Lease Agreements Compensated Absences Bond Debt
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 11,029,870.43 $ 3,326,078.83 $ 3,607,990.32

12,720,781.71

664,000.00

1,067,413.61

1,995,528.91

612,981.86

2,133,616.15

29,483.12
554,743.70 144,266.29

$ 26,951,681.90 $ 6,050,100.85 $ 4,884,972.18

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Capital Lease Agreements Compensated Absences General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Encumbrances For Expired Grant Balances/Questioned Costs For Inventories Consumable Supplies Food Donated Commodities Purchased Food For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

$ 3,641,211.17 $ 357,165.78 1,365, 148.59
$

133,695.09 198,147.55

$ 3,641,211.17 $ 1,722,314.37 $ 331,842.64

$

275.70 $

482,255.56 110,003.98

2,133,616.15

$ 2,726,151.39 $ 20,584,319.34
$ 23,310,470.73 $

903.24 116,679.48
29,483.12 554,749.06 144,266.29
$ 846,081.19 $ 3,481,705.29 4,327,786.48 $

3,167,719.45 3,167,719.45 1,385,410.09 4,553,129.54

Total Liabilities and Fund Equity

$ 26,951,681.90 $ 6,050,100.85 $ 4,884,972.18

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Onl:z'.l

JUNE 301 1995

JUNE 301 1994

$ 2,857,613.66 $

86,178.66

$ 20,907,731.90 $ 9,440,393.36

13,384,781.71

26,082,749.50

20,820.64

74.30

3,696,819.32

3, 160,901.48

$

2,878,434.30

2,163,099.27
554,743.70 144,266.29
2,878,434.30

1,956,189.70
480,661.56 100,354.78
2,748,575.45

15,039,723.89 689,740.33
23,541,565.70

15,039,723.89 689,740.33
23,541,565.70

15,200,624.93 694,128.97
25,171,424.55

$ 2,878,434.30 $

86,252.96 $ 42,149,464.22 $ 83,000,906.41 $ 85,036,004.28

$ 3,998,376.95 $ 5,900,TT3.56

1,365,148.59

1,369,791.15

7,499.44

133,695.09

198,147.55

$

37,490.49

37,490.49

23,329.09

$ 15,039,723.89

15,039,723.89

15,200,624.93

689,740.33

689,740.33

694,128.97

26,420,000.00

26,420,000.00

27,920,000.00

$

37,490.49 $ 42,149,464.22 $ 47,882,322.89 $ 51,116,147.14

$ 2,878,434.30
$ 2,878,434.30 0.00 $
$ 2,878,434.30 $ $ 2,878,434.30 $

48,762.47 48,762:47

$

20,838.46

$

1,178.94

0.26

2,878,434.30

2,748,575.45

598,935.04

276,425.94

110,003.98

111,540.57

2,163,099.27

1,956,189.70

554,749.06 144,266.29 3,167,719.45

480,661.56 100,354.78 910 410.19

$ 9,618,386.33 $ 6,604,996.91

25,500,197.19

27,314,860.23

$ 35,118,583.52 $ 33,919,857.14

86,252.96 $ 42,149,464.22 $ 83,000,906.41 $ 85,036,004.28

-3 -

RICHMOND COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 1995

REVENUES
State Funds Federal Funds Local and Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay Debt Service
Principal Interest Escrow Agent Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Ac:c:rued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds
Par Value Discount on Bonds Sold Payments to Bond Escrow Agent Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Consumable Supplies Inventory - Net Change in Period Food Inventory - Net Change in Period
Donated Commodities Purchased Food Residual Equity Transfer

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s 89,573,577.77 S 6,442,323.51 $ 1,761,80523

1,842,720.32 15,525,473.57

53,945,497.97

2,940,847.23

39,940.54

$ 145,361,796.06 $ 24,908,644.31 $ 1,801,745.77

s 91,626,97123 $ 7,803,189.61

4,184,173.18 2,516,462.35 4,135,606.70 1,746,682.17 9,946,038.20
820,464.13 15,483,918.67
6,364,691.62 1,808,520.32
22,774.46 1,141,574.62 2,102,347.47

1,458,850.12 764,604.60 992,135.72 659,286.87

1,145,352.70 20,914.45

206,692.13 11,425,438.31
516,353.85 64,885.30 $

3,625,774.96

1,100,210.93 489,605.02

46,807.47 4,689.70

s 143,490,041.07 $ 25,109,200.83 $ 3,625,774.96

s

1,871,754.99 $

-200,556.52 $ -1,824,029.19

s

986,117.36

s

-3,686, 168.00

s -2,700,050.64 $

170,385.00 S 3,515,783.00 170,385.00 $ 3,515,783.00

s

-828,295.65 $

s -30,171.52

1,691,753.81

24,022,609.47

4,239,964.61

2,861,375.73

116,156.65

0.26

74,082.14 43,911.51
-0.26

FUND BALANCE JUNE 30 The notes to the general purpose financial statements are an integral part of this statement.
-4-

s 23,310,470.73 $ 4,327,786.48 $ 4,553,129.54

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS (Memorandum Only)
YEAR ENDED JUNE 301 1995 JUNE 30.1994

$ 97,777,706.51

17,368,193.89

$ 2,939,735.18

59.866.020.92 $

$ 2,939,735.18 $ 175.011.921.32 $

$ 3.186.59

97,777,706.51 $ 17,368,193.89 59.869.207.51

87,832,268.83 17,183,000.51 57,637,598.62

3,186.59 $ 175.015.107.91 $ 162.652.867.96

$ 99,430,160.84

5,643,023.30 3,281,066.95 5,127,742.42 2,405,969.04 9,946,038.20
820,464.13 16,629,271.37 6,385,606.07
1,808,520.32 206,692.13
11,448,212.77 1,657,928.47 $ 5,793,007.73

$ 1,500,000.00 1,299,515.00

2,647,018.40 1,793,809.72

10,361.33

10,361.33

$ 2,809,876.33 $ 175.034,893.19 $

$ 129,858.85 $

-22,971.87 $

$ 99,430,160.84 $ 92,703,289.98

1,756.00

5,643,023.30 3,281,066.95 5,127,742.42 2,405,969.04 9,946,038.20
820,464.13 16,629,271.37 6,385,606.07 1,808,520.32
206,692.13 11,448,212.77
1,659,684.47 5,793,007.73

5,362,826.19 3,028,751.46 4,056,408.55 2,284,373.33 9,300,957.25
739,641.50 15,128,599.07 5,662,501.82
1,912,258.22 173,264.34
9,569,575.79 1,412,904.68 1,927,196.08

2,647,018.40 1,793,809.72
10,361.33

2,133,343.48 1,176,948.91
507,628.75 7064.47

1,756.00 $ 175,036,649.19 $ 157.087,533.87

1.430.59 $

-21,541.28 $ 5,565,334.09

$

986,117.36

3,686,168.00

-3,686,168.00

$

986.117.36

$ 129,858.85 $

963,145.49 $

2,748,575.45

33,872,525.26

116,156.65

74,082.14 43,911.51
0.00

$

59,667.61

-398,842.87

$

986,117.36

3,686,168.00

-3,686, 168.00

18,120,000.00 -104,785.85
-16,706,371.28 1,128,434.96 2,139,183.00 -2,139,183.00

$

986,117.36 $ 2,098,102.57

1,430.59 $ 47,331.88

964,576.08 $
33,919,857.14
116,156.65
74,082.14 43,911.51
0.00

7,663,436.66 26,150,080.93
-222,596.70 309,771.33
19,164.92

$ 2,878,434.30 $ 35,069,821.05 $

48,762.47 $ 35,118,583.52 $ 33,919,857.14

-5-

G

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

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Local and Other Funds

$ 88,044,107.00 $ 89,573,577.TT

1,571,841.00

1,842,720.32

59,TT0,128.31

53,945,497.97

Total Revenues

$ 1491386,076.31 $ 145,361 z796.06

EXPENDITURES

Current

Instruction

$ 92,310,795.18 $ 91,626,971.23

Support Services

Pupil Services

4,231,248.15

4,184,173.18

Improvement of Instructional Services

2,616,637.89

2,516,462.35

Educational Media Services

4,950,815.78

4,135,606.70

General Administration

1,555, 166.04

1,746,682.17

School Administration

9,727,021.00

9,946,038.20

Business Administration

900,965.01

820,464.13

Maintenance and Operation of Plant

17,616,610.98

15,483,918.67

Student Transportation Services

6,589,004.00

6,364,691.62

Central Support Services

1,937,692.56

1,808,520.32

Other Support Services

Food Services Operation

9,000.00

22,TT4.46

Other Operations of Non-Instructional Services

914,307.84

1,141,574.62

Capital Outlay

1,939,224.53

2,102,347.47

Debt Service

2,484,471.00

1,589,815.95

Total Expenditures

$ 147,782,959.96 $ 143,490,041.07

Excess of Revenues over (under) Expenditures

$ 1,603,116.35 $ 1,871,754.99

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

986,117.36

$ -4,051,8TT.OO

-3,686, 168.00

Total Other Financing Sources (Uses) $ -4,051,BTT.OO $ -2,700,050.64

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

$ -2,448,760.65 $

-828,295.65

FUND BALANCE JULY 1, 1994

2,448,760.65

23,343,624.62

Residual Equity Transfer

0.26

FUND BALANCE JUNE 30, 1995

$

0.00 $ 22,515,329.23

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 4,534,182.13 $ 6,442,323.51 17,628,614.96 15,525,473.57 3,232,617.33 2,940,847.23
$ 2513951414.42 $ 2419081644.31

$ 9,254,902.46 $ 7,803,189.61

1,783,534.20 1,005,168.11
16,092.00 758,589.08

1,458,850.12 764,604.60 992,135.72 659,286.87

344,346.27 71,570.00

1,145,352.70 20,914.45

700,012.00 10,703,804.00
831,921.37 55,298.00

206,692.13 11,425,438.31
516,353.85 64,885.30 51,497.17

$ 25,525,237.49 $ 25,109,200.83

$ -129,823.07 $ -200,556.52

$

0.00 $ 170,385.00

$

0.00 $ 170,385.00

$ -129,823.07 $ -30,171.52 129,823.07 3,658,948.27 -0.26

$

0.00 $ 3,628,TT6.49

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

RICIDv1OND COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEI\.1ENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Richmond 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 of the departures from generally accepted accounting principles disclosed in these notes, the financial statements of the Board have been prepared in conformity with generally accepted
accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB)
is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the Richmond County Board of Education.
Based upon the application of the above criteria, the Richmond 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 Richmond County, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial
reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
- 8-

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLE TRUST FUNDS Davidson Trust Fund - the fund used to account for the principal and earnings which may be expended to provide financial assistance to needy students of Davidson Fine Arts Magnet School.
Nora Coxwell Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students.
- 9-

RICHMDND COUNTY BOARD OF EDUCATION

EXl-llBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Robetta McKenzie Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students.
AGENCY FUNDS - the funds used to account for assets held for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for general obligation bonds outstanding, material accrued compensated absences and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust 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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share ofthese contracts. During fiscal year 1995, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1994 and ending in early June 1995. Personnel contracts for this employment period specify that compensation be paid
- 10 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

in twelve equal monthly payments beginning in September 1994 and ending in August 1995. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 1995, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1995, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1995. Also, the State's portion of the compensation paid in July and August 1995 was received and recorded as revenue in the fiscal year subsequent to June 30, 1995. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1994, were recorded in the year ended June 30, 1995. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

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

liabilities.



BUDGET

The Richmond 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 fund type 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:

- 11 -

RICHMOND COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

General Fund

Special Revenue
Fund

$ -828,295.65 $ -30, 171.52

24,022,609.47 4,239,964.61

0.26

-0.26

-678,984.85
-480,661.56 -100,354.78
$22,515,329.23 $3,628,776.49

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

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board are stated at cost. Donated investments are stated at fair market value as of the date donated. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among avenues of investment or among institutional bids for deposits, the highest rate ofretum shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(I) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

- 12 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist ofgrant reimbursements due from Federal, State or other 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 Richmond County Board of Commissioners fixed the property tax levy for the 1994 tax year (calendar year) on September 20, 1994 (levy date). Taxes were due on December 8, 1994. The lien date for property taxes was January 1, 1994. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1995 since their collection meets the criteria of GASB codification section P70.103. The Richmond 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. In addition, the Clerk of the Superior Court of Richmond County collects intangible recording taxes for the Board of Education, withholds 6% of taxes collected as a fee for tax collection, and remits the balance of taxes collected to the Board.

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

School Operations School Bonds

18.56 mills ___Llli mills

19.57 mills

- 13 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
CONSUMABLE SUPPLIES Inventories of athletic, custodial and instructional supplies are recorded as expenditures under the consumption method and are valued at weighted average cost. These inventories are recorded as assets at the time of purchase. Inventories of maintenance and transportation supplies are recorded as expenditures under the purchases method and are valued on the Combined Balance Sheet at weighted average cost. Inventories reported on the balance sheet are equally offset by a reservation of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
RESERVED FUND BALANCE
Reserve for Encumbrances - This reserve constitutes the unperformed portion of purchase orders, contracts and other commitments for goods and services at year end. Encumbrances outstanding are reported as a reservation of fund balance and do not constitute expenditures or liabilities in the current year because the commitments will be honored during the subsequent year.
- 14 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 1: SUMrvfARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS AND INVEST:MENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
- 15 -

RICHMOND COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTrvf.ENTS

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

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

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

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $27,165,809.44. The amounts of the total bank balances are classified into three categories of credit risk:

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

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

Risk Category

Bank Balance

1

$ 403,304.20

2

10,076,825.00

3

16,685,680.24

Total

$27.165,809 44

CATEGORIZATION OF INVESTrvf.ENTS Investments are classified as to risk by the three categories described below:

- 16 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 2: DEPOSITS AND INVESTMENTS

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

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

At June 30, 1995, the carrying amount of the Board's total investments was $13,384,781.71 and the market value ofthese investments, excluding investments in the State of Georgia, Local Government Investment Pool, were $960,025.50. The investments are classified as to risk categories as follows:

Type oflnvestment
U. S. Government Common Stock
Total
Local Government Investment Pools
Total Investments
Undetenninable

Risk Categories 2

$ 664,000.00 $ 315,651.50

0.00 $

$ 979 65] 50 $

000 $

Carrying

Market

3

Amount

Value

0.00. $ 664,000.00 $ 664,000.00

315,651.50

296,025.50

000 $ 979,651.50 $ 960025 50

12,405,130.21



$13 384 781 71

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

- 17 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 4: RISK MANAGEMENT

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

The Board has established a limited risk management program for workers' compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Expenditures for claims incurred are recorded when payment is made. An excess coverage insurance policy covers individual claims in excess of $225,000.00 loss per occurrence, up to the statutory limit.

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

1994 1995

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

$

0.00 $ 286,357.25 $ 286,357.25 $

0.00

$

0.00 $ 401,531.02 $ 401,531.02 $

0.00

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditures recorded when payments for claims are made.

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

1994 1995

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $ 41,858.33 $

$

0.00 $ 39,664.59 $

Claims Paid

End of Year Liability

41,858.33 $

0.00

39,664.59 $

0.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Richmond County Board of Education has entered into various lease agreements as lessee for school buses, operating vehicles and office equipment. These lease agreements qualify as capital leases for accounting

- 18 -

RICHMOND COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 1995

Note 5: GENERAL LONG-TERM DEBT

purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

The Richmond County Board of Education entered into an agreement on April 1, 1994, with Richmond County Public Facilities, Incorporated (RCPF), for the acquisition and construction of school facilities. Under the terms of the lease agreement, the Board will make semi-annual payments through November 1, 2009.

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

Balance July 1, 1994 Additions Deletions Balance June 30, 1995

Ca11ital Leases

RCPF

Other

Compensated Absences

General Obligation
Bonds

Total

$13,470,000.00 $ 1,730,624.93 $ 694,128.97 $27,920,000.00 $43,814,753.90

986,117.36

986,117.36

1,147,018.40

4,388.64 1,500,000.00 2,651,407.04

$13 410 000 00 $ l 562 22382 $ 682240 33 $26 420 00Q 00 $42 142 464 22

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

Fiscal Year Ended June 30
1996 1997 1998 1999 2000 2001 and thereafter
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Ca11ital Leases

RCPF

Other

General Obligation
Bonds

Total Debt

$ 1,352,012.50 $ 840,295.38 $ 2,901,847.50 $ 5,094,155.38

1,345,947.50

498,301.01 2,922,080.00 4,766,328.51

1,345,726.25

224,554.77 2,931,515.00 4,501,796.02

1,342,070.00

168,820.16 2,938,425.00 4,449,315.16

1,340,575.00

2,948,348.75 4,288,923.75

13,327 2 0 7 .50

20,093,826.25 33,421,033.75

$20,053,538.75 $ 1,731,971.32 $34 236 042 SQ $56 521 552 S'.Z

6,583,538.75

162247.43

$13 4:ZQ QQQ QQ $ l 562 223 82

Note 6: PRIOR YEAR DEFEASE:MENT OF DEBT

In fiscal years 1991 and 1994, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets anq the liability for the defeased bonds are not included in the Board's general purpose financial statements. During fiscal year 1995, the balance of bonds defeased in fiscal year 1994 were retired. At June 30, 1995, $6,620,000.00 ofbonds remain outstanding but are considered defeased.

- 19 -

RICHMOND COUNTY BOARD OF EDUCATION

EXIIlBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1995, together with funding available:

Project
95/94S-72 l-049 95/94S-72 l-050/96-72 l-058

Unearned Executed Contracts
$10,818,953.90 978,764.14
$11 797,718.04

Funding Available From State
$ 3,325,455.77 248,614.00
$ 3,574.069 77

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

Note 8: 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 9: ACCUMULATED EMPLOYEES' LEAVE

Administrative and other clerical personnel earn two days of vacation leave each month with a maximum accumulation oftwenty-four days less required vacation days to be taken during the year. Maintenance and other twelve-month employees earn vacation leave ranging from ten days to twenty-two days per year depending upon the employee's length of service with a maximum accumulation of 22 days. Vacation leave vests with the employee and unused accumulated vacation leave up to the maximum accumulation is paid at the current rate of pay, to employees upon retirement or termination of employment. See Note 1 Compensated Absences

The Board also has an attendance incentive program that provides for payments not to exceed 20% of the employee's daily rate ofpay based on days absent from work. No liability has been recorded for the June 30, 1995, attendance incentive liability as this amount is deemed immaterial to the general purpose financial statements.

Note I0: 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).

- 20 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note I0: RETIREMENT PLANS
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 IO years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1995, was $91,857,471.73; total payroll was $107,507,462.99.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 1995 that rate for employer contributions was 11.81 %. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1995 amounted to $15,441,157.19, of which $10,848,367.42 was made by the Board and $4,592,789.77 as 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
- 21 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1995

Note 10: RETIREMENT PLANS

progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

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

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058 958,000.00

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

Total contributions from all employers to TRS for fiscal year ended June 30, 1995 were $565,117,811.00. The Board's contribution for the year ended June 30, 1995 of$10,848,367.42 was actuarially determined and represented 1.92% of total contributions made by all participating employers.

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

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

i>SERS 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. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.

- 22 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE"MENTS

JUNE 30, 1995

Note 10: RETIRE"MENT PLANS
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
There were 1,006 employees covered under PSERS for the year ended June 30, 1995.
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees. Total contributions from employees ofthe Board made during fiscal year 1995 amounted to $33,676.00. Total contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1995, was $9,162,000.00.
Note 11: SURETY BONDS
Dr. John P. Strelec, School Superintendent through May 31, 1995, was bonded in the amount of$50,000.00 with the Fidelity and Deposit Company ofMaryland, Baltimore, Maryland, their Bond No. 30091978.
The Interim School Superintendent, Dr. Charles G. Larke, effective June 1, 1995, is bonded in the amount of $50,000.00 with the Fidelity and Deposit Company of Maryland, Baltimore, Maryland, their Bond No. 30091978, on which premium is paid through July 1, 1996.

- 23 -

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Consumable Supplies Food Donated Commodities Purchased Food

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

STATE PROGRAM IMPROVEMENT

$ 3,985,499.01

143,502.45 $

18,095.00 $

795,244.31 $

7,798.15

554,743.70 144,266.29

Total Assets

$ 4,828,011.45 $

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable

$ $ 120,423.50
552,900.82

Total Liabilities

$ 673,324.32 $

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Encumbrances

For Expired Grant Balances/Questioned Costs

For Inventories

Consumable Supplies

Food

Donated Commodities

$

Purchased Food

554,749.06 144,266.29

Unreserved Undesignated

$ 699,015.35 3,455,671.78 $

Total Fund Equity

$ 4,154,687.13 $

18,095.00 $

- - - - - 795,244.31 $

7,798.15

18,095.00 $

107,268.65 $ 153,034.16 534,941.50

18,095.00 $

795,244.31 $

7,798.15 7,798.15

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 0.00

Total Liabilities and Fund Equity

$ 4,828,011.45 $

See notes to the general purpose financial statements.

- 24 -

------ 18,095.00 $

795,244.31 $

7,798.15

EXHIBIT"E" Page 1

SECONDARY EDUCATION ACT

TITLE II

EISENHOWER

CHAPTER2

MATHEMATICS FOREIGN

BLOCK GRANT - AND SCIENCE LANGUAGE

FLOW THROUGH EDUCATION ASSISTANCE

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

ALTERNATIVE SCHOOL PROGRAM

ATHLETIC FUND

$ 147,559.79

$

268,111.00 $ 51,484.10 $

6,988.76 $ 192,956.95 $ 11,718.70 $ 26,250.00

29,483.12

$

268,111.00 $

51,484.10 $

6,988.76 $ 192,956.95 $ 11,718.70 $ 26,250.00 $ 177,042.91

$

248,302.17 $

51,484.10 $

6,085.52 $ 121,936.37 $

239.90 $ 26,250.00

4,169.34

14,943.94

2,737.12

$

4,846.80

15,639.49

56,076.64

8,741.68

$

268,111.00 $

51,484.10 $

6,085.52 $ 192,956.95 $ 11,718.70 $ 26,250.00 $

4,846.80

$

903.24

$ 116,679.48 29,483.12

$

903.24

$ 146,162.60

$

0.00 $ - - - -0.0-0 _ _ _ _o._oo_ $

o.oo $

0.00 $ _ _ _ _0._0_0

26,033.51

$

o.oo $ _ _ _ _o_.o_o $ _ _ _9_o_3_.2_4 $

o.oo $ _ _ _ _o._o_o $ _ _ _ _0._00_$ 112,196.11

$

268,111.00 $

51,484.10 $

6,988.76 $ 192,956.95 $ 11,718.70 $ 26,250.00 $ 177,042.91

- 25 -

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Consumable Supplies Food Donated Commodities Purchased Food

DELINQUENCY PREVENTION
PROGRAM

GEORGIA LEARNING RESOURCES SYSTEM

SAND HILLS PSYCHOED
CENTER

STATE PRESCHOOL HANDICAPPED
PROGRAM

$

0.00

$ 133,051.98 $

0.00

$ 65,486.53

97,710.90

Total Assets

$

------ 0.00 $ 65,486.53 $ 230,762.88 $

0.00

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 Programs For Encumbrances For Expired Grant Balances/Questioned Costs For Inventories Consumable Supplies Food Donated Commodities Purchased Food

Unreserved

Undesignated

$

Total Fund Equity

$

$ 58,097.18

1,611.10 $ 51,981.49

5,778.25

178,781.39

$ 65,486.53 $ 230,762.88

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 0.00

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

$

------ 0.00 $ 65,486.53 $ 230,762.88 $

0.00

-26-

EXHIBIT"E" Page2

LOTTERY PROGRAM

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

EDUCATION FOR HOMELESS
CHILDREN AND YOUTH

JOB TRAINING PARTNERSHIP
ACT

SUMMER FOOD SERVICE
PROGRAM

TOTALS JUNE 30, 1995 JUNE 30, 1994

$

0.00 $ 4,266,110.78 $ 3,282,948.73

999,907.65

$ 134,314.55 $

73,394.15 $

13,761.76 $ 88,711.60

1,995,528.91 2,076,169.82

29,483.12
554,743.70 144,266.29

21,983.57
480,661.56 100,354.78

$ 134,314.55 $

73,394.15 $

13,761.76 $

- - - - - 88,711.60 $

0.00 $ 6,990,132.80 $ 6,962,026.11

$ 134,291.92 $ 22.63

57,709.63 $ 3,395.70
12,288.82

$ 134,314.55 $

73,394.15 $

13,761.76 $ 88,711.60 13,761.76 $ 88,711.60

$ 940,031.95 $ 981,617.06

357,165.78

363,153.85

1,365,148.59 1,369,791.15

7,499.44

$ 2,662,346.32 $ 2,722,061.50

$

0.00 $

$

0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

0.00 $ 0.00 $

$

903.24 $

0.26

116,679.48

117,934.45

1,536.59

29,483.12

21,983.57

554,749.06 144,266.29

480,661.56 100,354.78

$ 846,081.19 $ 722,471.21

0.00 3,481,705.29 3,517,493.40

0.00 $ 4,327,786.48 $ 4,239,964.61

$ 134,314.55 $

73,394.15 $

13,761.76 $ aa,111.eo $ _ _ _ _o_.o_o $ 6,990,132.ao $ 6,9e2,02e.11

- 27 -

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

ELEMENTARY AND

SCHOOL FOOD
SERVICES FUND

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER 1 EDUCATION OF
DEPRIVED CHILDREN

STATE
PROGRAM
IMPROVEMENT

REVENUES

State Funds Federal Funds Local and other Funds

$ 737,498.00 8,094,533.40 $ 2,596,809.39

18,095.00 $ 5,342,270.75 $

7,798.15

Total Revenues

$ 11,428,840.79 $

18,095.00 $ 5,342,270.75 $

7,798.15

EXPENDITURES

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

other Support Services

Food Services Operation

$ 11,425,438.31

Other Operations of Non-Instructional Services

Capital Outlay

Debt Service

Principal

Interest

18,095.00 $

4,539,069.01
74,533.62 224,516.26 $
222,963.96
30,274.70 3,063.73
196,352.30

2,780.03 5,018.12

46,807.47 4,689.70

Total Expenditures

$ 11,425,438.31 $

18,095.00 $ 5,342,270.75 $

7,798.15

Excess of Revenues over (under) Expenditures

$

3,402.48 $

0.00 $

0.00 $

0.00

OTHER FINANCING SOURCES

Capital Leases Operating Transfers In

Total Other Financing Sources

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

3,402.48 $

0.00 $

0.00 $

0.00

FUND BALANCE JULY 1

4,033,291.00

0.00

0.00

0.00

Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer

74,082.14 43,911.51

FUND BALANCE JUNE 30

$ 4,154,687.13 $

See notes to the general purpose financial statements.

-28-

0.00 $

------ 0.00 $

0.00

EXHIBIT"F" Page 1

SECONDARY EDUCATION ACT

TITLE II

EISENHOWER

CHAPTER2

MATHEMATICS FOREIGN

BLOCK GRANT - AND SCIENCE LANGUAGE

FLOW THROUGH EDUCATION ASSISTANCE

INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

TITLE VI, B

FLOW

PRESCHOOL

THROUGH

PROGRAM

ALTERNATIVE SCHOOL PROGRAM

ATHLETIC FUND

$ 35,000.00

$

268,111.00 $ 157,954.10 $ 7,946.76 $ 701,100.81 $ 85,277.70

- - - - - $ 344,037.84

$

268,111.00 $ 157,954.10 $ 7,946.76 $ 701,100.81 $ 85,277.70 $ 35,000.00 $ 344,037.84

$

60,239.55 $

6,029.63 $ 15,470.62 $ 325,569.37 $ 83,543.14 $ 12,671.65

81,763.74

146,864.15

237,855.44 120,332.60

22,328.35

123,217.71

5,060.32

15,006.00

1,734.56

2,050.00 840.00

422.90

2,337.40

$ 38,389.23

501,660.85

$

268,111.00 $

$ _ _ _ _ _o_.o_o $

157,954.10 $
o.oo $

15,893.52 $ -7,946.76 $

701,100.81 $
o.oo $

85,277.70 $ 35,000.00 $ 0.00 $ _ _ _ _0._00_ $

540,050.08 -196,012.24

$ 8,850.00 $ 8,850.00

$ 161,535.00 $ 161,535.00

$

0.00 $

0.00 $

903.24 $

0.00 $

0.00 $

0.00 $ -34,477.24

0.00

0.00

0.00

0.00

0.00

0.00

206,673.35

$

0.00 $

0.00 $

903.24 $

0.00 $

----- 0.00 $

0.00 $ 172,196.11

- 29 -

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

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

DELINQUENCY PREVENTION
PROGRAM

GEORGIA LEARNING RESOURCES
SYSTEM

SAND HILLS PSYCHOED
CENTER

STATE PRESCHOOL HANDICAPPED
PROGRAM

$

59,343.63 $ 76,140.00 $ 1,642,247.00 $

491,838.00

163,815.27

245,543.90

$

59,343.63 $ 239,955.27 $ 1,887,790.90 $

491,838.00

$ 930,552.46 $

429,735.93

$

59,343.63 $ 71,617.62

24,305.18

15,877.05

111,467.96

560,339.31 160,717.21
135,650.36

52,580.44 9,521.63

1,994.46

100,531.56

14,693.00

$

59,343.63 $ 239,955.27 $ 1,887,790.90 $

491,838.00

$

0.00 $

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

0.00

0.00

0.00 0.00

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

$

0.00 $

- 30-

0.00 $

----- 0.00 $

0.00

EXHIBIT"F" Page2

LOTTERY PROGRAM

DRUG-FREE SCHOOLS AND COMMUNITIES
ACT

EDUCATION FOR HOMELESS
CHILDREN AND YOUTH

JOB TRAINING PARTNERSHIP
ACT

SUMMER FOOD SERVICE
PROGRAM

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 3,400,256.88 $

180,966.84 $

$ 3,400,256.88 $ 180,966.84 $

14,075.76 $ 14,075.76 $

$ 237,984.13

0.00 $ 6,442,323.51 $ 3,796,828.00 15,525,473.57 15,672,736.72 2,940,847.23 2,596,529.27

237,984.13 $ _ _ _ _0._00_ $ 24,908,644.31 $ 22,066,093.99

$ 1,176,002.39 $
176,497.66 22,709.78
976,258.67 22,845.00
946,451.47 9,284.90 5,321.71

160.91 $ 142,832.48
30,529.41 4,944.22
2,499.82

64,885.30

7,065.90 $ 1,486.18

198,984.05 $

297.68 5,226.00

16,099.10 22,900.98

$ 3,400,256.88 $

$

0.00 $

180,966.84 $ 0.00 $

14,075.76 $ 0.00 $

237,984.13 $ 0.00 $

0.00 $ 7,803,189.61 $ 7,278,306.82

1,458,850.12 764,604.60 992,135.72 659,286.87
1,145,352.70 20,914.45
206,692.13 11,425,438.31
516,353.85 64,885.30

1,527,971.94 714,266.69 379,017.27 708,842.31 1,391.81 374,289.55 16,383.15 173,264.34
9,562,013.12 713,599.55

46,807.47 4,689.70

51,497.17

0.00 $ 25,109,200.83 $ 21,500,843.72

0.00 $ -200,556.52 $ 565,250.27

$

0.00 $

0.00

0.00 $ 0.00

$

0.00 $

0.00 $

0.00 $ 0.00

0.00 $ 0.00

$ 147,401.00

$ 170,385.00

153,474.00

$ 170,385.00 $ 300,875.00

0.00 $ -30,171.52 $ 866,125.27

0.26

4,239,964.61

3,044,903.09

-0.26

74,082.14 43,911.51
-0.26

309,771.33 19,164.92

----- ------ 0.00 $

0.00 $

0.00 $ 4,327,786.48 $ 4,239,964.61

- 31 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

LOTTERY PROJECT 96/95S-721-063

PROJECT 90-721-062

$ 721,410.09 $

121,586.00 $

0.00

664,000.00

GEORGIA
PROJECT 95-C-L-73

- - - - - $ _--'3"-',8"-"0....;..0;..;;..0..;...0

Total Assets

$ 1,385,410.09 $

121,586.00 $

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

$ $ 1,385,410.09
$ 1,385,410.09 $

121,586.00 0.00 $
121,586.00 $

0.00 $ ====3,=80=0.=00=

$

3,800.00

$ _ ___;3;..:..8,;.;0..;.0;.0;.-'--0

0.00 $ _ _ _ _o._o_o 0.00 $ _ _ _ _o._o_o

Total Liabilities and Fund Equity

$ 1,385,410.09 $

121,586.00 $

0.00 $ ====3,=80=0.=00=

See notes to the general purpose financial statements.

- 32-

EXHIBIT"G"

STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

95/945-721-050

PROJECT

95/945-721-049

96-721-058

95/945-721-051

PROJECT 96-721-059

TOTALS JUNE 30, 1995 JUNE 301 1994

$ 850,351.50 $ 1,015,313.58 $ 295,704.00 $ 607,425.15 $ 3,611,790.32 $ 1,468,168.31

664,000.00 1,395,157.42

494,002.86

115 179.00

612,981.86

244,955.00

$ 1,344,354.36 $ 1,130,492.58 $ 295,704.00 $ 607,425.15 $ 4,888,772.18 $ 3,108,280.73

$ 133,695.09 32,696.41 $
$ 166,391.50 $

165,451.14 165,451.14

$

3,800.00 $ 244,955.00

1,950.00

133,695.09

198,147.55

$ 335,642.64 $ 246,905.00

$ 1,177,962.86 $ 0.00
$ 1,177,962.86 $

965,041.44 $ 0.00
965,041.44 $

295,704.00 $ 607,425.15 $ 3,167,719.45 $ 910,410.19

0.00

0.00 1,385,410.09 1,950,965.54

295,704.00 $ 607,425.15 $ 4,553,129.54 $ 2,861,375.73

$ 1,344,354.36 $ 1,130,492.58 $ 295,704.00 $ 607,425.15 $ 4,888,772.18 $ 3,108,280.73

- 33 -

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

REGULAR

LOTTERY PROJECT 96/95S-721-063

PROJECT 90-721-062

GEORGIA
PROJECT 95-C-L-73

REVENUES

State Funds Local and Other Funds

$

67,000.00 $

39,940.54

0.00 $

0.00 $

39,800.00

Total Revenues

$

106,940.54 $

0.00 $

0.00 $

39,800.00

EXPENDITURES

Capital Outlay Professional and Technical Services Land and Land Improvements Building and Building Improvements

$

9,861.03 $

0.00 $

0.00 $

39,800.00

Total Expenditures

$

9,861.03 $

0.00 $

0.00 $

39,800.00

Excess of Revenues over (under) Expenditures

$

97,079.51 $

0.00 $

0.00 $

0.00

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 500,000.00 $ -1, 162,634.96

121,586.00 $

-21,301.19

Total Other Financing Sources (Uses) $ -662,634.96 $ 121,586.00 $ -21,301.19

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-565,555.45 $

121,586.00 $ -21,301.19 $

0.00

FUND BALANCE JULY 1

1,950,965.54

0.00

21,301.19

0.00

Residual Equity Transfer

FUND BALANCE JUNE 30

$ 1,385,410.09 $ 121,586.00 $

0.00 $ = = = =0.0=0

See notes to the general purpose financial statements.

- 34 -

EXHIBIT"H"

STATE FINANCING AND INVESTMENT COMMISSION

PROJECT

PROJECT

95/94S-721-050

PROJECT

95/94S-721-049 96-721-058 95/94S-721-051

PROJECT 96-721-059

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$ 503,211.23 $ 1,151,794.00 $ $ 503,211.23 $ 1,151,794.00 $

0.00 $

0.00 $ 1,761,805.23 39,940.54 $

0.00 $ _ _ _ _0._00_$ 1,801,745.77 $

685,157.42 685,157.42

$ 336,955.00

$

783,093.37 $ 2,456,065.56

$ 1,120,048.37 $ 2,456,065.56 $

$ -616,837.14 $ -1,304,271.56 $

0.00 $
0.00 $ 0.00 $

$ 0.00 $ 346,816.03
3,278,958.93
0.00 $ 3,625,774.96 $
0.00 $ -1,824,029.19 $

15,955.00 120,082.61 136,037.61 549,119.81

$ 1,327,972.00 $ 2,142,736.00 $ 1,327,972.00 $ 2,142,736.00

$

607,425.15 $ 4,699,719.15 $ 1,985,709.00

-1,183,936.15

$

607,425.15 $ 3,515,783.00 $ 1,985,709.00

$ 711,134.86 $ 838,464.44 $

0.00 $

466,828.00

126,577.00

295,704.00

607,425.15 $ 1,691,753.81 $ 2,534,828.81

0.00 2,861,375.73

690,444.70

-363,897.78

$ 1,177,962.86 $

965,041.44 $ 295,704.00 $

607,425.15 $ 4,553,129.54 $ 2,861,375.73

- 35 -

RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30 1995

EXHIBIT"!"

Cash and Cash Equivalents Accounts Receivable
Total Assets

EXPENDABLE TRUST FUNDS

NORA

ROSETTA

DAVIDSON

COXWELL

MCKENZIE

TRUST

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

FUND

AGENCY FUNDS

TOTALS JUNE 30, 1995 JUNE 30, 1994

$ 27,839.14 $

20,217.82 $

631.21 $

37,490.49 S

86,178.66 $

70,660.97

74.30

74.30

$ 27,839.14 $

20,292.12 $

631.21 $

37 490.49 $

86:252.96 $

70,660.97

Ll~EllLITIES AND FUND EQUITY

LIAEllLITIES Funds Held for Others

FUNDEOUITY
Fund Balances Unreserved Undesignated

$ 27,839.14 $

20,292.12 $

Total Liabilities and Fund Equity

$ 27 839.14 $

20,292.12 $

$

37,490.49 $

37,490.49 $

23,329.09

631.21

0.00

48 762.47

47 331.88

631.21 $

37 490.49 $

86,252.96 $

70,660.97

See notes to the general purpose financial statements.

-36-

RICHMOND COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30 1995

REVENUES

DAVIDSON TRUST
FUND

NORA COXWELL SCHOLARSHIP
FUND

ROBETTA MCKENZIE SCHOLARSHIP
FUND

TOTALS YEAR ENDED JUNE 301 1995 JUNE 301 1994

Local and Other Funds

$

1 459.92 $

1,095.46 $

631.21 $

3,186.59 $

1,890.22

EXPENDITURES

Current Other Operations of Non-Instructional Services

$

1 756.00

$

1,756.00 $

7,186.50

Excess of Revenues over (under) Expenditures

$

1,459.92 $

-660.54 $

631.21 $

1,430.59 $

-5,296.28

FUND BALANCE JULY 1

26,379.22

20,952.66

0.00

47,331.88

52,628.16

FUND BALANCE JUNE ~O

$

27 839.14 $

20,292.12 $

631.21 $

48 762.47 $

471331.88

See notes to the general purpose financial statements.

- 37 -

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

EXHIBIT"K"

COHEN, COLONEL CLARENCE H., R.O.T.C.
AWARD FUND
ASSETS
Cash and Cash Equivalents

BALANCE JULY 1, 1994

ADDITIONS

BALANCE
DEDUCTIONS JUNE 30, 1995

$

576.55 $

31.50 $

0.00 $

608.05

LIABILITIES Funds Held for Others
PERFORMANCE BONDS ASSETS
Cash and Cash Equivalents

$

576.55 $

31.50 $

0.00 $

608.05

=====

$ 22,752.54 $ 53,987.98 $

39,858.08 $ _ _3..6...,.8_8_2_.4_4

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

$ 22,752.54 $ 53,987.98 $

39,858.08 $ ===3=6=,8=82=.4=4

$ 23,329.09 $ 54,019.48 $

39,858.08 $ ==3=7=,4=9=0=.4=9

$ 23,329.09 $ 54,019.48 $

39,858.08 $

37,490.49

========

See notes to the general purpose financial statements.

- 38 -

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

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of

Direct

Summer Food Service Program

1994 Grant

10.559

1995Grant

10.559 $

Through Georgia Department of Education

Food and Nutrition Program

Child and Adult Care Food Program

1995 Contract

10.558

Food Services School Breakfast Program 1994Grant 1995 Grant National School Lunch Program 1994 Grant 1995Grant

. 10.553
. 10.553
. 10.555
. 10.555

Nutrition Education and Training Program

1994 Contract 1995 Contract Food Distribution Program (1)

10.564
. 10.564 10.550

$ 429,572.00.
50,273.00
1,370,365.71 5,848,548.96
5,000.00 821,881.93

380,176.00 $

313,633.00 $ 115,939.00

313,633.00 27,943.45

50,273.39

50,273.39

(2)

47,447.79 1,309,084.00
57,319.02 5,777,632.91
2,399.59 2,100.17 N/A

1,370,365.71
-1,536.59 5,848,548.96

(2) 10,598,556.38 (3)

5,000.00 821,881.93

5,000.00 821,881.93

Total U.S. Department of Agriculture

$ 8,525,641.60 $

7,626,432.87 $ 8,524,105.40 $ 11,767,014.76

Education, U. S. Department of Direct P. L. 81-874 1995 Grant Through Georgia Department of Education Drug-Free Schools and Communities Act 1993 Carry-Over (1994) 1993 Carry-Over (1995) 1994 Grant 1994 Carry-Over 1995Grant Elementary and Secondary Education Act Chapter 1 Education of Children in State Schools 1994 Carry-Over Severely Emotionally Disturbed 1994 Regular 1995 Regular Education of Deprived Children 1994 Regular 1994 Carry-Over 1995 Regular 1995Summer State Program Improvement 1994 Regular 1995 Regular Chapter 2 Block Grant - Flow Through 1993 Carry-Over 1994 Regular 1995 Regular Even Start 1993 Carry-Over Trtlell Eisenhower Mathematics and Science Education 1994 Regular 1994 Carry-Over 1995 Regular

* 84.041 $

788,854.00 $

84.186 84.186 84.186 84.186 84.186

3,277.00
48,010.00 203,950.00

84.009
84.009 84.009
* 84.010 * 84.010 * 84.010 * 84.010
84.218 84.218
84.151 84.151 84.151
84.213

18,095.00 3,509.00
615,265.00 5,086,747.00
138,413.00 12,515.00
268,111.00

84.164 84.164 84.164

138,999.00

788,854.00 $

788,854.00

(5)

17,921.93 3,175.51
50,910.53
104,397.18

3,175.51 $
48,010.00 129,781.33

3,175.51
48,010.00 129,781.33

971.00 3,509.00 991,105.71 615,265.00 3,931,761.44
22,046.99
809.00 57,178.04
35,266.63

18,095.00

18,095.00

3,509.00

3,509.00

615,265.00 4,725,563.47
1,442.28

615,265.00 4,725,563.47
1,442.28

7,798.15

7,798.15

268,111.00

268,111.00

32,522.93 102,176.95
4,293.05

102,176.95 55,777.15

102,176.95 55,777.15

- 39 -

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

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS}

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of

Through Georgia Department of Education

Elementary and Secondary Education Act

Trtlell

Foreign Languages Assistance

1995Grant

84.249 $

Individuals with Disabilities Education Act

TrtleVl,B

Family Connection

1993 Carry-Over

84.027

Flow Through

1993 Carry-Over

84.027

1994 Regular

84.027

1994 Carry-Over

84.027

1995 Regular

84.027

Special Project

1995 Regular

84.027

Preschool Program

1994 Regular

84.173

1994 Carry-Over

84.173

1995 Regular

84.173

Georgia Leaming Resources System

1993 Carry-Over

84.027

1994 Regular

84.027

1994 Carry-Over

84.027

1995 Regular

84.027

Special Project

1993 Carry-Over

84.027

Severely Emotionally Disturbed

1994 Regular

84.027

1994 Carry-over

84.027

1995 Regular

84.027

Special Education Personnel Development

and Parent Training

Georgia Leaming Resources System

Title VI, D

1994 Regular

84.029

1995 Regular

84.029

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1994 Grant

84.048

1995 Grant

84.048

Consumer and Homemaking Education

1994 Contract

84.049

Tech-Prep Education

1994 Grant

84.243

Stewart B. McKinney Homeless Assistance Act

Education for Homeless Children and Youth

1993 Carry-Over

84.196

1994 Regular

84.196

1994 Carry-Over

84.196

8,850.00 $
510,409.00 712,728.00
9,000.00 73,559.00 105,700.00 17,228.00 151,852.00
78,528.00 254,100.00
4,492.00
345,032.14
314.00 15,000.00

958.00 $

7,946.76 $

15,893.52 (3)

21,574.53
1,000.00 179,773.37 497,845.00
10,298.86
14,646.38 73,559.00
4,285.00 10,785.45
2,177.00 92,295.00
8,885.96
87,921.60 78,528.00 65,796.00

510,409.00 182,249.09
8,442.72
73,559.00 11,718.70
17,228.00 142,313.88
78,528.00 163,506.90

510,409.00 182,249.09
8.442.n
73,559.00 11,718.70
17,228.00 142,313.88
78,528.00 163,506.90

1,200.75 3,201.00

655.74 3,617.65

655.74 3,617.65

131,826.27 186,157.66
6,500.00 1,232.36
314.00 17,756.12

345,032.14
314.00 13,761.76

(4)
314.00 13,761.76

Total U. S. Department of Education

$ 9,612,537.14 $

8,260,682.20 $ 8.326,842.18 $ 7,200,902.80

Justice, U.S. Department of Through Richmond County Board of Commissioners Juvenile Delinquency Prevention and Intervention 1995 Grant

16.546 $

40,000.00 $

10,094.67 $

10 094.67

(4)

- 40 -

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

FUNDING AGENCY PROGRAM/GRANT
Labor, U.S. Department of Through Central Savannah River Area Employment and Training Consortium Job Training Partnership Act 09-93-11-13-316 09-93-16-13-316 09-93-16-47-245 09-93-20-30-245 09-94-20-13-144 Through Richmond/Burke Training Authority Job Training Partnership Act 08-94-11-13-316 08-94-16-13-316 08-94-20-33-244 08-94-20-rcboe-245 09-94-20-13-144 09-94-20-13-145
Total U.S. Department of Labor
Qil:fEB EEQERAL ASS!STANQE
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program 1994 Grant 1995Grant Department of the Army R.O.T.C. Program 1994 Grant 1995 Grant Department of the Navy R.O.T.C. Program 1994 Grant 1995 Grant
Total U. S. Department of Defense

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.250

$

17.250

17.250

17.250

17.250

17.250 $ 17.250 17.250 17.250 17.250 17.250
$

49,561.00 46,188.00 87,351.00 41,469.00
2241569.00 $

4,941.22 24,513.92 23,730.64 28,952.84 35,461.14

22,625.06 $ 33,684.61
46,993.41 45,969.45 2661872.29 $

45,230.42 $ 42,938.03 35,732.16 21,120.66 46,993.41 451969.45
2371984.13 $

45,230.42 42,938.03 35,732.16 21,120.66 46,993.41 451969.45
2371984.13

$

6,116.03

$

25,298.14

22,057.22 $

25,298.14

(4)

132,190.59

30,552.57

99,032.86

132,190.59

(4)

111,678.78

22,866.24

89,241.04

111,678.78

(4)

$

269,167.51 $

269,865.96 $

2691167.51

Total Federal Financial Assistance

$ 1816711915.25 $ 16 433 947.99 $ 1713681193.89 $ 1912051901.69

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

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Food Care Program and the School Breakfast Program were not maintained separately and are included in the 1995 National School Lunch Program.
(3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

See notes to the general purpose financial statements.

- 41 -

RICHMOND COUNTY BOARD OF EDUCATION CASH AND CASH EQUIVALENTS JUNE 30, 1995

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Allied Bank of Georgia, Augusta, Georgia
Trust Company Bank of Augusta, N.A., Augusta, Georgia
INTEREST BEARING ACCOUNTS
First Union National Bank, Augusta, Georgia
Certificates of Deposit No. 21-053-353-8849440 (6.17%) No. 21-053-353-8849441 (6.17%)
Trust Company Bank of Augusta, N.A., Augusta, Georgia
Overnight Sweep Accounts (5.540%)
Wachovia Bank of Georgia, Augusta, Georgia
N.O.W. Accounts (1.14%)

$

350.00

2,545,381.90 $ 2,545,731.90

$ 1,000,000.00 8,000,000.00

9,000,000.00

8,262,000.00

1,100,000.00

$ 20,907,731.90

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

RICHMOND COUNTY BOARD OF EDUCATION INVESTMENTS JUNE 30, 1995
U.S. GOVERNMENT OBLIGATIONS NationsBank, Atlanta, Georgia U.S. Treasury Strip No. 912833FC9 due May 15, 1996 (6.60%)
COMMON STOCK First Union Corporation 6,542 Shares
INVESTMENT POOL State of Georgia, Office of Treasury and Fiscal Services Local Government Investment Pool (6.032%)

SCHEDULE "3"

$

664,000.00

315,651.50

12,405,130.21 $ 13,384,781.71

See notes to the general purpose financial statements. - 43 -

RICHMOND COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE30 1995

SCHEDULE 4

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE TRUST FUND

TOTAL

Agriculture, U. S. Department of Summer Food Service Program

$ 115,939.00

$ 115,939.00

Clerk of the Superior Court of Richmond County County Wide Bond Tax County Wide School Tax

35,851.47

$ 1,950.97

1,950.97 35,851.47

Community Affairs, Georgia Department of Local Assistance Grants

$ 3,800.00

3,800.00

Defense, U. S. Department of Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program Department of the Navy R.O.T.C. Program

3,240.92 33,157.73 22,437.74

3,240.92 33,157.73 22,437.74

Education, Georgia Department of Food Services School Breakfast Program National School Lunch Program Nutrition Education Training Program Vocational Education State Funds Federal Funds Lottery Programs Alternative School Program Distant Leaming Pre-Kindergarten Program Other State Programs Alternative School Program Georgia Leaming Resources System Title VI, B - Special Projects Title VI, D - Special Education Personnel Development and Parent Training Remedial Summer School Program Severely Emotionally Disturbed Title VI, B - Special Projects Federal Programs Drug-Free Schools and Communities Act ESEA - Chapter 1 Education of Children in State Schools Education of Deprived Children State Program Improvement ESEA - Chapter 2 Block Grant - Flow Through ESEA-Title II Eisenhower Mathematics and Science Education Foreign Language Assistance Individuals with Disabilities Education Act TitleVl,B Flow Through Preschool Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth

$ 61,281.71 70,916.05 2,899.83

600.00 158,874.48

111,266.00 22,659.93 388.62

26,250.00

65,069.88

188.006.93

416.65

97,710.90

73,394.15

18.095.00 795,244.31
7,798.15

268,111.00

51,484.10 6,988.76

192,956.95 11,718.70

13,761.76

61,281.71 70,916.05 2,899.83
600.00 158,874.48
111,266.00 22,659.93
388.62 26,250.00
65,069.88 416.65
188,006.93
97,710.90
73,394.15
18,095.00 795,244.31
7,798.15
268,111.00
51,484.10 6,988.76
192,956.95 11,718.70
13,761.76

- 44 -

RICHMOND COUNTY BOARD OF EDUCATION ACCOUNTS RECEIVABLE JUNE 30. 1995

SCHEDULE 4

Georgia Peace Officers Standards and Training Council Law Enforcement Program
Georgia Public Telecommunications Commission War on Poverty
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Reimbursement for Overpayment of Salaries Dunbar, Stephanie Hill.Jesse
Richmond/Burke Job Training Authority Job Training Partnership Act
Richmond County Tax Commissioner County Wide Bond Tax County Wide School Tax
Various Sources Interest Earned Lost and Damaged Books Other Refunds

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE TRUST FUND

TOTAL

$ 89,838.57

$ 89,838.57

200.00

200.00

$ 609.181.86

260.40 1,400.00

$ 88,711.60

346,404.74

$ 18,869.67

67,252.50

8,404.86

2,302.05

222.50

$

1,424.58

609,181.86

260.40 1.400.00

88,711.60

18,869.67 346,404.74

74.30

75,657.36 2,302.05 296.80 1,424.58

s s s s s_ _ _ s 1,007,413.61 1,99s.s2s.91 512.9s1.s6 20.s20.64

1_4_.3o_ 3,696,819.32

See notes to the general purpose financial statements.

- 45 -

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

RICHMOND COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY
JUNE 30, 1995

TOTAL DEBT SERVICE

TOTAL INTEREST

TOTAL PRINCIPAL

$ 2,901,847.50 $ 1,216,847.50 $ 1,685,000.00

2,922,080.00

1,137,080.00

1,785,000.00

2,931,515.00

1,061,515.00

1,870,000.00

2,938,425.00

978,425.00

1,960,000.00

2,948,348.75

888,348.75

2,060,000.00

2,961,077.50

791,077.50

2,170,000.00

2,976,082.50

686,082.50

2,290,000.00

2,987,097.50

572,097.50

2,415,000.00

2,998,460.00

448,460.00

2,550,000.00

3,015,256.25

315,256.25

2,700,000.00

3,026,972.50

171,972.50

2,855,000.00

2,128,880.00

48,880.00

2,080,000.00

$ 34,736,042.50 $ 8,316,042.50 $ 26,420,000.00

CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1994 Bonds Retired During Period

TOTAL

1993 ISSUE

$ 27,920,000.00 $ 18,120,000.00

1,500,000.00

150,000.00

Bonds Payable at June 30, 1995

$ 26,420,000.00 $ 17,970,000.00

MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date

MAY 1 -NOV 1 NOV1

See notes to the general purpose financial statements. - 46 -

SCHEDULE "5"

1993 ISSUE

INTEREST

PRINCIPAL

1991 ISSUE

INTEREST

PRINCIPAL

1986 ISSUE INTEREST PRINCIPAL

$ 759,530.00 $

250,000.00 $ 430,867.50 $ 515,000.00 $ 26,450.00 $ 920,000.00

734,575.00

1,240,000.00

402,505.00

545,000.00

689,537.50

1,295,000.00

371,977.50

575,000.00

639,060.00

1,360,000.00

339,365.00

600,000.00

584,040.00

1,425,000.00

304,308.75

635,000.00

524,790.00

1,500,000.00

266,287.50

670,000.00

460,860.00

1,580,000.00

225,222.50

710,000.00

391,050.00

1,665,000.00

181,047.50

750,000.00

314,932.50

1,755,000.00

133,527.50

795,000.00

232,780.00

1,855,000.00

82,476.25

845,000.00

143,937.50

1,965,000.00

28,035.00

890,000.00

48,880.00

2,080,000.00

$ 5,523,972.50 $ 17,970,000.00 $ 2,765,620.00 $ 7,530,000.00 $ 26,450.00 $ 920,000.00

1991 ISSUE

1986 ISSUE

$ 8,020,000.00 $ 1,780,000.00

490,000.00

860,000.00

$ 7,530,000.00 $

920,000.00

MAY 1 - NOV 1 MAY 1 - NOV 1

NOV 1

NOV 1

- 47 -

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

SCHEDULE "6"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education. Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Special Instructional Assistance In-School Suspension Mid-term Adjustment School Counselors Grades 4 - 5 Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative School Program Environmental Science Program Georgia Leaming Resources System Governor's Emergency Funds (1) Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Severely Emotionally Disturbed Special Education Support Cost Teachers' Retirement Lottery Programs Algebra Classrooms Alternative School Program Distant Leaming Instructional Technology Media Center and Library Equipment Pre-Kindergarten Program Safe Schools Grant

$ 60,832,129.00 5,961,096.00 1,417,015.00 2,573,104.00 817,914.00 17,534,209.00

2,247,609.00 527,400.00 106,440.00
2,034,206.00 1,740,055.00
599,141.00 740,691.00 165,632.00 -14,101,468.00 5,613,315.00
$ 16,358.00

737,498.00

1,000.00
2,000.00 4,800.00 51,750.00
225,730.93
10,811.00 162,245.06

35,000.00 76,140.00
491,838.00 1,642,247.00

20,548.40 147,491.00 106,472.03 669,363.91 976,258.67 1,248, 124.80 231,998.07

$ 60,832,129.00 5,961,096.00 1,417,015.00 2,573,104.00 817,914.00
17,534,209.00
2,247,609.00 527,400.00 106,440.00
2,034,206.00 1,740,055.00
599,141.00 740,691.00 165,632.00 -14,101,468.00 5,613,315.00 737,498.00 16,358.00
35,000.00 1,000.00
76,140.00 2,000.00 4,800.00
51,750.00 491,838.00 225,730.93 1,642,247.00
10,811.00 162,245.06
20,548.40 147,491.00 106,472.03 669,363.91 976,258.67 1,248,124.80 231,998.07

Children and Youth Services, Georgia Department of Delinquency Prevention Program

59,343.63

59,343.63

Community Affairs, Georgia Department of Local Assistance Grants

$ 106,800.00

106,800.00

Georgia Emergency Management Authority Reimbursement for Flood Damage

14,283.80

14,283.80

Georgia Peace Officers Standards and Training Council Law Enforcement Program

231,637.08

231,637.08

- 48 -

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

SCHEDULEfS'

AGENCY/FUNDING
GRANTS Georgia Public Television Commission War on Poverty
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
CONTRACTS Education, Georgia Department of Student Information Systems
OTHER Education, Georgia Department of Special Education Administrators' Conference
Medical Assistance, Georgia Department of Reimbursement for Health Screenings
Medical College of Georgia Injury Prevention

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

1,700.00

$

1,700.00

$ 1,655,005.23

1,655,005.23

10,000.00

10,000.00

2,025.00 3,748.90 27,000.00 _ _ _ _ _ _ _ _ _ _

2,025.00 3,748.90 27,000.00

$ 89,573,577.77 $ 6,442,323.51 $ 1,761,805.23 $ 97,777,700.51

(1) These funds are designated for John 5. Davidson Fine Arts Magnet High School - 1995 Georgia School of Excellence

See notes .to the general purpose financial statements.

- 49 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE
YEAR ENDED JUNE 30. 1995

SCHEDULE"r

Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax
Other Donations Gate Receipts Indirect Cost Special Revenue Fund Interest Earned lost and Damaged Books R.E.A.P. Westinghouse Savannah River Company Rents Revenue in lieu of Taxes Richmond County Board of Commissioners Sales Breakfast Lunches School Assets Tuition Other

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTAL

$ 51.266.798.71 35,478.71 130,819.76

$ 2.793.147.13
2.043.07 7.118.97

$ 2.793.147.13 51.266.798.71 37,521.78 137,938.73

92,421.61 $ 344.037.84

148.149.03 1.726,235.73
33,965.94

173,179.63 $ 39.940.54

$ 137,426.01

603.00 2,583.59

93,024.61 344.037.84
148,149.03 2,079,365.50
33,965.94

53,680.33 54,140.10

53,680.33 54,140.10

40,795.54

14,160.00 263,902.35
84,950.16

413,046.33 1.994,833. 71
15,749.72

40,795.54
413,046.33 1.994.833. 71
14.160.00 263,902.35 100,699.88

$ 53,945,497.97 $ 2,940,847.23 $ 39,940.54 $ 2,939,735.18 $

3,186.59 $ 59,869,207.51

See notes to the general purpose financial statements.

- 50 -

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

SCHEDULE "8"

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

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 96,573,588.02 $ 10,933,874.97 $ 107,507,462.99

25,651,432.67

2,714,480.99

28,365,913.66

341,196.11

167,947.69

509,143.80

1,309,578.65

865,246.69

2,174,825.34

51,395.49

51,395.49

354,546.03

60,503.25

415,049.28

901,873.20

67,939.45

969,812.65

232,095.86

27,524.93

259,620.79

313,282.72

4,005.00

317,287.72

469,110.89

41,064.42

510,175.31

34,678.02

34,678.02

5,095,905.41

1,809,299.26

6,905,204.67

4,229,263.38

26,128.38

4,255,391.76

5,195,400.54

5,195,400.54

1,953,594.32

9,333.30

1,962,927.62

88,422.50

42,439.24

130,861.74

8,557.42

139,591.61

148,149.03

229,799.39

154,663.14

384,462.53

1,589,815.95 1,497,308.13 2,599,274.93

51,497.17 2,763,582.78

1,641,313.12 1,497,308.13 5,362,857.71

Total Expenditures

$ 143,490,041.07 $ 25,109,200.83 $ 168,599,241.90

See notes to the general purpose financial statements. - 51 -

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

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Other Purchased Services Supplies Books, Textbooks and Periodicals Dues and Fees Other Expenditures
Nonoperating Costs Equipment
Total Expenditures

ALGEBRA CLASSROOMS

ALTERNATIVE SCHOOL
PROGRAM

DISTANT LEARNING

$

64,885.30 $

48,659.93

$

20,548.40

27,718.23

54,887.47

57,812.10

$

20,548.40 $ 147,491.00 $ 106,472.03

See notes to the general purpose financial statements. - 52 -

SCHEDULE "9"

INSTRUCTIONAL TECHNOLOGY

MEDIA CENTER AND
LIBRARY EQUIPMENT

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

TOTAL

$

$

669,363.91 $ ---9-7-6,-25-8.-67-

$

669,363.91 $

976,258.67 $

773,611.67 202,802.20
16,930.08
1,639.54 $ 5,321.71 229,712.46 2,335.91 1,050.00 14,721.23

$
25,761.40 206,236.67

773,611.67 202,802.20
16,930.08
140,946.17 5,321.71
484,215.76 2,335.91 1,050.00
14,721.23

1,758,322.15

1,248,124.80 $

231,998.07 $ 3,400,256.88

- 53 -

EXPENDITURES
Operating Costs Scholarships

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULE "1 O"
$ ====1,=75=6=.0=0

See notes to the general purpose financial statements.
- 54 -

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

SCHEDULE "11"

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

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF THIRTEEN WEIGHTED PROGRAMS

$ 71,524,035.00 $

2,451,953.00

$ 82,915,092.82
4,633,152.74 $ ----3',9-2-1',5-2-4.-98-
$ 87,548,245.56

-1,537,524.37 $ 86,010,721.19

$

0.00

$

=

=

=

=

=

0.00 ==

See notes to the general purpose financial statements. - 55 -

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

!Jf;;NEBA!. AND CAREER f;;DUCATION PROGRAMS Kindergarten r) Grades 1 - 3 r) Sub-Total. K-3 Grades 4 - 5 r) Grades 6 - 8 r) Grades 9-12 r) High School Laboratories (") Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I r) Category II (*) Category Ill (*) 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

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 6,426,998.00

$ 5,784,298.20 $

16,532,377.00

14,879,139.30

$ 22,959,375.00 90 $ 20,663,437.50 $

8,352,310.00 90

7,517,079.00

12,890,073.00 90

11,601,065.70

7,623,245.00 90

6,860,920.50

5,883,667.00 90

5,295,300.30

3,123,459.00 90

2,811,113.10

$ 60,832,129.00

$ 54,748,916.10 $

0.00 0.00 0.00 0.00 0.00 0.00 0.00 740,691.00 740,691.00

$ 5,573,530.00

$ 5,016,177.00 $

0.00

$ 5,573,530.00 90 $ 5,016,177.00 $

387,566.00 90

348,809.40

$ 5,961,096.00

$ 5,364,986.40 $

$ 1,417,015.00 90 $ 1,275,313.50 $

$ 68.210,240.00

$ 61,389,216.00 $

0.00 0.00 0.00 0.00 740,691.00

$ 2,007,897.00 90 $ 1,807,107.30 $

565,207.00 90

508,686.30

$ 2,573,104.00

$ 2,315,793.60 $

0.00 0.00
0.00

$ 70.783,344.00

$ 63,705,009.60 $

740,691.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development (*) Identifies Thirteen Weighted Programs. See notes to the general purpose financial statements.

$

192,916.00

624,998.00

$

192,916.00 $

624,998.00

0.00 0.00

$

817,914.00 100 $

817,914.00 $=====0=.0=0

- 56 -

SCHEDULE "12"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 5,784,298.20 $ 14,879,139.30
$ 20,663,437.50 $ 7,517,079.00
11,601,065.70 6,860,920.50 5,295,300.30 3,551,804.10
$ 55,489,607.10 $

7,186,157.95 $ 21,030,240.28 28,216,398.23 $
9,487,416.37 13,217,689.95 10,482,001.70
6,133,909.14 3,714,044.04 71,251,459.43 $

207,406.32 $ 7,393,564.27

582,571.20

21,612,811.48

789,977.52 $ 29,006,375.75 $

491,415.48

9,978,831.85

677,171.63

13,894,861.58

797,368.83

11,279,370.53

533,133.18

6,667,042.32

423,565.41

4,137,609.45

3,712,632.05 $ 74,964,091.48

0.00 0.00 0.00 0.00 0.00 0.00

$ 5,016,177.00 $

301,931.11 $ 1,560,708.62 4,108,647.74
532,219.49

24,021.33 $ 32,836.77 60,724.71 14,412.17

325,952.44 1,593,545.39 4,169,372.45
546,631.66

$ 5,016,177.00 $

6,503,506.96 $

131,994.98 $ 6,635,501.94

0.00

348,809.40

296,541.18

55,643.41

352,184.59

0.00

$ 5,364,986.40 $ 6,800,048.14 $

187,638.39 $ 6,987,686.53

$ 1,275,313.50 $ 1,464,584.64 $

21,254.54 $ 1,485,839.18

0.00

$ 62,129,907.00 $ 79,516,092.21 $ 3,921,524.98 $ 83,437,617.19

$ 1,807,107.30 $

3,399,000.61

$ 3,399,000.61

0.00

508,686.30

$

711,627.76

711,627.76

0.00

$ 2,315,793.60 $ 3,399,000.61 $

711,627.76 $ 4,110,628.37

$ 64,445,700.60 $ 82,915,092.82 $ 4,633,152.74 $ 87,548,245.56 $

0.00

$

192,916.00

624,998.00

$ ==8=17=',9=1=4=.00=

$

489,623.09 $

489,623.09

366,718.80

366,718.80

$

856,341 .89 $

856,341.89 $ ======0=.00=

- 57 -

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

SCHEDULE 13"

BOARD MEMBER ADDRESS
Mr. Kenneth Echols, President (*) 2924 Foxhall Circle Augusta, Georgia 30907
Mr. Andrew A. Jefferson, Vice President (*) 2653 Portsmouth Place Hephzibah, Georgia 30815
Mrs. B. J. Annis 1309 Glenn Avenue Augusta, Georgia 30904
Mr. Jeff Annis (*) 1323 Glenn Avenue Augusta, Georgia 30904
Mrs. Cherie H. Foster (*) 924 Avacado Street Augusta, Georgia 30909
Mr. Johnnie Jackson (*) 1370 Dewitt Street Augusta, Georgia 30901
Mr. Bill Lee, IV 635 Canterbury Drive Augusta, Georgia 30909
Mr. Y. N. Myers, Jr. (*) 3164 Truxton Road Augusta, Georgia 30906
Mrs. Mary L. Oglesby (*) 2509 Church Street Hephzibah, Georgia 30815
Mrs. Barbara Padgett (*) 3533 Richmond Hill Road Augusta, Georgia 30906
Mrs. Kingsley S. Riley (*) 2030 Steiner Avenue Augusta, Georgia 30901
Mr. Adna L. Stein (*) P. 0. Box543 Augusta, Georgia 30903
Dr. Justine W. Washington 1228 Kent Street Augusta, Georgia 30901

(*) Denotes Board Members Serving as of June 30, 1995 See notes to the general purpose financial statements.

- 58 -

COMPENSATION

TRAVEL

$

2,502.00 $

707.55

4,248.00

2,057.00

2,331.00

1,665.00

703.30

3,996.00

743.93

1,998.00

819.29

1,998.00

3,996.00

2,832.00

3,996.00

699.05

4,248.00

611.28

3,996.00

690.09

3,996.00

60.00

2,502.00

$

------- 41,472.00 $

9,923.49

SECTION II COMPLIANCE

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 1, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Richmond County Board of Education
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 Richmond County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 1, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance with laws, regulations, contracts, and grants applicable to Richmond 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.

95CRL-25

Material instances of noncompliance consist of failures to follow requirements or violations of prohibitions, contained in laws, regulations, contracts, or grants, that cause us to conclude that the aggregation of the misstatements resulting from those failures or violations is material to the general purpose financial statements. As disclosed in the Schedule of Findings and Improper or Questioned Costs, the results of our tests of compliance disclosed an instance of noncompliance that may be material to the general purpose financial statements but for which the ultimate resolution cannot presently be determined. Accordingly, no provision for any liability that may result has been recognized in the Board's general purpose financial statements.
We considered this material instance ofnoncompliance in forming our opinion on whether the fiscal year 1995 general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated March 1, 1996 on those general purpose financial statements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
t:f'~~
Claude L. Vickers State Auditor
CLV:gp 95CRL-25

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 1, 1996

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

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 Richmond County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 1, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

(I) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

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

95CRL-50

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

CLV:gp 95CRL-50

Claude L. Vickers State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 1, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Richmond County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 1, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We also have audited the Richmond County Board of Education's compliance with the requirements governing:

{l) 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 each of its major Federal financial assistance programs which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1995. The management of the Richmond County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

95CRL-IO0

Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of the Office of Management and Budget (0MB) Circular A-128,
"Audits ofState and Local Governments". Those standards of 0MB Circular A-128 require that we plan and
perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about_ the Richmond County Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Richmond County Board of Education's compliance with the requirements listed in the second paragraph of this report.
The results of our audit procedures for major programs as administered by the Richmond County Board of Education disclosed a material instance of noncompliance with a specific requirement as described in the Schedule of Findings and Improper or Questioned Costs. In our opinion, the Richmond County Board of Education's compliance with this requirement is necessary for the Board to comply with the requirements applicable to the major programs as described in the Schedule of Findings and Improper or Questioned Costs.
In our opinion, except for the instance of noncompliance with the requirements applicable to major programs referred to in the preceding paragraph of this report and identified in the Schedule of Findings and Improper or Questioned Costs, the Richmond 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, 1995.
Resolving the instance of noncompliance identified in the sixth paragraph of this report is primarily the responsibility ofthe Georgia Department of Education together with other providers of direct Federal funds. The determination ofwhether the identified instance of noncompliance will ultimately result in a disallowance of costs cannot presently be determined. Accordingly, no adjustment for any disallowances that may result has been made to the Federal program amounts listed in the Schedule of Federal Financial Assistance and no provision for any liability that may result from disallowances has been recognized in the Richmond County Board ofEducation's fiscal year 1995 financial statements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 95CRL-100

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 1, 1996

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

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

Ladies and Gentlemen:

We have audited the general purpose financial statements of the Richmond County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 1, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

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

( 1) Types of Services Allowed or Unallowed

(2) Eligibility

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

95CRL-120

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

SECTION III INTERNAL CONTROL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 1, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Richmond 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 Richmond County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 1, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
The management ofthe Richmond 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 of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
95ICL-4

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.
-In planning and performing our audit of the general purpose financial statements of the Richmond County Board of Education for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:
( 1) Cash and Cash Equivalents
(2) General Fixed Assets
A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above.
However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control category includes a reportable condition that is also considered to be a material weakness:
General Fixed Assets
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Richmond County Board ofEducation's financial statements and this report does not affect our report thereon dated March 1, 1996.
95ICL-4

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:gp 95ICL-4

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 1, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Richmond County Board of Education
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the Richmond County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated March 1, 1996. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Richmond County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated March 1, 1996.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Richmond County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
We did not observe the taking of the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

95ICL-7

In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 1, 1996.

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

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

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

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

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

(5) Allowable Costs/Cost Principles

(4) Reporting

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

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

95ICL-7

For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.
During the year ended June 30, 1995, the Richmond County Board ofEducation expended 88% of its total Federal financial assistance under major Federal financial assistance programs.
We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effei:;tiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control 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 that the reportable conditions described above are also considered to be material weaknesses.
These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Richmond County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated March 1, 1996.
95ICL-7

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

Respectfully submitted,

~,_,_-c..,---7

~

Claude L. Vickers State Auditor

CLV:gp 95ICL-7

SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $655.85 Audit Control Number 7211-93-02
The audit report for the year ended June 30, 1993, disclosed improper expenditures of$655.85 made from the Board's General Fund for breakfast meetings with local representatives of the Georgia General Assembly. These type expenditures are considered beyond the customary scope of expenditures of school funds for educational purposes. This questioned cost had not been resolved at June 30, 1995. Reimbursement of the $655.85 should be secured for deposit to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $244.00 Audit Control Number 7211-93-05
The audit report for the year ended June 30, 1993, disclosed improper expenditures of$244.00 made from the Board's General Fund for engraved brass trays for Board Members. Expenditures of this nature are considered beyond the customary scope of expenditures of school funds for educational purposes. This questioned cost had not been resolved at June 30, 1995. Reimbursement of the $244.00 should be secured for deposit to the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $9,230.54 Audit Control Number 7211-93-06
The audit report for the year ended June 30, 1993, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of $9,230.54 for the Staff Development - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $9,230.54 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.

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Amount: $100,773.44 Audit Control Number 7211-94-01
The audit report for the year ended June 30, 1994, noted that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$100,773.44 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $100,773.44 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.
FUND EQUITIES Excessive Principal for Refunding Bond Issue Financial Statements Finding Deleted Audit Control Number 7211-94-02
The audit report for the year ended June 30, 1994, reported that the Board issued general obligation bonds without proper public notification and for purposes contrary to Article IX, Section V, Paragraph III of the Constitution ofthe State of Georgia. During the year under review, no bond debt was issued by the Board.
AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Local Matching Funds Financial Statements Finding Resolved Audit Control Number 7211-94-03
The audit report for the year ended June 30, 1994, stated that the Board failed to transfer local matching funds from the General Fund to the Capital Projects Fund as required for the approved State Capital Outlay Project for the 1994 fiscal year. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units ofAdministration and the agreement signed by the Board to receive the funding through Georgia State Financing and Investment Commission require that the Board transfer local matching funds by year end and designate those funds by project name and number. In the year under review, the local funds were transferred as required.

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR
FEDERAL FINANCIAL REPORTS DE0106 Report not Supported by DE0 118 Report Federal Financial Assistance Finding Resolved Audit Control Number 7211-94-04
The audit report for the year ended June 30, 1994, disclosed that the Board received reimbursement of $1,536.59 for meals not actually served under the National School Lunch Program (CFDA 10.555). This amount was refunded to the Georgia Department of Education during the year under review.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7211-93-04
The audit report for the year ended June 30, 1994, noted that the management ofthe Richmond County Board ofEducation had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-93-07
The audit report for the year ended June 30, 1994, stated that the Board's property management records for the National School Lunch Program (CFDA 10.555) were incomplete and failed to meet applicable property management standards. For the year under review, the property management records for the National School Lunch Program were again incomplete and failed to meet property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA).

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-93-07
The inventory records for three schools selected for examination were deficient as follows:
1) The inventory records did not include acquisition costs, acquisition dates and serial numbers or other identifying numbers for all items.
2) Documentation could not be provided to support the deletion of an item identified as stolen during the period under review.
3) The inventory records were not updated for two items transferred between locations. 4) The inventory records included one item with two names and two decal numbers. 5) The inventory records included the incorrect decal number for one item. 6) The inventory records included one item which had no decal attached.
An inventory system should be implemented that provides for the identification of all equipment purchased, as outlined in Chapter 41 ofthe FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records.
CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7211-95-01
As of June 30, 1995, the Richmond County Board of Education failed to have its bank balances fully collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7211-95-01
"The collecting officer or officer holding public funds may not have on deposit at any time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section... The aggregate of the face value ofsuch surety bond, and the market value of securities pledged, shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance".
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments.
FEDERAL FINANCIAL REPORTS DE O106 not Supported by Accounting Records Federal Financial Assistance Major Programs Nonmaterial Noncompliance Audit Control Number 7211-95-02
A comparison of the Board's School Nutrition Claim Data Form (DE 0106) and the accounting records for the Food Distribution Program (CFDA 10.550) and the National School Lunch Program (CFDA 10.555) revealed errors in the amounts reported for the USDA Commodities ending inventory, the Average Daily Participation, the USDA Commodities received per month and food losses greater than $100.00. These errors occurred due to management's failure to adequately monitor the accuracy of reports submitted to the Georgia Department of Education in accordance with the State Agency's School Nutrition Program record keeping guide. U.S. Department ofAgriculture regulations included in 7 CFR 210.9, 3015 and 250.16 mandate that financial management systems provide for accurate, complete and current disclosure of the financial results of these U. S. Department of Agriculture programs.
Procedures should be implemented to ensure that DE O106's are accurate and verifiable to the accounting records.

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7211-95-03
The Board failed to submit a copy ofthe 1994 audit report to the U. S. Department of Agriculture from whom the Board received Summer Food Service Program (CFDA 10.559) funds. Paragraph 13fof 0MB Circular A-128 requires that recipients of Federal financial assistance submit copies of single audit reports to those agencies providing Federal financial assistance. Even though formally notified in writing of the 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. The Richmond County Board ofEducation should submit a copy of the 1994 audit report to the U. S. Department of Agriculture as required.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-95-04
Property management records maintained by the Board for the Elementary and Secondary Education Act Chapter 1 -Education ofDeprived Children Program (CFDA 84.010) were incomplete and failed to meet the property management standards as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA). The inventory records as presented for examination were deficient as follows:
1) The inventory records did not include the source offunding or the percentage of federal participation in the cost of the equipment.
2) Two equipment items with an acquisition cost in excess of $1,000.00 were not added to the inventory listing.
3) The inventory records included one item with an incorrect description and serial number. 4) A physical inventory of equipment had not been performed for the period under review as required.
An inventory system should be implemented that provides for the identification of all equipment purchased, as outlined in Chapter 41 ofthe FMGLUA. Perpetual records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year (when applicable). Periodic physical inventory counts should be performed and reconciled to the property records to ensure the accuracy of inventory records.

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

CURRENT YEAR

ELIGIBILITY

Selection ofEligible Attendance Areas

Federal Financial Assistance

Major Program

Material Noncompliance

.

Audit Control Number 7211-95-05

The Board used a combination of methods in identifying eligible attendance areas to be project areas for the Elementary and Secondary Education Act - Chapter I - Education of Deprived Children Program (CFDA 84.010). One method utilized was the 25 percent rule. As specified in 34 CFR 200.30, the Board may designate as eligible any school attendance area in which 25 percent of the children are from low-income families. The Board may use this provision only if, in each school attendance area of the Board in which Chapter 1 projects were carried out during the preceding year, the current year aggregate per pupil expenditures ofChapter 1 funds and special State compensatory education funds is at least equal to the amount spent per pupil in the preceding year.

For the year under review, the Board was unable to document that aggregate per pupil expenditures, as described above, at John W. Houghton Elementary School and Levi White Elementary School were at least equal to the amount spent per pupil at these schools in the prior fiscal year. The requirements under the 25 percent rule could, therefore, not be verified.

This condition was the result of the Board's failure to maintain adequate documentation necessary to verify the selection ofthe eligible attendance areas. The Georgia Department ofEducation should review this matter to determine if a reclaim offunds is appropriate.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

RICHMOND COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $655.85 Audit Control Number 7211-93-02
The Richmond County Board ofEducation believes it to be important to meet with our legislative delegation to discuss educational issues that are pending in the current legislative term. However, for the year ended June 30, 1995, no expenditures were made for breakfast meetings with local representatives within the Board's General Fund.
AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $244.00 Audit Control Number 7211-93-05
For the audit year ended June 30, 1993, the Richmond County Board of Education was sited for the purchase of engraved brass trays for Board Members. The Board of Education has customarily provided to retiring Board Members an engraved brass tray denoting their years of service to the Board of Education and community. For the year ended June 30, 1995, no members of the Board of Education retired.
AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $9,230.54 Audit Control Number 7211-93-06
The Georgia Department ofEducation has adjusted the FY 96 local fair share by $9,231.00. The Board's FY 96 midterm adjustment will be increased by the amount the local fair share was adjusted. These transactions will result in a net questioned cost of zero.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Amount: $100,773.44 Audit Control Number 7211-94-01
The Georgia Department of Education will adjust the local fair share by $100,773.44. The Board's midterm adjustment will be increased by the amount the local fair share was adjusted. These transactions will result in a net questioned cost of zero.

RICHMOND COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7211-93-04
The Richmond County Board of Education does not maintain a system-wide general fixed assets account group. The Board ofEducation does maintain a fixed asset property listing for all state and Federal programs, a property inventory of all school's equipment as well as a schedule of all buildings as required for insurance purposes. Due to budgetary limitations, it is not economically feasible to increase the administrative staff to expand our scope.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-93-07
The School Nutrition Program is aware of the need to strengthen inventory records for equipment and has tried to do so. Some items were purchased so many years ago that this information is no longer available to update records. We have purchased heavy duty metal decals that you cannot wash the numbers off of, but they are very heavy and do not stay on well. The health department is very picky about what we use to make the decals stick. Therefore, when the kitchen employees wash equipment or the equipment decals get moisture on them from steam, the decals come off easily. This is a constant battle to keep them on, but we will continue in our efforts. Coordinators, as part of their school reviews next year, will also do a physical inventory of equipment. Police reports will be requested immediately if any of our kitchens are broken into and equipment stolen. These steps should ensure compliance with the program requirements.
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7211-95-01
The Suntrust Bank inadvertently failed to collateralize the funds held in their institution on June 30th. The Board of Education was not notified of this omission until the audit. Since collateralization may only occur at the point required, the Board had no recourse to correct the omission. Contracts between the Board of Education and each ofits banking institutions require compliance with the Official Code of Georgia Annotated Section 45-8-12.

RICHMOND COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
FEDERAL FINANCIAL REPORTS DE O106 not Supported by Accounting Records Federal Financial Assistance Major Programs Nonmaterial Noncompliance Audit Control Number 7211-95-02
At the end ofthe fiscal year, the School Nutrition Program will reconcile all USDA Commodities received per month with the records from USDA. The program will also reconcile the ending inventory of commodities before Accounting closes the books.
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7211-95-03
This was an oversight. The audit report has now been submitted to the U. S. Department of Agriculture for Fiscal Year 1994.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7211-95-04
1. The inventory records did include source of funding, but did not include the percentage of Federal participants in the cost ofthe equipment.
2. All items with an acquisition cost in excess of $1,000 will be included in the inventory listing. 3. This item will be pursued and corrected. 4. This omission occurred as a result of the illness of the Inventory Clerk. Management will evaluate and
make changes for future inventories.
ELIGIBILITY Selection ofEligible Attendance Areas Federal Financial Assistance Major Program Material Noncompliance Audit Control Number 7211-95-05
In the year under review, the Board did in fact use a combination of methods in identifying eligible attendance areas to be project areas for the Secondary Education Act/Chapter I Education of Deprived Children (CFDA 84.010). We used the incidence of poverty as indicated by the number of free and reduced lunches and the

RICHMOND COUNTY BOARD OF EDUCATION PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
ELIGIBILITY Selection ofEligible Attendance Areas Federal Financial Assistance Major Program Material Noncompliance Audit Control Number 7211-95-05
25 percent rule. The aggregate per pupil expenditure was calculated and funds were allocated to higher ranking schools at an equal to or a higher level as by law before the 25% rule was used. These funds were allocated at a per pupil amount greater than the preceding year.
However, the following situations occurred:
1. Houghton - Title I teacher retired. Two teachers were hired for Title I positions, however, these two teachers were inadvertently paid from local funds instead of Title I funds.
2. In the case ofLevi White, a similar situation occurred. A Title I teacher resigned during the school year and a teacher with less certification and experience replaced her.
All efforts will be expended to resolve these findings for Title I.